(STE) STERIS - Overview
Sector: Healthcare | Industry: Medical Devices | Exchange: NYSE (USA) | Market Cap: 20.818m USD | Total Return: -10.3% in 12m
Avg Turnover: 171M
EPS Trend: 99.4%
Qual. Beats: 0
Rev. Trend: 89.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
STERIS plc (NYSE: STE) is a global provider of infection prevention and sterilization solutions, primarily serving hospitals, medical device manufacturers, and pharmaceutical companies. The company operates through three core segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. Its portfolio includes cleaning chemistries, surgical equipment, contract sterilization services, and specialized water purification systems.
The business model relies heavily on a razor-and-blade strategy, where the installation of capital equipment like sterilizers and surgical tables creates a long-term recurring revenue stream through high-margin consumables and maintenance services. In the AST segment, STERIS benefits from high barriers to entry due to the significant regulatory requirements and capital intensity involved in operating gamma irradiation and ethylene oxide sterilization facilities.
Investors may find it useful to review ValueRay for deeper insights into the companys valuation and long-term performance metrics.
Founded in 1985 and headquartered in Ohio, STERIS maintains a critical role in the healthcare supply chain by ensuring the sterility of medical instruments and the safety of pharmaceutical production environments. The company’s integrated service model covers the entire lifecycle of medical equipment, from initial installation to outsourced instrument processing.
- Elective surgery volume recovery boosts Healthcare segment demand for surgical consumables
- Contract sterilization service growth tracks medical device manufacturer production cycles
- Biopharmaceutical R&D spending levels dictate Life Sciences equipment and chemistry revenue
- High recurring revenue from services and consumables mitigates capital equipment cyclicality
- Expansion of global sterilization facility footprint drives long term AST segment margins
| Net Income: 782.4m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 1.39 > 1.0 |
| NWC/Revenue: 21.05% < 20% (prev 17.92%; Δ 3.13% < -1%) |
| CFO/TA 0.12 > 3% & CFO 1.34b > Net Income 782.4m |
| Net Debt (1.65b) to EBITDA (1.83b): 0.90 < 3 |
| Current Ratio: 2.09 > 1.5 & < 3 |
| Outstanding Shares: last quarter (98.4m) vs 12m ago -0.36% < -2% |
| Gross Margin: 44.25% > 18% (prev 0.44%; Δ 4.38k% > 0.5%) |
| Asset Turnover: 56.85% > 50% (prev 53.81%; Δ 3.04% > 0%) |
| Interest Coverage Ratio: 18.15 > 6 (EBITDA TTM 1.83b / Interest Expense TTM 60.7m) |
| A: 0.12 (Total Current Assets 2.39b - Total Current Liabilities 1.15b) / Total Assets 10.7b |
| B: 0.27 (Retained Earnings 2.86b / Total Assets 10.7b) |
| C: 0.11 (EBIT TTM 1.10b / Avg Total Assets 10.4b) |
| D: 2.03 (Book Value of Equity 7.20b / Total Liabilities 3.54b) |
| Altman-Z'' = 4.47 = AA |
| DSRI: 0.96 (Receivables 1.09b/1.04b, Revenue 5.94b/5.46b) |
| GMI: 0.99 (GM 44.25% / 44.01%) |
| AQI: 0.94 (AQ_t 0.56 / AQ_t-1 0.59) |
| SGI: 1.09 (Revenue 5.94b / 5.46b) |
| TATA: -0.05 (NI 782.4m - CFO 1.34b) / TA 10.7b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 219.67 with a total of 542,532 shares traded.
Over the past week, the price has changed by +2.10%,
over one month by -3.12%,
over three months by -12.36% and
over the past year by -10.28%.
STERIS has received a consensus analysts rating of 3.80. Therefore, it is recommended to hold STE.
- StrongBuy: 3
- Buy: 2
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 256.9 | 16.9% |
P/E Forward = 19.0114
P/S = 3.5071
P/B = 2.8438
P/EG = 1.5846
Revenue TTM = 5.94b USD
EBIT TTM = 1.10b USD
EBITDA TTM = 1.83b USD
Long Term Debt = 1.90b USD (from longTermDebt, two quarters ago)
Short Term Debt = 118.9m USD (from shortTermDebt, last quarter)
Debt = 2.09b USD (from shortLongTermDebtTotal, last quarter) + Leases 155.3m
Net Debt = 1.65b USD (calculated: Debt 2.09b - CCE 439.6m)
Enterprise Value = 22.5b USD (20.8b + Debt 2.09b - CCE 439.6m)
Interest Coverage Ratio = 18.15 (Ebit TTM 1.10b / Interest Expense TTM 60.7m)
EV/FCF = 23.10x (Enterprise Value 22.5b / FCF TTM 972.4m)
FCF Yield = 4.33% (FCF TTM 972.4m / Enterprise Value 22.5b)
FCF Margin = 16.38% (FCF TTM 972.4m / Revenue TTM 5.94b)
Net Margin = 13.18% (Net Income TTM 782.4m / Revenue TTM 5.94b)
Gross Margin = 44.25% ((Revenue TTM 5.94b - Cost of Revenue TTM 3.31b) / Revenue TTM)
Gross Margin QoQ = 43.89% (prev 43.81%)
Tobins Q-Ratio = 2.09 (Enterprise Value 22.5b / Total Assets 10.7b)
Interest Expense / Debt = 2.91% (Interest Expense 60.7m / Debt 2.09b)
Taxrate = 27.65% (84.2m / 304.5m)
NOPAT = 797.1m (EBIT 1.10b * (1 - 27.65%))
Current Ratio = 2.09 (Total Current Assets 2.39b / Total Current Liabilities 1.15b)
Debt / Equity = 0.29 (Debt 2.09b / totalStockholderEquity, last quarter 7.20b)
Debt / EBITDA = 0.90 (Net Debt 1.65b / EBITDA 1.83b)
Debt / FCF = 1.69 (Net Debt 1.65b / FCF TTM 972.4m)
Total Stockholder Equity = 7.08b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.49% (Net Income 782.4m / Total Assets 10.7b)
RoE = 11.05% (Net Income TTM 782.4m / Total Stockholder Equity 7.08b)
RoCE = 12.27% (EBIT 1.10b / Capital Employed (Equity 7.08b + L.T.Debt 1.90b))
RoIC = 8.21% (NOPAT 797.1m / Invested Capital 9.71b)
WACC = 6.70% (E(20.8b)/V(22.9b) * Re(7.16%) + D(2.09b)/V(22.9b) * Rd(2.91%) * (1-Tc(0.28)))
Discount Rate = 7.16% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -64.41 | Cagr: -0.43%
[DCF] Terminal Value 77.97% ; FCFF base≈894.6m ; Y1≈1.03b ; Y5≈1.51b
[DCF] Fair Price = 214.8 (EV 22.7b - Net Debt 1.65b = Equity 21.1b / Shares 98.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 99.40 | EPS CAGR: 7.91% | SUE: -0.22 | # QB: 0
Revenue Correlation: 89.06 | Revenue CAGR: 7.34% | SUE: -0.04 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.50 | Chg30d=+0.38% | Revisions=-20% | Analysts=7
EPS next Quarter (2026-09-30): EPS=2.69 | Chg30d=-0.10% | Revisions=+20% | Analysts=7
EPS current Year (2027-03-31): EPS=11.15 | Chg30d=+0.59% | Revisions=-27% | GrowthEPS=+9.6% | GrowthRev=+7.2%
EPS next Year (2028-03-31): EPS=12.10 | Chg30d=-0.31% | Revisions=+0% | GrowthEPS=+8.5% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: -27%