STERIS PLC (STE) Stock Fundamental Analysis
NYSE:STE - New York Stock Exchange, Inc. - IE00BFY8C754 - Common Stock - Currency: USD
Overall STE gets a fundamental rating of 6 out of 10. We evaluated STE against 187 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year STE was profitable.
In the past year STE had a positive cash flow from operations.
Each year in the past 5 years STE has been profitable.
STE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
STE has a better Return On Assets (6.06%) than 85.56% of its industry peers.
Looking at the Return On Equity, with a value of 9.31%, STE belongs to the top of the industry, outperforming 83.42% of the companies in the same industry.
STE has a Return On Invested Capital of 8.28%. This is amongst the best in the industry. STE outperforms 88.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STE is in line with the industry average of 8.28%.
The 3 year average ROIC (7.07%) for STE is below the current ROIC(8.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.06% | ||
| ROE | 9.31% | ||
| ROIC | 8.28% |
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
With an excellent Profit Margin value of 11.26%, STE belongs to the best of the industry, outperforming 85.03% of the companies in the same industry.
STE's Profit Margin has declined in the last couple of years.
STE's Operating Margin of 17.80% is amongst the best of the industry. STE outperforms 89.30% of its industry peers.
STE's Operating Margin has been stable in the last couple of years.
The Gross Margin of STE (44.01%) is worse than 63.10% of its industry peers.
In the last couple of years the Gross Margin of STE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.8% | ||
| PM (TTM) | 11.26% | ||
| GM | 44.01% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STE 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.
The debt/assets ratio for STE has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.00 indicates that STE is not in any danger for bankruptcy at the moment.
STE has a Altman-Z score of 5.00. This is in the better half of the industry: STE outperforms 78.07% of its industry peers.
The Debt to FCF ratio of STE is 2.63, which is a good value as it means it would take STE, 2.63 years of fcf income to pay off all of its debts.
STE has a better Debt to FCF ratio (2.63) than 89.30% of its industry peers.
STE has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
STE has a Debt to Equity ratio of 0.29. This is comparable to the rest of the industry: STE outperforms 48.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.63 | ||
| Altman-Z | 5 |
ROIC/WACC1.19
WACC6.97%
2.3 Liquidity
STE has a Current Ratio of 1.96. 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 Current ratio of 1.96. This is in the lower half of the industry: STE underperforms 65.24% of its industry peers.
A Quick Ratio of 1.39 indicates that STE should not have too much problems paying its short term obligations.
STE has a Quick ratio of 1.39. This is in the lower half of the industry: STE underperforms 64.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.39 |
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.
STE shows a small growth in Revenue. In the last year, the Revenue has grown by 6.24%.
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)6.24%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%8.72%
3.2 Future
The Earnings Per Share is expected to grow by 6.72% on average over the next years.
The Revenue is expected to grow by 6.34% on average over the next years.
EPS Next Y8.63%
EPS Next 2Y8.67%
EPS Next 3Y8.68%
EPS Next 5Y6.72%
Revenue Next Year6.9%
Revenue Next 2Y6.48%
Revenue Next 3Y6.57%
Revenue Next 5Y6.34%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 24.54, STE is valued on the expensive side.
77.54% 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 (26.99), we can say STE is valued inline with the index average.
The Price/Forward Earnings ratio is 21.22, which indicates a rather expensive current valuation of STE.
78.61% of the companies in the same industry are more expensive than STE, based on the Price/Forward Earnings ratio.
STE's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
STE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STE is cheaper than 77.54% of the companies in the same industry.
STE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STE is cheaper than 81.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.6 | ||
| EV/EBITDA | 16.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of STE may justify a higher PE ratio.
PEG (NY)2.84
PEG (5Y)2.31
EPS Next 2Y8.67%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
STE has a Yearly Dividend Yield of 1.13%.
Compared to an average industry Dividend Yield of 1.90, STE pays a better dividend. On top of this STE pays more dividend than 94.12% of the companies listed in the same industry.
With a Dividend Yield of 1.13, STE pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
The dividend of STE is nicely growing with an annual growth rate of 9.04%!
STE has paid a dividend for at least 10 years, which is a reliable track record.
STE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)9.04%
Div Incr Years19
Div Non Decr Years19
5.3 Sustainability
STE pays out 35.77% of its income as dividend. This is a sustainable payout ratio.
The dividend of STE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP35.77%
EPS Next 2Y8.67%
EPS Next 3Y8.68%
NYSE:STE (8/7/2025, 1:39:55 PM)
234.065
+12.85 (+5.81%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.65%
Inst Owner Change-2.98%
Ins Owners0.21%
Ins Owner Change1.07%
Market Cap23.02B
Analysts80
Price Target273.99 (17.06%)
Short Float %0.86%
Short Ratio1.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend2.23
Dividend Growth(5Y)9.04%
DP35.77%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.75%
Min EPS beat(2)-1.06%
Max EPS beat(2)4.57%
EPS beat(4)2
Avg EPS beat(4)2.61%
Min EPS beat(4)-1.06%
Max EPS beat(4)7.17%
EPS beat(8)6
Avg EPS beat(8)3.35%
EPS beat(12)7
Avg EPS beat(12)1.79%
EPS beat(16)10
Avg EPS beat(16)3.34%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.82%
Max Revenue beat(2)-0.23%
Revenue beat(4)0
Avg Revenue beat(4)-0.9%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)-0.23%
Revenue beat(8)3
Avg Revenue beat(8)0.77%
Revenue beat(12)4
Avg Revenue beat(12)-0.06%
Revenue beat(16)8
Avg Revenue beat(16)0.57%
PT rev (1m)0.75%
PT rev (3m)6.44%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-1.51%
EPS NY rev (1m)0%
EPS NY rev (3m)1.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.54 | ||
| Fwd PE | 21.22 | ||
| P/S | 4.22 | ||
| P/FCF | 29.6 | ||
| P/OCF | 20.06 | ||
| P/B | 3.49 | ||
| P/tB | 35.24 | ||
| EV/EBITDA | 16.32 |
EPS(TTM)9.54
EY4.08%
EPS(NY)11.03
Fwd EY4.71%
FCF(TTM)7.91
FCFY3.38%
OCF(TTM)11.67
OCFY4.99%
SpS55.5
BVpS67.13
TBVpS6.64
PEG (NY)2.84
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.06% | ||
| ROE | 9.31% | ||
| ROCE | 10.65% | ||
| ROIC | 8.28% | ||
| ROICexc | 8.44% | ||
| ROICexgc | 25.17% | ||
| OM | 17.8% | ||
| PM (TTM) | 11.26% | ||
| GM | 44.01% | ||
| FCFM | 14.25% |
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-Score8
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 2.63 | ||
| Debt/EBITDA | 1.32 | ||
| Cap/Depr | 77.72% | ||
| Cap/Sales | 6.78% | ||
| Interest Coverage | 10.87 | ||
| Cash Conversion | 79.28% | ||
| Profit Quality | 126.58% | ||
| Current Ratio | 1.96 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 5 |
F-Score8
WACC6.97%
ROIC/WACC1.19
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 Y8.63%
EPS Next 2Y8.67%
EPS Next 3Y8.68%
EPS Next 5Y6.72%
Revenue 1Y (TTM)6.24%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%8.72%
Revenue Next Year6.9%
Revenue Next 2Y6.48%
Revenue Next 3Y6.57%
Revenue Next 5Y6.34%
EBIT growth 1Y9.49%
EBIT growth 3Y31.69%
EBIT growth 5Y12.57%
EBIT Next Year42.03%
EBIT Next 3Y21.23%
EBIT Next 5Y15.86%
FCF growth 1Y26.93%
FCF growth 3Y25.12%
FCF growth 5Y15.65%
OCF growth 1Y17.96%
OCF growth 3Y18.8%
OCF growth 5Y14.22%