STERIS PLC (STE) Stock Fundamental Analysis
NYSE:STE - IE00BFY8C754 - Common Stock
245.06 USD
+0.29 (+0.12%)
245.06 USD
0 (0%)
STE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 190 industry peers in the Health Care Equipment & Supplies industry. While STE has a great profitability rating, there are some minor concerns on its financial health. STE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
STE had positive earnings in the past year.
STE had a positive operating cash flow in the past year.
In the past 5 years STE has always been profitable.
Each year in the past 5 years STE had a positive operating cash flow.
1.2 Ratios
STE has a Return On Assets of 6.21%. This is amongst the best in the industry. STE outperforms 84.21% of its industry peers.
STE's Return On Equity of 9.28% is amongst the best of the industry. STE outperforms 83.16% of its industry peers.
With an excellent Return On Invested Capital value of 14.52%, STE belongs to the best of the industry, outperforming 95.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STE is in line with the industry average of 8.46%.
The last Return On Invested Capital (14.52%) for STE is above the 3 year average (7.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 9.28% | ||
| ROIC | 14.52% |
ROA(3y)3.49%
ROA(5y)3.73%
ROE(3y)5.69%
ROE(5y)6.21%
ROIC(3y)7.07%
ROIC(5y)6.29%
1.3 Margins
STE has a better Profit Margin (11.61%) than 86.84% of its industry peers.
In the last couple of years the Profit Margin of STE has declined.
STE's Operating Margin of 31.76% is amongst the best of the industry. STE outperforms 98.42% of its industry peers.
STE's Operating Margin has been stable in the last couple of years.
The Gross Margin of STE (43.13%) is worse than 64.21% of its industry peers.
STE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 31.76% | ||
| PM (TTM) | 11.61% | ||
| GM | 43.13% |
OM growth 3Y24.25%
OM growth 5Y0.07%
PM growth 3Y28.39%
PM growth 5Y-3.5%
GM growth 3Y0.03%
GM growth 5Y0.21%
2. Health
2.1 Basic Checks
STE has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
STE has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, STE has more shares outstanding
The debt/assets ratio for STE has been reduced compared to a year ago.
2.2 Solvency
STE has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 2.09 | ||
| Altman-Z | N/A |
ROIC/WACC2.07
WACC7.02%
2.3 Liquidity
A Current Ratio of 2.22 indicates that STE has no problem at all paying its short term obligations.
STE has a Current ratio (2.22) which is comparable to the rest of the industry.
STE has a Quick Ratio of 1.53. This is a normal value and indicates that STE is financially healthy and should not expect problems in meeting its short term obligations.
STE has a Quick ratio (1.53) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.35% over the past year.
The Earnings Per Share has been growing by 10.61% on average over the past years. This is quite good.
The Revenue has grown by 8.52% in the past year. This is quite good.
STE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.49% yearly.
EPS 1Y (TTM)6.35%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%9.35%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%8.72%
3.2 Future
STE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.36% yearly.
STE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.55% yearly.
EPS Next Y9.15%
EPS Next 2Y9.32%
EPS Next 3Y9.33%
EPS Next 5Y7.36%
Revenue Next Year8.36%
Revenue Next 2Y7.2%
Revenue Next 3Y7.1%
Revenue Next 5Y6.55%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.69, STE can be considered very expensive at the moment.
Based on the Price/Earnings ratio, STE is valued a bit cheaper than 77.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.13, STE is valued at the same level.
A Price/Forward Earnings ratio of 21.95 indicates a rather expensive valuation of STE.
Compared to the rest of the industry, the Price/Forward Earnings ratio of STE indicates a somewhat cheap valuation: STE is cheaper than 78.42% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, STE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 21.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STE is valued cheaper than 90.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STE is valued cheaply inside the industry as 83.16% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 10.62 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates STE does not grow enough to justify the current Price/Earnings ratio.
STE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.81
PEG (5Y)2.42
EPS Next 2Y9.32%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
STE has a Yearly Dividend Yield of 1.03%.
Compared to an average industry Dividend Yield of 1.73, STE pays a better dividend. On top of this STE pays more dividend than 94.21% of the companies listed in the same industry.
With a Dividend Yield of 1.03, STE pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
On average, the dividend of STE grows each year by 9.04%, which is quite nice.
STE has paid a dividend for at least 10 years, which is a reliable track record.
STE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.04%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
34.74% of the earnings are spent on dividend by STE. This is a low number and sustainable payout ratio.
STE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP34.74%
EPS Next 2Y9.32%
EPS Next 3Y9.33%
245.06
+0.29 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners94.58%
Inst Owner Change-1.71%
Ins Owners0.21%
Ins Owner Change1.78%
Market Cap24.14B
Analysts80
Price Target277.94 (13.42%)
Short Float %1.01%
Short Ratio1.64
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Yearly Dividend2.23
Dividend Growth(5Y)9.04%
DP34.74%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.46%
Min EPS beat(2)2.36%
Max EPS beat(2)4.57%
EPS beat(4)2
Avg EPS beat(4)1.41%
Min EPS beat(4)-1.06%
Max EPS beat(4)4.57%
EPS beat(8)6
Avg EPS beat(8)2.89%
EPS beat(12)8
Avg EPS beat(12)2.14%
EPS beat(16)10
Avg EPS beat(16)2.44%
Revenue beat(2)1
Avg Revenue beat(2)0.43%
Min Revenue beat(2)-0.23%
Max Revenue beat(2)1.1%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)0.24%
Revenue beat(12)5
Avg Revenue beat(12)0.57%
Revenue beat(16)8
Avg Revenue beat(16)0.27%
PT rev (1m)1.25%
PT rev (3m)7.77%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)0.48%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)1.76%
Revenue NY rev (1m)1.36%
Revenue NY rev (3m)2.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.69 | ||
| Fwd PE | 21.95 | ||
| P/S | 4.33 | ||
| P/FCF | 26.56 | ||
| P/OCF | 19.09 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.62 |
EPS(TTM)9.54
EY3.89%
EPS(NY)11.16
Fwd EY4.55%
FCF(TTM)9.23
FCFY3.77%
OCF(TTM)12.84
OCFY5.24%
SpS56.57
BVpSN/A
TBVpSN/A
PEG (NY)2.81
PEG (5Y)2.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.21% | ||
| ROE | 9.28% | ||
| ROCE | 18.67% | ||
| ROIC | 14.52% | ||
| ROICexc | 14.96% | ||
| ROICexgc | 43.57% | ||
| OM | 31.76% | ||
| PM (TTM) | 11.61% | ||
| GM | 43.13% | ||
| FCFM | 16.31% |
ROA(3y)3.49%
ROA(5y)3.73%
ROE(3y)5.69%
ROE(5y)6.21%
ROIC(3y)7.07%
ROIC(5y)6.29%
ROICexc(3y)7.22%
ROICexc(5y)6.45%
ROICexgc(3y)21.51%
ROICexgc(5y)20.23%
ROCE(3y)9.09%
ROCE(5y)8.09%
ROICexcg growth 3Y22.57%
ROICexcg growth 5Y0.42%
ROICexc growth 3Y37.33%
ROICexc growth 5Y-1.39%
OM growth 3Y24.25%
OM growth 5Y0.07%
PM growth 3Y28.39%
PM growth 5Y-3.5%
GM growth 3Y0.03%
GM growth 5Y0.21%
F-Score7
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 2.09 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 74.67% | ||
| Cap/Sales | 6.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 56.3% | ||
| Profit Quality | 140.53% | ||
| Current Ratio | 2.22 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | N/A |
F-Score7
WACC7.02%
ROIC/WACC2.07
Cap/Depr(3y)68.98%
Cap/Depr(5y)73.62%
Cap/Sales(3y)7.03%
Cap/Sales(5y)7.01%
Profit Quality(3y)219.23%
Profit Quality(5y)186.77%
High Growth Momentum
Growth
EPS 1Y (TTM)6.35%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%9.35%
EPS Next Y9.15%
EPS Next 2Y9.32%
EPS Next 3Y9.33%
EPS Next 5Y7.36%
Revenue 1Y (TTM)8.52%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%8.72%
Revenue Next Year8.36%
Revenue Next 2Y7.2%
Revenue Next 3Y7.1%
Revenue Next 5Y6.55%
EBIT growth 1Y94.52%
EBIT growth 3Y31.69%
EBIT growth 5Y12.57%
EBIT Next Year42.03%
EBIT Next 3Y17.42%
EBIT Next 5Y15.86%
FCF growth 1Y84.1%
FCF growth 3Y25.12%
FCF growth 5Y15.65%
OCF growth 1Y56.81%
OCF growth 3Y18.8%
OCF growth 5Y14.22%