Why Quality-Oriented Investors Should Consider STERIS PLC (NYSE:STE).

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if STERIS PLC (NYSE:STE) is suited for quality investing. Investors should of course do their own research, but we spotted STERIS PLC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Exploring Why STE Holds Appeal for Quality Investors.

• STE has shown strong performance in revenue growth over the past 5 years, with a 13.06% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• With a robust ROIC excluding cash and goodwill at 23.37%, STE showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of STE stands at 2.88, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 180.0%, STE highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• STE has consistently achieved strong EBIT growth over the past 5 years, with a 14.14% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of STE has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What is the full fundamental picture of STE telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

STE gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 189 industry peers in the Health Care Equipment & Supplies industry. STE has an excellent profitability rating, but there are some minor concerns on its financial health. STE is not valued too expensively and it also shows a decent growth rate.

Our latest full fundamental report of STE contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.