(STE) STERIS - Ratings and Ratios
Sterilizers, Disinfectants, Washers, Tables, Services
Dividends
| Dividend Yield | 0.90% |
| Yield on Cost 5y | 1.30% |
| Yield CAGR 5y | 9.08% |
| Payout Consistency | 96.9% |
| Payout Ratio | 24.3% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 21.2% |
| Value at Risk 5%th | 32.7% |
| Relative Tail Risk | -6.14% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.88 |
| Alpha | 14.50 |
| CAGR/Max DD | 0.64 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.400 |
| Beta | 0.497 |
| Beta Downside | 0.482 |
| Drawdowns 3y | |
|---|---|
| Max DD | 19.93% |
| Mean DD | 6.85% |
| Median DD | 5.98% |
Description: STE STERIS October 14, 2025
STERIS plc (NYSE: STE) is a U.S.–based provider of infection-prevention products and services, organized into three operating segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The Healthcare segment supplies cleaning chemistries, endoscope reprocessing systems, sterilizers, surgical tables, lights, and related capital-equipment services; the AST segment offers contract sterilization and testing for medical-device and pharmaceutical manufacturers; and the Life Sciences segment manufactures consumables (e.g., detergents, disinfectants, vaporized-hydrogen-peroxide systems) and high-purity water/steam generators, together with installation and maintenance contracts.
In fiscal 2023 STE reported revenue of roughly $4.1 billion, with an adjusted operating margin of about 12 % and free-cash-flow conversion near 15 %. Growth has been driven by two secular trends: (1) rising global demand for infection-control solutions amid heightened awareness of hospital-acquired infections, and (2) expanding outsourcing of sterilization by pharmaceutical and med-device firms seeking to reduce capital-expenditure cycles. The 2022 acquisition of Integrated Healthcare Solutions added endoscope-reprocessing capabilities, which analysts estimate contributed ~3-4 % of FY2023 revenue.
Key macro drivers include aging populations (increasing procedure volumes), tighter regulatory standards for sterility assurance, and supply-chain pressures on high-purity water and steam equipment-factors that can amplify STE’s pricing power but also introduce execution risk. Assuming continued FY-24 revenue growth of 5-6 % and stable margins, the company’s valuation could be sensitive to changes in contract-sterilization demand and capital-equipment replacement cycles.
For a deeper quantitative assessment, the ValueRay platform provides granular cash-flow and valuation models that let you test these assumptions and explore scenario outcomes.
Piotroski VR‑10 (Strict, 0-10) 9.0
| Net Income (688.5m TTM) > 0 and > 6% of Revenue (6% = 342.2m TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA 2.59pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 21.35% (prev 22.55%; Δ -1.20pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.13 (>3.0%) and CFO 1.30b > Net Income 688.5m (YES >=105%, WARN >=100%) |
| Net Debt (1.74b) to EBITDA (1.47b) ratio: 1.19 <= 3.0 (WARN <= 3.5) |
| Current Ratio 2.37 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (98.8m) change vs 12m ago -0.41% (target <= -2.0% for YES) |
| Gross Margin 44.29% (prev 43.00%; Δ 1.28pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 55.22% (prev 49.04%; Δ 6.19pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 14.60 (EBITDA TTM 1.47b / Interest Expense TTM 67.0m) >= 6 (WARN >= 3) |
Altman Z'' 4.43
| (A) 0.12 = (Total Current Assets 2.11b - Total Current Liabilities 888.9m) / Total Assets 10.41b |
| (B) 0.26 = Retained Earnings (Balance) 2.73b / Total Assets 10.41b |
| (C) 0.09 = EBIT TTM 978.1m / Avg Total Assets 10.33b |
| (D) 2.07 = Book Value of Equity 7.01b / Total Liabilities 3.39b |
| Total Rating: 4.43 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 75.14
| 1. Piotroski 9.0pt |
| 2. FCF Yield 3.47% |
| 3. FCF Margin 16.86% |
| 4. Debt/Equity 0.29 |
| 5. Debt/Ebitda 1.19 |
| 6. ROIC - WACC (= 1.19)% |
| 7. RoE 10.21% |
| 8. Rev. Trend 71.56% |
| 9. EPS Trend 70.67% |
What is the price of STE shares?
Over the past week, the price has changed by +1.22%, over one month by +13.25%, over three months by +10.58% and over the past year by +22.89%.
Is STE a buy, sell or hold?
- Strong Buy: 3
- Buy: 2
- Hold: 5
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the STE price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 281.6 | 5.8% |
| Analysts Target Price | 281.6 | 5.8% |
| ValueRay Target Price | 295.7 | 11.1% |
STE Fundamental Data Overview November 25, 2025
P/E Trailing = 37.7206
P/E Forward = 25.7732
P/S = 4.5475
P/B = 3.6868
P/EG = 1.9685
Beta = 1.026
Revenue TTM = 5.70b USD
EBIT TTM = 978.1m USD
EBITDA TTM = 1.47b USD
Long Term Debt = 1.90b USD (from longTermDebt, last quarter)
Short Term Debt = 35.3m USD (from shortTermDebt, last quarter)
Debt = 2.06b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 1.74b USD (from netDebt column, last quarter)
Enterprise Value = 27.67b USD (25.93b + Debt 2.06b - CCE 319.2m)
Interest Coverage Ratio = 14.60 (Ebit TTM 978.1m / Interest Expense TTM 67.0m)
FCF Yield = 3.47% (FCF TTM 961.2m / Enterprise Value 27.67b)
FCF Margin = 16.86% (FCF TTM 961.2m / Revenue TTM 5.70b)
Net Margin = 12.07% (Net Income TTM 688.5m / Revenue TTM 5.70b)
Gross Margin = 44.29% ((Revenue TTM 5.70b - Cost of Revenue TTM 3.18b) / Revenue TTM)
Gross Margin QoQ = 44.23% (prev 45.14%)
Tobins Q-Ratio = 2.66 (Enterprise Value 27.67b / Total Assets 10.41b)
Interest Expense / Debt = 0.72% (Interest Expense 14.9m / Debt 2.06b)
Taxrate = 23.94% (60.6m / 253.1m)
NOPAT = 743.9m (EBIT 978.1m * (1 - 23.94%))
Current Ratio = 2.37 (Total Current Assets 2.11b / Total Current Liabilities 888.9m)
Debt / Equity = 0.29 (Debt 2.06b / totalStockholderEquity, last quarter 7.01b)
Debt / EBITDA = 1.19 (Net Debt 1.74b / EBITDA 1.47b)
Debt / FCF = 1.81 (Net Debt 1.74b / FCF TTM 961.2m)
Total Stockholder Equity = 6.75b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.61% (Net Income 688.5m / Total Assets 10.41b)
RoE = 10.21% (Net Income TTM 688.5m / Total Stockholder Equity 6.75b)
RoCE = 11.32% (EBIT 978.1m / Capital Employed (Equity 6.75b + L.T.Debt 1.90b))
RoIC = 8.50% (NOPAT 743.9m / Invested Capital 8.75b)
WACC = 7.31% (E(25.93b)/V(27.99b) * Re(7.85%) + D(2.06b)/V(27.99b) * Rd(0.72%) * (1-Tc(0.24)))
Discount Rate = 7.85% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: -100.0 | Cagr: -0.28%
[DCF Debug] Terminal Value 81.43% ; FCFE base≈848.8m ; Y1≈1.05b ; Y5≈1.79b
Fair Price DCF = 309.6 (DCF Value 30.38b / Shares Outstanding 98.1m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 70.67 | EPS CAGR: 4.16% | SUE: 1.35 | # QB: 3
Revenue Correlation: 71.56 | Revenue CAGR: 5.17% | SUE: 0.26 | # QB: 0
EPS next Quarter (2025-12-31): EPS=2.53 | Chg30d=-0.001 | Revisions Net=-1 | Analysts=8
EPS current Year (2026-03-31): EPS=10.21 | Chg30d=+0.107 | Revisions Net=+6 | Growth EPS=+9.4% | Growth Revenue=+8.5%
EPS next Year (2027-03-31): EPS=11.13 | Chg30d=+0.098 | Revisions Net=+6 | Growth EPS=+9.1% | Growth Revenue=+6.2%
Additional Sources for STE Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle