February 06, 2026 a 12:46 pm
STE: Dividend Analysis - STERIS plc
STERIS plc presents a reliable dividend profile characterized by consistent payments and moderate growth over recent years. The company has maintained a stable dividend distribution for over two decades, suggesting a strong commitment to returning capital to shareholders. With a current dividend yield of just over 1%, investors might be looking for more substantial income sources, but STERIS's growth trajectory in dividend payouts remains a positive aspect.
Overview 📊
STERIS plc is situated in the Healthcare sector, offering moderate but consistent dividend payouts.
| Metric | Value |
|---|---|
| Sector | Healthcare |
| Dividend yield | 1.00% |
| Current dividend per share | 2.23 USD |
| Dividend history | 22 years |
| Last cut or suspension | None |
Dividend History 🗣️
The historical dividend record of STERIS plc is indicative of its consistent financial performance and firm dedication to shareholder returns, which enhances investor confidence.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.63 |
| 2025 | 2.40 |
| 2024 | 2.18 |
| 2023 | 1.98 |
| 2022 | 1.80 |
Dividend Growth 📈
The dividend growth metrics demonstrate STERIS’s ability to incrementally enhance its shareholder distribution, providing an indicator of financial health and earning capacity.
| 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 ✅
A balanced payout ratio provided by STERIS plc ensures the sustainability of its dividend payments and highlights efficient capital allocation.
| Key figure ratio | Value |
|---|---|
| EPS-based | 31.88% |
| Free cash flow-based | 22.86% |
The moderate EPS payout ratio of 31.88% and the conservative free cash flow payout of 22.86% suggest robust financial health with a margin for reinvestment and growth.
Cashflow & Capital Efficiency 📊
Examining STERIS's cash flow metrics is integral to understanding its operational efficacy and ability to fund dividends and growth simultaneously through efficient capital management.
| 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 | 32.24% | 37.02% | 47.82% |
| Stock-based Compensation to Revenue | 1.05% | 1.10% | 0.86% |
| Free Cash Flow / Operating Cash Flow Ratio | 67.76% | 62.98% | 52.18% |
The analysis of cashflow dynamics indicates commendable capital efficiency, supporting solid liquidity with room for expanding investments.
Balance Sheet & Leverage Analysis 🧾
The balance sheet metrics shed light on STERIS's leverage and capital structure, ensuring the company remains well-poised to weather economic downturns.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.33 | 0.54 | 0.53 |
| Debt-to-Assets | 0.22 | 0.31 | 0.30 |
| Debt-to-Capital | 0.25 | 0.35 | 0.35 |
| Net Debt to EBITDA | 1.49 | 2.25 | 2.26 |
| Current Ratio | 1.96 | 3.08 | 2.33 |
| Quick Ratio | 1.39 | 2.36 | 1.63 |
| Financial Leverage | 1.54 | 1.76 | 1.78 |
STERIS's controlled leveraging strategy ensures adequate liquidity and minimizes financial risk, reflecting a stable and balanced financial approach.
Fundamental Strength & Profitability 🚀
Assessing profitability and return metrics affirms STERIS's operational efficiency and capacity to generate profits, which are crucial for sustained growth and investment attraction.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 9.31% | 6.00% | 1.76% |
| Return on Assets | 6.06% | 3.42% | 0.99% |
| 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% | 43.17% | 43.66% |
| R&D to Revenue | 1.97% | 2.02% | 2.17% |
Profitability ratios illustrate a sound corporate governance policy and operational robustness, essential for competitiveness and future expansion.
Price Development 📉
Dividend Scoring System 🔍
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 36/40
Rating 🌟
STERIS plc's dividend profile is characterized by high stability and gradual growth, making it an appealing pick for long-term investors seeking reliable income. With robust fundamentals and a forward-thinking growth strategy, STERIS holds its ground as a compelling investment within its sector.