olivLaw · US equity research
STERIS plc STE
Orthopedic, Prosthetic & Surgical Appliances & Supplies · SIC 3842 · Vertical: Orthopedic, Prosthetic & Surgical Appliances & Supplies (SIC 3842)
STERIS plc (STE) is a global provider of products and services for patient care with an emphasis on infection prevention. Revenues reached 5935.9 million USD in fiscal 2026, and first-quarter fiscal 2027 revenues were 1492.7 million USD, up 7.3%. The company reiterated its fiscal 2027 guidance.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, STERIS plc (STE) stock was 247.91 USD (+7.16% on the day), with market capitalisation 24.2 bn USD, P/E 31.3 on diluted EPS of 7.93 USD over the last 12 months, dividend yield 1.02%, beta 0.50, 52-week range 199.40–268.65 USD. Latest reported quarter (Q1 2027): revenue of 1.5 bn USD (+7.3% YoY), net income of 200.1 m USD (+12.8% YoY).
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 72.6
- overbought (≥ 70)
- Bollinger (20, 2)
- 209.67 – 242.17
- above the upper band · %B 1.18 · band width 14.4%
- SMA 50 / 200
- 219.84 / 224.31
- mixed trend
- MACD (12, 26, 9)
- 5.44 / 3.83
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +17.5% | −1.1% | +18.6 pp | — |
| 3 months | +6.5% | −0.5% | +7.0 pp | — |
| 6 months | +15.6% | +4.4% | +11.2 pp | — |
| Year to date | −2.2% | +12.3% | −14.5 pp | — |
| 1 year | +2.5% | +13.5% | −11.0 pp | +2.0% |
| 3 years | +14.1% | +76.4% | −62.3 pp | −4.2% |
| 5 years | +10.4% | +63.7% | −53.3 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.3 bn | 1.4 bn | 1.5 bn | 1.4 bn | 1.5 bn | 1.5 bn | 1.6 bn | 1.5 bn |
| Cost of revenue | 750.1 m | 760.2 m | 839.4 m | 763.1 m | 814.4 m | 840.7 m | 891.2 m | 808.6 m |
| Gross profit | 578.8 m | 610.3 m | 641.2 m | 628.0 m | 645.9 m | 655.5 m | 697.1 m | 684.2 m |
| Research & development | 27.0 m | 27.4 m | 27.6 m | 26.4 m | 28.2 m | 29.5 m | 28.8 m | 28.6 m |
| SG&A | 329.3 m | 335.5 m | 333.9 m | 353.8 m | 349.7 m | 352.3 m | 351.8 m | 369.7 m |
| Operating income | 219.7 m | 245.3 m | 216.1 m | 246.0 m | 265.8 m | 273.2 m | 316.8 m | 285.8 m |
| Depreciation & amortisation | 115.3 m ≈ | 125.9 m ≈ | 122.3 m | 119.4 m | 121.7 m ≈ | 122.0 m ≈ | 123.4 m | 123.8 m |
| Interest expense | 19.7 m | 19.1 m | 17.2 m | 15.9 m | 14.9 m | 14.9 m | 15.1 m | 15.8 m |
| Pre-tax income | 194.9 m | 228.7 m | 197.3 m | 231.9 m | 253.1 m | 257.8 m | 304.5 m | 273.5 m |
| Income tax | 43.5 m | 55.4 m | 50.5 m | 53.9 m | 60.6 m | 63.5 m | 84.2 m | 72.5 m |
| Net income | 150.0 m | 173.5 m | 145.6 m | 177.4 m | 191.9 m | 192.9 m | 220.2 m | 200.1 m |
| Diluted EPS | 1.51 | 1.75 | 1.47 ≈ | 1.79 | 1.94 | 1.96 | 2.24 ≈ | — |
| Operating cash flow | 250.8 m ≈ | 332.8 m ≈ | 260.8 m | 420.0 m | 287.8 m ≈ | 298.2 m ≈ | 335.4 m | 367.1 m |
| Capex | 101.9 m ≈ | 89.2 m ≈ | 70.9 m | 93.6 m | 86.5 m ≈ | 98.7 m ≈ | 90.2 m | 87.5 m |
| Dividends paid | 56.3 m ≈ | 56.2 m ≈ | 56.0 m | 56.2 m | 61.9 m ≈ | 61.9 m ≈ | 61.8 m | 61.4 m |
| Share repurchases | 46.4 m | 100.5 m ≈ | 200.0 k | 10.6 m | 100.5 m ≈ | 50.1 m ≈ | 74.3 m | 115.5 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 10 percentile of its own 29-quarter history (min 27.9, median 38.5, max 184.4; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | ⚠ 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 2.8 bn | 3.0 bn | 3.1 bn | 4.2 bn | 4.5 bn | 5.1 bn | 5.5 bn | 5.9 bn |
| Revenue YoY | +6.2% | +8.9% | +2.5% | — | +7.4% | +13.3% | +6.2% | +8.7% |
| Net income | 303.7 m | 407.7 m | 397.4 m | 243.9 m | 107.0 m | 378.2 m | 614.6 m | 782.3 m |
| Net income YoY | +4.4% | +34.2% | −2.5% | — | −56.1% | +253.4% | +62.5% | +27.3% |
| Diluted EPS | 3.55 | 4.76 | 4.63 | 2.48 | 1.07 | 3.81 | 6.20 | 7.93 |
| Diluted EPS YoY | +4.7% | +34.1% | −2.7% | — | −56.9% | +256.1% | +62.7% | +27.9% |
| net % | 10.9% | 13.5% | 12.8% | 5.8% | 2.4% | 7.4% | 11.3% | 13.2% |
| Free cash flow | 349.8 m | 376.0 m | 450.4 m | 397.2 m | 395.0 m | 613.0 m | 778.0 m | 972.4 m |
The series breaks before 2022: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 439.6 m USD
- Financial debt
- 1.9 bn USD
- Net debt
- 1.5 bn USD
- Equity
- 7.2 bn USD
- Total assets
- 10.7 bn USD
- Debt / equity
- 0.27x
- Current ratio
- 2.09x
- ROE
- 11.3%
- ROA
- 7.5%
- FCF margin
- 16.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 4.2 bn | 4.5 bn | 5.1 bn | 5.5 bn | 5.9 bn | SEC (XBRL)· 29 May 2026verified |
| Cost of revenue | 1.8 bn | 2.3 bn | 2.6 bn | 2.9 bn | 3.1 bn | 3.3 bn | SEC (XBRL)· 29 May 2026verified |
| Gross profit | 1.3 bn | 1.9 bn | 2.0 bn | 2.2 bn | 2.4 bn | 2.6 bn | SEC (XBRL)· 29 May 2026verified |
| Research & development | 66.3 m | 86.7 m | 98.5 m | 103.7 m | 107.6 m | 112.9 m | SEC (XBRL)· 29 May 2026verified |
| SG&A | 731.3 m | 1.3 bn | 1.1 bn | 1.3 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 29 May 2026verified |
| Operating income | 548.4 m | 477.8 m | 791.1 m | 836.1 m | 866.6 m | 1.1 bn | SEC (XBRL)· 29 May 2026verified |
| Depreciation & amortisation | 219.2 m | 553.1 m | 552.9 m | 565.2 m | 476.2 m | 486.5 m | SEC (XBRL)· 29 May 2026verified |
| EBITDA | 767.6 m ≈ | 1.0 bn ≈ | 1.3 bn ≈ | 1.4 bn ≈ | 1.3 bn ≈ | 1.6 bn ≈ | SEC (XBRL)· 29 May 2026derived |
| Interest expense | 37.2 m | 89.5 m | 108.0 m | 144.4 m | 86.3 m | 60.7 m | SEC (XBRL)· 29 May 2026verified |
| Pre-tax income | 517.5 m | 366.8 m | 680.3 m | 702.8 m | 796.2 m | 1.0 bn | SEC (XBRL)· 29 May 2026verified |
| Income tax | 120.7 m | 82.3 m | 124.1 m | 149.5 m | 184.7 m | 262.2 m | SEC (XBRL)· 29 May 2026verified |
| Net income | 397.4 m | 243.9 m | 107.0 m | 378.2 m | 614.6 m | 782.3 m | SEC (XBRL)· 29 May 2026verified |
| Diluted EPS | 4.63 | 2.48 | 1.07 | 3.81 | 6.20 | 7.93 | SEC (XBRL)· 29 May 2026verified |
| Weighted average diluted shares | 85.9 m | 98.3 m | 100.2 m | 99.4 m | 99.1 m | 98.7 m | SEC (XBRL)· 29 May 2026verified |
| Dividend per share | 1.57 | 1.69 | 1.84 | 2.03 | 2.23 | 2.46 | SEC (XBRL)· 29 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 220.5 m | 348.3 m | 208.4 m | 207.0 m | 171.7 m | 439.6 m | SEC (XBRL)· 07 Aug 2026verified |
| Receivables | 609.4 m | 799.0 m | 865.0 m | 1.0 bn | 1.0 bn | 1.1 bn | SEC (XBRL)· 29 May 2026verified |
| Inventories | 315.1 m | 575.0 m | 604.4 m | 674.5 m | 581.3 m | 631.8 m | SEC (XBRL)· 29 May 2026verified |
| Current assets | 1.2 bn | 1.9 bn | 2.0 bn | 2.9 bn | 2.0 bn | 2.4 bn | SEC (XBRL)· 29 May 2026verified |
| Property, plant & equipment, net | 1.2 bn | 1.6 bn | 1.6 bn | 1.8 bn | 2.0 bn | 2.2 bn | SEC (XBRL)· 29 May 2026verified |
| Goodwill | 3.0 bn | 3.9 bn | 3.9 bn | 4.1 bn | 4.1 bn | 4.2 bn | SEC (XBRL)· 29 May 2026verified |
| Intangibles (excl. goodwill) | 898.4 m | 3.3 bn | 2.1 bn | 2.1 bn | 1.9 bn | 1.6 bn | SEC (XBRL)· 29 May 2026verified |
| Total assets | 6.6 bn | 11.4 bn | 10.8 bn | 11.1 bn | 10.1 bn | 10.7 bn | SEC (XBRL)· 29 May 2026verified |
| Accounts payable | 157.0 m | 225.7 m | 264.2 m | 251.7 m | 280.8 m | 338.8 m | SEC (XBRL)· 29 May 2026verified |
| Short-term debt | 0 | 142.9 m | 60.0 m | 85.9 m | 125.0 m | 118.9 m | SEC (XBRL)· 29 May 2026verified |
| Long-term debt | 1.7 bn | 2.9 bn | 3.0 bn | 3.1 bn | 1.9 bn | 1.8 bn | SEC (XBRL)· 29 May 2026verified |
| Current liabilities | 577.9 m | 922.2 m | 861.8 m | 931.1 m | 1.0 bn | 1.1 bn | SEC (XBRL)· 29 May 2026verified |
| Total liabilities | 2.7 bn | 4.9 bn | 4.7 bn | 4.7 bn | 3.5 bn | 3.5 bn | SEC (XBRL)· 29 May 2026verified |
| Equity | 3.9 bn | 6.5 bn | 6.1 bn | 6.3 bn | 6.6 bn | 7.2 bn | SEC (XBRL)· 29 May 2026verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 689.6 m | 684.8 m | 756.9 m | 973.3 m | 1.1 bn | 1.3 bn | SEC (XBRL)· 29 May 2026verified |
| Capex | 239.3 m | 287.6 m | 362.0 m | 360.3 m | 370.1 m | 369.0 m | SEC (XBRL)· 29 May 2026verified |
| Free cash flow | 450.4 m ≈ | 397.2 m ≈ | 395.0 m ≈ | 613.0 m ≈ | 778.0 m ≈ | 972.4 m ≈ | SEC (XBRL)· 29 May 2026derived |
| Investing cash flow | -1.2 bn | -666.6 m | -383.3 m | -887.4 m | 388.8 m | -512.5 m | SEC (XBRL)· 29 May 2026verified |
| Financing cash flow | 345.6 m | 115.8 m | -498.7 m | -85.2 m | -1.6 bn | -568.2 m | SEC (XBRL)· 29 May 2026verified |
| Dividends paid | 133.8 m | 163.2 m | 183.5 m | 200.6 m | 219.9 m | 241.8 m | SEC (XBRL)· 29 May 2026verified |
| Share repurchases | 14.6 m | 55.8 m | 308.6 m | 11.8 m | 211.3 m | 235.5 m | SEC (XBRL)· 29 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 76 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 24.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet91
- Valuation59
- Quality80
- Growth89
- Returns61
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 32.33 – 430.37 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)137.55 – 222.54 (Mid 170.23)WACC 8.9% · starting FCFF 970.6 m USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 26.2%
- Peers: EV/EBITDA207.18 – 430.37 (Mid 253.32)6 companies used · median multiple 16.0x · quartiles 13.2x – 26.6xCDRE, ENOV, EW, MSA, SMTI, ZBH
- Peers: P/E195.71 – 396.87 (Mid 254.74)8 companies used · median multiple 30.8x · quartiles 23.7x – 48.1xALGN, APT, CDRE, EW, ISRG, MSA, SNN, ZBH
- Dividend discount (DDM)32.33 – 43.47 (Mid 37.08)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 76/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 9.8% | 64 (vs peers) | 10% |
| Net margin · Quality | 13.3% | 86 (vs peers) | 6% |
| FCF conversion · Quality | 115.0% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 9.4% | 78 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | 95.0% | 100 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 0.9x | 86 (vs peers) | 10% |
| Interest coverage · Balance sheet | 18.8x | 100 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.9x | 92 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 30.0x | 56 (vs peers) | 10% |
| EV/EBITDA · Valuation | 15.7x | 71 (vs peers) | 10% |
| FCF yield · Valuation | 3.8% | 48 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 2.4% | 35 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 26.7% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet91/100 · 3/3 factors with a value
- Growth89/100 · 2/2 factors with a value
- Quality80/100 · 3/3 factors with a value
- Returns61/100 · 2/2 factors with a value
- Valuation59/100 · 3/3 factors with a value
Memo
STERIS plc (STE). Latest full fiscal year: 2026; data up to 2026-06-30.
Figures computed from the financial statements: revenue 5.9 bn USD in 2026; YoY growth 8.7%; net margin 13.3%; ROE 11.4%; net debt/EBITDA 0.9x.
The estimated value range is 166.63–309.71 USD per share (median of 4 methods, agreement: high); assumptions are illustrative. Against the central value of 211.78 USD, the price of 247.91 USD leaves a potential of -14.6% (value / price − 1) and a margin of safety of -17.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 76/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 13.3%
- FCF conversion: 115.0%
- Revenue CAGR 3Y: 9.4%
- EPS CAGR 3Y: 95.0%
- Net debt / EBITDA: 0.9x
- Interest coverage: 18.8x
- Current ratio: 1.9x
- EV/EBITDA: 15.7x
- Payout ratio (FCF): 26.7%
What contradicts it
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
Versus the vertical median
Orthopedic, Prosthetic & Surgical Appliances & Supplies (SIC 3842) · same industry (4-digit SIC) · compared with 23 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| ISRGIntuitive Surgical, Inc. | 167.1 bn | 58.3 | 18.0% | 25.5% | +20.5% | −16% / +55% |
| EWEdwards Lifesciences Corporation | 57.1 bn | 56.2 | 9.7% | 15.3% | +11.5% | +15% / +47% |
| SNNSmith & Nephew plc | 28.5 bn | 45.3 | 11.8% | 10.1% | +6.1% | −2% / +25% |
| STESTERIS plc | 24.2 bn | 30.0 | 11.4% | 13.3% | +8.7% | +3% / +14% |
| ZBHZimmer Biomet Holdings, Inc. | 20.8 bn | 27.9 | 6.0% | 9.0% | +7.2% | +13% / −5% |
| ALGNAlign Technology, Inc. | 11.6 bn | 24.0 | 11.9% | 11.8% | +0.9% | +12% / −23% |
| MSAMsa Safety Inc | 6.8 bn | 22.8 | 22.1% | 15.0% | +3.7% | +10% / +2% |
| ESTAEstablishment Labs Holdings Inc. | 2.0 bn | — | -175.3% | -15.8% | +27.1% | −3% / +161% |
| ENOVEnovis Corp | 1.4 bn | — | -54.3% | -48.0% | +6.7% | −19% / −51% |
| CDRECadre Holdings, Inc. | 1.3 bn | 33.8 | 11.6% | 5.6% | +7.5% | −28% / −4% |
| AVRAnteris Technologies Global Corp. | 596.4 m | — | -75.1% | -4,619.3% | −29.2% | +49% / unavailable |
| COCHEnvoy Medical, Inc. | 549.6 m | — | — | -11,304.8% | +7.1% | +749% / +216% |
| ZJYLJin Medical International Ltd. | 483.7 m | 309.0 | 4.1% | 5.8% | −12.0% | −39% / −87% |
| SMTISanara Medtech Inc. | 297.0 m | — | -147.7% | -29.2% | +19.0% | +55% / −0% |
| INGNInogen, Inc. | 191.6 m | — | -13.1% | -6.9% | +3.9% | +2% / +24% |
| LAKELakeland Industries, Inc. | 88.7 m | — | -19.6% | -14.0% | +15.2% | −41% / −39% |
| NTRBNutriband Inc. | 73.9 m | — | -100.7% | -430.4% | −4.8% | +23% / +140% |
| APTAlpha Pro Tech, Ltd. | 58.6 m | 14.1 | 6.6% | 6.8% | +2.3% | +25% / +17% |
| CLGNCollPlant Biotechnologies Ltd | 54.2 m | — | -117.6% | -484.6% | +360.4% | −81% / −92% |
| MYOMyomo, Inc. | 51.5 m | — | -123.8% | -33.5% | +25.7% | +46% / −58% |
| MLSSMilestone Scientific Inc. | 29.2 m | — | -121.7% | -44.0% | +4.0% | +6% / −61% |
| LFWDLifeward Ltd. | 17.2 m | — | -225.6% | -141.3% | −14.1% | −13% / −90% |
| CUPRCuprina Holdings (Cayman) Limited | 14.1 m | — | -1,115.0% | -9,366.7% | +9.2% | −64% / unavailable |
| BBLGBone Biologics Corporation | 1.2 m | — | -47.5% | — | 0.0% | −77% / −98% |
1- and 3-year price returns: for STE from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 153.72 Total return -37% · Per year -37% | 271.16 Total return 11% · Per year 11% | 407.61 Total return 66% · Per year 66% |
| 3 years | 164.17 Total return -31% · Per year -12% | 324.40 Total return 35% · Per year 10% | 533.25 Total return 120% · Per year 30% |
| 5 years | 175.34 Total return -25% · Per year -5% | 388.10 Total return 64% · Per year 10% | 697.61 Total return 191% · Per year 24% |
- Exit P/E± 81.10
- Net margin± 56.77
- Annual revenue growth± 44.52
- Annual dilution± 4.77
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 07 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
In brief
STERIS plc (STE) is a global provider of products and services for patient care with an emphasis on infection prevention. Revenues reached 5935.9 million USD in fiscal 2026 1, and first-quarter fiscal 2027 revenues were 1492.7 million USD, up 7.3% 2. The company reiterated its fiscal 2027 guidance 3.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Regulation and recallshigh
Products may be subject to recalls or restrictions even after clearance, which could affect reputation and revenues 1.
- Product liabilitymedium
Product-related lawsuits can generate significant costs and divert management attention 1.
- Tariffs and international tradehigh
Changes in trade policy could raise costs and reduce profitability 1.
- Reimbursement pressuremedium
Changes in reimbursement policy could limit customers' budgets and reduce demand for equipment 1.
Investment thesis
What would need to be true (bull case)
- Rising revenues and margins, combined with solid cash generation, give the company room for investment and dividends 13.
- Demand for recurring consumables and services held up in the first quarter of fiscal 2027 3.
- Fiscal 2027 guidance for revenue and earnings was reiterated, suggesting stability in planning 3.
What would break the thesis
- Free cash flow declined in the first quarter on a much smaller working capital contribution, and cash flow guidance was lowered 3.
- Restructuring of chemistries manufacturing and large capacity investments could delay financial benefits and add pressure on cash flow 3.
- Tariffs and uncertainty around the USMCA could weigh on margins if costs cannot be passed on fully to customers 1.
What to watch
- Gross margin trend versus inflation and tariff effects on pricingQ2 2027
- Timing and cost of the North Carolina chemistries restructuring2027
- Delivery of free cash flow and capital expenditure guidanceQ2 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 07 Aug 2026; since then the company filed 8-K (04 Nov 2026 · results).
The business
STERIS reports three segments: Healthcare, Applied Sterilization Technologies (AST) and Life Sciences. Healthcare sells consumables, capital equipment (sterilizers, surgical tables, automated endoscope reprocessors) and services for sterile processing departments and procedural centers 1. AST provides contract sterilization and testing for device and pharmaceutical makers, and Life Sciences supports aseptic biopharmaceutical manufacturing 1. The Dental segment divestiture, completed in fiscal 2025, is presented as discontinued operations 1.
In fiscal 2026 the gross profit percentage rose to 44.2% 1 and income from operations reached 1101.8 million USD 1. Free cash flow was 982.9 million USD 1, and the debt-to-total capital ratio was 21.3% at March 31, 2026 1. The company has paid quarterly dividends since 2005 and raised them each year, including to 0.63 USD per share in fiscal 2026 1.
The company holds a significant patent portfolio: at March 31, 2026 it had 606 United States patents and 2402 patents in other jurisdictions 1. Tuck-in acquisitions continue to expand the offering, mainly in Healthcare, and three such acquisitions were completed in the first quarter of fiscal 2027 2.
Market context
Demand in healthcare is supported by population aging, the growing number of preventive procedures such as endoscopies and colonoscopies, and customers' desire to operate more efficiently 1. The business operates in a highly regulated market where FDA and other clearances condition sales 1.
Competition is intense, with brand, quality, serviceability and price as key factors 1. Inflation and tariffs have weighed on costs, although pricing has partly offset this effect 12.
Trends
- Aging populationtailwind
An aging population increases demand for medical and sterilization services, which could support the company's recurring revenues 1.
- Tariffs and trade policyheadwind
Import tariffs and a renegotiated USMCA could raise production costs and affect plants in Canada and Mexico 1.
- Healthcare funding pressureheadwind
Budget constraints and reimbursement reforms could reduce hospitals' ability to buy equipment, particularly capital products 1.
- Preventive procedures and efficiencymixed
Growth in endoscopies and efficiency drives support demand for consumables and reprocessing, while equipment demand remains sensitive to economic cycles 1.
Competitive position
In Healthcare STERIS competes with large companies with broad portfolios, such as Getinge, Stryker and Olympus, as well as many smaller competitors with limited offerings 1. In AST it competes with Sterigenics and with manufacturers that sterilize products in-house 1.
In Life Sciences competition turns on innovation, performance and cost, with main rivals including Ecolab and Belimed 1. The company says innovation and research and development are central to its long-term competitive position 1.
- Getinge
Competitor in sterilization and operating room equipment, active in both Healthcare and Life Sciences 1.
- StrykerSYK
Competitor in operating room product categories within the Healthcare segment 1.
- EcolabECL
Competitor in cleaning and disinfection products across Healthcare and Life Sciences 1.
- Sterigenics
Main rival in contract sterilization within the AST segment 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report04 Nov 2026Material agreement · Termination of a material agreement · Creation of a direct financial obligation · Financial statements and exhibits
- Current report04 Nov 2026Results of operations · Exit or disposal costs · Financial statements and exhibits
- Current report13 Oct 2026Material agreement
- Quarterly report07 Aug 2026
- Current report06 Aug 2026Shareholder vote
- Current report (amendment)06 Aug 2026Departure or appointment of officers
- Current report05 Aug 2026Results of operations · Exit or disposal costs · Financial statements and exhibits
- Proxy statement11 Jun 2026
- Annual report29 May 2026
- Current report11 May 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-03-31 · SEC / STERIS plc · 29 May 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / STERIS plc · 07 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / STERIS plc · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.