Sector: Health Care | Focus: Health Care Equipment
HQ: Kalamazoo, Michigan
Financial Risks
Stryker faces potential product liability claims, legal proceedings, and regulatory matters (e.g., FCPA investigations) with uncertain outcomes. These could lead to significant expenses and negatively impact future operating results and cash flow. Goodwill impairment is a risk, particularly for the Spine reporting unit, due to competitive pressures and potential reorganization. Changes in assumptions for future cash flows and discount rates could also lead to impairment charges. Foreign currency exchange rate fluctuations pose a risk to operating results.
Financial Upside
Stryker experienced sales growth of 11.9% in the three months of 2024 and 10.1% in the nine months, exceeding 2023 figures. Acquisitions, including those with contingent consideration, are expanding product portfolios and market presence. Increased interest income and lower operating expenses contribute to improved operating income margins. Strong investment-grade debt ratings suggest potential for refinancing.