Steris PLC (STE, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance and promising growth prospects. Currently trading at $218.66 per share, Steris PLC has experienced a daily increase of 4.08%, despite a slight dip of -2.98% over the past three months. A detailed analysis, supported by the GF Score, positions Steris PLC for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects of a company's financials. This system, which ranges from 0 to 100, has proven its effectiveness in forecasting long-term stock returns from 2006 to 2021. A higher GF Score indicates a higher potential for return. Steris PLC boasts a GF Score of 93 out of 100, suggesting a strong potential for market outperformance.
- Financial strength rank: 6/10
- Profitability rank: 8/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding Steris PLC's Business
Steris PLC is a leading medical device company based in Ireland, specializing in sterilization services and infection prevention. With a market cap of $21.61 billion and annual sales of $5.41 billion, Steris is a global leader in contract sterilization, ensuring the safe delivery of medical equipment worldwide. The company also manufactures sterilizers and other decontamination equipment, with approximately 70% of its revenue generated from U.S. operations.
Financial Strength Breakdown
Steris PLC's financial robustness is reflected in its Financial Strength rating of 6/10. The company's Interest Coverage ratio stands at 5.9, indicating a strong ability to meet its interest obligations. Additionally, its Debt-to-Revenue ratio of 0.65 showcases effective debt management strategies.
Profitability and Growth Metrics
The Profitability Rank of 8/10 highlights Steris PLC's efficiency in generating profits, supported by a Predictability Rank of 3.5 stars. This consistency is crucial for investor confidence. Furthermore, the company's impressive Growth Rank of 10/10 is evidenced by a 3-Year Revenue Growth Rate of 11.8%, outperforming 61.39% of its industry peers.
Conclusion
Considering Steris PLC's robust financial strength, high profitability, and impressive growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
