Quality Investor

STERIS plc

Rank #278Capital ReturnWatchlistCompare with other stocks

STE · NYSE · Healthcare

STERIS plc (STE) — Rank #278 by gross profitability (GP/assets 0.24) · ROE 10.9% · Piotroski F-Score 9 / 9.

As-of 2026-10-30 · CIK 0001757898 · all metrics point-in-time as of the filing date.

About

STERIS plc provides infection prevention products and services in the United States, Ireland, and internationally.

Show more

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.

Industry
Medical Devices
Sector
Healthcare
State
L2
Filer Category
Large accelerated filer
Fiscal Year End
March 31
Website
steris.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

17,937

Industry

Medical Devices

Exchange

NYSE

12/12

Flags passed

STE passes 12/12 quality flags

  • PASS
    Gross margin holding
  • PASS
    Dilution within 2%
  • PASS
    FCF not negative from investment
  • PASS
    Disclosure consistent
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    Balance sheet stable
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.24
Return on equity
10.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.49
Current ratio
1.91×
Net cash
-$1.41B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
1.0%

Growth

2/2 pass
Revenue growth
8.7%
Piotroski F-Score
9 / 9
Share dilution
-0.4%

FCF yield, shareholder yield, and buyback activity are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 20th percentile of 41 SIC 38 peers

Gross profitability (GP / assets)

0.24

Primary signal (Novy-Marx).

20th pctl of 41 SIC 38 peers

Return on equity

10.9%

Gross margin

44.2%

30th pctl of 41 SIC 38 peers

Revenue growth (YoY)

8.7%

RPO growth (YoY)

-17.6%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2023202420252026
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

9.4%

Revenue CAGR (5Y)

13.8%

Earnings CAGR (3Y)

94.1%

FCF CAGR (3Y)

35.0%

Cash Flow Health

Is the cash real?

No warning flags · FCF 24% above net income

Free cash flow

$972.40M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

24.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

1.0%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

No warning flags · net debt $1.41B, F-Score 9/9

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.49

64th pctl of 40 SIC 38 peers (best = lowest)

Current ratio

1.91×

18th pctl of 40 SIC 38 peers

Quick ratio

1.17×

Net cash

-$1.41B

Cash & equivalents minus total debt.

Piotroski F-Score

9 / 9

Fundamental-strength score (0-9).

Valuation

Is the price reasonable?

No warning flags

Dividend safety

Composite score

3.8 / 5

Good
Payout ratio
30.9%4/5 Strong
FCF coverage
4.02×5/5 Strong
Dividend growth streak
9 yr4/5 Strong
Balance-sheet health
D/E 0.49 · IC N/A2/5 Fair

Capital allocation quality

Composite score

3.7 / 5

Good
Share count trend(net buybacks)
-0.4%3/5 Good
Buyback timing
N/AN/A
Dividend growth consistency
9 yr4/5 Strong
Net debt trajectory(deleveraging)
3.5%4/5 Strong

Lifecycle Phase History

20212026
Value
Hypergrowth
Capital Return

Price History

STE+2.2% · +0.4% CAGRSPY+82.9% · +12.8% CAGR