STERIS PLC (STE) Fundamental Analysis & Valuation

NYSE:STE • IE00BFY8C754

Current stock price

224.465 USD
+2.74 (+1.23%)
Last:

This STE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. STE Profitability Analysis

1.1 Basic Checks

  • In the past year STE was profitable.
  • STE had a positive operating cash flow in the past year.
  • STE had positive earnings in each of the past 5 years.
  • In the past 5 years STE always reported a positive cash flow from operatings.
STE Yearly Net Income VS EBIT VS OCF VS FCFSTE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

1.2 Ratios

  • STE's Return On Assets of 6.68% is amongst the best of the industry. STE outperforms 85.71% of its industry peers.
  • STE has a better Return On Equity (9.89%) than 83.07% of its industry peers.
  • The Return On Invested Capital of STE (8.65%) is better than 85.19% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for STE is below the industry average of 9.31%.
  • The 3 year average ROIC (7.07%) for STE is below the current ROIC(8.65%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 6.68%
ROE 9.89%
ROIC 8.65%
ROA(3y)3.49%
ROA(5y)3.73%
ROE(3y)5.69%
ROE(5y)6.21%
ROIC(3y)7.07%
ROIC(5y)6.29%
STE Yearly ROA, ROE, ROICSTE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8 10

1.3 Margins

  • STE has a Profit Margin of 12.15%. This is amongst the best in the industry. STE outperforms 85.71% of its industry peers.
  • STE's Profit Margin has declined in the last couple of years.
  • STE has a better Operating Margin (18.46%) than 89.95% of its industry peers.
  • In the last couple of years the Operating Margin of STE has remained more or less at the same level.
  • STE has a Gross Margin of 44.11%. This is in the lower half of the industry: STE underperforms 62.43% of its industry peers.
  • STE's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 18.46%
PM (TTM) 12.15%
GM 44.11%
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%
STE Yearly Profit, Operating, Gross MarginsSTE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. STE Health Analysis

2.1 Basic Checks

  • STE has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • STE has less shares outstanding than it did 1 year ago.
  • STE has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, STE has an improved debt to assets ratio.
STE Yearly Shares OutstandingSTE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M
STE Yearly Total Debt VS Total AssetsSTE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • STE has an Altman-Z score of 5.21. This indicates that STE is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of STE (5.21) is better than 80.95% of its industry peers.
  • STE has a debt to FCF ratio of 2.07. This is a good value and a sign of high solvency as STE would need 2.07 years to pay back of all of its debts.
  • STE has a Debt to FCF ratio of 2.07. This is amongst the best in the industry. STE outperforms 87.30% of its industry peers.
  • STE has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of STE (0.27) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.07
Altman-Z 5.21
ROIC/WACC1.21
WACC7.13%
STE Yearly LT Debt VS Equity VS FCFSTE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 2.48 indicates that STE has no problem at all paying its short term obligations.
  • STE's Current ratio of 2.48 is in line compared to the rest of the industry. STE outperforms 48.15% of its industry peers.
  • STE has a Quick Ratio of 1.75. This is a normal value and indicates that STE is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.75, STE perfoms like the industry average, outperforming 47.09% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.48
Quick Ratio 1.75
STE Yearly Current Assets VS Current LiabilitesSTE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. STE Growth Analysis

3.1 Past

  • STE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.80%, which is quite good.
  • The Earnings Per Share has been growing by 10.61% on average over the past years. This is quite good.
  • Looking at the last year, STE shows a quite strong growth in Revenue. The Revenue has grown by 14.39% in the last year.
  • Measured over the past years, STE shows a quite strong growth in Revenue. The Revenue has been growing by 12.49% on average per year.
EPS 1Y (TTM)9.8%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%9.05%
Revenue 1Y (TTM)14.39%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%9.17%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.57% on average over the next years.
  • The Revenue is expected to grow by 6.66% on average over the next years.
EPS Next Y10.3%
EPS Next 2Y9.55%
EPS Next 3Y9.63%
EPS Next 5Y6.57%
Revenue Next Year8.99%
Revenue Next 2Y7.65%
Revenue Next 3Y7.42%
Revenue Next 5Y6.66%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
STE Yearly Revenue VS EstimatesSTE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B
STE Yearly EPS VS EstimatesSTE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8 10

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4

4. STE Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 22.27, STE is valued on the expensive side.
  • 77.25% of the companies in the same industry are more expensive than STE, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of STE to the average of the S&P500 Index (25.50), we can say STE is valued inline with the index average.
  • STE is valuated rather expensively with a Price/Forward Earnings ratio of 20.03.
  • STE's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. STE is cheaper than 77.78% of the companies in the same industry.
  • STE's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.67.
Industry RankSector Rank
PE 22.27
Fwd PE 20.03
STE Price Earnings VS Forward Price EarningsSTE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • STE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STE is cheaper than 78.31% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, STE is valued cheaply inside the industry as 83.07% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 24.01
EV/EBITDA 14.87
STE Per share dataSTE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • STE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.16
PEG (5Y)2.1
EPS Next 2Y9.55%
EPS Next 3Y9.63%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. STE Dividend Analysis

5.1 Amount

  • STE has a Yearly Dividend Yield of 1.16%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 0.24, STE pays a better dividend. On top of this STE pays more dividend than 93.65% of the companies listed in the same industry.
  • STE's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 1.16%

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
STE Yearly Dividends per shareSTE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 33.34% of the earnings are spent on dividend by STE. This is a low number and sustainable payout ratio.
  • The dividend of STE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP33.34%
EPS Next 2Y9.55%
EPS Next 3Y9.63%
STE Yearly Income VS Free CF VS DividendSTE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
STE Dividend Payout.STE Dividend Payout, showing the Payout Ratio.STE Dividend Payout.PayoutRetained Earnings

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STE Fundamentals: All Metrics, Ratios and Statistics

STERIS PLC

NYSE:STE (3/25/2026, 9:40:50 AM)

224.465

+2.74 (+1.23%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)02-04
Earnings (Next)05-12
Inst Owners97.54%
Inst Owner Change-0.59%
Ins Owners0.22%
Ins Owner Change0.12%
Market Cap22.02B
Revenue(TTM)5.83B
Net Income(TTM)707.87M
Analysts77.14
Price Target287.51 (28.09%)
Short Float %1.8%
Short Ratio2.08
Dividend
Industry RankSector Rank
Dividend Yield 1.16%
Yearly Dividend2.23
Dividend Growth(5Y)9.04%
DP33.34%
Div Incr Years19
Div Non Decr Years19
Ex-Date02-17
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.47%
Min EPS beat(2)-1.09%
Max EPS beat(2)4.03%
EPS beat(4)3
Avg EPS beat(4)2.47%
Min EPS beat(4)-1.09%
Max EPS beat(4)4.57%
EPS beat(8)5
Avg EPS beat(8)3.06%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)9
Avg EPS beat(16)1.67%
Revenue beat(2)2
Avg Revenue beat(2)0.5%
Min Revenue beat(2)0.01%
Max Revenue beat(2)0.99%
Revenue beat(4)3
Avg Revenue beat(4)0.47%
Min Revenue beat(4)-0.23%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)-0.24%
Revenue beat(12)7
Avg Revenue beat(12)1.33%
Revenue beat(16)8
Avg Revenue beat(16)0.13%
PT rev (1m)-0.12%
PT rev (3m)0.05%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)-0.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.25%
Valuation
Industry RankSector Rank
PE 22.27
Fwd PE 20.03
P/S 3.78
P/FCF 24.01
P/OCF 17.38
P/B 3.08
P/tB 17.88
EV/EBITDA 14.87
EPS(TTM)10.08
EY4.49%
EPS(NY)11.21
Fwd EY4.99%
FCF(TTM)9.35
FCFY4.17%
OCF(TTM)12.92
OCFY5.75%
SpS59.42
BVpS72.95
TBVpS12.55
PEG (NY)2.16
PEG (5Y)2.1
Graham Number128.62
Profitability
Industry RankSector Rank
ROA 6.68%
ROE 9.89%
ROCE 11.13%
ROIC 8.65%
ROICexc 9.05%
ROICexgc 25.19%
OM 18.46%
PM (TTM) 12.15%
GM 44.11%
FCFM 15.74%
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%
ROICexgc growth 3Y22.57%
ROICexgc 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-Score9
Asset Turnover0.55
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.07
Debt/EBITDA 1.22
Cap/Depr 72.03%
Cap/Sales 6%
Interest Coverage 250
Cash Conversion 81.13%
Profit Quality 129.56%
Current Ratio 2.48
Quick Ratio 1.75
Altman-Z 5.21
F-Score9
WACC7.13%
ROIC/WACC1.21
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)9.8%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%9.05%
EPS Next Y10.3%
EPS Next 2Y9.55%
EPS Next 3Y9.63%
EPS Next 5Y6.57%
Revenue 1Y (TTM)14.39%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%9.17%
Revenue Next Year8.99%
Revenue Next 2Y7.65%
Revenue Next 3Y7.42%
Revenue Next 5Y6.66%
EBIT growth 1Y11.77%
EBIT growth 3Y31.69%
EBIT growth 5Y12.57%
EBIT Next Year43.42%
EBIT Next 3Y18.36%
EBIT Next 5Y15.86%
FCF growth 1Y54.41%
FCF growth 3Y25.12%
FCF growth 5Y15.65%
OCF growth 1Y35.59%
OCF growth 3Y18.8%
OCF growth 5Y14.22%

STERIS PLC / STE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for STERIS PLC?

ChartMill assigns a fundamental rating of 6 / 10 to STE.


What is the valuation status of STERIS PLC (STE) stock?

ChartMill assigns a valuation rating of 4 / 10 to STERIS PLC (STE). This can be considered as Fairly Valued.


How profitable is STERIS PLC (STE) stock?

STERIS PLC (STE) has a profitability rating of 7 / 10.


How financially healthy is STERIS PLC?

The financial health rating of STERIS PLC (STE) is 7 / 10.


Can you provide the expected EPS growth for STE stock?

The Earnings per Share (EPS) of STERIS PLC (STE) is expected to grow by 10.3% in the next year.