📊 STE Key Takeaways
Is STERIS plc (STE) a Good Investment?
STERIS demonstrates exceptional financial health with fortress-like balance sheet (0.27x debt/equity, 2.48x current ratio) and robust free cash flow generation ($727.2M annually). However, net income declined 0.2% YoY despite 6.2% revenue growth, signaling margin compression that requires monitoring despite strong 18.1% operating margins.
Why Buy STERIS plc Stock? STE Key Strengths
- Exceptional liquidity and conservative leverage with 2.48x current ratio, 1.75x quick ratio, and 0.27x debt/equity
- Outstanding debt service capacity with 25.8x interest coverage ratio and $727.2M annual free cash flow
- Healthy profitability with 44.4% gross margin and 18.1% operating margin demonstrating operational efficiency
- Consistent 6.2% YoY revenue growth in stable, defensive healthcare supplies sector with strong pricing power
- Strong free cash flow margin of 16.7% with sustainable capital expenditure at 27.9% of operating cash flow
STE Stock Risks: STERIS plc Investment Risks
- Net income declined 0.2% YoY despite revenue growth, indicating margin compression and potential operating headwinds
- Moderate capital efficiency with ROE of 7.9% and ROA of 5.3% suggesting suboptimal asset utilization
- Limited insider activity (1 Form 4 filing in 90 days) may indicate low management conviction in current valuation
- Exposure to healthcare sector regulatory risks, pricing pressures, and potential reimbursement changes
- EPS growth of 62.7% appears driven by share buybacks rather than organic earnings growth, raising sustainability questions
Key Metrics to Watch
- Gross margin trend and cost inflation absorption ability
- Operating margin sustainability and operating leverage expansion
- Free cash flow conversion rate relative to net income
- Debt-to-EBITDA ratio and covenant compliance
- Revenue growth acceleration beyond 6.2% as indicator of competitive positioning
STERIS plc (STE) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.48x 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 76% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.07 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 rating of BUY with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are STE's key strengths?
Claude: Exceptional liquidity and conservative leverage with 2.48x current ratio, 1.75x quick ratio, and 0.27x debt/equity. Outstanding debt service capacity with 25.8x interest coverage ratio and $727.2M annual free cash flow.
What are the risks of investing in STE?
Claude: Net income declined 0.2% YoY despite revenue growth, indicating margin compression and potential operating headwinds. Moderate capital efficiency with ROE of 7.9% and ROA of 5.3% suggesting suboptimal asset utilization.
What is STE's revenue and growth?
STERIS plc reported revenue of $4.3B.
Does STE pay dividends?
STERIS plc pays dividends, with $180.0M 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 $5.69.
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 rating reflects both perspectives for balanced insights.
Is STE a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, STERIS plc has a BUY rating 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 7.9% (sector avg: 15%), net margin of 12.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy STE stock in 2026?
Our dual AI analysis gives STERIS plc a combined BUY rating 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 $1.0B, with capital expenditures of $278.8M. FCF margin is 16.7%.
How does STE compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 12.9% (avg: 12%), ROE 7.9% (avg: 15%), current ratio 2.48 (avg: 2).