Steris (STE)
NYSE:STE
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Steris
(NYSE:STE)
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Rating:72Outperform
Price Target:
$224.00
▼(-15.08% Downside)
Action:Upgraded
Date:05/12/26
The score is driven primarily by strong financial performance (improving profitability, robust cash flow, and very low reported leverage in 2026), supported by a generally solid earnings-call outlook with maintained guidance. Offsetting these positives are notably weak technicals (price below key moving averages with negative MACD) and a premium-leaning valuation, while the board appointment is a modest additional positive.
Positive Factors
Recurring revenue and installed base
STERIS’s business mixes durable recurring consumables and multi‑year service/outsourced contracts with capital placements. An installed base that drives consumable pull‑through and attachable service contracts creates predictable, sticky revenue and high customer retention over cycles.
Negative Factors
Tariffs and margin pressure
Material tariff exposure and inflation have compressed gross and EBIT margins; management models a multi‑million dollar run rate. Persistent tariffs or cost inflation would structurally depress margins versus peers and require sustained productivity or price to fully offset.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and installed base
STERIS’s business mixes durable recurring consumables and multi‑year service/outsourced contracts with capital placements. An installed base that drives consumable pull‑through and attachable service contracts creates predictable, sticky revenue and high customer retention over cycles.
Read all positive factors
Steris Key Performance Indicators (KPIs)
Any
Operating Margin by Segment
Measures the efficiency of each segment in converting revenue into profit, indicating competitive strengths or weaknesses and potential areas for cost optimization.
Measures the efficiency of each segment in converting revenue into profit, indicating competitive strengths or weaknesses and potential areas for cost optimization.
Data provided by:
The Fly
The FlySteris (STE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$20.80B
Dividend Yield0.94%
Average Volume (3M)775.71K
Price to Earnings (P/E)27.7
Beta (1Y)0.34
Revenue Growth8.73%
EPS Growth26.55%
CountryUS
Employees18,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)N/A
Shares Outstanding98,075,030
10 Day Avg. Volume510,717
30 Day Avg. Volume775,709
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)3.02
Price to Sales (P/S)3.66
P/FCF Ratio22.33
Enterprise Value/Market Cap1.07
Enterprise Value/Revenue3.76
Enterprise Value/Gross Profit8.49
Enterprise Value/Ebitda16.61
Forecast
1Y Price Target
$284.50Price Target Upside7.86% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 che...
How the Company Makes Money
STERIS makes money primarily by selling a mix of (1) capital equipment, (2) recurring consumables, and (3) service and outsourced solutions tied to sterilization and infection prevention.
1) Sale of capital equipment (one-time or project-based re...
Steris Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.94B | 5.46B | 5.14B | 4.54B | 4.22B |
| Gross Profit | 2.63B | 2.40B | 2.22B | 1.98B | 1.88B |
| EBITDA | 1.10B | 1.36B | 1.41B | 1.34B | 1.01B |
| Net Income | 785.10M | 614.64M | 378.24M | 107.03M | 243.89M |
Balance Sheet | |||||
| Total Assets | 10.74B | 10.15B | 11.06B | 10.82B | 11.42B |
| Cash, Cash Equivalents and Short-Term Investments | 439.60M | 171.70M | 207.02M | 208.36M | 348.32M |
| Total Debt | 1.93B | 2.20B | 3.38B | 3.25B | 3.28B |
| Total Liabilities | 3.54B | 3.53B | 4.75B | 4.73B | 4.88B |
| Stockholders Equity | 7.20B | 6.60B | 6.30B | 6.08B | 6.53B |
Cash Flow | |||||
| Free Cash Flow | 972.40M | 778.00M | 612.95M | 394.98M | 397.25M |
| Operating Cash Flow | 1.34B | 1.15B | 973.27M | 756.95M | 684.81M |
| Investing Cash Flow | -512.50M | 388.77M | -887.36M | -383.33M | -666.56M |
| Financing Cash Flow | -568.20M | -1.57B | -85.19M | -498.72M | 115.83M |
Steris Technical Analysis
Neutral
263.77
Price Trends
231.54
Negative
245.17
Negative
242.77
Negative
Market Momentum
-1.92
Negative
51.50
Neutral
55.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STE, the sentiment is Neutral. The current price of 263.77 is above the 20-day moving average (MA) of 221.78, above the 50-day MA of 231.54, and above the 200-day MA of 242.77, indicating a neutral trend. The MACD of -1.92 indicates Negative momentum. The RSI at 51.50 is Neutral, neither overbought nor oversold. The STOCH value of 55.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STE.
Steris Risk Analysis
Steris disclosed 36 risk factors in its most recent earnings report. Steris reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Steris Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $23.78B | 30.31 | 33.83% | ― | 16.15% | 76.15% | |
72 Outperform | $20.80B | 27.66 | 11.05% | 0.94% | 8.73% | 26.55% | |
72 Outperform | $12.61B | 10.75 | 11.79% | 2.28% | 6.30% | 52.96% | |
67 Neutral | $10.21B | 40.30 | 21.38% | ― | 31.93% | -24.86% | |
65 Neutral | $16.19B | 18.51 | 5.78% | 1.05% | 9.23% | -14.66% | |
62 Neutral | $24.15B | 31.92 | 8.96% | 3.30% | ― | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
STE
Steris
212.11
-37.94
-15.17%
DXCM
Dexcom
61.63
-25.33
-29.13%
PODD
Insulet
147.46
-178.38
-54.74%
PHG
Koninklijke Philips
25.23
2.12
9.18%
SNN
Smith & Nephew Snats
29.54
1.09
3.82%
ZBH
Zimmer Biomet Holdings
83.70
-11.08
-11.69%
Steris Corporate Events
Business Operations and StrategyExecutive/Board Changes
Steris Expands Board, Appoints bioMérieux CEO Pierre Boulud
Positive
May 7, 2026
On May 1, 2026, long-serving director Richard C. Breeden informed STERIS that he would not stand for reelection at the 2026 annual meeting, ending an 18-year tenure without any disagreement over company operations or policies. The board acknowledg...
Executive/Board Changes
Steris Extends Former CFO Tokich’s Advisory Role
Neutral
Apr 6, 2026
On March 31, 2026, Steris plc amended a prior transition agreement with former Chief Financial Officer Michael J. Tokich, extending his post-executive employment as a part-time senior financial advisor from April 1, 2026, through March 31, 2027. D...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.