Upside case
Bull case
$259+20.5%
STE would need investors to value it at roughly 25x earnings — about 4x more generous than today's 21x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 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
$257
+19.6% vs today
Scenario Range
$95 – $259
Model bear to bull value window
Coverage
13
Published analyst ratings
Valuation Context
21.0x
Forward P/E · Market cap $21.1B
STE price targets
Three scenarios for where STE stock could go
Current
~$215
Confidence
62 / 100
Updated
May 1, 2026
Where we are now
Current · $215
Bear
$95
Base
$270
Bull
$259
Market caseClosest to today
Base case
$270+25.8%
At 26x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$95-55.9%
If investor confidence fades or macro conditions deteriorate, a 12x multiple contraction could push STE down roughly 56% 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
$21.1B
Revenue TTM
$5.8B
Net Income TTM
$708M
Net Margin
12.1%
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
75%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+3.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q2 2025
Q3 2025
Q4 2025
Q1 2026
Last 4 Quarters
EPS beats: 4 of 4Q2 2025
EPS
$2.74/$2.60
Revenue
$1.5B/$1.5B
Q3 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
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q2 2025 | $2.74/$2.60 | +5.4% | $1.5B/$1.5B | +0.8% |
| 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% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$6.2B
+7.0% YoY
FY2
$6.8B
+8.2% YoY
EPS Outlook
FY1
$7.70
+7.5% YoY
FY2
$7.80
+1.2% YoY
Trailing FCF (TTM)$917M
FCF Margin: 15.7%
Next Earnings
May 11, 2026
Expected EPS
$2.89
Expected Revenue
$1.6B
STE beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
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
Slightly Overvalued
Fair value est. $200 — implies -6.8% from today's price.
Premium to Fair Value
6.8%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
STE
34.6x
vs
S&P 500
25.2x
+37% premium
vs Healthcare Trailing P/E
STE
34.6x
vs
Healthcare
22.1x
+56% premium
vs STE 5Y Avg P/E
Today
34.6x
vs
5Y Average
82.6x
58% discount
Forward PE
21.0x
S&P 500
19.1x
+10%
Healthcare
19.0x
+10%
5Y Avg
—
—
Trailing PE
34.6x
S&P 500
25.2x
+37%
Healthcare
22.1x
+56%
5Y Avg
82.6x
-58%
PEG Ratio
6.37x
S&P 500
1.75x
+265%
Healthcare
1.52x
+319%
5Y Avg
—
—
EV/EBITDA
17.2x
S&P 500
15.3x
+13%
Healthcare
14.1x
+22%
5Y Avg
20.4x
-16%
Price/FCF
27.1x
S&P 500
21.3x
+27%
Healthcare
18.7x
+45%
5Y Avg
42.0x
-35%
Price/Sales
3.9x
S&P 500
3.1x
+23%
Healthcare
2.8x
+36%
5Y Avg
4.7x
-18%
Dividend Yield
1.03%
S&P 500
1.88%
-45%
Healthcare
1.40%
-26%
5Y Avg
0.87%
+19%
| Metric | STE | S&P 500 | Healthcare | 5Y Avg STE |
|---|---|---|---|---|
| Forward PE | 21.0x | 19.1x+10% | 19.0x+10% | — |
| Trailing PE | 34.6x | 25.2x+37% | 22.1x+56% | 82.6x-58% |
| PEG Ratio | 6.37x | 1.75x+265% | 1.52x+319% | — |
| EV/EBITDA | 17.2x | 15.3x+13% | 14.1x+22% | 20.4x-16% |
| Price/FCF | 27.1x | 21.3x+27% | 18.7x+45% | 42.0x-35% |
| Price/Sales | 3.9x | 3.1x+23% | 2.8x+36% | 4.7x-18% |
| Dividend Yield | 1.03% | 1.88% | 1.40% | 0.87% |
STE trades above S&P 500 benchmarks on 6 of 6 measured multiples — commands a broad premium across most valuation dimensions.
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 $917M in free cash flow at a 15.7% margin — returns 2.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$5.8B
Revenue Growth
TTM vs prior year
+14.4%
Gross Margin
Gross profit as a share of revenue
44.1%
Operating Margin
Operating income divided by revenue
17.2%
Net Margin
Net income divided by revenue
12.1%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$7.16
Free Cash Flow (TTM)
Cash generation after capex
$917M
FCF Margin
FCF as share of revenue — the primary cash quality signal
15.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
7.2%
ROA
Return on assets, trailing twelve months
6.7%
Cash & Equivalents
Liquid assets on the balance sheet
$172M
Net Debt
Total debt minus cash
$2.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
2.2× FCF
~2.2 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
9.9%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.0%
Dividend
1.0%
Buyback
1.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$211M
Dividend / Share
Annualized trailing dividend per share
$2.22
Payout Ratio
Share of earnings distributed as dividends
35.8%
Shares Outstanding
Declining as buybacks retire shares
99M
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 April 29, 2026
High Risk
Capital Equipment Revenue Decline
STERIS has reported a significant decline in capital equipment sales, approximately 16% year-over-year, alongside a 21% year-over-year drop in service revenues. This decline raises concerns about the company's ability to generate future revenue in these critical segments.
High Risk
Diminishing Capital Equipment Backlog
The decrease in the capital equipment backlog indicates potential challenges for STERIS in sustaining earnings and dividend growth. Without a recovery in demand for capital equipment, the company's financial stability may be at risk.
High Risk
Competition and Pricing Pressure
STERIS faces intense competition, and rapid technological changes or new service solutions could lead to pricing pressure. This could result in a loss of market share, adversely affecting the company's overall business performance.
Medium
Regulatory Changes
Changes in regulations could lead to increased operating costs for STERIS, potentially impacting free cash flow margins. Such changes may also affect the company's overall valuation in the market.
Medium
Integration of Acquisitions
The successful integration of acquired companies, such as Cantel, is crucial for STERIS. Potential goodwill impairments or lower-than-expected synergies from these acquisitions could negatively impact future free cash flow.
Medium
Employee Turnover
A notable employee turnover rate of 17% in 2022 could impact STERIS's operations and its ability to effectively train new personnel. High turnover may lead to disruptions in service delivery and operational efficiency.
Lower
Economic Downturns
General economic downturns or slowdowns in the industries where STERIS operates could adversely affect its business and financial condition. Such economic challenges may lead to reduced demand for the company's products and services.
Lower
Information Security Risks
Like many companies, STERIS faces risks related to information security and the protection of its intellectual property. Breaches or failures in these areas could lead to financial losses and reputational damage.
Lower
Interest Rate Fluctuations
As STERIS relies on bank loans for funding, fluctuations in interest rates could increase borrowing costs. This may adversely affect the company's overall business results and financial performance.
Lower
Supply Chain Issues
While STERIS expects fewer supply chain issues in fiscal year 2024 compared to 2023, disruptions remain a general risk. Any significant supply chain challenges could impact the company's ability to deliver products and services efficiently.
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 April 29, 2026
Revenue and Earnings Growth
STERIS has reported higher sales and net income, with earnings per share (EPS) showing year-over-year growth. Analysts forecast continued earnings growth, with projections of 10.39% per year.
Market Position and Financial Health
STERIS holds a solid market capitalization, indicating its established presence in the medical equipment sector. The company also boasts an excellent balance sheet and a history of returning value to shareholders through dividends.
Shareholder Returns
STERIS has completed significant share repurchase programs, demonstrating a commitment to returning value to shareholders. The company also offers a dividend yield, providing a steady income stream for investors.
Operational Efficiency
Recent financial reports show an improvement in the company's EBIT margin, suggesting enhanced operational efficiency.
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
$214.52
52W Range Position
8%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$209.61
+2.3% from the low
52-Week High
$269.44
-20.4% from the high
1 Month
-2.48%
3 Month
-14.93%
YTD
-14.2%
1 Year
-3.6%
3Y CAGR
+4.3%
5Y CAGR
+0.4%
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
21.0x
vs 13.6x median
+54% above peer median
Revenue Growth
+7.0%
vs +6.2% median
+14% above peer median
Net Margin
12.1%
vs 4.0% median
+204% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
STE STE STERIS plc | $21.1B | 21.0x | +7.0% | 12.1% | Buy | +19.6% |
WAT WAT Waters Corporation | $22.8B | 24.3x | +33.4% | 11.9% | Hold | +15.2% |
MMS MMSI Merit Medical Systems, Inc. | $3.7B | 15.3x | +9.7% | 9.0% | Buy | +54.1% |
HSI HSIC Henry Schein, Inc. | $8.3B | 13.6x | +3.7% | 3.0% | Hold | +19.3% |
IAR IART Integra LifeSciences Holdings Corporation | $1.1B | 6.0x | +1.9% | -30.1% | Buy | -14.3% |
CNM CNMD CONMED Corporation | $1.2B | 8.5x | +6.2% | 4.0% | Hold | +109.0% |
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 2.0% total yield, led by a 1.03% dividend, raised 15 consecutive years. Buybacks add another 1.0%.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.0%
Dividend + buyback return per year
Buyback Yield
1.0%
Dividend Yield
1.03%
Payout Ratio
35.8%
How STE Splits Its Return
Div 1.03%
Buyback 1.0%
Dividend 1.03%Buybacks 1.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.22
Growth Streak
Consecutive years of dividend increases
15Y
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
$211M
Estimated Shares Retired
985.1K
Approx. Share Reduction
1.0%
Shares Outstanding
Current diluted share count from the screening snapshot
99M
At 1.0%/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 | $0.63 | — | — | — |
| 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 $257, implying +19.6% from the current price of $215. The bear case scenario is $95 and the bull case is $259.
02What is the STE stock price target for 2026?
The Wall Street consensus price target for STE is $257 based on 13 analyst estimates. The high-end target is $265 (+23.5% from today), and the low-end target is $245 (+14.2%). The base case model target is $270.
03Is STERIS plc (STE) stock overvalued in 2026?
STE trades at 21.0x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals slightly overvalued. 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) Capital Equipment Revenue Decline — STERIS has reported a significant decline in capital equipment sales, approximately 16% year-over-year, alongside a 21% year-over-year drop in service revenues. (2) Diminishing Capital Equipment Backlog — The decrease in the capital equipment backlog indicates potential challenges for STERIS in sustaining earnings and dividend growth. (3) Competition and Pricing Pressure — STERIS faces intense competition, and rapid technological changes or new service solutions could lead to pricing pressure. 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 $6.2B (+7.0% year-over-year) and EPS of $7.70 (+7.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $6.8B in revenue.
06When does STERIS plc (STE) report its next earnings?
STERIS plc is expected to report its next earnings on approximately 2026-05-11. Consensus expects EPS of $2.89 and revenue of $1.6B. Over recent quarters, STE has beaten EPS estimates 75% of the time.
07How much free cash flow does STERIS plc generate?
STERIS plc (STE) generated $917M in free cash flow over the trailing twelve months — a free cash flow margin of 15.7%. STE returns capital to shareholders through dividends (1.0% yield) and share repurchases ($211M TTM).