Is the business good?
How good a business is STE?
STERIS plc earns 10% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
10%
Return on invested capital · cost of capital 9.0% · 1.0 points above what the capital costs: growth creates value
- Operating margin
- 19%
Operating margin · Medical Devices median 11% · 12 months to Q4 2026
- Cash conversion
- 1.24×
Cash conversion · 1.27× a year ago · every dollar of reported profit arrived as cash, and more
- R&D as % of revenue
- 1.9%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2021 | 18% |
| FY2022 | 11% |
| FY2023 | 17% |
| FY2024 | 16% |
| FY2025 | 16% |
| FY2026 | 19% |
Details›
- Gross margin12 months to Q4 2026
- 44%
- Operating margin12 months to Q4 2026
- 19%
- Net margin12 months to Q4 2026
- 13%
- Free cash flow margin
- 16%
- R&D as % of revenue
- 1.9%
- Revenue, trailing twelve months
- $5.94B
- Free cash flow, trailing twelve months
- $972M
- Net income, trailing twelve months
- $782M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 10%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Medical Devices
Ranks #13 of 35 by Smart Score