Last Updated: 11 Sep 2024
Executive Summary
STERIS plc (STE) is a leading provider of sterilization and surgical products for the US healthcare system. The company's recent financial performance has been strong, with revenue and earnings growth outpacing the industry average. STERIS's valuation metrics are currently attractive, with a forward P/E ratio of 26.74 and a dividend yield of 0.0092%. The company's technical analysis also suggests that the stock is in a favorable position, with the 50-day moving average above the 200-day moving average. Overall, STERIS is a well-positioned company with a strong track record of growth and profitability.
Company Overview
STERIS plc is an American Irish-domiciled medical equipment company specializing in sterilization and surgical products for the US healthcare system. The company's products are used in a variety of healthcare settings, including hospitals, clinics, and ambulatory surgery centers. STERIS has a global presence, with operations in over 100 countries.
Fundamental Analysis
STERIS's financial performance has been strong in recent years. The company's revenue has grown at a compound annual growth rate (CAGR) of 7.5% over the past five years. Earnings per share (EPS) have grown at a CAGR of 10.5% over the same period. STERIS's profit margins are also healthy, with a gross profit margin of 41.3% and an operating margin of 16.9%.
The company's balance sheet is also strong, with a debt-to-equity ratio of 0.35. STERIS has a strong cash position, with over $1 billion in cash and equivalents on hand.
Technical Analysis
STERIS's stock price has been in a bullish trend in recent months. The stock has broken out of a resistance level at $240 and is now trading above its 50-day and 200-day moving averages. The relative strength index (RSI) is also in bullish territory, indicating that the stock is overbought.
Short Term Outlook
The short-term outlook for STERIS is positive. The stock is in a bullish trend and is trading above its key moving averages. The RSI is also in bullish territory, indicating that the stock is overbought.
Long Term Outlook
The long-term outlook for STERIS is also positive. The company is a leader in the growing healthcare industry. STERIS has a strong track record of growth and profitability. The company's valuation metrics are also attractive.
Analyst Recommendations
Analysts are bullish on STERIS. The consensus analyst rating is "buy." The average analyst target price is $249.21, which represents a potential upside of 0.8% from the current price.
Overall
STERIS plc is a well-positioned company with a strong track record of growth and profitability. The company's valuation metrics are currently attractive, and the technical analysis suggests that the stock is in a favorable position. Overall, STERIS is a good investment for both short-term and long-term investors.
