STERIS PLC (STE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:STE - IE00BFY8C754 - Common Stock
255.13 USD
+0.79 (+0.31%)
255.13 USD
0 (0%)
STE gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 184 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make STE suitable for quality investing!
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.
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
With an excellent Return On Assets value of 6.61%, STE belongs to the best of the industry, outperforming 86.96% of the companies in the same industry.
STE's Return On Equity of 9.82% is amongst the best of the industry. STE outperforms 85.87% of its industry peers.
STE has a Return On Invested Capital of 8.58%. This is amongst the best in the industry. STE outperforms 87.50% 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 8.82%.
The 3 year average ROIC (7.07%) for STE is below the current ROIC(8.58%), indicating increased profibility in the last year.
| 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
STE has a better Profit Margin (12.07%) than 87.50% of its industry peers.
STE's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 18.42%, STE belongs to the best of the industry, outperforming 90.76% 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.
Looking at the Gross Margin, with a value of 44.29%, STE is doing worse than 63.04% of the companies in the same industry.
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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STE is still 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 5.79. This indicates that STE is financially healthy and has little risk of bankruptcy at the moment.
STE has a better Altman-Z score (5.79) than 80.43% of its industry peers.
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.
STE's Debt to FCF ratio of 1.97 is amongst the best of the industry. STE outperforms 87.50% of its industry peers.
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 | 5.79 |
ROIC/WACC1.21
WACC7.07%
2.3 Liquidity
A Current Ratio of 2.37 indicates that STE has no problem at all paying its short term obligations.
The Current ratio of STE (2.37) is comparable to the rest of the industry.
STE has a Quick Ratio of 1.63. This is a normal value and indicates that STE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.63, STE is in line with its industry, outperforming 43.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 1.63 |
3. Growth
3.1 Past
STE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.70%, which is quite good.
Measured over the past years, STE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.61% on average per year.
The Revenue has grown by 11.37% in the past year. This is quite good.
The Revenue has been growing by 12.49% on average over the past years. This is quite good.
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 7.43% on average per year.
Based on estimates for the next years, STE will show a small growth in Revenue. The Revenue will grow by 6.62% on average per year.
EPS Next Y10.36%
EPS Next 2Y9.72%
EPS Next 3Y9.74%
EPS Next 5Y7.43%
Revenue Next Year8.72%
Revenue Next 2Y7.47%
Revenue Next 3Y7.35%
Revenue Next 5Y6.62%
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
With a Price/Earnings ratio of 25.85, STE can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of STE indicates a somewhat cheap valuation: STE is cheaper than 76.09% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.61, STE is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.69, the valuation of STE can be described as rather expensive.
Based on the Price/Forward Earnings ratio, STE is valued a bit cheaper than 76.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of STE to the average of the S&P500 Index (24.01), we can say STE is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 22.69 |
4.2 Price Multiples
STE's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. STE is cheaper than 79.89% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, STE is valued cheaper than 83.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.05 | ||
| EV/EBITDA | 17.24 |
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)2.5
PEG (5Y)2.44
EPS Next 2Y9.72%
EPS Next 3Y9.74%
5. Dividend
5.1 Amount
STE has a Yearly Dividend Yield of 1.00%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.20, STE pays a better dividend. On top of this STE pays more dividend than 94.02% of the companies listed in the same industry.
With a Dividend Yield of 1.00, STE pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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 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
33.45% 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.
DP33.45%
EPS Next 2Y9.72%
EPS Next 3Y9.74%
255.13
+0.79 (+0.31%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.48%
Inst Owner Change-0.1%
Ins Owners0.22%
Ins Owner Change0.69%
Market Cap25.04B
Revenue(TTM)5.70B
Net Income(TTM)688.51M
Analysts78.46
Price Target287.36 (12.63%)
Short Float %1.2%
Short Ratio1.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
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)3.42%
PT rev (3m)3.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.06%
EPS NY rev (1m)1.11%
EPS NY rev (3m)1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.07%
Revenue NY rev (1m)0.34%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.85 | ||
| Fwd PE | 22.69 | ||
| P/S | 4.39 | ||
| P/FCF | 26.05 | ||
| P/OCF | 19.24 | ||
| P/B | 3.57 | ||
| P/tB | 23.97 | ||
| EV/EBITDA | 17.24 |
EPS(TTM)9.87
EY3.87%
EPS(NY)11.24
Fwd EY4.41%
FCF(TTM)9.79
FCFY3.84%
OCF(TTM)13.26
OCFY5.2%
SpS58.1
BVpS71.41
TBVpS10.64
PEG (NY)2.5
PEG (5Y)2.44
Graham Number125.93
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 | 5.79 |
F-Score8
WACC7.07%
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)8.7%
EPS 3Y5.7%
EPS 5Y10.61%
EPS Q2Q%15.42%
EPS Next Y10.36%
EPS Next 2Y9.72%
EPS Next 3Y9.74%
EPS Next 5Y7.43%
Revenue 1Y (TTM)11.37%
Revenue growth 3Y5.99%
Revenue growth 5Y12.49%
Sales Q2Q%9.89%
Revenue Next Year8.72%
Revenue Next 2Y7.47%
Revenue Next 3Y7.35%
Revenue Next 5Y6.62%
EBIT growth 1Y12.54%
EBIT growth 3Y31.69%
EBIT growth 5Y12.57%
EBIT Next Year42.85%
EBIT Next 3Y19.65%
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 25.85 and the Price/Book (PB) ratio is 3.57.
How financially healthy is STERIS PLC?
The financial health rating of STERIS PLC (STE) is 7 / 10.