Market Cap
US$11.0b
Last Updated
2020/03/30 04:20 UTC
Data Sources
Company Financials +
Executive Summary
STERIS plc provides infection prevention and other procedural products and services worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with excellent balance sheet 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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
20.4%
STE
18.0%
US Medical Equipment
12.5%
US Market
1 Year Return
1.8%
STE
-8.0%
US Medical Equipment
-12.7%
US Market
Return vs Industry: STE exceeded the US Medical Equipment industry which returned -8% over the past year.
Return vs Market: STE exceeded the US Market which returned -12.7% over the past year.
Shareholder returns
| STE | Industry | Market | |
|---|---|---|---|
| 7 Day | 20.4% | 18.0% | 12.5% |
| 30 Day | -18.2% | -10.6% | -14.7% |
| 90 Day | -14.9% | -18.2% | -21.5% |
| 1 Year | 2.8%1.8% | -7.2%-8.0% | -10.9%-12.7% |
| 3 Year | 92.3%85.6% | 41.2%37.4% | 12.6%5.4% |
| 5 Year | 98.7%86.0% | 72.5%54.7% | 31.9%17.5% |
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
1 week ago | Simply Wall St
Why STERIS plc (NYSE:STE) Should Be In Your Dividend Portfolio2 weeks ago | Simply Wall St
Why We Like STERIS plc’s (NYSE:STE) 11% Return On Capital Employed3 weeks ago | Simply Wall St
How Much is STERIS plc's (NYSE:STE) CEO Getting Paid?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 ($129.74) is trading below our estimate of fair value ($724.86)
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 (28x) compared to the Medical Equipment industry average (36.7x).
PE vs Market: STE is poor value based on its PE Ratio (28x) compared to the US market (13x).
Price to Earnings Growth Ratio
PEG Ratio: STE is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: STE is overvalued based on its PB Ratio (3.3x) compared to the US Medical Equipment industry average (2.9x).
Next Steps
Future Growth
How is STERIS forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
17.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: STE's forecast earnings growth (17.2% per year) is above the savings rate (1.7%).
Earnings vs Market: STE's earnings (17.2% per year) are forecast to grow faster than the US market (12.3% per year).
High Growth Earnings: STE's earnings are forecast to grow, but not significantly.
Revenue vs Market: STE's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).
High Growth Revenue: STE's revenue (5.9% 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 (14.8%).
Next Steps
Past Performance
How has STERIS performed over the past 5 years?
26.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: STE has high quality earnings.
Growing Profit Margin: STE's current net profit margins (13.2%) are higher than last year (9.9%).
Past Earnings Growth Analysis
Earnings Trend: STE's earnings have grown significantly by 26.8% per year over the past 5 years.
Accelerating Growth: STE's earnings growth over the past year (46.2%) exceeds its 5-year average (26.8% per year).
Earnings vs Industry: STE earnings growth over the past year (46.2%) exceeded the Medical Equipment industry 1%.
Return on Equity
High ROE: STE's Return on Equity (11.6%) is considered low.
Next Steps
Financial Health
How is STERIS's financial position?
Financial Position Analysis
Short Term Liabilities: STE's short term assets ($1.1B) exceed its short term liabilities ($450.8M).
Long Term Liabilities: STE's short term assets ($1.1B) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: STE's debt to equity ratio (33.5%) is considered satisfactory.
Reducing Debt: STE's debt to equity ratio has reduced from 56.8% to 33.5% over the past 5 years.
Debt Coverage: STE's debt is well covered by operating cash flow (50.2%).
Interest Coverage: STE's interest payments on its debt are well covered by EBIT (15.3x 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?
1.14%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: STE's dividend (1.14%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).
High Dividend: STE's dividend (1.14%) is low compared to the top 25% of dividend payers in the US market (5.49%).
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 (30.6%), 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 (35% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.3yrs
Average management tenure
CEO
Walt Rosebrough (65yo)
12.42s
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 ($USD11.74M).
Compensation vs Earnings: Walt's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 12.42yrs | US$5.98m | 0.086% $9.4m | |
| Senior VP & CFO | 12yrs | US$2.25m | 0.061% $6.7m | |
| Senior VP & Chief Operating Officer | 1.58yrs | US$2.15m | 0.027% $2.9m | |
| Senior VP | 6.67yrs | US$1.46m | 0.034% $3.7m | |
| Chief Accounting Officer | 3.17yrs | no data | 0.0088% $972.7k | |
| Senior Director of Investor Relations | no data | no data | no data | |
| Chief Compliance Officer & Senior VP | 12yrs | no data | 0.021% $2.3m | |
| Senior Director of Corporate Communications | no data | no data | no data | |
| VP & Chief HR Officer | 2.5yrs | no data | 0.0096% $1.1m | |
| Senior Vice President of Infection Prevention Technologies | 6yrs | US$2.19m | no data |
6.3yrs
Average Tenure
51.5yo
Average Age
Experienced Management: STE's management team is seasoned and experienced (6.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 12.42yrs | US$5.98m | 0.086% $9.4m | |
| Independent Director | 11.92yrs | US$294.98k | 0.036% $3.9m | |
| Independent Director | 9.67yrs | US$299.96k | 0.0079% $867.1k | |
| Chairman of the Board | 1.67yrs | US$399.85k | 0.026% $2.9m | |
| Independent Director | 16.42yrs | US$280.38k | 0.052% $5.7m | |
| Independent Director | 15yrs | US$279.81k | 0.011% $1.2m | |
| Independent Director | 4.33yrs | US$294.96k | no data | |
| Independent Director | 1.83yrs | US$339.99k | no data |
10.8yrs
Average Tenure
65.5yo
Average Age
Experienced Board: STE's board of directors are seasoned and experienced ( 10.8 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 not been meaningfully diluted in the past year.
Top Shareholders
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$11.004b
- Shares outstanding: 84.81m
- Website: https://www.steris.com
Number of Employees
Location
- STERIS plc
- 70 Sir John Rogerson’s Quay
- Dublin 2
- Dublin
- D02 R296
- Ireland
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| STE | NYSE (New York Stock Exchange) | Yes | New Common Stock | US | USD | Jun 1992 |
| 2TG | DB (Deutsche Boerse AG) | Yes | New Common Stock | DE | EUR | Jun 1992 |
| 0XI8 | LSE (London Stock Exchange) | Yes | New Common Stock | GB | USD | Jun 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 Sterilization Technologies. The Healthcare Products 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, equipment management services, and connectivity solutions. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services. This segment offers its products and services to acute care hospitals, ambulatory surgery centers, and GI clinics. The Healthcare Specialty Services segment provides solutions and managed services, such as instrument and endoscope repair and maintenance solutions; custom process improvement consulting services; and outsourced instrument sterile processing services to acute care hospitals and other healthcare settings. The Life Sciences segment offers formulated cleaning chemistries, barrier products, sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. The Applied Sterilization Technologies segment provides contract sterilization services through a network of approximately 50 contract sterilization and laboratory facilities. The company was founded in 1985 and is based in Dublin, Ireland.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/30 04:20 |
| End of Day Share Price | 2020/03/27 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.