Steris (STE) AI Stock Analysis

• Market Cap: $25.21B
• Dividend Yield: 0.94%
• Average Volume (3M): 527.95K
• Price to Earnings (P/E): 36.6
• Beta (1Y): 0.40
• 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: 98,147,010
• 10 Day Avg. Volume: 409,161
• 30 Day Avg. Volume: 527,946
• 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: 1.04
• Enterprise Value/Revenue: 4.59
• Enterprise Value/Gross Profit: 10.37
• Enterprise Value/Ebitda: 17.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $296.00 ▲(12.22% 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 streams, including the sale of medical devices, sterilization services, and integrated solutions for healthcare facilities. Key revenue streams come from their core products such as sterilizers, surgical instruments, and consumables used in infection prevention. Additionally, Steris earns income through service contracts and maintenance agreements for their equipment, ensuring ongoing customer support and product functionality. The company has established significant partnerships with healthcare organizations, enhancing its market reach and driving sales through bundled offerings and collaborative solutions. Factors contributing to Steris's earnings include the increasing demand for infection control products, regulatory compliance in healthcare settings, and innovation in surgical technologies.

Steris Financial Statement Overview

Summary

Steris exhibits a solid financial position with consistent revenue growth, strong profitability, and effective cash flow management. The company maintains a healthy balance sheet with low leverage, providing financial stability and flexibility. While profitability and cash flow metrics are strong, there is potential for further improvement in return on equity to enhance shareholder value.

Income Statement

Steris shows strong financial performance with consistent revenue growth and solid profitability margins. The TTM data indicates a Gross Profit Margin of 44.13% and a Net Profit Margin of 11.61%, reflecting efficient cost management and profitability. Revenue growth is steady at 2.36% in the TTM, indicating a stable upward trajectory. EBIT and EBITDA margins are healthy at 16.60% and 25.26%, respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet is robust with a manageable Debt-to-Equity Ratio of 0.30 in the TTM, indicating low leverage and financial stability. Return on Equity is 9.73%, which is decent but shows room for improvement in generating returns for shareholders. The Equity Ratio stands at 67.30%, highlighting a strong equity base relative to total assets.

Cash Flow

Steris demonstrates strong cash flow management with a Free Cash Flow Growth Rate of 5.77% in the TTM, indicating effective cash generation. The Operating Cash Flow to Net Income Ratio is 1.36, suggesting good cash conversion efficiency. The Free Cash Flow to Net Income Ratio of 0.72 reflects a healthy ability to generate free cash relative to net income.

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	1.47B	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	2.06B	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: 263.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 263.77 is above the 20-day moving average (MA) of 255.38, above the 50-day MA of 256.48, and above the 200-day MA of 240.58, indicating a bullish trend. The MACD of 0.83 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.74 is Neutral, 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
DXCM	79 Outperform	$26.29B	39.51	30.63%	―	14.21%	5.66%
STE	77 Outperform	$25.21B	36.56	10.14%	0.94%	5.15%	60.30%
ZBH	73 Outperform	$18.40B	22.98	6.41%	1.05%	5.47%	-23.03%
PODD	70 Outperform	$20.33B	80.82	19.68%	―	27.12%	-41.72%
SNN	69 Neutral	$14.39B	29.69	9.20%	2.28%	5.78%	61.52%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PHG	50 Neutral	$28.18B	-36.50	―	3.30%	-0.76%	-55.03%