NYSE:STE

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with solid track record.


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

-0.1%

STE

0.2%

US Medical Equipment

1.0%

US Market


1 Year Return

17.6%

STE

12.8%

US Medical Equipment

4.1%

US Market

Return vs Industry: STE exceeded the US Medical Equipment industry which returned 12.8% over the past year.

Return vs Market: STE exceeded the US Market which returned 4.1% over the past year.


Shareholder returns

STEIndustryMarket
7 Day-0.1%0.2%1.0%
30 Day6.5%0.1%5.4%
90 Day-4.8%-1.0%-5.7%
1 Year18.7%17.6%13.7%12.8%6.5%4.1%
3 Year111.7%104.3%57.8%53.5%28.3%19.8%
5 Year150.6%135.4%100.4%79.7%52.2%35.0%

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?

32.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: STE ($157.48) is trading above our estimate of fair value ($97.84)

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


Price To Earnings Ratio

PE vs Industry: STE is good value based on its PE Ratio (32.8x) compared to the Medical Equipment industry average (45.7x).

PE vs Market: STE is poor value based on its PE Ratio (32.8x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: STE is poor value based on its PEG Ratio (18x)


Price to Book Ratio

PB vs Industry: STE is overvalued based on its PB Ratio (3.9x) compared to the US Medical Equipment industry average (3.6x).


Next Steps

Future Growth

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

1.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: STE's forecast earnings growth (1.8% per year) is below the savings rate (2.2%).

Earnings vs Market: STE's earnings (1.8% per year) are forecast to grow slower than the US market (21.6% per year).

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

Revenue vs Market: STE's revenue (4.4% per year) is forecast to grow slower than the US market (8.9% per year).

High Growth Revenue: STE's revenue (4.4% 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 (13.4%).


Next Steps

Past Performance

How has STERIS performed over the past 5 years?

28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: STE has high quality earnings.

Growing Profit Margin: STE's current net profit margins (13.4%) are higher than last year (10.9%).


Past Earnings Growth Analysis

Earnings Trend: STE's earnings have grown significantly by 28.1% per year over the past 5 years.

Accelerating Growth: STE's earnings growth over the past year (34%) exceeds its 5-year average (28.1% per year).

Earnings vs Industry: STE earnings growth over the past year (34%) exceeded the Medical Equipment industry 7.3%.


Return on Equity

High ROE: STE's Return on Equity (12%) is considered low.


Next Steps

Financial Health

How is STERIS's financial position?


Financial Position Analysis

Short Term Liabilities: STE's short term assets ($1.2B) exceed its short term liabilities ($503.6M).

Long Term Liabilities: STE's short term assets ($1.2B) do not cover its long term liabilities ($1.5B).


Debt to Equity History and Analysis

Debt Level: STE's debt to equity ratio (30.2%) is considered satisfactory.

Reducing Debt: STE's debt to equity ratio has reduced from 57.9% to 30.2% over the past 5 years.

Debt Coverage: STE's debt is well covered by operating cash flow (57.5%).

Interest Coverage: STE's interest payments on its debt are well covered by EBIT (15x coverage).


Balance Sheet


Next Steps

Dividend

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

0.94%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: STE's dividend (0.94%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: STE's dividend (0.94%) is low compared to the top 25% of dividend payers in the US market (4.73%).


Stability and Growth of Payments

Stable Dividend: STE is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: STE is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: STE is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of STE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.5yrs

Average management tenure


CEO

Walt Rosebrough (65yo)

12.58yrs

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 ($USD5.98M) is below average for companies of similar size in the US market ($USD11.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Walter Rosebrough
CEO, President & Director12.58yrsUS$5.98m0.086% $11.4m
Michael Tokich
Senior VP & CFO12.17yrsUS$2.25m0.061% $8.2m
Daniel Carestio
Senior VP & Chief Operating Officer1.75yrsUS$2.15m0.027% $3.6m
John Zangerle
Senior VP6.83yrsUS$1.46m0.034% $4.5m
Karen Burton
Chief Accounting Officer3.33yrsno data0.0088% $1.2m
Julie Winter
Senior Director of Investor Relationsno datano datano data
Kathleen Bardwell
Chief Compliance Officer & Senior VP12.17yrsno data0.021% $2.7m
Stephen Norton
Senior Director of Corporate Communicationsno datano datano data
Michiel de Zwaan
VP & Chief HR Officer2.67yrsno data0.0096% $1.3m
Sudhir Pahwa
Senior Vice President of Infection Prevention Technologies6.25yrsUS$2.19mno data

6.5yrs

Average Tenure

51.5yo

Average Age

Experienced Management: STE's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Walter Rosebrough
CEO, President & Director12.58yrsUS$5.98m0.086% $11.4m
Richard Breeden
Independent Director12.08yrsUS$294.98k0.036% $4.8m
David Lewis
Independent Director9.83yrsUS$299.96k0.0079% $1.1m
Mohsen Sohi
Independent Chairman of the Board1.83yrsUS$399.85k0.026% $3.5m
Jacqueline Kosecoff
Independent Director16.58yrsUS$280.38k0.052% $6.9m
Cynthia Feldmann
Independent Director15.17yrsUS$279.81k0.011% $1.4m
Richard Steeves
Independent Director4.5yrsUS$294.96kno data
Nirav Shah
Independent Director2yrsUS$339.99kno data

11.0yrs

Average Tenure

65.5yo

Average Age

Experienced Board: STE's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$13.356b
  • 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

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 04:04
End of Day Share Price2020/05/22 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.