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  "documentTitle": "Stryker Corp. (SYK)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-04-06 00:00:00",
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  "pageNumber": 22,
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  "notes": "The slide uses a red flag icon and red boxes to draw attention to the suspension of share repurchases and the high volume of acquisitions.",
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      "kind": "callout",
      "text": "Ceasing stock repurchase to offset employee stock dilution is a sign of financial stress",
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      "text": "Spruce Point believes that since CEO Lobo's first year of leadership in 2013, Stryker has run a dangerously levered strategy that is starting to show diminishing returns and hit a wall. Stryker has deployed 60% of cumulative capital raised towards acquisitions. Its second biggest capital priority has been dividends. As a sign of financial stress, Stryker has recently suspended share repurchases. We believe Stryker has underspent on capex, while overpaying for acquisitions that it has struggled to properly integrate. As a result, we will lay out the case that Stryker is now caught in a large margin squeeze from years of mismanagement.",
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      "kind": "metric",
      "text": "Capital Allocation: $16,479",
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      "text": "Source: Stryker financials\n1) In 2017, Stryker adopted ASU 2016-09 related to employee share-based payment accounting. Payments for employee stock programs are being reported as financing cash flows, but we reclassify them as operating cash flows\n2) Includes payments for non-controlling interests in 2017 and 2018",
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      "kind": "table",
      "text": "Stryker's Sources And Uses of Capital Under CEO Lobo's Tenure",
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      "kind": "title",
      "text": "Stryker's Financial Strategy",
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