Buffett Brain · Research note
Score updated 22 Oct 2026
SYK· Healthcare
Stryker
Stryker's strong operating margins contrast with its high valuation and below-quintile ROIC, raising questions about its moat.
Buffett fit
Partial fit
Owner
49
Durability
89
Management
59
Price
13
Score updated 22 Oct 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Healthcare stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If we owned Stryker entirely, we'd focus on maintaining its strong and exploring ways to improve , currently at 9.8% TTM.
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Stryker's durability is supported by its consistent profitability over the past five years and an EPS max decline of only -5.76%.
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Stryker's management has shown discipline with a share count CAGR of 0.34% and a modest yield of 0.1%.
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Stryker's current valuation appears stretched with an earnings yield of 2.83% and an yield of 3.63%, both below the 8-10% range preferred for a no-brainer entry.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
8- 1 of 21.3% is top-quintile in the healthcare sector.
- 2Net margin of 13.2% exceeds the sector's top-quintile cutoff.
- 3Revenue CAGR of 10.07% indicates strong growth capability.
- 4EPS CAGR of 12.55% supports a robust earnings trajectory.
Concerns
7- 1 of 9.8% is below the sector's top-quintile cutoff of 10.7%.
- 2High of 35.3 suggests expectations of significant future growth.
- 3 yield of 3.63% is below the desired 8-10% range.
- 4EV/ of 26.4 indicates a premium valuation.
Price history
$307+15.4%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Stryker Corporation operates in the medical technology sector, divided into MedSurg and Neurotechnology, and Orthopaedics and Spine segments. The company generates revenue from selling implants for joint replacements and trauma surgeries, as well as surgical equipment and navigation systems. With a 21.3% , Stryker demonstrates strong profitability. The business benefits from high of 63.7%, indicative of its ability to price its products effectively.
How this analysis has moved
The call has held across 2 reviews.
Oct 18, 2026 → Oct 22, 2026
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Healthcare
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