$214.34
arrow_drop_down0.67%Is STE a Buy or Sell based on AI Analysis?
Fundamental Analysis
STERIS PLC is a healthcare company with a market capitalization of $23.05 billion and a price-to-earnings (P/E) ratio of 41.07, indicating that investors are willing to pay a premium for each dollar of earnings. The company's strong earnings growth is supported by a return on equity (ROE) of 9.11%, showing efficient use of shareholders' equity to generate profits. Additionally, the company has a solid balance sheet with a current ratio of 2.43, indicating its ability to meet short-term liabilities with its current assets. Furthermore, STERIS PLC has a dividend yield of 0.89%, providing a steady income stream for investors while also maintaining a conservative payout ratio of 23.74%, ensuring sustainability and potential for future dividend increases. On the other hand, STERIS PLC has a price-to-sales ratio of 4.25, reflecting the market's valuation of the company's revenue generation capability. The company's enterprise value to EBITDA ratio of 18.88 indicates that investors are willing to pay a premium for the company's earnings before interest, taxes, depreciation, and amortization, suggesting a positive outlook on the company's future profitability. Moreover, STERIS PLC has a gross margin of 43.56% and an operating margin of 15.9%, demonstrating its ability to efficiently manage costs and generate profits from its core operations. Overall, STERIS PLC's fundamental analysis highlights a well-managed company with strong financial metrics and growth potential in the healthcare industry.
Positive Development
The company's stock has shown consistent growth over the past weeks, with a 2.39% increase from $229.25 to $233.05 on Thursday, followed by a 1.57% increase from $232.85 to $236.03 on Wednesday. The company's stock has outperformed its competitors on several occasions, indicating strong market confidence in the company's performance. STERIS has a strong and consistent dividend payment history, which may attract investors seeking a steady income stream. The company has shown a positive trend in its gross margin, indicating a strong operational efficiency.
Negative Development
The company's stock underperformed on several occasions, indicating potential market weakness. The company's financial ratios, such as the current ratio and the quick ratio, indicate potential liquidity issues. The company's long-term debt to equity ratio is relatively high, which could be a concern for investors.
Technical Analysis
STERIS PLC, a healthcare company, currently has a NEUTRAL technical rating based on various indicators such as ATR, RSI, MACD, ADX, WILLR, and ROC. The stock has a technical buy indicator count of 1, indicating a potential bullish trend in the short term. However, there are also 5 technical hold indicators and 2 technical sell indicators, suggesting that there may be mixed signals regarding the stock's price movement. The stock sector of Healthcare has seen a significant change of 28.55% in the past year, outperforming the stock market change of 37.85%. In addition to the technical analysis, STERIS PLC also provides relevant financial data such as the stock's price, market cap, volume, average volume, and key ratios like the price-to-earnings ratio (PE), price-to-sales, price-to-book, and price-to-cashflow. The company's historical dividend yield, insider and institutional ownership values, and net debt to assets ratio are also included, providing investors with a comprehensive picture of the company's financial health. Overall, the technical analysis combined with the financial data offers investors valuable insights into STERIS PLC's current stock performance and potential future trends in the healthcare sector.
Conclusion and recommendation
Based on the data provided, STERIS PLC (STE) appears to be a solid investment opportunity in the healthcare sector. With a market cap of $23.05 billion and strong financials, including a PE ratio of 41.07 and a dividend yield of 0.89%, the company demonstrates stability and growth potential. Additionally, STERIS PLC has shown positive price growth over the past one month, three months, year-to-date, and five years, indicating a strong track record of performance. The company's technical rating of "NEUTRAL" suggests a balanced outlook for investors, while the industry and sector scores of 76 and 71, respectively, further reinforce its competitive position in the market. In conclusion, STERIS PLC presents a compelling investment opportunity for those seeking exposure to the healthcare sector. With a range of positive financial metrics, strong market scores, and consistent price growth, the company is well-positioned for future success. Investors may consider adding STERIS PLC to their portfolio for long-term growth potential, given its favorable industry and sector scores, as well as its historical performance. However, as with any investment, it is important for individuals to conduct further due diligence and research to make informed decisions based on their financial goals and risk tolerance.