STE Stock Analysis — Steris plc
Sector: Healthcare
AI Verdict
Steris trades at 21.3x next year's earnings with a 41.9% EPS growth forecast—cheap for the growth you're getting, and the moat looks durable given entrenched hospital relationships and regulatory barriers.
Competitive Moat
Steris dominates the medical sterilization and infection prevention market, supplying hospitals and surgical centers with essential equipment and consumables that are deeply embedded in clinical workflows. Its moat comes from high switching costs, regulatory approvals, and long-term service contracts that make it hard for competitors to displace them.
Summary
Steris is notable now for a projected 41.9% jump in earnings next year while trading at a discount to its historical P/E.
Where It Stands
Steris has delivered a -2.66% 1-year return with an RSI of 39.0 (cooling/near oversold) and trades at 21.3x forward earnings versus the healthcare sector median of 22x.
Key Metrics
- RSI: 39 — Near Oversold
- Trailing P/E: 30.2x
- Forward P/E: 21.3x
- PEG Ratio: 0.72
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Market Cap: $21.4B
- Dividend Yield: 0.01%
- 1-Year Return: -2.66%
- 52-Week High: $269.44
- 52-Week Low: $209.98
Analyst Consensus
10 Buy · 5 Hold · 0 Sell (15 analysts)
Bull Case
With forward EPS growth expected at 41.9% and a forward P/E of 21.3x, you're paying less than the sector average for much faster earnings growth.
Bear Case
If the P/E reverts to the sector median of 22x but earnings growth disappoints, the stock could see further downside given the -2.66% return and cooling RSI.
Catalyst to Watch
Watch for quarterly earnings: if Steris delivers on the 41.9% EPS growth, the valuation gap could close quickly.