A Business at a Glance
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STERIS plc
STE
$21.1B
Mkt Cap
$214.07
+1.63%
STERIS plc (STE) has a current P/E ratio of 29.9, compared to its historical median P/E of 35.7. The stock is currently considered Fair based on its historical valuation range.
STERIS plc (STE) has a 5-year average return on invested capital (ROIC) of 7.3%. This is below average and may indicate limited pricing power.
STERIS plc (STE) has a market capitalization of $21.1B. It is classified as a large-cap stock.
Yes, STERIS plc (STE) pays a dividend with a trailing twelve-month yield of 1.14%. The company also returns capital through share buybacks, with a buyback yield of 1.12%.
Based on historical P/E analysis, STERIS plc (STE) appears fair. The current P/E of 29.9 is 16% below its historical median of 35.7. The estimated fair value CAGR (P/E method) is 1.8%.
STERIS plc (STE) operates in the Orthopedic, Prosthetic & Surgical Appliances & Supplies industry, within the Healthcare sector.
STERIS plc (STE) reported annual revenue of $5.9 billion in its most recent fiscal year, based on SEC EDGAR filings.
STERIS is a leading global provider of products and services supporting patient care with an emphasis on infection prevention, operating through three reportable segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The Healthcare segment serves sterile processing departments and procedural centers worldwide with a comprehensive offering of infection prevention consumables, capital equipment such as sterilizers and surgical tables, and services including equipment installation, maintenance, instrument repair, and outsourced reprocessing. The AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities, offering technology-neutral sterilization modalities and testing services complemented by integrated sterilization equipment and control systems. The Life Sciences segment provides consumable products, equipment maintenance, specialty services, and capital equipment designed for biopharmaceutical and medical device manufacturing facilities focused on aseptic manufacturing, including pharmaceutical detergents, cleanroom disinfectants, sterilizers, and vaporized hydrogen peroxide systems. The company's business model combines recurring consumable sales with capital equipment and service revenue streams, supported by a global distribution network serving healthcare providers, medical device manufacturers, and pharmaceutical companies across the Americas, Europe, and Asia. STERIS differentiates through technological innovation, patent protection (607 U.S. patents and 2,315 patents in other jurisdictions as of March 31, 2025), brand recognition with approximately 2,145 trademark registrations worldwide, and a Lean-based continuous improvement framework applied across manufacturing and service operations to enhance customer outcomes and operational efficiency.
【Organic growth with margin expansion】 Management expects the company to continue growing mid to high single digits organically over time while leveraging that growth to deliver double-digit bottom-line growth, with U.S. procedure volumes anticipated to grow mid-single digits consistent with fiscal 2027 levels. EBIT margins are expected to expand approximately 50 basis points at the high end of the fiscal 2027 outlook, supported by pricing benefits of approximately 200 basis points and a tailwind from the Incentive Compensation program, though this assumes tariff spending remains flat year-over-year. The company is investing approximately $60 million over two years to build a new sterility assurance manufacturing plant in Mentor, Ohio, which will consolidate existing U.S. production into a state-of-the-art manufacturing center of excellence expected to be operational by the end of calendar 2027. Capital allocation priorities remain focused on increasing dividends, reinvesting in the business, pursuing growth through M&A with tuck-in acquisitions in healthcare, and returning excess cash to shareholders through share buybacks in the range of $200 million to $300 million per year.
| Metric | Target | Period |
|---|---|---|
| Revenue (as-reported) | 7%-8% | FY2027 |
| Revenue (constant currency organic) | 6%-7% | FY2027 |
| Healthcare segment revenue (constant currency organic) | 6%-7% | FY2027 |
| Life Sciences segment revenue (constant currency organic) | 6%-7% | FY2027 |
| AST segment revenue (constant currency organic) | 7%-8% | FY2027 |
| EBIT margin expansion | ~50 basis points | FY2027 |
| Earnings per share | $11.10-$11.30 | FY2027 |
| Free cash flow | $850 million | FY2027 |
| Capital expenditures | $375 million | FY2027 |
| Effective tax rate | 25% | FY2027 |
Revenue (as-reported) (FY2027): “we anticipate as-reported revenue to grow 7%-8% in fiscal 2027”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 5.9B | 5.9B | 5.5B | 5.1B | 4.5B | 4.2B |
| Net Income | 782M | 782M | 615M | 378M | 107M | 244M |
| EPS | $7.93 | $7.93 | $6.20 | $3.81 | $1.07 | $2.48 |
| Free Cash Flow | 972M | 972M | 778M | 613M | 395M | 397M |
| ROIC | 9.5% | 9.6% | 7.5% | 7.2% | 7.1% | 5.1% |
| Gross Margin | 44.2% | 44.2% | 44.0% | 43.2% | 43.7% | 44.6% |
| Debt/Equity | 0.27 | 0.27 | 0.31 | 0.51 | 0.51 | 0.47 |
| Dividends/Share | $2.45 | $2.46 | $2.23 | $2.03 | $1.84 | $1.69 |
| Operating Income | 1.1B | 1.1B | 867M | 836M | 791M | 478M |
| Operating Margin | 18.6% | 18.6% | 15.9% | 16.3% | 17.4% | 11.3% |
| ROE | 10.9% | 11.3% | 9.5% | 6.1% | 1.7% | 4.7% |
| Shares Outstanding | 99M | 99M | 99M | 99M | 100M | 98M |
| Metric | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||
| Revenue | 2.6B | 2.6B | 2.8B | 3.0B | 3.1B | 4.2B | 4.5B | 5.1B | 5.5B | 5.9B | 5.9B |
| Gross Margin | 39.3% | 41.7% | 42.2% | 43.6% | 43.2% | 44.6% | 43.7% | 43.2% | 44.0% | 44.2% | 44.2% |
| R&D | 59M | 61M | 63M | 66M | 66M | 87M | 98M | 104M | 108M | 113M | 113M |
| SG&A | 682M | 632M | 670M | 717M | 731M | 1.3B | 1.1B | 1.3B | 1.3B | 1.4B | 1.4B |
| EBIT | 226M | 400M | 411M | 537M | 548M | 478M | 791M | 836M | 867M | 1.1B | 1.1B |
| Op. Margin | 8.7% | 15.3% | 14.8% | 17.7% | 17.6% | 11.3% | 17.4% | 16.3% | 15.9% | 18.6% | 18.6% |
| Net Income | 110M | 291M | 304M | 408M | 397M | 244M | 107M | 378M | 615M | 782M | 782M |
| Net Margin | 4.2% | 11.1% | 10.9% | 13.5% | 12.8% | 5.8% | 2.4% | 7.4% | 11.3% | 13.2% | 13.2% |
| Non-Recurring | -28M | -14M | 42M | 5.5M | 999K | 922K | 491M | 44M | 57M | -200K | -200K |
| Returns on Capital | |||||||||||
| ROIC | N/A | 8.9% | 7.5% | 9.8% | 8.6% | 5.1% | 7.1% | 7.2% | 7.5% | 9.6% | 9.5% |
| ROE | N/A | 9.7% | 9.5% | 12.4% | 10.9% | 4.7% | 1.7% | 6.1% | 9.5% | 11.3% | 10.9% |
| ROA | N/A | 11.0% | 5.9% | 7.8% | 6.6% | 2.7% | 1.0% | 3.5% | 5.8% | 7.5% | 7.3% |
| Cash Flow | |||||||||||
| Op. Cash Flow | 424M | 458M | 540M | 591M | 690M | 685M | 757M | 973M | 1.1B | 1.3B | 1.3B |
| Free Cash Flow | 251M | 292M | 350M | 376M | 450M | 397M | 395M | 613M | 778M | 972M | 972M |
| Owner Earnings | 217M | 257M | 290M | 370M | 444M | 74M | 165M | 352M | 615M | 793M | 793M |
| CapEx | 173M | 165M | 190M | 215M | 239M | 288M | 362M | 360M | 370M | 369M | 369M |
| Maint. CapEx | 188M | 178M | 226M | 197M | 219M | 553M | 553M | 565M | 476M | 487M | 487M |
| Growth CapEx | 0 | 0 | 0 | 17M | 20M | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 188M | 178M | 226M | 197M | 219M | 553M | 553M | 565M | 476M | 487M | 487M |
| CapEx/OCF | N/A | 36.2% | 35.2% | 36.3% | 34.7% | 42.0% | 47.8% | 37.0% | 32.2% | N/A | 27.5% |
| Capital Allocation | |||||||||||
| Dividends Paid | 93M | 103M | 113M | 123M | 134M | 163M | 183M | 201M | 220M | 242M | 242M |
| Dividend Yield | N/A | 1.5% | 1.3% | 1.1% | 1.0% | 0.8% | 0.9% | 1.0% | 1.0% | N/A | 1.1% |
| Share Buybacks | 98M | 65M | 81M | 51M | 15M | 56M | 309M | 12M | 211M | 236M | 236M |
| Buyback Yield | 0.0% | 0.9% | 0.8% | 0.5% | 0.1% | 0.2% | 1.7% | 0.1% | 1.0% | 0.0% | 1.1% |
| Stock-Based Comp | 19M | 22M | 24M | 24M | 26M | 58M | 39M | 57M | 57M | 62M | 62M |
| Debt Repayment | 173M | 223M | 85M | 0 | 35M | 721M | 91M | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||
| Net Debt | -110M | 1.4B | 1.3B | 1.1B | 1.4B | 2.7B | 2.9B | 3.0B | 1.9B | 1.5B | 1.5B |
| Cash & Equiv. | 283M | 202M | 221M | 320M | 221M | 348M | 208M | 207M | 172M | 440M | 440M |
| Long-Term Debt | 173M | 1.3B | 1.2B | 1.2B | 1.7B | 2.9B | 3.0B | 3.1B | 1.9B | 1.8B | 1.8B |
| Debt/Equity | N/A | 0.51 | 0.47 | 0.42 | 0.43 | 0.47 | 0.51 | 0.51 | 0.31 | 0.27 | 0.27 |
| Interest Coverage | 5.1 | 7.9 | 9.1 | 13.3 | 14.7 | 5.3 | 7.3 | 5.8 | 10.0 | 18.2 | 18.2 |
| Equity | N/A | 3.2B | 3.2B | 3.4B | 3.9B | 6.5B | 6.1B | 6.3B | 6.6B | 7.2B | 7.2B |
| Total Assets | N/A | 5.2B | 5.1B | 5.4B | 6.6B | 11.4B | 10.8B | 11.1B | 10.1B | 10.7B | 10.7B |
| Total Liabilities | N/A | 2.0B | 1.9B | 2.0B | 2.7B | 4.9B | 4.7B | 4.7B | 3.5B | 3.5B | 3.5B |
| Intangibles | N/A | 727M | 605M | 565M | 898M | 3.3B | 2.1B | 2.1B | 1.9B | 1.6B | 1.6B |
| Retained Earnings | N/A | 1.1B | 1.3B | 1.7B | 1.9B | 2.0B | 1.9B | 2.1B | 2.5B | 3.0B | 3.0B |
| Working Capital | N/A | 591M | 589M | 720M | 634M | 957M | 1.1B | 1.9B | 979M | 1.2B | 1.2B |
| Current Assets | N/A | 990M | 1.1B | 1.2B | 1.2B | 1.9B | 2.0B | 2.9B | 2.0B | 2.4B | 2.4B |
| Current Liabilities | N/A | 398M | 465M | 504M | 578M | 922M | 862M | 931M | 1.0B | 1.1B | 1.1B |
| Per Share Data | |||||||||||
| EPS | 1.28 | 3.39 | 3.55 | 4.76 | 4.63 | 2.48 | 1.07 | 3.81 | 6.20 | 7.93 | 7.93 |
| Owner EPS | 2.53 | 3.00 | 3.39 | 4.31 | 5.18 | 0.75 | 1.65 | 3.54 | 6.20 | 8.04 | 8.04 |
| Book Value | N/A | 37.36 | 37.14 | 39.76 | 45.22 | 66.42 | 60.75 | 63.49 | 66.61 | 72.82 | 72.82 |
| Cash Flow/Share | 4.94 | 5.33 | 6.31 | 6.90 | 8.03 | 6.96 | 7.57 | 9.81 | 11.58 | 13.60 | 12.86 |
| Dividends/Share | 1.09 | 1.21 | 1.33 | 1.45 | 1.57 | 1.69 | 1.84 | 2.03 | 2.23 | 2.46 | 2.45 |
| Shares Out. | 85.9M | 85.8M | 85.6M | 85.6M | 85.8M | 98.3M | 100.0M | 99.3M | 99.1M | 98.7M | 98.7M |
| Valuation | |||||||||||
| P/E Ratio | N/A | 25.0 | 33.4 | 25.8 | 40.0 | 94.7 | 168.6 | 58.0 | 35.7 | N/A | 27.0 |
| P/FCF | N/A | 24.9 | 29.1 | 28.0 | 35.3 | 58.1 | 45.7 | 35.8 | 28.2 | N/A | 21.7 |
| EV/EBIT | N/A | 20.4 | 26.5 | 20.6 | 31.6 | 60.7 | 26.4 | 29.8 | 27.5 | N/A | 20.5 |
| Price/Book | N/A | 2.3 | 3.2 | 3.1 | 4.1 | 3.5 | 3.0 | 3.5 | 3.3 | N/A | 2.9 |
| Price/Sales | N/A | 2.6 | 3.2 | 3.9 | 4.5 | 4.5 | 4.3 | 4.1 | 4.0 | N/A | 3.6 |
| FCF Yield | N/A | 4.0% | 3.4% | 3.6% | 2.8% | 1.7% | 2.2% | 2.8% | 3.5% | N/A | 4.6% |
| Market Cap | 0 | 7.3B | 10.2B | 10.5B | 15.9B | 23.1B | 18.0B | 21.9B | 21.9B | 0 | 21.1B |
| Avg. Price | 0.00 | 78.22 | 103.08 | 136.53 | 162.35 | 209.58 | 193.87 | 210.73 | 219.78 | 0.00 | 214.07 |
| Year-End Price | 0.00 | 84.65 | 118.95 | 122.99 | 185.30 | 234.78 | 180.42 | 220.95 | 221.34 | 0.00 | 214.07 |
STERIS plc passes 3 of 9 quality checks, indicating weak fundamentals.
STERIS plc trades at 29.9x trailing earnings, compared to its 15-year median P/E of 35.7x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 22.9x vs a median of 32.2x. The company's 5-year average ROIC is 7.3% with a gross margin of 43.9%. Total shareholder yield (dividends + buybacks) is 2.3%. At current prices, the estimated annualized return to fair value is +9.6%.
STERIS plc (STE) has a net profit margin of 13.2%. This is a healthy margin.
STERIS plc (STE) generated $972 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
STERIS plc (STE) has a debt-to-equity ratio of 0.27. This indicates a conservatively financed balance sheet.
STERIS plc (STE) reported earnings per share (EPS) of $7.93 in its most recent fiscal year.
STERIS plc (STE) has a return on equity (ROE) of 11.3%. This indicates moderate shareholder returns.
STERIS plc (STE) has a 5-year average gross margin of 43.9%. This indicates decent pricing power.
The Ledger Terminal provides 10 years of financial data for STERIS plc (STE), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
STERIS plc (STE) has a book value per share of $72.82, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the company to continue growing mid to high single digits organically over time while leveraging that growth to deliver double-digit bottom-line growth, with U.S. procedure volumes anticipated to grow mid-single digits consistent with fiscal 2027 levels. EBIT margins are expected to expand approximately 50 basis points at the high end of the fiscal 2027 outlook, supported by pricing benefits of approximately 200 basis points and a tailwind from the Incentive Compensation program, though this assumes tariff spending remains flat year-over-year. The company is investing approximately $60 million over two years to build a new sterility assurance manufacturing plant in Mentor, Ohio, which will consolidate existing U.S. production into a state-of-the-art manufacturing center of excellence expected to be operational by the end of calendar 2027. Capital allocation priorities remain focused on increasing dividends, reinvesting in the business, pursuing growth through M&A with tuck-in acquisitions in healthcare, and returning excess cash to shareholders through share buybacks in the range of $200 million to $300 million per year.
Based on recent SEC filings and earnings calls, STERIS plc (STE) has provided the following forward guidance: Revenue (as-reported): 7%-8% (FY2027); Revenue (constant currency organic): 6%-7% (FY2027); Healthcare segment revenue (constant currency organic): 6%-7% (FY2027); Life Sciences segment revenue (constant currency organic): 6%-7% (FY2027); AST segment revenue (constant currency organic): 7%-8% (FY2027), plus 5 additional metrics.
Revenue (constant currency organic) (FY2027): “constant currency organic revenue growth is expected to be 6%-7% for the total company”
Healthcare segment revenue (constant currency organic) (FY2027): “we anticipate Healthcare and Life Sciences to grow 6%-7% constant currency organic”
Life Sciences segment revenue (constant currency organic) (FY2027): “we anticipate Healthcare and Life Sciences to grow 6%-7% constant currency organic”
AST segment revenue (constant currency organic) (FY2027): “AST to grow 7%-8%”
EBIT margin expansion (FY2027): “EBIT margins are anticipated to expand approximately 50 basis points at the high end of our outlook”
Earnings per share (FY2027): “Our fiscal 2027 earnings per share outlook is $11.10-$11.30, growth of 9%-11% over fiscal 2026”
Free cash flow (FY2027): “In fiscal 2027, free cash flow is expected to be $850 million”
No recent press releases.