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STERIS

NYSE:STE
Snowflake Description

Excellent balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STE
NYSE
$11B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

STERIS plc provides infection prevention and other procedural products and services worldwide. The last earnings update was 14 days ago. More info.


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STE Share Price and Events
7 Day Returns
0.3%
NYSE:STE
0.9%
US Medical Equipment
-1.4%
US Market
1 Year Returns
30.3%
NYSE:STE
10.9%
US Medical Equipment
1.6%
US Market
STE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
STERIS (STE) 0.3% 4.6% 12.1% 30.3% 94.7% 156.7%
US Medical Equipment 0.9% 0.4% -0.8% 10.9% 55.9% 90.4%
US Market -1.4% -3.9% 0.1% 1.6% 33.2% 38.2%
1 Year Return vs Industry and Market
  • STE outperformed the Medical Equipment industry which returned 10.9% over the past year.
  • STE outperformed the Market in United States of America which returned 1.6% over the past year.
Price Volatility
STE
Industry
5yr Volatility vs Market

Value

 Is STERIS undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of STERIS to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for STERIS.

NYSE:STE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:STE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.89
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.893 (1 + (1- 19%) (10.35%))
0.979
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.979 * 6.65%)
9.24%

Discounted Cash Flow Calculation for NYSE:STE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for STERIS is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:STE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.24%)
2019 356.31 Analyst x2 326.17
2020 302.08 Analyst x1 253.15
2021 492.72 Analyst x1 377.98
2022 551.36 Est @ 11.9% 387.20
2023 601.82 Est @ 9.15% 386.89
2024 645.30 Est @ 7.22% 379.76
2025 683.22 Est @ 5.88% 368.07
2026 716.92 Est @ 4.93% 353.56
2027 747.55 Est @ 4.27% 337.49
2028 776.02 Est @ 3.81% 320.72
Present value of next 10 years cash flows $3,491.00
NYSE:STE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $776.02 × (1 + 2.73%) ÷ (9.24% – 2.73%)
$12,248.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $12,248.86 ÷ (1 + 9.24%)10
$5,062.22
NYSE:STE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,491.00 + $5,062.22
$8,553.22
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $8,553.22 / 84.59
$101.12
NYSE:STE Discount to Share Price
Calculation Result
Value per share (USD) From above. $101.12
Current discount Discount to share price of $135.11
= -1 x ($135.11 - $101.12) / $101.12
-33.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of STERIS is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for STERIS's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are STERIS's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:STE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.59
NYSE:STE Share Price ** NYSE (2019-05-24) in USD $135.11
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 39.05x
United States of America Market PE Ratio Median Figure of 3,086 Publicly-Listed Companies 17.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of STERIS.

NYSE:STE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:STE Share Price ÷ EPS (both in USD)

= 135.11 ÷ 3.59

37.58x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STERIS is good value based on earnings compared to the US Medical Equipment industry average.
  • STERIS is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does STERIS's expected growth come at a high price?
Raw Data
NYSE:STE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 37.58x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
19.4%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.12x
United States of America Market PEG Ratio Median Figure of 2,121 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:STE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 37.58x ÷ 19.4%

1.94x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STERIS is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on STERIS's assets?
Raw Data
NYSE:STE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $37.68
NYSE:STE Share Price * NYSE (2019-05-24) in USD $135.11
United States of America Medical Equipment Industry PB Ratio Median Figure of 182 Publicly-Listed Medical Equipment Companies 4.42x
United States of America Market PB Ratio Median Figure of 5,208 Publicly-Listed Companies 1.8x
NYSE:STE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:STE Share Price ÷ Book Value per Share (both in USD)

= 135.11 ÷ 37.68

3.59x

* Primary Listing of STERIS.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • STERIS is good value based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess STERIS's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. STERIS has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is STERIS expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is STERIS expected to grow at an attractive rate?
  • STERIS's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • STERIS's earnings growth is expected to exceed the United States of America market average.
  • STERIS's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:STE Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:STE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 19.4%
NYSE:STE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 5.4%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 21.6%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 8.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:STE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:STE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 3,284 2
2021-03-31 3,100 670 450 7
2020-03-31 2,936 582 400 7
NYSE:STE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,782 540 304
2018-12-31 2,730 490 269
2018-09-30 2,696 467 316
2018-06-30 2,651 478 303
2018-03-31 2,620 458 291
2017-12-31 2,585 463 243
2017-09-30 2,570 453 144
2017-06-30 2,582 424 120
2017-03-31 2,613 424 110
2016-12-31 2,616 439 142
2016-09-30 2,588 364 167
2016-06-30 2,431 294 135

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • STERIS's earnings are expected to grow by 19.4% yearly, however this is not considered high growth (20% yearly).
  • STERIS's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:STE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from STERIS Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 5.84 5.84 5.84 1.00
2021-03-31 5.27 5.30 5.22 4.00
2020-03-31 4.65 4.72 4.60 5.00
NYSE:STE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.59
2018-12-31 3.18
2018-09-30 3.73
2018-06-30 3.57
2018-03-31 3.42
2017-12-31 2.86
2017-09-30 1.69
2017-06-30 1.40
2017-03-31 1.29
2016-12-31 1.65
2016-09-30 1.99
2016-06-30 1.75

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • STERIS is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess STERIS's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
STERIS has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has STERIS performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare STERIS's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • STERIS has delivered over 20% year on year earnings growth in the past 5 years.
  • STERIS's 1-year earnings growth is less than its 5-year average (4.5% vs 22.5%)
  • STERIS's earnings growth has not exceeded the US Medical Equipment industry average in the past year (4.5% vs 31.9%).
Earnings and Revenue History
STERIS's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from STERIS Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:STE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,782.17 304.05 669.94 63.04
2018-12-31 2,729.93 268.90 640.61 64.77
2018-09-30 2,695.59 315.83 624.18 64.80
2018-06-30 2,650.79 302.83 615.74 63.00
2018-03-31 2,620.00 290.92 613.67 60.78
2017-12-31 2,585.21 243.46 649.99 58.93
2017-09-30 2,570.09 143.68 630.19 58.33
2017-06-30 2,582.34 119.64 639.99 58.97
2017-03-31 2,612.76 109.97 635.54 59.40
2016-12-31 2,616.04 141.56 522.64 57.95
2016-09-30 2,587.96 166.60 560.09 57.69
2016-06-30 2,431.44 134.87 568.87 57.33
2016-03-31 2,232.96 110.76 543.82 56.66
2015-12-31 2,042.22 94.42 628.98 56.53
2015-09-30 1,896.77 112.50 514.33 56.74
2015-06-30 1,869.61 134.82 468.17 55.50
2015-03-31 1,842.35 135.06 455.02 54.14
2014-12-31 1,806.51 132.54 402.47 51.65
2014-09-30 1,738.82 122.92 435.30 48.68
2014-06-30 1,659.85 121.66 399.66 49.20
2014-03-31 1,614.86 129.44 380.97 48.64
2013-12-31 1,585.18 131.95 375.50 48.69
2013-09-30 1,560.04 151.54 371.76 47.52
2013-06-30 1,532.59 161.94 362.13 43.85
2013-03-31 1,501.90 159.98 354.48 41.31
2012-12-31 1,463.94 162.77 334.54 38.67
2012-09-30 1,438.75 148.32 316.71 37.45
2012-06-30 1,425.13 137.74 312.32 36.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • STERIS has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • STERIS used its assets more efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • STERIS has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess STERIS's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
STERIS has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is STERIS's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up STERIS's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • STERIS is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • STERIS's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of STERIS's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from STERIS Company Filings, last reported 1 month ago.

NYSE:STE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,185.80 1,183.23 220.63
2018-12-31 3,112.31 1,246.31 224.91
2018-09-30 3,124.98 1,267.72 209.92
2018-06-30 3,099.19 1,320.06 218.52
2018-03-31 3,217.30 1,316.00 201.53
2017-12-31 3,117.79 1,420.05 283.84
2017-09-30 3,040.81 1,445.30 295.63
2017-06-30 2,939.46 1,496.47 294.84
2017-03-31 2,810.03 1,478.36 282.92
2016-12-31 2,770.11 1,507.04 264.86
2016-09-30 3,009.56 1,504.19 254.35
2016-06-30 3,048.49 1,551.84 242.42
2016-03-31 3,038.89 1,567.80 248.84
2015-12-31 2,989.82 1,639.46 231.36
2015-09-30 1,091.79 829.82 162.19
2015-06-30 1,099.60 686.17 196.19
2015-03-31 1,073.65 621.08 167.69
2014-12-31 1,076.10 610.68 144.51
2014-09-30 1,067.86 619.95 147.41
2014-06-30 1,066.00 658.74 157.94
2014-03-31 1,041.25 493.48 152.80
2013-12-31 1,009.75 474.74 157.34
2013-09-30 991.28 508.52 163.79
2013-06-30 971.27 513.70 165.84
2013-03-31 946.98 492.29 142.01
2012-12-31 920.19 520.89 155.89
2012-09-30 881.63 434.34 156.61
2012-06-30 833.39 210.00 186.73
  • STERIS's level of debt (37.1%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (47.6% vs 37.1% today).
  • Debt is well covered by operating cash flow (45.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 10.2x coverage).
X
Financial health checks
We assess STERIS's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. STERIS has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.01%
Current annual income from STERIS dividends. Estimated to be 1.12% next year.
If you bought $2,000 of STERIS shares you are expected to receive $20 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • STERIS's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • STERIS's dividend is below the markets top 25% of dividend payers in United States of America (3.75%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:STE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2007 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:STE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 1.60 1.00
2021-03-31 1.48 1.00
2020-03-31 1.45 1.00
NYSE:STE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-11 1.360 1.081
2018-11-06 1.360 1.205
2018-08-08 1.360 1.216
2018-05-09 1.240 1.153
2018-02-07 1.240 1.335
2017-08-08 1.240 1.400
2017-05-26 1.120 1.376
2017-05-09 1.120 1.479
2016-11-02 1.120 1.624
2016-08-09 1.120 1.588
2016-05-18 1.000 1.448
2016-02-09 1.000 1.456
2015-10-30 1.000 1.380
2015-05-07 0.920 1.387
2015-02-04 0.920 1.366
2014-11-04 0.920 1.421
2014-08-08 0.840 1.496
2014-08-05 0.920 1.784
2014-05-29 0.840 1.586
2014-05-08 0.840 1.575
2014-02-07 0.840 1.765
2014-02-05 0.840 1.922
2013-11-08 0.840 1.797
2013-10-30 0.840 1.862
2013-05-07 0.760 1.724
2012-10-31 0.760 2.045
2012-08-02 0.760 2.171
2012-05-08 0.680 2.222
2012-02-07 0.680 2.177
2011-11-02 0.680 2.328
2011-08-02 0.680 2.273
2011-05-09 0.600 1.707
2011-02-08 0.600 1.749
2010-11-03 0.600 1.678
2010-08-03 0.600 1.869
2010-05-06 0.440 1.392
2010-02-02 0.440 1.337
2009-11-03 0.440 1.484
2009-07-30 0.440 1.482

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of STERIS's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess STERIS's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can STERIS afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. STERIS has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Walt Rosebrough
COMPENSATION $5,205,053
AGE 64
TENURE AS CEO 11.6 years
CEO Bio

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 its oversight of it and provides unique perspectives into the healthcare industry and its operations, direction and strategies. He joined STERIS in October 2007. Mr. Rosebrough has been a Director of Varex Imaging Corp. since April 20, 2018. From February 2005 to September 2007, Mr. Rosebrough served as the President and Chief Executive Officer of Coastal Hydraulics, Inc., a hydraulic and pneumatic systems company he purchased in 2005, and he continues to serve on its board of directors. He served as the President and Chief Executive Officer of the Hill-Rom Company. He served as an Executive Vice President of Hillenbrand, Inc. He has over 30 years in the healthcare industry in various roles as a senior executive with Hill-Rom Holdings, Inc. (at the time, Hillenbrand Industries, Inc.), a worldwide provider of medical equipment and related services, including President and Chief Executive Officer of Support Systems International. In 2000, he left Hillenbrand to lead Vasocor, Inc., a Credit Suisse First Boston- funded start-up healthcare company, as President and Chief Executive Officer. He was Chief Executive Officer for 25 years. Mr. Rosebrough has leadership experience in many major business functions, including product development, business development, manufacturing, finance, and marketing; experience leading ventures ranging in scale from start-up operations to multi-billion dollar multinational businesses; and Service on the following healthcare industry boards: AAMI (Association for the Advancement of Medical Instrumentation), AdvaMed (Advanced Medical Technology Association), and MDMA (Medical Device Manufacturers Association). He has been a Director of Greater Cleveland Partnership since March 2012. He serves as a Director of Joerns Healthcare. He served as a Director of Steris plc October 1, 2007 until March 28, 2019. He served as a Director for AdvaMed, Health Insights and Margaret Mary Hospital. Mr. Rosebrough holds a Bachelor's degree in Industrial Engineering from Kettering University (Former Name: General Motors Institute) in Flint, Michigan and a Master's degree in Business Administration from Stanford University's Graduate School of Business, in Palo Alto, California.

CEO Compensation
  • Walt's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Walt's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the STERIS management team in years:

4.7
Average Tenure
49.5
Average Age
  • The tenure for the STERIS management team is about average.
Management Team

Walt Rosebrough

TITLE
CEO & President
COMPENSATION
$5M
AGE
64
TENURE
11.6 yrs

Mike Tokich

TITLE
Senior VP
COMPENSATION
$2M
AGE
49
TENURE
11.2 yrs

Dan Carestio

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
45
TENURE
0.8 yrs

John Zangerle

TITLE
Senior VP
COMPENSATION
$1M
AGE
51
TENURE
5.8 yrs

Adrian Coward

TITLE
Senior Vice President of Healthcare Specialty Services
COMPENSATION
$1M
AGE
48
TENURE
3.5 yrs

Karen Burton

TITLE
Chief Accounting Officer
AGE
50
TENURE
2.3 yrs

Julie Winter

TITLE
Senior Director of Investor Relations

Kathie Bardwell

TITLE
Chief Compliance Officer & Senior VP
AGE
62
TENURE
11.2 yrs

Stephen Norton

TITLE
Senior Director of Corporate Communications

Michiel de Zwaan

TITLE
VP & Chief Human Resources Officer
AGE
47
TENURE
1.7 yrs
Board of Directors Tenure

Average tenure and age of the STERIS board of directors in years:

0.2
Average Tenure
49
Average Age
  • The average tenure for the STERIS board of directors is less than 3 years, this suggests a new board.
Board of Directors

Mike Tokich

TITLE
Senior VP
COMPENSATION
$2M
AGE
49
TENURE
0.2 yrs

John Zangerle

TITLE
Senior VP
COMPENSATION
$1M
AGE
51
TENURE
0.2 yrs

Nirav Shah

TITLE
Director
AGE
45
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
04. Jun 18 Sell Walter Rosebrough Individual 01. Jun 18 01. Jun 18 -8,571 $104.46 $-895,327
31. May 18 Sell Walter Rosebrough Individual 29. May 18 29. May 18 -10,697 $102.91 $-1,100,828
X
Management checks
We assess STERIS's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. STERIS has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is STERIS plc’s (NYSE:STE) Return On Capital Employed Any Good?

Finally, we'll look at how its current liabilities affect its ROCE. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for STERIS: 0.099 = US$454m ÷ (US$5.1b - US$465m) (Based on the trailing twelve months to March 2019.) So, STERIS has an ROCE of 9.9%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Why STERIS plc (NYSE:STE) Could Be Your Next Investment

In the case of STERIS plc (NYSE:STE), there's is a notable dividend payer that has been able to sustain great financial health over the past. … Excellent balance sheet average dividend payer STE's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … NYSE:STE Historical Debt, May 17th 2019 Income investors would also be happy to know that STE is a great dividend company, with a current yield standing at 1.0%.

Simply Wall St -

Did STERIS plc (NYSE:STE) Use Debt To Deliver Its ROE Of 8.7%?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for STERIS: 8.7% = US$269m ÷ US$3.1b (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

What Kind Of Shareholder Owns Most STERIS plc (NYSE:STE) Stock?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that used to be publicly owned tend to have lower insider ownership. … Normally institutions would own a significant portion of a company this size.

Simply Wall St -

Do STERIS's (NYSE:STE) Earnings Warrant Your Attention?

While that doesn't make the shares worth buying at any price, you can't deny that successful capitalism requires profit, eventually. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth. … While we note STERIS's EBIT margins were flat over the last year, revenue grew by a solid 5.6% to US$2.7b.

Simply Wall St -

Should You Be Tempted To Sell STERIS plc (NYSE:STE) Because Of Its P/E Ratio?

We'll apply a basic P/E ratio analysis to STERIS plc's (NYSE:STE), to help you decide if the stock is worth further research. … Based on the last twelve months, STERIS's P/E ratio is 40.32. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why STERIS plc (NYSE:STE) Could Be Worth Watching

led the NYSE gainers with a relatively large price hike in the past couple of weeks. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price … However, could the stock still be trading at a relatively cheap price?

Simply Wall St -

How Many Insiders Sold STERIS plc (NYSE:STE) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in STERIS plc (NYSE:STE). … In the last twelve months, the biggest single sale by an insider was when CEO, President & Director Walter Rosebrough sold US$1.1m worth of shares at a price of US$103 per share. … In the last twelve months insiders netted US$2.5m for 24.27k shares sold.

Simply Wall St -

STERIS plc's (NYSE:STE) Earnings Grew 10%, Did It Beat Long-Term Trend?

Below, I will assess STE's latest performance announced on 31 December 2018 and weight these figures against its longer term trend and industry movements. … STE's trailing twelve-month earnings (from 31 December 2018) of US$269m has? … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 20%, indicating the rate at which STE is growing has slowed down

Simply Wall St -

STERIS plc (NYSE:STE): Time For A Financial Health Check

its financial health remains the key to continued success. … I will provide an overview of STERIS’s financial liquidity and leverage to give you an idea of STERIS’s position to take advantage of potential acquisitions or comfortably endure future downturns. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Company Info

Description

STERIS plc provides infection prevention and other procedural products and services worldwide. The company 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 operations of a sterile processing department; and equipment used in the operating room, including surgical tables, lights, equipment management services, and connectivity solutions. It also provides capital equipment install, maintain, upgrade, repair, and troubleshoot services. This segment provides its products and services to acute care hospitals, ambulatory surgery centers, and GI clinics. The Healthcare Specialty Services segment provides solutions and managed services, including instrument and endoscope repair and maintenance solutions; and custom process improvement consulting and outsourced 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 using gamma, electron beam, and X-ray technologies, as well as ethylene oxide and hydrogen peroxide; and laboratory testing services. It operates a network of approximately 50 facilities. The company was founded in 1985 and is based in Derby, the United Kingdom.

Details
Name: STERIS plc
STE
Exchange: NYSE
Founded: 1985
$11,428,609,288
84,587,442
Website: http://www.steris.com
Address: STERIS plc
Rutherford House,
Stephensons Way,
Derby,
Derbyshire, DE21 6LY,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE STE New Common Stock New York Stock Exchange US USD 01. Jun 1992
DB 2TG New Common Stock Deutsche Boerse AG DE EUR 01. Jun 1992
LSE 0XI8 New Common Stock London Stock Exchange GB USD 01. Jun 1992
Number of employees
Current staff
Staff numbers
12,000
STERIS employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/27 00:42
End of day share price update: 2019/05/24 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/13
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.