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STE

STERISNYSE:STE Stock Report

Market Cap

US$23.5b

7D

3.7%

1Y

27.0%

Updated

26 Oct, 2021

Data

Company Financials +
STE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance1/6
Financial Health2/6
Dividends4/6

STE Overview

STERIS plc provides infection prevention and other procedural products and services worldwide.

STERIS Competitors

Danaher

NYSE:DHR

US$218.7b

Intuitive Surgical

NasdaqGS:ISRG

US$122.7b

Stryker

NYSE:SYK

US$103.0b

Edwards Lifesciences

NYSE:EW

US$73.1b

Price History & Performance

Summary of all time highs, changes and price drops for STERIS
Historical stock prices
Current Share PriceUS$235.36
52 Week HighUS$170.36
52 Week LowUS$237.27
Beta0.57
1 Month Change6.88%
3 Month Change9.84%
1 Year Change26.98%
3 Year Change118.27%
5 Year Change254.67%
Change since IPO11,311.39%

Recent News & Updates

Aug 27
STERIS' (NYSE:STE) Dividend Will Be Increased To US$0.43

STERIS' (NYSE:STE) Dividend Will Be Increased To US$0.43

STERIS plc ( NYSE:STE ) will increase its dividend on the 24th of September to US$0.43. This takes the annual payment...

Shareholder Returns

STEUS Medical EquipmentUS Market
7D3.7%3.6%1.9%
1Y27.0%23.8%33.4%

Return vs Industry: STE exceeded the US Medical Equipment industry which returned 23.1% over the past year.

Return vs Market: STE underperformed the US Market which returned 30.3% over the past year.

Price Volatility

Is STE's price volatile compared to industry and market?
STE volatility
STE Beta0.57
Industry Beta0.88
Market Beta1

Stable Share Price: STE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: STE's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198513,000Dan Carestiohttps://www.steris.com

STERIS plc provides infection prevention and other procedural products and services worldwide. It operates in three segments: Healthcare, Applied Sterilization Technologies, and Life Sciences. The Healthcare segment offers cleaning chemistries and sterility assurance products; accessories for gastrointestinal (GI) procedures, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in the operating room, including surgical tables, lights, and connectivity solutions, as well as equipment management services.

STERIS Fundamentals Summary

How do STERIS's earnings and revenue compare to its market cap?
STE fundamental statistics
Market CapUS$23.48b
Earnings (TTM)US$286.00m
Revenue (TTM)US$3.41b

82.1x

P/E Ratio

6.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
STE income statement (TTM)
RevenueUS$3.41b
Cost of RevenueUS$1.90b
Gross ProfitUS$1.51b
ExpensesUS$1.22b
EarningsUS$286.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 02, 2021

Earnings per share (EPS)2.87
Gross Margin44.25%
Net Profit Margin8.39%
Debt/Equity Ratio55.1%

How did STE perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

48%

Payout Ratio

Valuation

Is STERIS undervalued compared to its fair value and its price relative to the market?

82.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STE ($235.37) is trading above our estimate of fair value ($127.07)

Significantly Below Fair Value: STE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: STE is poor value based on its PE Ratio (82.1x) compared to the US Medical Equipment industry average (49.9x).

PE vs Market: STE is poor value based on its PE Ratio (82.1x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: STE is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: STE is good value based on its PB Ratio (3.6x) compared to the US Medical Equipment industry average (4.3x).


Future Growth

How is STERIS forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STE's forecast earnings growth (18.4% per year) is above the savings rate (2%).

Earnings vs Market: STE's earnings (18.4% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: STE's earnings are forecast to grow, but not significantly.

Revenue vs Market: STE's revenue (8.9% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: STE's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: STE's Return on Equity is forecast to be low in 3 years time (12.8%).


Past Performance

How has STERIS performed over the past 5 years?

21.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STE has a large one-off loss of $199.0M impacting its June 30 2021 financial results.

Growing Profit Margin: STE's current net profit margins (8.4%) are lower than last year (13.7%).


Past Earnings Growth Analysis

Earnings Trend: STE's earnings have grown significantly by 21.9% per year over the past 5 years.

Accelerating Growth: STE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: STE had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the Medical Equipment industry average (36.1%).


Return on Equity

High ROE: STE's Return on Equity (4.3%) is considered low.


Financial Health

How is STERIS's financial position?


Financial Position Analysis

Short Term Liabilities: STE's short term assets ($2.0B) exceed its short term liabilities ($1.1B).

Long Term Liabilities: STE's short term assets ($2.0B) do not cover its long term liabilities ($4.4B).


Debt to Equity History and Analysis

Debt Level: STE's debt to equity ratio (55.1%) is considered high.

Reducing Debt: STE's debt to equity ratio has increased from 50.9% to 55.1% over the past 5 years.

Debt Coverage: STE's debt is not well covered by operating cash flow (18%).

Interest Coverage: STE's interest payments on its debt are well covered by EBIT (14.6x coverage).


Balance Sheet


Dividend

What is STERIS current dividend yield, its reliability and sustainability?

0.73%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: STE's dividend (0.73%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: STE's dividend (0.73%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

Stable Dividend: STE's dividends per share have been stable in the past 10 years.

Growing Dividend: STE's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.4%), STE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: STE's dividends in 3 years are forecast to be well covered by earnings (20.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Dan Carestio (48 yo)

0.25

Tenure

US$2,912,769

Compensation

Mr. Daniel A. Carestio, also known as Dan, serves as the Chief Executive Officer & President at STERIS plc since July 29, 2021. He had been Senior Vice President and Chief Operating Officer at STERIS plc s...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD2.91M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: STE's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: STE's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: STE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 17.3%.


Top Shareholders

Company Information

STERIS plc's employee growth, exchange listings and data sources


Key Information

  • Name: STERIS plc
  • Ticker: STE
  • Exchange: NYSE
  • Founded: 1985
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$23.479b
  • Shares outstanding: 99.76m
  • Website: https://www.steris.com

Number of Employees


Location

  • STERIS plc
  • 70 Sir John Rogerson’s Quay
  • Dublin 2
  • Dublin
  • Co. Dublin
  • D02 R296
  • Ireland

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:30
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2021/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.