SYK - Embedded Expectations Analysis - 2019 10 11
Stryker Corporation (SYK:USA) currently trades near historical highs relative to UAFRS-based (Uniform) Earnings, with a 31.8x Uniform P/E. At these levels, markets are pricing fairly bullish expectations for the firm, but management may be concerned about their acquisitions, international regulation, and EPS guidance.Specifically, management may lack confidence in their ability to continue sourcing profitable acquisition opportunities, and they may be concerned about continued regulatory headwinds in their international Shoulder business. Furthermore, they may lack confidence in their ability to sustain recent organic sales growth, Orthopedics growth, and Mako robot demand. Finally, they may be concerned about the sustainability of demand for their NOVADAQ product lines, and they may lack confidence in their ability to meet their full year sales and diluted EPS guidance.
Stryker is a medical technology company. The company provides products and services in orthopaedics, medical and surgical, and neurotechnology and spine. The company's Orthopaedics products consist of implants used in hip and knee joint replacements and trauma and extremities surgeries. The company's MedSurg products include surgical equipment and navigation systems, endoscopic and communications systems, patient handling, emergency medical equipment and intensive care disposable products, reprocessed and remanufactured medical devices and other medical device products used in a range of medical specialties. The company's Neurotechnology and Spine products include neurosurgical, neurovascular, and spinal implant devices.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.