STE:PYTHSTERIS PLC / US DOLLAR Analysis
Data as of 2026-03-14 - not real-time
$214.57
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
STERIS delivered 9% revenue growth YoY and a 9% increase in EPS to $2.53 in Q3 FY2026, with gross margins around 44% and operating margins near 18%. The stock is trading at $214.57, just above the recent support level of $209.98 and well below its 52‑week high of $269.44. Technicals show an oversold RSI of 24 and a bearish MACD divergence, while volume is on the rise, hinting at a possible short‑term bounce.
Valuation metrics flag concern: the market price exceeds the DCF‑derived fair value of $161.55 and trades at a P/E of ~30 versus the industry average of 26, labeling the stock as overvalued. Nevertheless, the dividend yield of 1.15% is backed by a modest 33% payout ratio, solid operating cash flow, and a low debt‑to‑equity profile, suggesting dividend sustainability. Combined with a beta of 0.64 and a 30‑day volatility of 34.6%, the stock presents moderate market risk amid a stable healthcare‑devices sector.
Valuation metrics flag concern: the market price exceeds the DCF‑derived fair value of $161.55 and trades at a P/E of ~30 versus the industry average of 26, labeling the stock as overvalued. Nevertheless, the dividend yield of 1.15% is backed by a modest 33% payout ratio, solid operating cash flow, and a low debt‑to‑equity profile, suggesting dividend sustainability. Combined with a beta of 0.64 and a 30‑day volatility of 34.6%, the stock presents moderate market risk amid a stable healthcare‑devices sector.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- RSI in oversold territory suggesting a near‑term price floor
- Price hovering just above the identified support level
- Increasing trading volume indicating renewed interest
Medium Term
1–3 yearsNeutral
Model confidence: 7/10
Key Factors
- Consistent double‑digit revenue and EPS growth
- Sustainable dividend supported by strong cash flow
- Forward P/E compression to ~19 indicating improving earnings outlook
Long Term
> 3 yearsPositive
Model confidence: 8/10
Key Factors
- Robust free cash flow generation and low leverage
- Strategic position in infection‑prevention and sterilization markets
- Potential for dividend growth and earnings expansion over multiple years
Key Metrics & Analysis
Financial Health
Revenue Growth9.20%
Profit Margin12.14%
P/E Ratio29.9
ROE10.47%
ROA6.61%
Debt/Equity28.65
P/B Ratio2.9
Op. Cash Flow$1.3B
Free Cash Flow$870.7M
Industry P/E26.2
Technical Analysis
TrendNeutral
RSI24.1
Support$209.98
Resistance$255.66
MA 20$239.95
MA 50$250.65
MA 200$246.07
MACDBearish
VolumeIncreasing
Fear & Greed Index72.88
Valuation
Fair Value$161.55
Target Price$281.25
Upside/Downside31.08%
GradeOvervalued
TypeGrowth
Dividend Yield1.15%
Risk Assessment
Beta0.64
Volatility34.59%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.