Steris (STE) AI Stock Analysis

• Market Cap: $22.19B
• Dividend Yield: 1.02%
• Average Volume (3M): 591.63K
• Price to Earnings (P/E): 35.5
• Beta (1Y): 0.49
• Revenue Growth: 0.32%
• EPS Growth: 64.36%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 40
• Industry: Medical - Devices
• EPS (TTM): 2.74
• Shares Outstanding: 98,370,980
• 10 Day Avg. Volume: 768,245
• 30 Day Avg. Volume: 591,625
• PEG Ratio: 1.17
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 28.97
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 9.35
• Enterprise Value/Ebitda: 4.03
• 1Y Price Target: $270.33
• Price Target Upside: 21.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 71 Outperform
• Price Target: $252.00 ▲(13.18%Upside)

Steris's overall score of 71 reflects a strong financial foundation and positive earnings outlook, despite technical weakness and valuation concerns. The company's robust revenue growth and strategic management of margins support investor confidence, while challenges such as increasing debt and external cost pressures require attention.

Positive Factors

Competitive Position

Steris's procedure volumes remain strong, benefiting from a favorable competitive position with its EO sterilization modality.

Financial Performance

STE's gross margin was up 170 bps Y/Y and above consensus while its operating margin was up 220 bps Y/Y and above consensus.

Investor Confidence

Investor interest in Steris as a 'safe-haven' has risen considerably, highlighting its ability to deliver stable and reliable growth.

Negative Factors

Biopharma Value Chain Pressures

The Life Sciences segment of Steris faces challenges due to pressures in the biopharma value chain and possible reimbursement issues.

Healthcare Policy Changes

Potential healthcare policy changes could disrupt Steris's business, with millions losing coverage and impacting procedure volumes.

Macroeconomic and Political Uncertainty

Uncertainties in macroeconomic and political factors are expected to negatively impact Steris's revenue growth projections for the coming years.

Steris Business Overview & Revenue Model

Company Description

Steris plc is a leading provider of infection prevention and other procedural products and services, primarily serving the healthcare, pharmaceutical, and medical device industries. The company operates in sectors including healthcare, life sciences, and applied sterilization technologies, offering a broad range of solutions such as sterilization systems, surgical and infection prevention products, and cleaning and decontamination services.

How the Company Makes Money

Steris makes money through a diversified revenue model that encompasses various streams. Primarily, the company generates revenue by selling its wide array of infection prevention and sterilization products, such as sterilizers, washers, and other related equipment, to hospitals, surgery centers, and other medical facilities. Additionally, Steris offers comprehensive service contracts for maintenance and repair of its equipment, which provides a steady stream of recurring revenue. The company also provides outsourced contract sterilization services for medical device and pharmaceutical manufacturers, leveraging its extensive network of advanced sterilization facilities. Strategic partnerships and long-term agreements with healthcare providers and pharmaceutical companies further enhance its financial stability and growth potential.

Steris Financial Statement Overview

Summary

Steris demonstrates strong financial performance with robust revenue growth, improved profitability margins, and solid cash flow metrics. However, the increasing debt levels require careful management to maintain financial health.

Income Statement

Steris has shown robust revenue growth with a notable increase in total revenue from $3.11 billion in 2021 to $5.46 billion in 2025, reflecting strong market demand and effective operational strategies. The gross profit margin remains consistently strong, indicating efficient cost management. Net profit margin has improved significantly over the years, particularly evident in 2025, enhancing overall profitability. EBITDA margin and EBIT margin are also solid, supporting the company's operational efficiency and profitability trajectory.

Balance Sheet

Steris exhibits a sound balance sheet with a healthy equity base and a moderate debt-to-equity ratio, reflecting prudent financial management. The equity ratio is strong, indicating a stable capital structure. Return on Equity (ROE) has shown improvement, suggesting enhanced profitability and effective use of equity capital. However, the increase in total debt over the years could pose a potential risk if not managed carefully.

Cash Flow

The company demonstrates strong cash flow generation capabilities with a consistent rise in operating cash flow. Free cash flow has increased notably, supporting future investments and debt servicing. The operating cash flow to net income ratio indicates efficient cash generation relative to earnings. While free cash flow growth is positive, fluctuations in capital expenditures and investing cash flow need monitoring.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.46B	5.14B	4.54B	4.59B	3.11B
Gross Profit	2.40B	2.24B	1.98B	2.02B	1.34B
EBITDA	1.36B	1.41B	1.34B	1.01B	800.33M
Net Income	614.64M	378.24M	107.03M	243.89M	397.40M
Balance Sheet
Total Assets	10.15B	11.06B	10.82B	11.45B	6.57B
Cash, Cash Equivalents and Short-Term Investments	171.70M	207.02M	208.36M	348.32M	220.53M
Total Debt	2.04B	3.38B	3.25B	3.28B	1.65B
Total Liabilities	3.53B	4.75B	4.73B	4.91B	2.68B
Stockholders Equity	6.62B	6.30B	6.09B	6.54B	3.89B
Cash Flow
Free Cash Flow	778.00M	612.95M	394.98M	397.25M	450.38M
Operating Cash Flow	1.15B	973.27M	756.95M	684.81M	689.64M
Investing Cash Flow	388.77M	-887.36M	-383.33M	-666.56M	-1.15B
Financing Cash Flow	-1.57B	-85.19M	-498.72M	115.83M	345.62M

Steris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 222.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STE, the sentiment is Negative. The current price of 222.65 is below the 20-day moving average (MA) of 233.19, below the 50-day MA of 237.72, and below the 200-day MA of 223.69, indicating a bearish trend. The MACD of -3.75 indicates Positive momentum. The RSI at 30.50 is Neutral, neither overbought nor oversold. The STOCH value of 9.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for STE.

Steris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNN	80 Outperform	$13.27B	31.95	7.86%	2.48%	5.16%	56.79%
DXCM	78 Outperform	$32.89B	63.08	23.72%	―	9.11%	-17.87%
ZBH	74 Outperform	$18.44B	20.65	7.31%	1.04%	3.30%	-2.39%
STE	71 Outperform	$22.19B	35.55	9.46%	1.02%	0.32%	64.36%
PODD	70 Outperform	$20.00B	50.56	37.92%	―	23.49%	71.25%
GMED	69 Neutral	$7.63B	38.81	4.63%	―	32.26%	112.87%
Sector *	52 Neutral	$7.37B	-0.04	-63.81%	2.59%	16.40%	<0.01%

Steris Corporate Events

Steris Announces Board Member Retirement

On July 1, 2025, Dr. Richard Steeves announced his retirement from the Board of Directors of STERIS plc, effective at the company’s Annual General Meeting on July 31, 2025. Dr. Steeves’ retirement is amicable and not due to any disagreements with the company, and he is thanked for his decade of service.

The most recent analyst rating on (STE) stock is a Hold with a $263.00 price target. To see the full list of analyst forecasts on Steris stock, see the STE Stock Forecast page.