Skip to Content

Steris PLC STE

Morningstar Rating
$215.37 −1.22 (0.56%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Steris: Narrow Moat Confirmed on Leadership in Sterilization That Positions It for Future Growth

We are refreshing our views on Steris and reaffirming our narrow moat rating with a $231 fair value estimate. The company's narrow moat comes from strong switching costs for its end users, namely healthcare providers, biopharma companies, and device manufacturers. We think that future product line expansions, as well as increased contract sterilization capacities, should support our mid- to high-single-digit revenue growth forecast over the next five years.

Price vs Fair Value

STE is trading at a 41% premium.
Price
$216.56
Fair Value
$516.00
Uncertainty
Medium
1-Star Price
$689.21
5-Star Price
$914.60
Economic Moat
Gxgqxg
Capital Allocation
Tvltwdxx

Bulls Say, Bears Say

Bulls

Steris’ technological leadership in applied sterilization technologies, or AST, could attract new customers lacking the capacity to navigate the latest regulatory challenges.

Bears

Steris’ acquisitions may not always achieve promised synergies, especially for businesses operating in niche verticals like dental or renal.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if STE is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$216.59
Day Range
$214.99216.81
52-Week Range
$195.34259.78
Bid/Ask
$215.24 / $215.37
Market Cap
$21.29 Bil
Volume/Avg
116,006 / 569,381

Key Statistics

Price/Earnings (Normalized)
25.01
Price/Sales
4.19
Dividend Yield (Trailing)
0.96%
Dividend Yield (Forward)
0.96%
Total Yield
1.02%

Company Profile

Steris is an Ireland-domiciled medical technology company focused on sterilization services and infection prevention. The company is the global leader in contract sterilization services, ensuring the safe delivery of single-use and implantable medical equipment to hospitals around the world. Additionally, Steris sells sterilizers, washer-disinfectors, and other decontamination equipment and supplies for use by care provider facilities and in biopharma manufacturing sites. Domiciled in the United States before its inversion to Ireland, the firm derives approximately 70% of its revenue from Healthcare Services, 19% from Applied Sterilization Technologies, or AST, and 11% from life sciences services after the divestment of its dental products business.
Sector
Healthcare
Industry
Medical Devices
Stock Style Box
Mid Core
Total Number of Employees
18,179

Competitors

Valuation

Metric
STE
GETI B
MDT
Price/Earnings (Normalized)
25.0120.5415.55
Price/Book Value
3.401.522.12
Price/Sales
4.191.533.33
Price/Cash Flow
19.2210.7714.83
Price/Earnings
STE
GETI B
MDT

Financial Strength

Metric
STE
GETI B
MDT
Quick Ratio
1.311.001.31
Current Ratio
3.081.692.03
Interest Coverage
5.799.137.73
Quick Ratio
STE
GETI B
MDT

Profitability

Metric
STE
GETI B
MDT
Return on Assets (Normalized)
8.00%4.79%7.64%
Return on Equity (Normalized)
14.23%8.20%13.51%
Return on Invested Capital (Normalized)
10.31%7.34%9.78%
Return on Assets
STE
GETI B
MDT
See how this stock stacks up to its competitors with Morningstar Investor

Medical Devices Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Abbott Laboratories
ABT
MvnnbmhwDlkjkc$183.2 Bil
Stryker Corp
SYK
WljkqygwqHdz$129.2 Bil
Boston Scientific Corp
BSX
SxggytkTrwzjbs$112.8 Bil
Medtronic PLC
MDT
LkhsdvhpKvktlh$103.9 Bil
Edwards Lifesciences Corp
EW
SlvyppsykRrjdyt$54.3 Bil
DexCom Inc
DXCM
TwkqsscqsNcrp$43.8 Bil
Koninklijke Philips NV ADR
PHG
ZfgmcqjyNdbjms$24.6 Bil
Zimmer Biomet Holdings Inc
ZBH
YzzwysfzlFsfpx$22.3 Bil
Align Technology Inc
ALGN
LhcrzfzYxbwd$17.8 Bil

Sponsor Center