STERIS PLC (STE) Stock Fundamental Analysis
USA - NYSE:STE - IE00BFY8C754 - Common Stock
263.29 USD
+6.31 (+2.46%)
266.33 USD
+3.04 (+1.15%)
Taking everything into account, STE scores 6 out of 10 in our fundamental rating. STE was compared to 188 industry peers in the Health Care Equipment & Supplies industry. Both the health and profitability get an excellent rating, making STE a very profitable company, without any liquidiy or solvency issues. STE has a decent growth rate and is not valued too expensively. With these ratings, STE could be worth investigating further for quality investing!.
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.
Each year in the past 5 years STE has 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 6.61%. This is amongst the best in the industry. STE outperforms 86.17% of its industry peers.
STE has a better Return On Equity (9.82%) than 85.64% of its industry peers.
STE has a better Return On Invested Capital (8.58%) than 86.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for STE is in line with the industry average of 8.98%.
The last Return On Invested Capital (8.58%) for STE is above the 3 year average (7.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.61% | ||
| ROE | 9.82% | ||
| ROIC | 8.58% |
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
The Profit Margin of STE (12.07%) is better than 87.77% of its industry peers.
STE's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 18.42%, STE belongs to the top of the industry, outperforming 89.89% of the companies in the same industry.
STE's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 44.29%, STE is doing worse than 61.70% of the companies in the same industry.
STE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.42% | ||
| PM (TTM) | 12.07% | ||
| GM | 44.29% |
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 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.
Compared to 5 years ago, STE has more shares outstanding
STE has a better debt/assets ratio than last year.
2.2 Solvency
STE has an Altman-Z score of 5.85. This indicates that STE is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.85, STE belongs to the top of the industry, outperforming 81.38% of the companies in the same industry.
The Debt to FCF ratio of STE is 1.97, which is an excellent value as it means it would take STE, only 1.97 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.97, STE belongs to the best of the industry, outperforming 88.30% of the companies in the same industry.
A Debt/Equity ratio of 0.27 indicates that STE is not too dependend on debt financing.
STE has a Debt to Equity ratio (0.27) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 5.85 |
ROIC/WACC1.2
WACC7.13%
2.3 Liquidity
STE has a Current Ratio of 2.37. This indicates that STE is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of STE (2.37) is comparable to the rest of the industry.
A Quick Ratio of 1.63 indicates that STE should not have too much problems paying its short term obligations.
The Quick ratio of STE (1.63) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.70% over the past year.
STE shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.61% yearly.
The Revenue has grown by 11.37% 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)8.7%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%15.42%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%9.89%
3.2 Future
Based on estimates for the next years, STE will show a small growth in Earnings Per Share. The EPS will grow by 7.36% on average per year.
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 2Y9.31%
EPS Next 3Y9.33%
EPS Next 5Y7.36%
Revenue Next Year8.36%
Revenue Next 2Y7.33%
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
STE is valuated quite expensively with a Price/Earnings ratio of 26.68.
Compared to the rest of the industry, the Price/Earnings ratio of STE indicates a somewhat cheap valuation: STE is cheaper than 76.06% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of STE to the average of the S&P500 Index (25.45), we can say STE is valued inline with the index average.
A Price/Forward Earnings ratio of 23.59 indicates a rather expensive valuation of STE.
74.47% of the companies in the same industry are more expensive than STE, based on the Price/Forward Earnings ratio.
STE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 23.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STE is valued a bit cheaper than the industry average as 78.19% of the companies are valued more expensively.
79.26% of the companies in the same industry are more expensive than STE, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.98 | ||
| EV/EBITDA | 17.46 |
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)2.92
PEG (5Y)2.51
EPS Next 2Y9.31%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
STE has a yearly dividend return of 0.97%, which is pretty low.
STE's Dividend Yield is rather good when compared to the industry average which is at 1.69. STE pays more dividend than 94.15% of the companies in the same industry.
With a Dividend Yield of 0.97, STE pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
5.2 History
The dividend of STE is nicely growing with an annual growth rate of 9.04%!
STE has been paying a dividend for at least 10 years, so it has 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
STE pays out 33.45% 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.
DP33.45%
EPS Next 2Y9.31%
EPS Next 3Y9.33%
263.29
+6.31 (+2.46%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners96.12%
Inst Owner Change-0.32%
Ins Owners0.22%
Ins Owner Change4.53%
Market Cap25.93B
Revenue(TTM)5.70B
Net Income(TTM)688.51M
Analysts78.46
Price Target277.87 (5.54%)
Short Float %0.98%
Short Ratio1.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.97% |
Yearly Dividend2.23
Dividend Growth(5Y)9.04%
DP33.45%
Div Incr Years19
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.19%
Min EPS beat(2)2.36%
Max EPS beat(2)4.03%
EPS beat(4)3
Avg EPS beat(4)2.47%
Min EPS beat(4)-1.06%
Max EPS beat(4)4.57%
EPS beat(8)6
Avg EPS beat(8)3.36%
EPS beat(12)9
Avg EPS beat(12)2.53%
EPS beat(16)10
Avg EPS beat(16)2.17%
Revenue beat(2)2
Avg Revenue beat(2)1.04%
Min Revenue beat(2)0.99%
Max Revenue beat(2)1.1%
Revenue beat(4)2
Avg Revenue beat(4)0.01%
Min Revenue beat(4)-1.82%
Max Revenue beat(4)1.1%
Revenue beat(8)3
Avg Revenue beat(8)0.07%
Revenue beat(12)6
Avg Revenue beat(12)0.87%
Revenue beat(16)8
Avg Revenue beat(16)0.14%
PT rev (1m)0%
PT rev (3m)1.42%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)0%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.68 | ||
| Fwd PE | 23.59 | ||
| P/S | 4.55 | ||
| P/FCF | 26.98 | ||
| P/OCF | 19.92 | ||
| P/B | 3.7 | ||
| P/tB | 24.82 | ||
| EV/EBITDA | 17.46 |
EPS(TTM)9.87
EY3.75%
EPS(NY)11.16
Fwd EY4.24%
FCF(TTM)9.76
FCFY3.71%
OCF(TTM)13.21
OCFY5.02%
SpS57.9
BVpS71.16
TBVpS10.61
PEG (NY)2.92
PEG (5Y)2.51
Graham Number125.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.61% | ||
| ROE | 9.82% | ||
| ROCE | 11.03% | ||
| ROIC | 8.58% | ||
| ROICexc | 8.88% | ||
| ROICexgc | 25.23% | ||
| OM | 18.42% | ||
| PM (TTM) | 12.07% | ||
| GM | 44.29% | ||
| FCFM | 16.86% |
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-Score8
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.27 | ||
| Debt/FCF | 1.97 | ||
| Debt/EBITDA | 1.23 | ||
| Cap/Depr | 69.52% | ||
| Cap/Sales | 5.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.52% | ||
| Profit Quality | 139.62% | ||
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.63 | ||
| Altman-Z | 5.85 |
F-Score8
WACC7.13%
ROIC/WACC1.2
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)8.7%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%15.42%
EPS Next Y9.15%
EPS Next 2Y9.31%
EPS Next 3Y9.33%
EPS Next 5Y7.36%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%9.89%
Revenue Next Year8.36%
Revenue Next 2Y7.33%
Revenue Next 3Y7.1%
Revenue Next 5Y6.55%
EBIT growth 1Y12.54%
EBIT growth 3Y31.69%
EBIT growth 5Y12.57%
EBIT Next Year43.09%
EBIT Next 3Y17.42%
EBIT Next 5Y15.86%
FCF growth 1Y79.58%
FCF growth 3Y25.12%
FCF growth 5Y15.65%
OCF growth 1Y53.39%
OCF growth 3Y18.8%
OCF growth 5Y14.22%
STERIS PLC / STE FAQ
Can you provide the ChartMill fundamental rating for STERIS PLC?
ChartMill assigns a fundamental rating of 6 / 10 to STE.
Can you provide the valuation status for STERIS PLC?
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.
Can you provide the PE and PB ratios for STE stock?
The Price/Earnings (PE) ratio for STERIS PLC (STE) is 26.68 and the Price/Book (PB) ratio is 3.7.
How financially healthy is STERIS PLC?
The financial health rating of STERIS PLC (STE) is 7 / 10.