NEW YORK ( TheStreet) -- Stryker Corporation (NYSE: SYK) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- The revenue growth came in higher than the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 1.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 3.26, which clearly demonstrates the ability to cover short-term cash needs.
- Net operating cash flow has significantly increased by 574.28% to $236.00 million when compared to the same quarter last year. In addition, STRYKER CORP has also vastly surpassed the industry average cash flow growth rate of -63.68%.
- The gross profit margin for STRYKER CORP is rather high; currently it is at 69.20%. Regardless of SYK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SYK's net profit margin of 13.88% compares favorably to the industry average.
--Written by a member of TheStreet Ratings Staff.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.