Steris PLC (STE, Financial) has recently garnered attention from investors and financial analysts due to its strong financial position. With a current share price of $231.30, Steris PLC has experienced a minimal daily loss of 0.01%, contrasting with a three-month gain of 3%. A detailed analysis, supported by the GF Score, indicates that Steris PLC is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021 to correlate with long-term stock performance. A higher GF Score typically indicates a higher potential for market outperformance. Steris PLC boasts a GF Score of 93 out of 100, highlighting its strong potential for superior returns.
Understanding Steris PLC's Business
Steris PLC is an Ireland-based leader in medical sterilization services and infection prevention solutions. The company offers a range of products including sterilizers, washer-disinfectors, and other decontamination equipment. Originally based in the United States, Steris inverted to Ireland in 2015 but still derives approximately 70% of its revenue from U.S. operations, with 10% from the United Kingdom and 20% from other international markets. With a market cap of $22.86 billion and annual sales of $5.44 billion, Steris PLC maintains a solid operating margin of 15.39%.
Financial Strength Breakdown
Steris PLC's financial strength is evident in its robust balance sheet and strategic debt management. The company's Interest Coverage ratio stands at 7.73, indicating a strong ability to meet its interest obligations. Additionally, its Debt-to-Revenue ratio of 0.57 showcases prudent financial management, positioning the company well for enduring stability and growth.
Profitability Rank Breakdown
Steris PLC's profitability is impressive, with an Operating Margin that has consistently improved over the past five years. The company's ability to convert revenue into profit is further evidenced by its rising Gross Margin, which has remained robust over the same period. The Piotroski F-Score also reflects Steris PLC's solid financial health, underscoring its operational efficiency and profitability.
Growth Rank Breakdown
Steris PLC is committed to growth, as demonstrated by its high Growth Rank. The company's 3-Year Revenue Growth Rate of 12.7% outperforms 64.08% of its peers in the Medical Devices & Instruments industry. This growth trajectory is supported by continuous innovation and expansion in its core markets.
Conclusion
Considering Steris PLC's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively highlights the company's strong position for potential market outperformance. Investors looking for solid investment opportunities may find Steris PLC an attractive option.
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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.
