Steris (STE) AI Stock Analysis

• Market Cap: $24.23B
• Dividend Yield: 0.95%
• Average Volume (3M): 490.94K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.51
• Revenue Growth: 2.47%
• EPS Growth: 63.68%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 2.34
• Shares Outstanding: 98,490,610
• 10 Day Avg. Volume: 578,908
• 30 Day Avg. Volume: 490,941
• 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: 1.05
• Enterprise Value/Revenue: 4.58
• Enterprise Value/Gross Profit: 10.39
• Enterprise Value/Ebitda: 18.14
• 1Y Price Target: $283.25
• Price Target Upside: 16.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 79 Outperform
• Price Target: $285.00 ▲(16.71% Upside)

Steris's strong financial performance and positive earnings call sentiment are the most significant factors contributing to its overall score. The technical analysis supports a bullish outlook, although the high valuation suggests caution. The recent corporate events reflect strategic alignment and shareholder confidence, further supporting the stock's positive outlook.

Positive Factors

Revenue Growth

The strong revenue growth across all segments indicates robust demand and effective market penetration, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances Steris's ability to invest in growth opportunities, reduce debt, and return value to shareholders, ensuring financial stability.

Dividend Growth

Consistent dividend growth reflects Steris's strong financial health and commitment to returning value to shareholders, reinforcing investor confidence.

Negative Factors

Tariff Costs

Rising tariff costs can pressure margins and profitability, potentially impacting Steris's cost structure and competitiveness in the long term.

Healthcare Segment Tariff Impact

Tariff impacts on the Healthcare segment may hinder its profitability and growth, affecting Steris's overall financial performance if not mitigated.

Unchanged Earnings Outlook

An unchanged earnings outlook despite strong performance suggests challenges in overcoming cost pressures, potentially limiting future earnings growth.

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 and robust profitability margins. The company maintains a healthy cash flow position, supporting its operational and strategic initiatives. While the debt levels are manageable, continued focus on maintaining profitability and cash flow generation will be crucial for sustaining growth and financial stability.

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	5.57B	5.46B	5.14B	4.54B	4.22B	3.11B
Gross Profit	2.46B	2.40B	2.22B	1.98B	1.88B	1.34B
EBITDA	1.41B	1.36B	1.41B	1.34B	1.01B	773.95M
Net Income	646.64M	614.64M	378.24M	107.03M	243.89M	397.40M
Balance Sheet
Total Assets	10.40B	10.15B	11.06B	10.82B	11.42B	6.57B
Cash, Cash Equivalents and Short-Term Investments	279.70M	171.70M	207.02M	208.36M	348.32M	220.53M
Total Debt	2.07B	2.20B	3.38B	3.25B	3.28B	1.80B
Total Liabilities	3.44B	3.53B	4.75B	4.73B	4.88B	2.68B
Stockholders Equity	6.96B	6.60B	6.30B	6.08B	6.53B	3.88B
Cash Flow
Free Cash Flow	908.80M	778.00M	612.95M	394.98M	397.25M	450.38M
Operating Cash Flow	1.26B	1.15B	973.27M	756.95M	684.81M	689.64M
Investing Cash Flow	-407.53M	388.77M	-887.36M	-383.33M	-666.56M	-1.15B
Financing Cash Flow	-786.56M	-1.57B	-85.19M	-498.72M	115.83M	345.62M

Steris Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 244.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 244.19 is below the 20-day moving average (MA) of 246.81, above the 50-day MA of 239.98, and above the 200-day MA of 227.89, indicating a neutral trend. The MACD of 1.55 indicates Positive momentum. The RSI at 47.17 is Neutral, neither overbought nor oversold. The STOCH value of 37.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for STE.

Steris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STE	79 Outperform	$24.23B	37.79	9.73%	0.95%	2.47%	63.68%
SNN	78 Outperform	15.32B	31.70	7.83%	2.13%	5.78%	61.52%
PODD	76 Outperform	23.02B	98.48	16.14%	―	25.99%	-40.46%
ZBH	74 Outperform	19.61B	24.10	6.57%	0.99%	4.11%	-14.43%
DXCM	71 Outperform	26.47B	47.82	22.21%	―	9.30%	-14.95%
PHG	56 Neutral	25.97B	-32.53	-5.85%	3.34%	-0.76%	-55.03%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Steris Corporate Events

STERIS Announces CFO Resignation and Successor

On July 31, 2025, STERIS announced the resignation of Michael J. Tokich as Chief Financial Officer, effective August 18, 2025, with Karen Burton appointed as his successor. This transition is part of a broader strategic shift, including a strong financial performance in the first quarter of fiscal 2026, with a 9% increase in total revenue and improved earnings per share. The company also updated its fiscal 2026 outlook, anticipating an 8-9% revenue increase due to favorable foreign currency conditions, despite challenges like tariffs and healthcare costs. Additionally, STERIS’s annual meeting saw the election of new board members and the approval of various shareholder proposals, reflecting strong shareholder engagement and strategic alignment.

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.