Steris (STE) AI Stock Analysis

• Market Cap: $23.95B
• Dividend Yield: 0.99%
• Average Volume (3M): 601.84K
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.47
• Revenue Growth: 5.15%
• EPS Growth: 60.30%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.47
• Shares Outstanding: 98,490,610
• 10 Day Avg. Volume: 743,694
• 30 Day Avg. Volume: 601,842
• PEG Ratio: 0.58
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 4.09
• P/FCF Ratio: 28.72
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $284.50
• Price Target Upside: 9.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $296.00 ▲(13.82% Upside)

Steris's overall stock score is driven by its strong financial performance and positive earnings call, which highlight robust revenue growth and improved margins. However, the high P/E ratio and overbought technical indicators suggest caution. The company's strategic focus on margin improvement and cost management positions it well for future growth, despite external pressures.

Positive Factors

Revenue Growth

The consistent revenue growth indicates strong demand for Steris's products and services, reinforcing its market position and supporting long-term business expansion.

Margin Improvement

Improved margins reflect effective cost management and pricing strategies, enhancing profitability and providing a buffer against cost pressures.

Cash Flow Strength

Strong cash flow generation supports Steris's ability to reinvest in growth opportunities, reduce debt, and return value to shareholders, underpinning financial stability.

Negative Factors

Tariffs and Inflation Impact

Tariffs and inflationary pressures can erode profitability, posing a risk to margin sustainability and necessitating ongoing cost management efforts.

Decline in AST Capital Equipment Revenue

A decline in capital equipment revenue within the AST segment may indicate challenges in maintaining growth momentum in this area, potentially affecting segment performance.

Increased Effective Tax Rate

A higher effective tax rate can reduce net income, impacting overall profitability and potentially limiting funds available for reinvestment and shareholder returns.

Steris Business Overview & Revenue Model

Company Description

STERIS plc provides infection prevention and other procedural products and services worldwide. It operates through four segments: Healthcare, Applied Sterilization Technologies, Life Sciences, and Dental. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking 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. It also provides capital equipment installation, maintenance, upgradation, repair, and troubleshooting services; preventive maintenance programs and repair services; instrument and endoscope repair and maintenance services; and custom process improvement consulting and outsourced instrument sterile processing services. The Applied Sterilization Technologies segment provides contract sterilization and testing services for medical device and pharmaceutical manufacturers through a network of approximately 50 contract sterilization and laboratory facilities. The Life Sciences segment designs, manufactures and sells consumable products, such as formulated cleaning chemistries, barrier and sterility assurance products, steam and vaporized hydrogen peroxide sterilizers, and washer disinfectors. This segment also offers equipment installation, maintenance, upgradation, repair, and troubleshooting services; and preventive maintenance programs and repair services. The Dental segment provides hand and powered dental instruments, infection control products, personal protective equipment, and water quality products for dental suite. The company serves its products and services to hospitals, other healthcare providers, and pharmaceutical manufacturers. The company was founded in 1985 and is based in Dublin, Ireland.

How the Company Makes Money

Steris generates revenue through multiple key streams. The Healthcare Products segment contributes significantly by selling sterilization equipment, endoscope reprocessing products, surgical instruments, and consumables. The Healthcare Services segment derives income from service contracts for maintaining and repairing medical equipment, as well as consulting services that help healthcare facilities optimize their operations and meet regulatory requirements. The Life Sciences segment provides products and services to pharmaceutical and biotechnology companies, including sterilization services for critical components. Additionally, Steris benefits from strategic partnerships with healthcare institutions and companies that enhance its market reach and capabilities, alongside ongoing innovation in its product offerings to meet evolving customer needs.

Steris Financial Statement Overview

Summary

Steris demonstrates strong financial performance with consistent revenue growth, robust profitability margins, and efficient cost management. The balance sheet is solid with manageable debt levels, and cash flow performance is commendable, supporting future growth and debt servicing.

Income Statement

Steris demonstrates strong financial performance with consistent revenue growth and robust profitability margins. The TTM data shows a gross profit margin of 44.13% and a net profit margin of 11.61%, indicating efficient cost management and profitability. Revenue growth has been steady, with a 2.04% increase in the TTM period. The EBIT and EBITDA margins are healthy at 16.60% and 23.12%, respectively, reflecting effective operational management.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.27 in the TTM period, indicating prudent leverage. The return on equity is 9.73%, showcasing effective use of equity to generate profits. The equity ratio stands at 66.99%, highlighting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Steris's cash flow performance is commendable, with a significant free cash flow growth rate of 16.81% in the TTM period. The operating cash flow to net income ratio is 1.36, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 0.72, demonstrating efficient conversion of net income into free cash flow, supporting future growth and debt servicing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.70B	5.46B	5.14B	4.54B	4.22B	3.11B
Gross Profit	2.53B	2.40B	2.22B	1.98B	1.88B	1.34B
EBITDA	1.35B	1.36B	1.41B	1.34B	1.01B	773.95M
Net Income	688.51M	614.64M	378.24M	107.03M	243.89M	397.40M
Balance Sheet
Total Assets	10.41B	10.15B	11.06B	10.82B	11.42B	6.57B
Cash, Cash Equivalents and Short-Term Investments	319.20M	171.70M	207.02M	208.36M	348.32M	220.53M
Total Debt	126.00M	2.20B	3.38B	3.25B	3.28B	1.80B
Total Liabilities	3.39B	3.53B	4.75B	4.73B	4.88B	2.68B
Stockholders Equity	7.01B	6.60B	6.30B	6.08B	6.53B	3.88B
Cash Flow
Free Cash Flow	961.20M	778.00M	612.95M	394.98M	397.25M	450.38M
Operating Cash Flow	1.30B	1.15B	973.27M	756.95M	684.81M	689.64M
Investing Cash Flow	-390.50M	388.77M	-887.36M	-383.33M	-666.56M	-1.15B
Financing Cash Flow	-764.77M	-1.57B	-85.19M	-498.72M	115.83M	345.62M

Steris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 260.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STE, the sentiment is Positive. The current price of 260.06 is above the 20-day moving average (MA) of 240.44, above the 50-day MA of 243.54, and above the 200-day MA of 232.94, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 74.74 is Negative, neither overbought nor oversold. The STOCH value of 85.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STE.

Steris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	77 Outperform	$23.95B	34.63	10.13%	0.99%	5.15%	60.30%
PODD	77 Outperform	$22.13B	98.42	19.18%	―	25.99%	-40.46%
DXCM	69 Neutral	$23.86B	32.99	30.63%	―	14.21%	5.66%
SNN	69 Neutral	$15.64B	32.75	9.20%	2.32%	5.78%	61.52%
ZBH	65 Neutral	$20.44B	25.13	6.41%	1.08%	5.47%	-23.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHG	50 Neutral	$26.83B	―	―	3.14%	-0.76%	-55.03%

Steris Corporate Events

STERIS Reports Strong Q2 Earnings and Raises Outlook

STERIS plc is a global leader in providing innovative healthcare and life science products and services, focusing on infection prevention to support patient care worldwide. The company operates primarily in the healthcare sector, offering a range of products and services aimed at creating a healthier and safer world.

Steris Earnings Call Highlights Robust Growth and Optimism

The recent earnings call for Steris plc painted a picture of robust financial health, marked by impressive growth in revenue, margins, and earnings per share. Despite some concerns about tariffs, inflation, and tax rates, the overall sentiment remained optimistic, buoyed by positive developments across various segments and an enhanced outlook for fiscal 2026.

STERIS Reports Strong Q1 Earnings and Revenue Growth

STERIS plc is a global leader in providing innovative healthcare and life science products and services, focusing on infection prevention to support patient care worldwide. The company operates primarily in the healthcare sector, offering a range of products and services that contribute to creating a healthier and safer world.

Steris Earnings Call: Positive Growth Amid Challenges

The latest earnings call from Steris presented a generally positive outlook, marked by strong revenue growth, improved margins, and significant free cash flow. Despite facing challenges such as increased tariff and employee healthcare costs, the company’s ongoing robust performance and strategic initiatives suggest a positive trajectory for the future.