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STERIS plc

STERIS plc

STE
$210.76USD↓-0.80%-1.69 today

MARKET CAP

20.5B

P/E (TTM)

29.4x

FWD P/E

—

DAY RANGE

$210 – $214

52W RANGE

$195
$269

AI Summary

Stalk
Sell NowMedium

STE is exhibiting a clear Stage 4 decline following a recent support failure, with price extending below key EMAs and accelerating volume on sell-offs. Both medium- and long-term biases are bearish, anchored by lower highs and lower lows. Short-term conditions are oversold but show no exhaustion signal, suggesting further downside is likely. Execution should focus on selling into any pullback or retest of the broken support zone near the 9/20 EMAs and 50 DMA.

  • ↑Quarterly dividend hikes to $0.69 mark 21 years of growth.
  • ↑Q4 revenue up 9% YoY; FY27 growth guided at 7–8%.
  • ↓Tariffs and inflation added ~$55M to FY26 costs, squeezing margins.
Full analysis →

The case for & against

Bull & Bear analysis

Bullish

STERIS plc (NYSE: STE) specializes in medical equipment and solutions for sterilization, infection prevention, and procedural products targeted primarily at the healthcare and life sciences sectors. The company is a leader in providing essential services and technologies, facilitating improved patient safety and operational efficiency for healthcare facilities. Positioned at the forefront of the ongoing demand for sterilization and infection control, STERIS capitalizes on the reopening of healthcare facilities post-pandemic disruptions.

Bull says

  • ↑Quarterly dividend hikes to $0.69 mark 21 years of growth.
  • ↑Q4 revenue up 9% YoY; FY27 growth guided at 7–8%.
  • ↑FY26 free cash flow of $982.9M supports $1B buyback.
  • ↑FY27 CapEx set at $375M to expand sterilization capacity.
  • ↑High earnings yield and solid profitability underpin income appeal.
  • ↑Low leverage and improving quality metrics reduce financial risk.

Bear says

  • ↓Tariffs and inflation added ~$55M to FY26 costs, squeezing margins.
  • ↓CEO forecasts slower H1 FY27 growth due to AST inventory.
  • ↓High short interest indicates bearish investor outlook.
  • ↓Weak growth momentum and negative revisions may damp revenue upside.
  • ↓Intense competition from Medtronic, Thermo Fisher, and Stryker threatens share.
  • ↓Sensitivity to interest rates and oil prices could heighten volatility.

Investment themes with STE

Medical Devices↓ -0.50%

Devices and instruments for medical treatment

ISRG · ABT · SYK

Earnings Call · Q3 2024 · Mgmt. Guidance

Updated 02-06-2025neutral

Transcript signals

Bull points

  • For the quarter, constant currency organic revenue increased 10% driven by volume as well as 270 basis points of price.
  • Gross margin for the quarter increased 50 basis points compared with the prior year to 43.6%.
  • Free cash flow for the first 9 months of fiscal 2024 was $457 million compared with $262.8 million for the first 9 months of fiscal 2023. The fiscal 2024 increase was driven by higher earnings and declines in cash used for tax and compensation-related payments as well as a decline in capital expenditures.

Bear points

  • EBIT margin decreased 80 basis points to 23.1% of revenue compared with the third quarter last year. The anticipated increase in our year-over-year incentive compensation expense, along with the mix shift in operating income from the AST segment to the Healthcare segment impacted EBIT margins. We anticipate that the mix shift in operating income from AST to Healthcare will continue in the fourth quarter.
  • a lot of that revenue kind of evaporated and got shifted into Q4 is at least is what we anticipate to some degree or found other venues to get to the customer which we don't really have the ability to track or fully understand.
  • inventory burn down
Read full transcript analysis ›