STERIS PLC (STE)
IE00BFY8C754 - Common Stock
Taking everything into account, STE scores 6 out of 10 in our fundamental rating. STE was compared to 187 industry peers in the Health Care Equipment & Supplies industry. STE has an excellent profitability rating, but there are some minor concerns on its financial health. STE is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STE was profitable.
STE had a positive operating cash flow in the past year.
STE had positive earnings in each of the past 5 years.
Each year in the past 5 years STE had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.25%, STE belongs to the top of the industry, outperforming 81.28% of the companies in the same industry.
STE has a better Return On Equity (6.59%) than 80.75% of its industry peers.
STE has a Return On Invested Capital of 7.22%. This is amongst the best in the industry. STE outperforms 85.03% of its industry peers.
STE had an Average Return On Invested Capital over the past 3 years of 5.03%. This is below the industry average of 8.20%.
The last Return On Invested Capital (7.22%) for STE is above the 3 year average (5.03%), which is a sign of increasing profitability.
| 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 80.21% of its industry peers.
In the last couple of years the Profit Margin of STE has declined.
STE has a Operating Margin of 18.23%. This is amongst the best in the industry. STE outperforms 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.
STE's Gross Margin of 43.01% is on the low side compared to the rest of the industry. STE is outperformed by 64.17% 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
An Altman-Z score of 4.64 indicates that STE is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.64, STE is in the better half of the industry, outperforming 75.40% of the companies in the same industry.
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.
The Debt to FCF ratio of STE (3.29) is better than 86.63% of its industry peers.
STE has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.33, STE is in line with its industry, outperforming 48.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 4.64 |
ROIC/WACC1.08
WACC6.71%
2.3 Liquidity
STE has a Current Ratio of 2.41. This indicates that STE is financially healthy and has no problem in meeting its short term obligations.
STE's Current ratio of 2.41 is in line compared to the rest of the industry. STE outperforms 40.64% 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.
STE has a Quick ratio of 1.55. This is in the lower half of the industry: STE underperforms 60.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.41 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.74% over the past year.
Measured over the past years, STE shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
Looking at the last year, STE shows a decrease in Revenue. The Revenue has decreased by -2.06% in the last year.
Measured over the past years, STE shows a quite strong growth in Revenue. The Revenue has been growing by 13.06% on average per year.
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 5.10% yearly.
STE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.15% yearly.
EPS Next Y3.71%
EPS Next 2Y6.62%
EPS Next 3Y7%
EPS Next 5Y5.1%
Revenue Next Year0.82%
Revenue Next 2Y3.55%
Revenue Next 3Y4.45%
Revenue Next 5Y5.15%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 22.98, which indicates a rather expensive current valuation of STE.
86.10% of the companies in the same industry are more expensive than STE, based on the Price/Earnings ratio.
STE's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.77.
Based on the Price/Forward Earnings ratio of 20.79, the valuation of STE can be described as rather expensive.
83.42% of the companies in the same industry are more expensive than STE, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.38, STE is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.98 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
84.49% of the companies in the same industry are more expensive than STE, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, STE is valued cheaply inside the industry as 83.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.28 | ||
| EV/EBITDA | 15.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of STE may justify a higher PE ratio.
PEG (NY)6.19
PEG (5Y)1.83
EPS Next 2Y6.62%
EPS Next 3Y7%
5. Dividend
5.1 Amount
STE has a Yearly Dividend Yield of 1.05%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.62, STE pays a better dividend. On top of this STE pays more dividend than 94.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.24, STE's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
On average, the dividend of STE grows each year by 8.90%, which is quite nice.
STE has been paying a dividend for at least 10 years, so it has a reliable track record.
STE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.9%
Div Incr Years19
Div Non Decr Years19
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 2Y6.62%
EPS Next 3Y7%
STERIS PLC
NYSE:STE (12/18/2024, 3:03:06 PM)
208.66
-0.85 (-0.41%)
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 Cap20.60B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
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)
Avg Revenue beat(4)
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 | 22.98 | ||
| Fwd PE | 20.79 | ||
| 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)6.19
PEG (5Y)1.83
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 Y3.71%
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