January 08, 2026 a 11:31 am
STE: Dividend Analysis - STERIS plc
STERIS plc demonstrates a commitment to stable dividend payouts in the medical technology sector. With a dividend yield of 0.93% and 21 years of dividend history, it maintains steady growth and a favorable payout ratio. The company efficiently balances between rewarding shareholders and investing in future growth, enhancing its long-term investment value.
📊 Overview
With a diversified presence in the healthcare sector, STERIS plc exemplifies steady dividend growth and sustainability, making it an attractive consideration for income-seeking investors.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 0.93% |
| Current Dividend per Share | 2.23 USD |
| Dividend History | 21 years |
| Last Cut or Suspension | 2010 |
🗣️ Dividend History
The historical payment consistency showcases the reliability of STERIS's dividends, supporting an investor's confidence. View the recent trends in dividend distributions below, reinforcing the track record of growth.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.40 |
| 2024 | 2.18 |
| 2023 | 1.98 |
| 2022 | 1.80 |
| 2021 | 1.66 |
📈 Dividend Growth
Sustained growth in dividends is a strong indicator of financial health. The 3-year growth rate of 10.06% and the 5-year growth rate of 9.28% confirm a moderate but consistent uptrend, which is beneficial for long-term investment strategies.
| Time | Growth |
|---|---|
| 3 years | 10.06% |
| 5 years | 9.28% |
The average dividend growth is 9.28% over 5 years. This shows moderate but steady dividend growth.
🧮 Payout Ratio
An analysis of payout ratios reflects STERIS plc's efficiency in converting earnings and free cash flow into dividends, with significant headroom for sustainability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 31.87% |
| Free Cash Flow-based | 22.83% |
With an EPS payout ratio of 31.87% and an FCF payout ratio of 22.83%, STERIS plc maintains a prudent balance, ensuring dividend payments without over-leveraging its cash resources.
💰 Cashflow & Capital Efficiency
Investigating cash flow metrics reveals how effective STERIS plc is in capital allocation, indicating their potential for sustainable growth.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.48% | 2.81% | 2.07% |
| Earnings Yield | 2.75% | 1.73% | 0.56% |
| CAPEX to Operating Cash Flow | 26.14% | 32.24% | 47.82% |
| Stock-based Compensation to Revenue | 1.02% | 1.10% | 0.86% |
| Free Cash Flow / Operating Cash Flow Ratio | 67.76% | 62.98% | 52.18% |
STERIS plc demonstrates efficient capital management strategies, optimizing its cash flows to reinforce growth liquidity without excessive risk exposure.
⚖️ Balance Sheet & Leverage Analysis
Assessing the balance sheet offers insights into STERIS plc's leverage and ability to sustain operations under financial duress.
| Ratio | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 33.35% | 53.68% | 53.45% |
| Debt-to-Assets | 21.71% | 30.58% | 30.02% |
| Debt-to-Capital | 25.01% | 34.93% | 34.83% |
| Net Debt to EBITDA | 1.49 | 2.25 | 2.26 |
| Current Ratio | 0.0 | 0.0 | 0.0 |
| Quick Ratio | 1.39 | 2.36 | 1.63 |
| Financial Leverage | 1.54 | 1.76 | 1.78 |
STERIS plc upholds a sturdy financial structure with adaptable leverage, which provides robust grounding for coping with potential market adversities.
📊 Fundamental Strength & Profitability
Through profitability indicators, one can gauge STERIS plc's profitability capacity and effectiveness in generating shareholder value.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 9.31% | 6.00% | 1.76% |
| Return on Assets | 6.06% | 3.42% | 0.99% |
| Margins | |||
| Net Margin | 11.26% | 7.36% | 2.36% |
| EBIT Margin | 16.16% | 16.49% | 17.44% |
| EBITDA Margin | 24.89% | 27.49% | 29.63% |
| Gross Margin | 44.01% | 43.16% | 43.66% |
| Research & Development to Revenue | 1.97% | 2.02% | 2.17% |
STERIS plc exhibits strong profitability metrics that indicate its capacity to translate revenues into net income efficiently, fostering ongoing shareholder trust.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🔎 Rating
STERIS plc exhibits solid dividend practices with growth and stability that appeal to long-term investors. It maintains financial soundness, making it a reliable choice for steady income generation and diversified growth in the healthcare sector.