STERIS plc

STERIS plc

STEยทNYSE

$213.57

+1.8%
HealthcareMedical - Devices

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.

At a Glance

Live Snapshot
Market Cap$20.85B
EPS7.9300
P/E Ratio26.93
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 26.9).

Valuation inputs: P/E 26.9, earnings yield +3.7%, momentum +1.8%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +10.9%, ROIC +8.5%).

Profitability stack: net margin +13.2%, ROE +10.9%, ROIC +8.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +33.0%, momentum +1.8%, net margin +13.2%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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STERIS plc Market vs Earnings Trajectory

STE ยท NYSE

Loading price and EPS data...

STERIS plc

STERIS plc Fair Value Envelope

STE ยท NYSE

Our analysis suggests that STE has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $213.575, this represents a potential HIDDEN relative to our calculated worth for STERIS plc.

Intrinsic Value
Current Price: $213.575
3Y+641.0%
5Y+70.0%
10Y+515.0%
3Y+31.0%
5Y+91.0%
10Y+127.0%
3Y+634.0%
5Y+98.0%
10Y+614.0%
3Y+77.0%
5Y+95.0%
10Y+216.0%
3Y+146.0%
5Y+116.0%
10Y+287.0%
3Y-1.0%
5Y+63.0%
10Y+118.0%
STERIS plc

STERIS plc Profit Bridge

STE ยท NYSE
Revenue5.94B
Cost of Goods Sold (3.31B)
Gross Profit2.63B
Operating Expenses (1.52B)
Operating Income1.10B
Interest Expense (60.70M)
Other Income/Expense-54.50M
Pretax Income1.05B
Income Tax (262.20M)
Net Income785.10M
Net Income
785.10M

Profitability Analysis

Gross Margin

44.2%

Strong gross margins indicate healthy pricing and efficient production or service delivery.

Operating Margin

18.6%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

13.2%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

25.0%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

44.25%
Gross Profit Margin
1%
3Y+1.0%
5Y+2.0%
10Y+13.0%
18.56%
Operating Profit Margin
17%
3Y+6.0%
5Y+5.0%
10Y+114.0%
13.23%
Net Profit Margin
17%
3Y+461.0%
5Y+3.0%
10Y+214.0%
10.93%
Return on Equity
17%
3Y+521.0%
5Y+7.0%
10Y+178.0%
7.31%
Return on Assets
21%
3Y+639.0%
5Y+21.0%
10Y+227.0%
8.47%
Return on Invested Capital
18%
3Y+32.0%
5Y+21.0%
10Y+184.0%
STE

STERIS plc Cash Conversion Engine

STE ยท NYSE
Net Income785.10M
Depreciation & Amortization486.50M
Stock-Based Compensation61.70M
Change in Working Capital27.20M
Others-2.10M
Capital Expenditures-369.00M
Free Cash Flow972.40M

Cash Flow Quality Analysis

FCF Conversion Rate

123.9%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

27.5%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

+25.0%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$27.20M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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STERIS plc Funding & Solvency Profile

STE ยท NYSE
Cash & Cash Equivalents439.60M
Net Receivables1.09B
Inventory631.80M
Other Current Assets230.40M
Total Current Assets2 B
Property, Plant & Equipment2.32B
Goodwill & Intangible Assets5.81B
Long-Term Investments0.00
Other Non-Current Assets211.40M
Total Non-Current Assets3 B
Total Assets
10.74B

Financial Health Analysis

Current Ratio

2.09x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.49x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

22% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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STERIS plc Street Expectations Map

STE ยท NYSE

Wall Street analysts project that STE stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 269.50, with estimates ranging from a low of 269.00 to a high of 270.00.

Lowest Target
269.00
25.95%
Consensus Target
269.50
26.19%
Highest Target
270.00
26.42%

The consensus 1-year price target stands at 269.50, with estimates ranging from a low of 269.00 to a high of 270.00.

Analyst Consensus Analysis

Upside Potential

+26.2%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.4% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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STERIS plc Insider Positioning

STE ยท NYSE

During the last 12 months, insiders have sold $2.15M worth of STE shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

3.1K

734.88K

Net Activity

-735K

-$735K

6-9 Months

Bought

0

0.00

Sold

5.5K

1.42M

Net Activity

-1.4M

-$1.42M

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

No buying activity

Top Sellers

1
TR

Tamaro Renato

Officer: V.P. & Corporate Treasurer

3.3K sharesโ€ข1 transactions

$856K

2
FCL

Feldmann Cynthia L

Director

3.1K sharesโ€ข1 transactions

$735K

3
MJ

Madsen Julia

Officer: Sr. Vp And Gm, Life Sciences

2.1K sharesโ€ข1 transactions

$560K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $2.15M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

3 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.29%
Dividend Yield
15%
3Y+16.0%
5Y+36.0%
10Y-22.0%
ย 

ste Dividend History

STE
10Y CAGR +10%
Latest $0.63
Annual $3.09
5 year growth trend
Last Period: +0%