Upside case
Bull case
$255+25.7%
STE would need investors to value it at roughly 25x earnings — about 5x more generous than today's 20x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
STERIS plc (STE) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
13
analysts
11 bullish · 0 bearish · 13 covering STE
Strong Buy
0
Buy
11
Hold
2
Sell
0
Strong Sell
0
Consensus Target
$270
+33.0% vs today
Scenario Range
$122 – $255
Model bear to bull value window
Coverage
13
Published analyst ratings
Valuation Context
19.9x
Forward P/E · Market cap $19.9B
STE price targets
Three scenarios for where STE stock could go
Current
~$203
Confidence
43 / 100
Updated
Jun 18, 2026
Where we are now
Current · $203
Bear
$122
Base
$193
Bull
$255
Market caseClosest to today
Base case
$193-4.6%
This is close to how the market is already pricing STE — at roughly 19x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$122-39.9%
If investor confidence fades or macro conditions deteriorate, a 8x multiple contraction could push STE down roughly 40% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
STERIS plc
STE · NYSEHealthcareMedical - DevicesMarch year-end
STERIS is a global provider of infection prevention products and procedural support services for healthcare facilities and medical device manufacturers. It generates revenue through four main segments: Healthcare products and services (~60% of sales), Applied Sterilization Technologies contract services (~20%), Life Sciences products (~15%), and Dental equipment (~5%). The company's moat lies in its comprehensive ecosystem of capital equipment, consumables, and high-margin service contracts that create recurring revenue streams and high switching costs for healthcare providers.
Market Cap
$19.9B
Revenue TTM
$5.9B
Net Income TTM
$782M
Net Margin
13.2%
STE Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
67%Exceptional
12 quarters tracked
Revenue Beat Rate
67%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.3%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$2.34/$2.26
Revenue
$1.4B/$1.4B
Q4 2025
EPS
$2.47/$2.35
Revenue
$1.5B/$1.4B
Q1 2026
EPS
$2.53/$2.53
Revenue
$1.5B/$1.5B
Q2 2026
EPS
$2.83/$2.85
Revenue
$1.6B/$1.6B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.34/$2.26 | +3.5% | $1.4B/$1.4B | +2.1% |
| Q4 2025 | $2.47/$2.35 | +5.1% | $1.5B/$1.4B | +2.0% |
| Q1 2026 | $2.53/$2.53 | +0.0% | $1.5B/$1.5B | +1.0% |
| Q2 2026 | $2.83/$2.85 | -0.7% | $1.6B/$1.6B | -0.4% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$6.5B
+10.1% YoY
FY2
$7.1B
+8.2% YoY
EPS Outlook
FY1
$7.58
-4.7% YoY
FY2
$7.38
-2.6% YoY
Trailing FCF (TTM)$972M
FCF Margin: 16.4%
Next Earnings
August 5, 2026
Expected EPS
$2.52
Expected Revenue
$1.5B
STE beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
STE Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $5.5B
Product Mix
Latest annual revenue by segment or product family
Product
52.6%
+3.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
73.4%
+6.8% YoY
Tap, hover, or focus a slice to inspect segment detail.
Product is the largest disclosed segment at 52.6% of FY 2025 revenue, up 3.9% YoY.
UNITED STATES is the largest reported region at 73.4%, up 6.8% YoY.
STE Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Fair versus peers
Fair value est. $201 — implies -0.8% from today's price.
Premium to Fair Value
0.8%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
STE
25.5x
vs
S&P 500
24.4x
In line with benchmark
vs Healthcare Trailing P/E
STE
25.5x
vs
Healthcare
22.1x
+16% premium
vs STE 5Y Avg P/E
Today
25.5x
vs
5Y Average
79.9x
68% discount
Forward PE
19.9x
S&P 500
18.8x
+6%
Healthcare
18.3x
+9%
5Y Avg
—
—
Trailing PE
25.5x
S&P 500
24.4x
+5%
Healthcare
22.1x
+16%
5Y Avg
79.9x
-68%
PEG Ratio
2.25x
S&P 500
1.66x
+35%
Healthcare
1.59x
+41%
5Y Avg
—
—
EV/EBITDA
19.4x
S&P 500
15.2x
+28%
Healthcare
14.2x
+37%
5Y Avg
20.0x
-3%
Price/FCF
20.4x
S&P 500
20.7x
-1%
Healthcare
18.5x
+10%
5Y Avg
39.2x
-48%
Price/Sales
3.4x
S&P 500
3.1x
+8%
Healthcare
2.6x
+27%
5Y Avg
4.4x
-24%
Dividend Yield
1.21%
S&P 500
1.91%
-37%
Healthcare
1.50%
-19%
5Y Avg
0.93%
+31%
| Metric | STE | S&P 500 | Healthcare | 5Y Avg STE |
|---|---|---|---|---|
| Forward PE | 19.9x | 18.8x | 18.3x | — |
| Trailing PE | 25.5x | 24.4x | 22.1x+16% | 79.9x-68% |
| PEG Ratio | 2.25x | 1.66x+35% | 1.59x+41% | — |
| EV/EBITDA | 19.4x | 15.2x+28% | 14.2x+37% | 20.0x |
| Price/FCF | 20.4x | 20.7x | 18.5x+10% | 39.2x-48% |
| Price/Sales | 3.4x | 3.1x | 2.6x+27% | 4.4x-24% |
| Dividend Yield | 1.21% | 1.91% | 1.50% | 0.93% |
STE trades above S&P 500 benchmarks on 2 of 6 measured multiples — is elevated on some multiples, but competitive on others — a mixed valuation picture.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolSTE Financial Health
Verdict
Strong
STE generates $972M in free cash flow at a 16.4% margin — returns 2.4% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$5.9B
Revenue Growth
TTM vs prior year
+8.7%
Gross Margin
Gross profit as a share of revenue
44.2%
Operating Margin
Operating income divided by revenue
18.6%
Net Margin
Net income divided by revenue
13.2%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.95
Free Cash Flow (TTM)
Cash generation after capex
$972M
FCF Margin
FCF as share of revenue — the primary cash quality signal
16.4%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
9.5%
ROA
Return on assets, trailing twelve months
7.4%
Cash & Equivalents
Liquid assets on the balance sheet
$440M
Net Debt
Total debt minus cash
$1.5B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.5× FCF
~1.5 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
11.0%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.4%
Dividend
1.2%
Buyback
1.2%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$236M
Dividend / Share
Annualized trailing dividend per share
$2.45
Payout Ratio
Share of earnings distributed as dividends
30.8%
Shares Outstanding
Declining as buybacks retire shares
98M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageSTE Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Valuation de-rating
The stock price target of $275.20 implies a 36.3% upside, but bear case scenarios could lead to significant downside if growth projections are not met.
Medium
Financial health risks
Deep dive into Steris's financial health is necessary as underlying weaknesses could impact long-term performance.
Lower
Market sentiment volatility
Stock price projections are influenced by market conditions and analyst forecasts, which can be volatile and uncertain.
Medium
Revenue growth uncertainty
The 2030 base case projection of $967.87 relies heavily on revenue growth assumptions that may not materialize.
High Risk
Analyst consensus risk
Wall Street analyst projections vary, and bear case scenarios could deviate significantly from the base case.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why STE Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Strong price target upside
STERIS plc has a 12-month price target of $275.20, representing a 36.3% upside, with a 2030 base case projection of $967.87 based on analyst consensus.
Wide moat advantage
STERIS plc is recognized for its wide moat, indicating strong competitive advantages and barriers to entry in the healthcare and medical devices sector.
Institutional ownership confidence
Top institutional holders like The Vanguard Group (12.07%) demonstrate strong confidence in STERIS plc's long-term growth potential.
Robust financial health
STERIS plc's financial health is supported by solid fundamentals, tech exposure, and positive smart money sentiment, making it an attractive investment.
Long-term growth projections
STERIS plc's 2030 base case valuation of $967.87 is backed by revenue projections, growth-adjusted multiples, and a clear bull/bear scenario framework.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
STE Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$202.61
52W Range Position
6%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$198.01
+2.3% from the low
52-Week High
$269.44
-24.8% from the high
1 Month
-4.82%
3 Month
-6.29%
YTD
-19.0%
1 Year
-14.2%
3Y CAGR
-1.7%
5Y CAGR
+0.3%
10Y CAGR
+11.6%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
STE vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
19.9x
vs 14.9x median
+33% above peer median
Revenue Growth
+10.1%
vs +8.0% median
+26% above peer median
Net Margin
13.2%
vs 4.0% median
+230% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
STE STE STERIS plc | $19.9B | 19.9x | +10.1% | 13.2% | Buy | +33.0% |
WAT WAT Waters Corporation | $23.2B | 24.5x | +18.4% | 11.9% | Hold | +11.2% |
MMS MMSI Merit Medical Systems, Inc. | $4.0B | 16.5x | +8.9% | 9.0% | Buy | +40.1% |
HSI HSIC Henry Schein, Inc. | $9.2B | 14.9x | +5.5% | 3.0% | Buy | +9.4% |
IAR IART Integra LifeSciences Holdings Corporation | $1.4B | 7.2x | +6.6% | -30.1% | Buy | +5.2% |
CNM CNMD CONMED Corporation | $1.0B | 7.5x | +8.0% | 4.0% | Hold | +139.4% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
STE Dividend and Capital Return
STE returns 2.4% total yield, led by a 1.21% dividend, raised 21 consecutive years. Buybacks add another 1.2%.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.4%
Dividend + buyback return per year
Buyback Yield
1.2%
Dividend Yield
1.21%
Payout Ratio
30.8%
How STE Splits Its Return
Div 1.21%
Buyback 1.2%
Dividend 1.21%Buybacks 1.2%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.45
Growth Streak
Consecutive years of dividend increases
21Y
3Y Div CAGR
10.1%
5Y Div CAGR
9.3%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$236M
Estimated Shares Retired
1M
Approx. Share Reduction
1.2%
Shares Outstanding
Current diluted share count from the screening snapshot
98M
At 1.2%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $1.26 | — | 1.1% | 2.2% |
| 2025 | $2.40 | +10.1% | 0.9% | 1.9% |
| 2024 | $2.18 | +10.1% | 0.1% | 1.0% |
| 2023 | $1.98 | +10.0% | 1.6% | 2.6% |
| 2022 | $1.80 | +8.4% | 0.2% | 0.9% |
FAQ
7 questionsSTE Investor Questions
Common questions answered from live analyst data and company financials.
01Is STERIS plc (STE) stock a buy or sell in 2026?
STERIS plc (STE) is rated Buy by Wall Street analysts as of 2026. Of 13 analysts covering the stock, 11 rate it Buy or Strong Buy, 2 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $270, implying +33.0% from the current price of $203. The bear case scenario is $122 and the bull case is $255.
02What is the STE stock price target for 2026?
The Wall Street consensus price target for STE is $270 based on 13 analyst estimates. The high-end target is $270 (+33.3% from today), and the low-end target is $269 (+32.8%). The base case model target is $193.
03Is STERIS plc (STE) stock overvalued in 2026?
STE trades at 19.9x times forward earnings. The stock's valuation is broadly in line with the broader market. Based on current multiples versus the peer group, the relative model signals fair versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for STERIS plc (STE) stock in 2026?
The primary risks for STE in 2026 are: (1) Valuation de-rating — The stock price target of $275. (2) Analyst consensus risk — Wall Street analyst projections vary, and bear case scenarios could deviate significantly from the base case. (3) Financial health risks — Deep dive into Steris's financial health is necessary as underlying weaknesses could impact long-term performance. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is STERIS plc's revenue and earnings forecast?
Analyst consensus estimates STE will report consensus revenue of $6.5B (+10.1% year-over-year) and EPS of $7.58 (-4.7% year-over-year) for the upcoming fiscal year. The following year, analysts project $7.1B in revenue.
06When does STERIS plc (STE) report its next earnings?
STERIS plc is expected to report its next earnings on approximately 2026-08-05. Consensus expects EPS of $2.52 and revenue of $1.5B. Over recent quarters, STE has beaten EPS estimates 67% of the time.
07How much free cash flow does STERIS plc generate?
STERIS plc (STE) generated $972M in free cash flow over the trailing twelve months — a free cash flow margin of 16.4%. STE returns capital to shareholders through dividends (1.2% yield) and share repurchases ($236M TTM).