Steris (STE) AI Stock Analysis

• Market Cap: $23.92B
• Dividend Yield: 0.94%
• Average Volume (3M): 660.13K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 0.52
• Revenue Growth: 2.47%
• EPS Growth: 63.68%
• Country: US
• Employees: 18,000
• Sector: Healthcare
• Sector Strength: 38
• Industry: Medical - Devices
• EPS (TTM): 2.34
• Shares Outstanding: 98,490,610
• 10 Day Avg. Volume: 681,875
• 30 Day Avg. Volume: 660,132
• 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: 1.07
• Enterprise Value/Revenue: 4.68
• Enterprise Value/Gross Profit: 10.63
• Enterprise Value/Ebitda: 18.79
• 1Y Price Target: $274.75
• Price Target Upside: 13.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $272.00 ▲(12.00% Upside)

Steris's strong financial performance and positive earnings call are the most significant factors, indicating robust growth and operational efficiency. Technical analysis and valuation suggest moderate caution due to high P/E ratio and slight bearish momentum.

Positive Factors

Currency Impact

Management raised reported revenue guidance due to a more favorable currency impact.

Financial Performance

STE's F1Q26 revenue and EPS beat consensus, showcasing strong financial performance.

Product Demand

Order growth was a strong 14%, indicating high demand for STE's products.

Negative Factors

Healthcare Policy

Potential healthcare policy changes could disrupt Steris's business, impacting procedure volumes.

Macroeconomic Factors

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

Tariff Impact

Increased metal tariffs have raised STE's expected FY26 tariff impact to $45M, up from $35M previously.

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 robust revenue growth, improved profitability margins, and solid cash flow metrics. The balance sheet is well-managed, though increasing debt levels require attention.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.46B	5.46B	5.14B	4.54B	4.59B	3.11B
Gross Profit	2.40B	2.40B	2.24B	1.98B	2.02B	1.34B
EBITDA	1.36B	1.36B	1.41B	1.34B	1.01B	800.33M
Net Income	614.64M	614.64M	378.24M	107.03M	243.89M	397.40M
Balance Sheet
Total Assets	10.15B	10.15B	11.06B	10.82B	11.45B	6.57B
Cash, Cash Equivalents and Short-Term Investments	171.70M	171.70M	207.02M	208.36M	348.32M	220.53M
Total Debt	125.00M	2.20B	3.38B	3.25B	3.28B	1.65B
Total Liabilities	3.53B	3.53B	4.75B	4.73B	4.91B	2.68B
Stockholders Equity	6.62B	6.62B	6.30B	6.09B	6.54B	3.89B
Cash Flow
Free Cash Flow	780.31M	778.00M	612.95M	394.98M	397.25M	450.38M
Operating Cash Flow	1.15B	1.15B	973.27M	756.95M	684.81M	689.64M
Investing Cash Flow	392.88M	388.77M	-887.36M	-383.33M	-666.56M	-1.15B
Financing Cash Flow	-1.58B	-1.57B	-85.19M	-498.72M	115.83M	345.62M

Steris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 242.85
• 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 242.85 is above the 20-day moving average (MA) of 227.60, above the 50-day MA of 234.42, and above the 200-day MA of 223.80, indicating a bullish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 64.16 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
STE	80 Outperform	$23.92B	36.82	9.73%	0.94%	2.47%	63.68%
GMED	78 Outperform	$7.94B	22.64	8.62%	―	17.43%	775.48%
PODD	77 Outperform	$21.62B	93.46	19.18%	―	25.99%	-40.46%
ZBH	76 Outperform	$19.66B	24.17	6.52%	0.97%	4.11%	-14.43%
SNN	76 Outperform	$15.76B	31.97	9.20%	2.08%	6.28%	61.96%
DXCM	75 Outperform	$30.93B	55.21	22.83%	―	9.30%	-14.95%
Sector *	51 Neutral	$7.35B	-0.20	-44.62%	2.33%	29.35%	-1.02%

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.

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.

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.