There is a lot of uncertainty surrounding health care today. Therefore, I believe it is one sector where bargains can be found. Consequently, I offer Stryker
Stryker is a leader in developing orthopedic implants, MedSurg equipment, neurotechnology and spine products. Approximately 45% of its revenue come from orthopedic implants, MedSurg equipment at 38%, and neurotechnology and spine products 17%.
Stryker has been actively launching new products to strengthen its already extensive portfolio that includes artificial hips, knees and other orthopedic implants. Recent press releases include: On March 15 Stryker announced the launch of the ES2 Spinal System, on March 13 it introduced the ICONIX All Suture Anchor Platform, and on March 11 Stryker announced the launching of the Universal SMARTLock Hybrid MMF System.
Additionally, Stryker recently acquired Trauson Holdings Company Limited, a leading trauma manufacturer in China and a major competitor in the spine segment. Stryker believes that with this acquisition it is well-positioned to expand in China and other emerging markets regions.
Consequently, worldwide demographics and Stryker's leading innovations in medical development and manufacturing position the company for continued growth.
Stryker -- Fundamentally Attractive
This article is intended to look at Stryker's "essential fundamentals at a glance" through the lens of the F.A.S.T. Graphs earnings and price correlated research tool. Before analyzing a company for investment, it's important to have a perspective on how well the business has performed. Because, at the end of the day, if you are an investor you are buying the business. The orange line on the graph plots earnings per share since 1999. A quick glance vividly reveals the excellent and consistent historical operating record of Stryker.
A Live F.A.S.T. Graphs on Stryker
The F.A.S.T. Graphs on Stryker illustrates how undervalued this company currently is. Stryker can be purchased on sale based on the following fundamental metrics:
- a PE ratio of 15.8 which is low relative to its historical norm
- a price to sales ratio of 2.88, also at the low end of historical norms
- a current dividend yield of 1.6%
- A low payout ratio of approx. 20%, indicating room for future dividend growth
Moreover, in order to conduct your own research and get a clearer perspective on Stryker's valuation, click on this link that will take you to a free, live and fully functioning FAST Graphs on Stryker. Run this "tool to think with" through its paces.
Use the tan navigation bar to the left of the graphs and draw multiple graphs ranging from two to 20 years of history. Discover how this tool instantly provides a clear picture of the business behind the stock and dynamically re-evaluates valuation and reveals the clear correlation between the company's earnings and price.
Note: This link will be live for 90 days beginning April 4. For more advanced instructions on how to utilize the live graph follow this link.
Summary and Conclusions
Stryker is my dividend growth stock value idea of the week. At its current quotation, Stryker is trading at what currently appears to be a compelling valuation.
Additionally, the opportunity for long-term dividend growth appears well-defined. Consequently, I believe this is an attractive candidate worthy of further due diligence.
At the time of publication the author was long SYK.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.
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