STERIS PLC (STE)
IE00BFY8C754 - Common Stock
Overall STE gets a fundamental rating of 6 out of 10. We evaluated STE against 188 industry peers in the Health Care Equipment & Supplies industry. STE scores excellent on profitability, but there are some minor concerns on its financial health. STE has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
STE had positive earnings in the past year.
In the past year STE had a positive cash flow from operations.
In the past 5 years STE has always been profitable.
In the past 5 years STE always reported a positive cash flow from operatings.
1.2 Ratios
STE's Return On Assets of 4.25% is amongst the best of the industry. STE outperforms 82.35% of its industry peers.
STE has a Return On Equity of 6.59%. This is amongst the best in the industry. STE outperforms 80.75% of its industry peers.
The Return On Invested Capital of STE (7.22%) is better than 84.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STE is below the industry average of 8.30%.
The 3 year average ROIC (5.03%) for STE is below the current ROIC(7.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 6.59% | ||
| ROIC | 7.22% |
ROA(3y)2.18%
ROA(5y)4.02%
ROE(3y)3.83%
ROE(5y)6.74%
ROIC(3y)5.03%
ROIC(5y)5.94%
1.3 Margins
STE's Profit Margin of 8.49% is amongst the best of the industry. STE outperforms 80.75% of its industry peers.
STE's Profit Margin has declined in the last couple of years.
STE has a better Operating Margin (18.23%) than 91.44% of its industry peers.
In the last couple of years the Operating Margin of STE has remained more or less at the same level.
The Gross Margin of STE (43.01%) is worse than 63.10% of its industry peers.
In the last couple of years the Gross Margin of STE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.23% | ||
| PM (TTM) | 8.49% | ||
| GM | 43.01% |
OM growth 3Y-0.53%
OM growth 5Y0.96%
PM growth 3Y-16.82%
PM growth 5Y-7.58%
GM growth 3Y-0.04%
GM growth 5Y0.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so STE is still creating some value.
STE has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, STE has more shares outstanding
STE has a worse debt/assets ratio than last year.
2.2 Solvency
STE has an Altman-Z score of 4.82. This indicates that STE is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of STE (4.82) is better than 75.94% of its industry peers.
STE has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as STE would need 3.29 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.29, STE belongs to the best of the industry, outperforming 85.56% of the companies in the same industry.
A Debt/Equity ratio of 0.33 indicates that STE is not too dependend on debt financing.
The Debt to Equity ratio of STE (0.33) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.08
WACC6.69%
2.3 Liquidity
A Current Ratio of 2.41 indicates that STE has no problem at all paying its short term obligations.
STE's Current ratio of 2.41 is in line compared to the rest of the industry. STE outperforms 40.11% of its industry peers.
STE has a Quick Ratio of 1.55. This is a normal value and indicates that STE is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.55, STE is doing worse than 62.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
STE shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.74%, which is quite good.
The Earnings Per Share has been growing by 12.55% on average over the past years. This is quite good.
STE shows a decrease in Revenue. In the last year, the revenue decreased by -2.06%.
STE shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.06% yearly.
EPS 1Y (TTM)8.74%
EPS 3Y12.81%
EPS 5Y12.55%
EPS Q2Q%5.42%
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y18.25%
Revenue growth 5Y13.06%
Sales Q2Q%-1%
3.2 Future
STE is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.24% yearly.
Based on estimates for the next years, STE will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y4.58%
EPS Next 2Y7.35%
EPS Next 3Y7.57%
EPS Next 5Y7.24%
Revenue Next Year0.95%
Revenue Next 2Y3.6%
Revenue Next 3Y4.48%
Revenue Next 5Y5.69%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
STE is valuated rather expensively with a Price/Earnings ratio of 24.24.
Based on the Price/Earnings ratio, STE is valued cheaper than 83.96% of the companies in the same industry.
STE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.53, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 21.63 indicates a rather expensive valuation of STE.
Based on the Price/Forward Earnings ratio, STE is valued cheaply inside the industry as 82.89% of the companies are valued more expensively.
STE is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 21.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STE is valued cheaper than 83.96% of the companies in the same industry.
STE's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STE is cheaper than 83.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.95 | ||
| EV/EBITDA | 16.56 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
STE has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.29
PEG (5Y)1.93
EPS Next 2Y7.35%
EPS Next 3Y7.57%
5. Dividend
5.1 Amount
STE has a Yearly Dividend Yield of 1.03%.
STE's Dividend Yield is rather good when compared to the industry average which is at 1.67. STE pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.22, STE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
5.2 History
The dividend of STE is nicely growing with an annual growth rate of 8.90%!
STE has paid a dividend for at least 10 years, which is a reliable track record.
STE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.9%
Div Incr Years18
Div Non Decr Years18
5.3 Sustainability
48.40% of the earnings are spent on dividend by STE. This is a bit on the high side, but may be sustainable.
The dividend of STE is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.4%
EPS Next 2Y7.35%
EPS Next 3Y7.57%
STERIS PLC
NYSE:STE (11/15/2024, 8:04:01 PM)
After market: 220.12 0 (0%)220.12
-1.07 (-0.48%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.73B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.03% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.24 | ||
| Fwd PE | 21.63 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.29
PEG (5Y)1.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.25% | ||
| ROE | 6.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.23% | ||
| PM (TTM) | 8.49% | ||
| GM | 43.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.74%
EPS 3Y12.81%
EPS 5Y
EPS Q2Q%
EPS Next Y4.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.06%
Revenue growth 3Y18.25%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y