# Steris (STE.US)

Canonical: https://gigainvestors.com/s/STE

Analysis as of: 2026-10-01T19:03:55.594Z. Financial observations: FY2017–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass. Published buy qualification: no.

Share price: $224.33 per share; close as of 2026-10-15.

Estimated value: low $62.33 per share, central $70.47 per share, high $81.30 per share. Buy at or below the central value $70.47 per share. Valuation as of 2026-10-01T19:03:55.594Z; scenarios are not confidence intervals.

Expected annual return: 5.1% at the stated quote. About 5.1% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.3% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.19×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.09×

- FY2018: 0.15×

- FY2019: 0.15×

- FY2020: 0.18×

- FY2021: 0.18×

- FY2022: 0.11×

- FY2023: 0.17×

- FY2024: 0.16×

- FY2025: 0.16×

- FY2026: 0.19×

### moat: pass

- ROIC, median of available years: 17.0%

- ROIC, second-lowest year: 12.3%

- Typical minus recent gross margin: -0.8 pp

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.8%

- ROIC including acquisitions, ten-year median: 6.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 16.7%

- FY2019: 17.9%

- FY2020: 23.4%

- FY2021: 17.3%

- FY2023: 12.3%

- FY2024: 12.2%

- FY2025: 14.7%

- FY2026: 17.8%

### economics: pass

- Owner earnings / net income, 5-yr: 1.29×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $2.7B

- Net income, five-year total: $2.1B

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, final three-year average: 25.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.85×

- FY2023: 2.42×

- FY2024: 1.39×

- FY2025: 1.08×

- FY2026: 1.07×

### management: pass

- $1 retained earnings test: 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- Ordinary dilution, 5-year annual growth: 2.8%

- Market cap gain: $16B

- Cumulative retained earnings: $2.1B

- Diluted shares, 5-year annual growth: 2.8%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.0%

- Per-share value change: $2.81

- Per-share value, starting three-year median: $3.39

- Per-share value, ending three-year median: $6.20

- Buybacks concentrated in cheaper years (correlation): 0.08

- Average buyback yield: 0.8%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $2.4B

- Cumulative net income, 10 years: $3.6B

- ROIC, last three-year median: 14.7%

### accounting: pass

- restructuring or one-time charges in at least three of five years

- Sloan accruals: -5.2%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 5

- Stock compensation / operating cash flow: 4.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.71×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.81×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -3.2%

- FY2019: -4.6%

- FY2020: -3.4%

- FY2021: -4.4%

- FY2022: -3.9%

- FY2023: -6.0%

- FY2024: -5.4%

- FY2025: -5.3%

- FY2026: -5.2%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 22% since Nov 2025 · "Fiscal 2026 EPS Outlook: $9.90 to $10.15, including $30 million of tariff costs." (finance.yahoo.com, May 2025) · sales +8.7%

Story as of 2026-10-03T17:10:00Z; price observation 2026-10-02.

Price needs cash profits to grow 15% a year for ten years

- 2025-08-07: STE Beats on Q1 Earnings and Revenues, Raises '26 Sales View ([finance.yahoo.com](https://finance.yahoo.com/news/ste-beats-q1-earnings-revenues-121800342.html))

- 2025-11-07: STERIS (STE) Is Up 10.1% After Strong Q2 Results and Reaffirmed Revenue Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/steris-ste-10-1-strong-161346250.html))

- 2026-08-06: STE Q1 Earnings Beat, Revenues Miss, Stock Dips in Aftermarket Trading ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ste-q1-earnings-beat-revenues-150300619.html))

### Sales · FY2025–2026

sales +8.7%; source https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm; observed 2026-05-29.

- FY2017: $2.6B 

- FY2018: $2.6B 

- FY2019: $2.8B 

- FY2020: $3.0B 

- FY2021: $3.1B 

- FY2022: $4.2B 

- FY2023: $4.5B 

- FY2024: $5.1B 

- FY2025: $5.5B 

- FY2026: $5.9B 

### Gross margin · FY2026

gross margin 44.2%; source https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm; observed 2026-05-29.

- FY2017: 39.3% 

- FY2018: 41.7% 

- FY2019: 42.2% 

- FY2020: 43.6% 

- FY2021: 43.2% 

- FY2022: 44.6% 

- FY2023: 43.7% 

- FY2024: 43.2% 

- FY2025: 44.0% 

- FY2026: 44.2% 

## Owner memo

Memo as of 2026-10-02T06:52:09.009Z.

### How it makes money

Annual sales are USD 5.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm (filed 2026-05-29); FY2026: revenue 5935900000; grossProfit 2626500000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); STE.US: STERIS plc provides infection prevention products and services in the United States, Ireland, and internationally. It operates through three segments: Healthcare, Applied Sterilization Technologies, and Life Sciences. The company offers cleaning chemistries and sterility assurance products, automated endoscope reprocessing system and tracking products, endoscopy accessories, instruments, washers, and sterilizers and other pieces of capital equipment, as well as equipment used directly in the procedure rooms, including surgical tables, lights, equipment management services, and connectivity solutions; and various preventive maintenance programs, repair services, custom process improvement consulting, and outsourced instrument sterile processing, as well as instrument, devices, and endoscope repair and maintenance services. It also provides process controls and monitoring systems, as well as integrated sterilization equipment, such as accelerators, product handling, and automation; and sterilization modalities, product development, materials testing, and process validation, as well as support services for sterilization equipment and control systems comprising installation, preventive maintenance, updates, repairs, and troubleshooting. In addition, the company offers pharmaceutical detergents, cleanroom disinfectants and sterilants, pharmaceutical grade and research sterilizers and washers, sterility assurance and maintenance products, vaporized hydrogen peroxide room decontamination systems and sterilizers, and high purity water and pure steam generators; and preventive maintenance programs and repair services to support the operation of capital equipment. It serves healthcare providers, medical device and pharmaceutical manufacturers, biopharmaceutical manufacturing facilities, and hospitals. The company was formerly known as New STERIS Limited and changed its name to STERIS plc in November 2015. STERIS plc was founded in 1985 and is headquartered in Mentor, Ohio.

### Why customers stay

Margins ranged from 43.2% to 44.2% during 2024–26; it earns 17% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2024: grossProfit / revenue = 43.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2025: grossProfit / revenue = 44%.

- Source: https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm (filed 2026-05-29); FY2026: grossProfit / revenue = 44.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); 10-year return on capital observations [[2018,0.16744427536105136],[2019,0.17865928353386784],[2020,0.2335754367263102],[2021,0.17252659659583838],[2023,0.12348798109325755],[2024,0.12172553668648901],[2025,0.14664951568313486],[2026,0.17814970677786834]]; median 0.16998543597844487. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 235.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2017: growth capex 0; upkeep 172901000; owner earnings 106412000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2018: growth capex 0; upkeep 165457000; owner earnings 281603000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2019: growth capex 0; upkeep 189715000; owner earnings 316292000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2020: growth capex 17281000; upkeep 197235000; owner earnings 383848000. Growth capex / owner earnings = 0.04502042475146412.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2021: growth capex 20025000; upkeep 219237000; owner earnings 371434000. Growth capex / owner earnings = 0.053912673584001466.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2022: growth capex 0; upkeep 287563000; owner earnings 451769000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2023: growth capex 0; upkeep 361969000; owner earnings 128640000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2024: growth capex 0; upkeep 360326000; owner earnings 526622000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); FY2025: growth capex 0; upkeep 370091000; owner earnings 663368000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm (filed 2026-05-29); FY2026: growth capex 0; upkeep 369000000; owner earnings 840900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); Dividend observations: [[2017,93193000],[2018,102929000],[2019,112503000],[2020,123034000],[2021,133837000],[2022,163169000],[2023,183498000],[2024,200570000],[2025,219875000],[2026,241800000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm (filed 2026-05-29); FY2026: cash repurchases 235500000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-02); STE.US SharesStats.PercentInsiders = 0.307 percentage points; cache date 2026-10-02.

### What could break it

"Our EO sterilization operations subject us to claims of liability and associated adverse effects" (SEC filing, May 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm (filed 2026-05-29); Our EO sterilization operations subject us to claims of liability and associated adverse effects

### What the price says

The price assumes cash profits grow 15.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-29); Ten-year compound average after fade. Initial solved rate 0.20520780167067632. Price 209.34; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-01.

## Monthly share-price history (USD per share)

- 2016-10: $66.82 per share

- 2016-11: $65.61 per share

- 2016-12: $67.39 per share

- 2017-01: $70.83 per share

- 2017-02: $70.13 per share

- 2017-03: $69.46 per share

- 2017-04: $73.80 per share

- 2017-05: $77.56 per share

- 2017-06: $81.50 per share

- 2017-07: $81.85 per share

- 2017-08: $87.16 per share

- 2017-09: $88.40 per share

- 2017-10: $93.33 per share

- 2017-11: $89.96 per share

- 2017-12: $87.47 per share

- 2018-01: $90.92 per share

- 2018-02: $91.30 per share

- 2018-03: $93.36 per share

- 2018-04: $94.52 per share

- 2018-05: $103.84 per share

- 2018-06: $105.01 per share

- 2018-07: $114.47 per share

- 2018-08: $114.42 per share

- 2018-09: $114.40 per share

- 2018-10: $109.31 per share

- 2018-11: $119.08 per share

- 2018-12: $106.85 per share

- 2019-01: $114.06 per share

- 2019-02: $120.96 per share

- 2019-03: $128.03 per share

- 2019-04: $130.98 per share

- 2019-05: $133.68 per share

- 2019-06: $148.88 per share

- 2019-07: $148.86 per share

- 2019-08: $154.40 per share

- 2019-09: $144.49 per share

- 2019-10: $141.57 per share

- 2019-11: $151.14 per share

- 2019-12: $152.42 per share

- 2020-01: $150.69 per share

- 2020-02: $158.62 per share

- 2020-03: $139.97 per share

- 2020-04: $142.50 per share

- 2020-05: $165.89 per share

- 2020-06: $153.44 per share

- 2020-07: $159.63 per share

- 2020-08: $159.64 per share

- 2020-09: $176.19 per share

- 2020-10: $177.19 per share

- 2020-11: $193.81 per share

- 2020-12: $189.54 per share

- 2021-01: $187.11 per share

- 2021-02: $174.80 per share

- 2021-03: $190.48 per share

- 2021-04: $211.02 per share

- 2021-05: $190.86 per share

- 2021-06: $206.30 per share

- 2021-07: $217.95 per share

- 2021-08: $215.01 per share

- 2021-09: $204.28 per share

- 2021-10: $233.74 per share

- 2021-11: $218.53 per share

- 2021-12: $243.41 per share

- 2022-01: $224.40 per share

- 2022-02: $240.00 per share

- 2022-03: $241.77 per share

- 2022-04: $224.05 per share

- 2022-05: $228.20 per share

- 2022-06: $206.15 per share

- 2022-07: $225.65 per share

- 2022-08: $201.38 per share

- 2022-09: $166.28 per share

- 2022-10: $172.58 per share

- 2022-11: $185.74 per share

- 2022-12: $184.69 per share

- 2023-01: $206.51 per share

- 2023-02: $188.03 per share

- 2023-03: $191.28 per share

- 2023-04: $188.55 per share

- 2023-05: $199.97 per share

- 2023-06: $224.98 per share

- 2023-07: $225.55 per share

- 2023-08: $229.59 per share

- 2023-09: $219.42 per share

- 2023-10: $209.98 per share

- 2023-11: $200.94 per share

- 2023-12: $219.85 per share

- 2024-01: $218.95 per share

- 2024-02: $232.91 per share

- 2024-03: $224.82 per share

- 2024-04: $204.56 per share

- 2024-05: $222.88 per share

- 2024-06: $219.54 per share

- 2024-07: $238.76 per share

- 2024-08: $241.10 per share

- 2024-09: $242.54 per share

- 2024-10: $221.85 per share

- 2024-11: $219.06 per share

- 2024-12: $205.56 per share

- 2025-01: $220.65 per share

- 2025-02: $219.26 per share

- 2025-03: $226.65 per share

- 2025-04: $224.74 per share

- 2025-05: $245.21 per share

- 2025-06: $240.22 per share

- 2025-07: $226.49 per share

- 2025-08: $245.06 per share

- 2025-09: $247.44 per share

- 2025-10: $235.70 per share

- 2025-11: $266.28 per share

- 2025-12: $253.52 per share

- 2026-01: $262.60 per share

- 2026-02: $252.35 per share

- 2026-03: $221.13 per share

- 2026-04: $216.88 per share

- 2026-05: $212.73 per share

- 2026-06: $210.57 per share

- 2026-07: $228.40 per share

- 2026-08: $232.64 per share

- 2026-09: $210.01 per share

## Annual estimated value (USD per share)

- FY2021: low $42.05 per share, central $47.59 per share, high $54.97 per share

- FY2023: low $29.41 per share, central $33.31 per share, high $38.49 per share

- FY2024: low $43.26 per share, central $49.08 per share, high $56.82 per share

- FY2025: low $50.46 per share, central $57.33 per share, high $66.47 per share

- FY2026: low $61.57 per share, central $69.61 per share, high $80.31 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1757898/000162828026039136/ste-20260331.htm); period 2026-03-31, filed 2026-05-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.