STERIS : revenue, balance sheet and financial ratios

In 2025, STERIS achieves revenue of 79.4 M€. Over the period 2017-2025, the company shows strong growth with a CAGR (compound annual growth rate) of +8.1%. Slight decline of -1% vs 2024. After deducting consumption (27.2 M€), gross margin stands at 52.2 M€, i.e. a rate of 66%. This ratio measures the ability to generate value from commercial activity. EBITDA (= Gross margin - Personnel expenses - Taxes) reaches 2.8 M€, representing 3.5% of revenue. Warning negative scissor effect: despite revenue change (-1%), EBITDA varies by -49%, reducing margin by 3.4 pts. This reflects costs rising faster than revenue. The operating margin remains fragile, requiring cost vigilance. Net income is negative at -23.4 M€ (-29.4% of revenue), which will impact equity.

The debt ratio (= Financial debt / Equity x 100) stands at 25%. This very low level reflects a solid financial structure, offering significant room for future investments or acquisitions. Financial autonomy (= Equity / Total assets x 100) reaches 29%. The balance between equity and debt is satisfactory. Debt repayment capacity (= Financial debt / Cash flow) indicates it would take 1.2 years of cash flow to repay all financial debt. This short period demonstrates excellent debt sustainability. Cash flow represents 4.1% of revenue. Cash flow measures resources generated by operations, available for investment and debt repayment.

The liquidity ratio (= Current assets / Current liabilities) stands at 256.90. Concretely, the company has €2 of liquid assets for every €1 of short-term debt: no cash risk within 12 months. The interest coverage ratio (= EBIT / Interest expenses) is 11.7x. Operating income very largely covers interest expenses: high safety margin.

Working capital requirement (WCR) measures the cash timing gap between customer collections and supplier/inventory payments. Average customer payment term: 103 days (formula: Customer receivables / Revenue incl. VAT x 360). Supplier term: 48 days. The gap of 55 days means the company finances its customers for over a month before being paid relative to supplier payments. This weighs on cash flow. Inventory turnover is 63 days (= Average inventory / Cost of goods x 360). Overall, WCR represents 122 days of revenue, i.e. 26.9 M€ to permanently finance.

Based on 124 transactions of similar company sales (all years), the value of STERIS is estimated at 7 574 614 € (range 4 022 042€ - 23 694 316€). With an EBITDA of 2 794 507€, the sector multiple of 0.7x is applied. The price/revenue ratio is 0.21x (conservative valuation). This multiples method compares the actual sale price of similar companies to their financial indicators (Revenue, EBITDA, Net Income). It provides a market-based indicative estimate.