📊 STE Key Takeaways
Is STERIS plc (STE) a Good Investment?
STERIS demonstrates fortress-like financial health with exceptional free cash flow generation ($972.4M, 16.4% margin) and fortress balance sheet (Debt/Equity 0.25x), supported by solid 8.7% revenue growth in the defensive surgical supplies sector. However, flat net income growth (-0.4% YoY) despite revenue expansion reveals concerning margin compression, with EPS growth of 27.9% artificially driven by share buybacks rather than operational improvement.
STERIS plc Key Strengths (STE)
- Exceptional free cash flow generation at 124% of net income, providing financial flexibility and safety margin
- Conservative capital structure with 0.25x Debt/Equity ratio and 36.3x interest coverage, offering acquisition optionality
- Solid revenue growth of 8.7% YoY in stable, defensive surgical supplies and orthopedic devices sector
- Strong liquidity with 2.09x current ratio and 1.54x quick ratio indicating robust operational flexibility
- Healthy profitability across all levels: 44.2% gross margin, 18.6% operating margin, 13.2% net margin
STE Stock Risks: STERIS plc Investment Risks
- Net income essentially flat (-0.4%) despite 8.7% revenue growth signals significant margin compression and operational headwinds
- EPS growth of 27.9% driven primarily by share buybacks rather than organic operational improvements, indicating earnings are artificial
- Medical device sector exposure to regulatory pressures, reimbursement headwinds, and competitive intensity from larger diversified peers
- Minimal insider activity (1 Form 4 filing in 90 days) suggests limited conviction from management regarding company prospects
Key Metrics to Watch
- Operating margin trend—critical to determine if 18.6% can be sustained or will face further compression
- Free cash flow conversion ratio—monitor sustainability of exceptional 16.4% FCF margin
- Revenue organic growth rate—need to separate growth by pricing vs. volume to assess pricing power
STERIS plc (STE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.09x current ratio provides a solid financial cushion.
STE Profit Margin, ROE & Profitability Analysis
STE vs Healthcare Sector: How STERIS plc Compares
How STERIS plc compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is STERIS plc Stock Overvalued? STE Valuation Analysis 2026
Based on fundamental analysis, STERIS plc has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
STERIS plc Balance Sheet: STE Debt, Cash & Liquidity
STE Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: STERIS plc's revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.81 reflects profitable operations.
STE Revenue Growth, EPS Growth & YoY Performance
STE Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $1.4B | $173.5M | $1.75 |
| Q2 2026 | $1.3B | $150.0M | $1.51 |
| Q1 2026 | $1.3B | $145.4M | $1.46 |
| Q3 2025 | $1.3B | $140.7M | $1.42 |
| Q2 2025 | $1.2B | $115.3M | $1.16 |
| Q1 2025 | $1.2B | $123.6M | $1.25 |
| Q3 2024 | $1.2B | -$80.2M | $-0.80 |
| Q2 2024 | $1.2B | $115.3M | $1.16 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
STERIS plc Dividends, Buybacks & Capital Allocation
STE SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for STERIS plc (CIK: 0001757898)
📋 Recent SEC Filings
❓ Frequently Asked Questions about STE
What is the AI rating for STE?
STERIS plc (STE) has an AI grade of A with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STE's key strengths?
Claude: Exceptional free cash flow generation at 124% of net income, providing financial flexibility and safety margin. Conservative capital structure with 0.25x Debt/Equity ratio and 36.3x interest coverage, offering acquisition optionality.
What are the risks of investing in STE?
Claude: Net income essentially flat (-0.4%) despite 8.7% revenue growth signals significant margin compression and operational headwinds. EPS growth of 27.9% driven primarily by share buybacks rather than organic operational improvements, indicating earnings are artificial.
What is STE's revenue and growth?
STERIS plc reported revenue of $5.9B.
Does STE pay dividends?
STERIS plc pays dividends, with $241.8M distributed to shareholders in the trailing twelve months.
Where can I find STE SEC filings?
Official SEC filings for STERIS plc (CIK: 0001757898) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is STE's EPS?
STERIS plc has a diluted EPS of $7.93.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is STE's fundamental grade?
Based on our AI fundamental analysis in May 2026, STERIS plc has a A grade with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is STE stock overvalued or undervalued?
Valuation metrics for STE: ROE of 10.9% (sector avg: 15%), net margin of 13.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is STE's AI grade for 2026?
Our dual AI analysis gives STERIS plc a combined A grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is STE's free cash flow?
STERIS plc's operating cash flow is $1.3B, with capital expenditures of $369.0M. FCF margin is 16.4%.
How does STE compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 13.2% (avg: 12%), ROE 10.9% (avg: 15%), current ratio 2.09 (avg: 2).