STERIS PLC (STE) Stock Fundamental Analysis
USA - NYSE:STE - IE00BFY8C754 - Common Stock
242.555 USD
+0.34 (+0.14%)
Overall STE gets a fundamental rating of 6 out of 10. We evaluated STE 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 has a correct valuation and a medium growth rate.
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.
In the past 5 years STE always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.21%, STE belongs to the top of the industry, outperforming 84.21% of the companies in the same industry.
STE has a Return On Equity of 9.28%. This is amongst the best in the industry. STE outperforms 84.21% of its industry peers.
The Return On Invested Capital of STE (14.52%) is better than 94.74% 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 8.88%.
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
Looking at the Profit Margin, with a value of 11.61%, STE belongs to the top of the industry, outperforming 87.37% of the companies in the same industry.
STE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 31.76%, STE belongs to the best of the industry, outperforming 98.42% of the companies in the same industry.
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 43.13%. This is in the lower half of the industry: STE underperforms 63.68% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), STE is creating value.
STE has less shares outstanding than it did 1 year ago.
STE has more shares outstanding than it did 5 years ago.
STE has a better debt/assets ratio than last year.
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/WACC2.04
WACC7.1%
2.3 Liquidity
A Current Ratio of 2.22 indicates that STE has no problem at all paying its short term obligations.
The Current ratio of STE (2.22) 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 in line with its industry peers.
| 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.
Looking at the last year, STE shows a quite strong growth in Revenue. The Revenue has grown by 8.52% 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)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
The Earnings Per Share is expected to grow by 7.36% on average over the next years.
The Revenue is expected to grow by 6.55% on average over the next years.
EPS Next Y9.15%
EPS Next 2Y9.32%
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 25.43 indicates a quite expensive valuation of STE.
STE's Price/Earnings ratio is a bit cheaper when compared to the industry. STE is cheaper than 76.84% of the companies in the same industry.
When comparing the Price/Earnings ratio of STE to the average of the S&P500 Index (27.69), we can say STE is valued inline with the index average.
A Price/Forward Earnings ratio of 21.73 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 77.89% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of STE to the average of the S&P500 Index (23.18), we can say STE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STE is valued cheaply inside the industry as 88.95% of the companies are valued more expensively.
82.63% 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 | 26.29 | ||
| EV/EBITDA | 10.5 |
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)2.78
PEG (5Y)2.4
EPS Next 2Y9.32%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
STE has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.83, 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 1.05, STE pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of STE grows each year by 9.04%, which is quite nice.
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 34.74% of its income as dividend. This is a 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%
NYSE:STE (10/21/2025, 10:26:18 AM)
242.555
+0.34 (+0.14%)
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 Change0.28%
Ins Owners0.22%
Ins Owner Change2.01%
Market Cap23.89B
Analysts78.46
Price Target277.87 (14.56%)
Short Float %1.15%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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)-0.03%
PT rev (3m)1.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.53%
EPS NY rev (1m)0%
EPS NY rev (3m)0.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.43 | ||
| Fwd PE | 21.73 | ||
| P/S | 4.29 | ||
| P/FCF | 26.29 | ||
| P/OCF | 18.89 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.5 |
EPS(TTM)9.54
EY3.93%
EPS(NY)11.16
Fwd EY4.6%
FCF(TTM)9.23
FCFY3.8%
OCF(TTM)12.84
OCFY5.29%
SpS56.57
BVpSN/A
TBVpSN/A
PEG (NY)2.78
PEG (5Y)2.4
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
WACC7.1%
ROIC/WACC2.04
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 2Y7.33%
Revenue Next 3Y7.1%
Revenue Next 5Y6.55%
EBIT growth 1Y94.52%
EBIT growth 3Y31.69%
EBIT growth 5Y12.57%
EBIT Next Year43.09%
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%