NYSE:STE

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has STERIS's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: STE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

STE

3.2%

US Medical Equipment

0.7%

US Market


1 Year Return

25.7%

STE

19.2%

US Medical Equipment

12.9%

US Market

Return vs Industry: STE exceeded the US Medical Equipment industry which returned 19.2% over the past year.

Return vs Market: STE exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

STEIndustryMarket
7 Day2.0%3.2%0.7%
30 Day3.8%4.4%4.4%
90 Day-2.9%3.6%7.2%
1 Year27.0%25.7%20.2%19.2%15.4%12.9%
3 Year133.5%124.6%85.9%80.2%49.1%39.5%
5 Year156.5%139.5%120.3%96.3%62.7%44.7%

Price Volatility Vs. Market

How volatile is STERIS's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: STE ($148.75) is trading below our estimate of fair value ($645.03)

Significantly Below Fair Value: STE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: STE is good value based on its PE Ratio (37.5x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: STE is poor value based on its PE Ratio (37.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: STE is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: STE is good value based on its PB Ratio (3.9x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

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

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STE's forecast earnings growth (18.9% per year) is above the savings rate (2.7%).

Earnings vs Market: STE's earnings (18.9% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: STE's revenue (5.8% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: STE's revenue (5.8% 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 (15%).


Next Steps

Past Performance

How has STERIS performed over the past 5 years?

25.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STE has high quality earnings.

Growing Profit Margin: STE's current net profit margins (11.6%) are lower than last year (11.7%).


Past Earnings Growth Analysis

Earnings Trend: STE's earnings have grown significantly by 25.2% per year over the past 5 years.

Accelerating Growth: STE's earnings growth over the past year (6.4%) is below its 5-year average (25.2% per year).

Earnings vs Industry: STE earnings growth over the past year (6.4%) underperformed the Medical Equipment industry 28.3%.


Return on Equity

High ROE: STE's Return on Equity (10.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is STERIS's financial position?


Financial Position Analysis

Short Term Liabilities: STE's short term assets ($1.0B) exceeds its short term liabilities ($428.0M)

Long Term Liabilities: STE's short term assets (1.0B) do not cover its long term liabilities (1.5B)


Debt to Equity History and Analysis

Debt Level: STE's debt to equity ratio (36.7%) is considered satisfactory

Reducing Debt: STE's debt to equity ratio has reduced from 58% to 36.7% over the past 5 years.

Debt Coverage: STE's debt is well covered by operating cash flow (48.2%).

Interest Coverage: STE's interest payments on its debt are well covered by EBIT (14x coverage).


Balance Sheet

Inventory Level: STE has a high level of physical assets or inventory.

Debt Coverage by Assets: STE's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

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

0.99%

Current Dividend Yield


Upcoming Dividend Payment

Purchase STERIS before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.0%marketbottom25%1.4%markettop25%3.6%industryaverage1.2%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: STE's dividend (0.99%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: STE's dividend (0.99%) is low compared to the top 25% of dividend payers in the US market (3.64%).


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 (35%), 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 (23.2% payout ratio).


Next Steps

Management

What is the CEO of STERIS's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Walt Rosebrough (65yo)

12.1yrs

Tenure

US$5,982,890

Compensation

Mr. Walter M. Rosebrough, Jr., also known as Walt, has been the Chief Executive Officer and President of STERIS plc since October 1, 2007. Mr. Rosebrough leads STERIS’ management team, assists the Board in ...


CEO Compensation Analysis

Compensation vs Market: Walt's total compensation ($USD5.98M) is below average for companies of similar size in the US market ($USD11.04M).

Compensation vs Earnings: Walt's compensation has been consistent with company performance over the past year.


Management Age and Tenure

6.3yrs

Average Tenure

50.5yo

Average Age

Experienced Management: STE's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: STE's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$8,789,60608 Aug 19
Walter Rosebrough
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares58,500
Max PriceUS$150.83
SellUS$30,534,83911 Jun 19
Richard Steeves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares221,493
Max PriceUS$138.02
SellUS$9,967,10110 Jun 19
Richard Steeves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares72,867
Max PriceUS$137.60
SellUS$28,931,02806 Jun 19
Richard Steeves
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares213,197
Max PriceUS$136.60
SellUS$699,36005 Jun 19
Loyal Wilson
EntityIndividual
Shares5,156
Max PriceUS$135.64
SellUS$767,61917 May 19
Michael Wood
EntityIndividual
Shares5,700
Max PriceUS$134.67

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Mike Tokich (50yo)

    Senior VP & CFO

    • Tenure: 11.7yrs
    • Compensation: US$2.25m
  • Walt Rosebrough (65yo)

    CEO, President & Director

    • Tenure: 12.1yrs
    • Compensation: US$5.98m
  • Kathie Bardwell (63yo)

    Chief Compliance Officer & Senior VP

    • Tenure: 11.7yrs
  • John Zangerle (52yo)

    Senior VP

    • Tenure: 6.3yrs
    • Compensation: US$1.46m
  • Michiel de Zwaan (48yo)

    VP & Chief HR Officer

    • Tenure: 2.2yrs
  • Dan Carestio (46yo)

    Senior VP & Chief Operating Officer

    • Tenure: 1.3yrs
    • Compensation: US$2.15m
  • Karen Burton (51yo)

    Chief Accounting Officer

    • Tenure: 2.8yrs
  • Julie Winter

    Senior Director of Investor Relations

    • Tenure: 0yrs
  • Stephen Norton

    Senior Director of Corporate Communications

    • Tenure: 0yrs
  • Cary Majors (44yo)

    Vice President of North American Commercial Operations

    • Tenure: 0yrs
    • Compensation: US$1.21m

Board Members

  • Richard Breeden (69yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$294.98k
  • David Lewis (68yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$299.96k
  • Mohsen Sohi (60yo)

    Chairman of the Board

    • Tenure: 1.3yrs
    • Compensation: US$399.85k
  • Jackie Kosecoff (70yo)

    Independent Director

    • Tenure: 16.1yrs
    • Compensation: US$280.38k
  • Cynthia Feldmann (66yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$279.81k
  • Richard Steeves (57yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$294.96k
  • Nirav Shah (47yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$339.99k
  • Walt Rosebrough (65yo)

    CEO, President & Director

    • Tenure: 12.1yrs
    • Compensation: US$5.98m

Company Information

STERIS plc's company bio, 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$12.611b
  • Shares outstanding: 84.78m
  • Website: https://www.steris.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
STENYSE (New York Stock Exchange)YesNew Common StockUSUSDJun 1992
2TGDB (Deutsche Boerse AG)YesNew Common StockDEEURJun 1992
0XI8LSE (London Stock Exchange)YesNew Common StockGBUSDJun 1992

Biography

STERIS plc provides infection prevention and other procedural products and services worldwide. It operates in four segments: Healthcare Products, Healthcare Specialty Services, Life Sciences, and Applied S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:18
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


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.