STERIS plc (STE) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: STERIS plc

Updated on October 2, 2026 · accounts published on August 5, 2026

A steadily growing healthcare business with record margins and strong cash conversion

STERIS trades at a P/E of 27.8 over the last 12 months, 34 % below its ten-year median of 42.3 and cheaper than 97 % of the past decade.

• Is STERIS expensive or cheap? Its P/E of 27.8 is 34 % below its ten-year median and has been lower only 3 % of the time in the past decade.
• How is the business doing? Fiscal 2026 operating margin of 19 % was the highest of the last 12 fiscal years, above the 15 % average since 2015.
• How strong is the balance sheet? Net debt was just 1.0× EBITDA in fiscal 2026, and the dividend per share has risen for 11 consecutive fiscal years.
• What to expect from the next earnings? Analysts expect EPS of $2.67 when STERIS reports on November 4, 2026; the 2027 consensus has held at $11.21.
• Does STERIS invest enough in R&D and turn profit into cash? R&D was 1.9 % of fiscal 2026 revenue, far below the 15 % healthcare benchmark, but free cash flow was 124 % of net income.

Is STERIS expensive or cheap?

Over the last 12 months STERIS trades at a P/E of 27.8, against a ten-year median of 42.3 and a decade range of 24.8 to 90.2. It has traded cheaper only 3 % of the time in that decade, so the multiple sits near the floor of its own history. Against peers the discount is smaller: the healthcare sector median P/E is 30.4, which leaves STERIS 10 % below. The shares are down 3 % over the last 12 months and 15 % below their 52-week high of $268.65, while EPS grew 28 %, so the lower multiple reflects a falling price alongside rising earnings.

How is the business doing?

Revenue grew 9 % over the last 12 months while EPS rose 28 %, so profits are growing about three times faster than sales. Margins explain the gap: the trailing operating margin of 19 % compares with a 15 % average across fiscal 2015-2026, and the fiscal 2026 figure was the best of those 12 years. Net margin stands at 13 %. Returns on capital are the weaker side. ROIC of 8.7 % over the last 12 months beats the sector median of 6.0 %, yet it has not topped 10 % in any of the last ten fiscal years, and ROE is 11.3 %.

How strong is the balance sheet?

Debt is light. Net debt was $17.40 per share in fiscal 2026, about 8 % of the current share price, and 1.0× EBITDA, well under the 2.5× level considered healthy in healthcare. Debt to equity of 0.3 and a current ratio of 1.9 over the last 12 months point the same way, and the Altman Z-score of 5.1 sits in the safe zone, with a Piotroski score of 7 out of 9. The dividend yield is a modest 1.1 %, but the payout took only 31 % of fiscal 2026 earnings after 11 straight years of increases, leaving room to keep raising it.

What to expect from the next earnings?

STERIS has beaten EPS estimates in 5 of the last 8 quarters. On August 5, 2026 it reported $2.59 against $2.49 expected, a 4 % beat. For the quarter due on November 4, 2026, the consensus is $2.67. Expectations are steady: the 2027 EPS estimate from 6 analysts has stayed at $11.21 over the last 17 days, and the revenue consensus has barely moved. With no revisions in either direction, the figure to watch is the operating margin, which has just reached its highest level in 12 fiscal years.

Does STERIS invest enough in R&D and turn profit into cash?

In healthcare the R&D pipeline is the invisible asset and expiring patents are revenue that evaporates, so the sector checks innovation spending and cash conversion. STERIS fails the drugmaker-style tests: R&D was 1.9 % of fiscal 2026 revenue against a 15 % healthy level, gross margin was 44 % against the 70 % of branded pharma, and ROIC of 8.7 % trails the 12 % benchmark. It passes on cash: free cash flow was 124 % of fiscal 2026 net income, above the 90 % bar, and EPS grew 11 % a year over fiscal 2021-2026, ahead of the 8 % threshold.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.