STERIS plc (STE) stock analysis
STERIS plc (STE) clears 4 of this site's 8 mechanical value filters, 6 of 8 Buffett-style checks and 4 of 5 Lynch-style checks. At $232.22 it trades 41.9% above this site's neutral DCF value (a margin of safety of -41.9%). Its earnings quality rates Strong and it returns +1.9% to shareholders net of dilution. Figures are as of October 23, 2026, from SEC filings and market data refreshed weekly; this is educational analysis, not investment advice.
Data as of October 23, 2026. Refreshed weekly from SEC filings and market data.
What does STERIS do?
Steris makes sterilization equipment, supplies and services used by hospitals, surgery centers and drug makers.
What stands out about STERIS?
- The share price implies 16.9% yearly growth. At $232.22, STE's free cash flow of $9.58 per share would have to grow 16.9% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
- Misses 2 of the 8 value filters. It fails Market Cap > $25B ($22.4B) and Trailing P/E < 25 (27.86); the other 4 pass and 2 were not evaluated. See every filter.
- Strongest against peers: debt / equity. At 0.26 (peer median 0.69) it ranks 6th of 34 among health care stocks this site tracks. See the ranking.
- Weakest against peers: free-cash-flow yield. At 4.1% (peer median 5.5%) it ranks 27th of 34 among health care stocks this site tracks. See the ranking.
- P/E at the bottom of its own range. STE trades at 27.9× trailing earnings; at the end of each of its last 5 fiscal years the multiple was between 27.9× and 179.1×.
How has STERIS' share price moved?
The interactive price chart needs JavaScript.
Is STERIS undervalued? The value diligence check
Every value-investing signal this site computes for this stock, gathered in one place: the same real numbers from the tools below, not a new score.
- Margin of safety (DCF) -41.9%
- P/E vs. its own history 27.9x · at/below its cheapest point Real range: 27.9x–179.1x over 5 years (net income per diluted share from each fiscal year's 10-K, paired with the real closing price at that fiscal year-end).
- Wall St. analyst rating Buy · 3.93/5 14 analysts this month: 3 strong buy, 7 buy, 4 hold, 0 sell, 0 strong sell (Finnhub). Up from 3.88 last month.
- Earnings quality (is the profit real?) Strong · all 5 checks clean Beneish M-score −2.68 · accruals −5.4% of assets · 195% of profit arrived as cash · stock comp 1.0% of revenue · share count −0.4% a year. From the latest 10-K (year to Mar 2026) - see the Earnings Quality Screener for how each check is scored.
- Shareholder yield (cash back to owners) +1.9% net Latest fiscal year (2026): dividends 1.1% + buybacks 1.1% − stock comp 0.3%, as a share of today's market cap. Over 9 years its split-adjusted share count rose 15%. See Shareholder Yield Leaders.
- Capital needed to grow (See's test) $8.54 per $1 of new profit · Capital-hungry · but only 10% return on capital Operating profit $346M → $935M, capital needed $4.4B → $9.5B, 2017–2026 (3-year averages); return on capital now 10% before tax. Buffett's See's Candies needed $0.42 per $1 of new profit, FlightSafety $3.20, a typical grower about $5. See Capital-Light Compounders.
- PEG (growth at a reasonable price) 1.13 · Above fair P/E 27.9× ÷ 24.7% a year of growth behind it. 112th lowest of 447 stocks with a usable PEG. Lynch's fair value is a PEG of 1; a very high PEG usually means almost no growth, a very low one a profit spike. See PEG Ratio Ranking.
- Compounder lenses (4) 3 of 4 · misses capital-light Capital-light growth: not cleared (only 10% return on capital); Profit is real: cleared; Cash to owners: cleared; Fair price (PEG): cleared. See Compounders at a Fair Price, which also lets you move the PEG bar.
- Value trap check Clear
- Munger's Inversion Check 0 flags
- Standing vs. sector peers 2 of 7 measures above the median Compared with the 33 other health care stocks this site tracks: 1 in the top third, 2 in the bottom third.
- Dividend payout sustainability 0/6 · clean
How does STERIS compare with its peers?
2 of 7 measures sit above the median of the 33 other health care stocks tracked here, 1 in the top third and 2 in the bottom third.
- P/E ratiolower is cheaper · peer median 24.6× 27.9× ✕22nd of 32
- Free-cash-flow yieldhigher is cheaper · peer median 5.5% 4.1% ✕27th of 34
- Return on equityhigher is better · peer median 15% 11% –22nd of 34
- Net marginhigher is better · peer median 9.3% 13.3% –12th of 34
- Revenue growthhigher is better, year on year · peer median 8.6% 8.4% –19th of 34
- Debt / equitylower is safer · peer median 0.69 0.26 ✓6th of 34
- Dividend yieldamong dividend payers · peer median 1.10% 1.10% –11th of 21
Peers are the stocks this site tracks in the same sector group, not every listed competitor. The bar runs from the weakest peer (left) to the strongest (right); the tick is the middle. Measures that don't apply to a sector (cash-flow yield for banks, debt for financials) are left out.
What would Buffett & Lynch say?
Buffett's checklist is built around durable, profitable businesses bought at sensible prices, and STE doesn't clear enough of it yet. In its favor: STE is currently earning a strong return on shareholders' equity, carries a conservative amount of debt relative to equity, converts sales into profit at healthy margins, has grown earnings per share at a solid clip over five years, earns many times its interest expense, so debt service isn't a worry, and trades at a reasonable multiple of owner earnings, his own term for the real cash a business could pay out. Where it comes up short: STE and its five-year average return on equity falls short too, so this isn't just a one-off dip, and is trading above what a conservative discounted-cash-flow estimate says it's worth right now.
- ROE (TTM) > 11% ✓
- ROE (5yr avg) > 11% ✕
- Debt/Equity < 0.5 ✓
- Pretax margin > 15% ✓
- EPS growth (5yr) > 7% ✓
- Interest coverage > 5x ✓
- Trading below intrinsic value (DCF) ✕
- Price vs. owner earnings < 25x ✓
- Bonus: returning capital via buybacks FY2026
Lynch looked for growth stories that weren't overpriced for that growth, and STE falls short of his bar. In its favor: STE is growing earnings 20-50% a year, his classic fast-grower zone, isn't leaning on debt to fund that growth, isn't asking too much even by a fast grower's usual richer multiple, and is generating real cash to back up a fast grower's higher price tag. Where it comes up short: STE doesn't clear the tighter PEG bar a fast grower needs to justify its pace.
- PEG < 1 (stricter for fast growers) ✕
- EPS growth 20%-50% ✓
- Debt/Equity < 0.5 ✓
- P/E < 40 ✓
- Price/FCF < 40 ✓
Quantitative approximations of each investor's documented approach, not endorsed by either investor or their estates - commentary, not this site's actual ranking criteria. Buffett never published a numeric checklist: only 2 of his 8 checks here trace to his own documented concepts ("owner earnings," from his 1986 shareholder letter, and "price is what you pay, value is what you get," his case against fixed P/E/P/B ceilings) - the other 6 (ROE, debt, margins, growth, interest coverage) use commonly-cited thresholds that are not numbers he himself published. The 8 hard filters below (plus the Munger check and Graham margin of safety) are this site's real, mechanical screen and are computed completely independently of the checklists above.
Berkshire Hathaway's own filing
Which of the 8 value filters does STERIS pass?
- Market Cap > $25B $22.4B
- Trailing P/E < 25 27.86
- PEG Ratio < 1.5 1.13
- Price/Book < 8 3.11
- Price/Sales < 7 3.71
- EPS Growth YoY > -5% +13.8%
- vs 50-day MA (±12%) Not evaluated †
- vs 200-day MA (±12%) Not evaluated †
What is STERIS' margin of safety?
History tracking starts this week - check back in a future week to see how this has moved.
Where is STERIS in its 52-week range?
What is the short interest in STERIS?
2,857,327 shares short as of 2026-09-30 (FINRA settlement date). Reported twice a month, so this only changes roughly every two weeks, not daily.
What could go wrong with STERIS? Munger's inversion check
"Invert, always invert." Instead of reasons to buy, these are reasons to hesitate, not a verdict, and not everything worth knowing about a business.
- Margin of safety, even in the bull case +16%
- Short interest under 5% of float 2.9%
- Passes most of the 6 fundamental filters 4/6 passed
- Price run-up backed by value, not just momentum +16% off 52wk low
- Debt/equity stable since 2018 0.41 → 0.25
Doesn't cover circle of competence, management quality, or accounting concerns: those need judgment, not data.
How much have STERIS shareholders gained per year?
Earnings growth per share plus dividend.
An earnings-based proxy, not a stock-price total return - it doesn't capture multiple expansion/contraction or reinvested dividends. EPS from STE's own 10-K filings; dividend yield is the current trailing yield on today's price, from the same weekly fetch as the rest of this site.
What do STERIS' 10-year financials show?
From STE's own 10-K filings (SEC EDGAR): up to the last 10 fiscal years. Press any year's bars for the exact figures.
Frequently asked questions about STERIS
What kind of company is STERIS?
Steris makes sterilization equipment, supplies and services used by hospitals, surgery centers and drug makers. This site groups it with Health Care stocks.
Is STERIS trading above or below its DCF value?
At $232.22, STE trades 41.9% above this site's neutral DCF value of $163.65 per share, a margin of safety of −41.9%. That DCF projects free cash flow for 10 years, with growth starting at 8% and fading to 2.5%, discounted at 10%; it is one set of assumptions, not a forecast. Test your own in the Intrinsic Value Calculator.
How many of this site's 8 value filters does STERIS pass?
STE passes 4 of 8. It passes PEG Ratio < 1.5 (1.13), Price/Book < 8 (3.11), Price/Sales < 7 (3.71) and EPS Growth YoY > -5% (+13.8%). It misses Market Cap > $25B ($22.4B) and Trailing P/E < 25 (27.86). vs 50-day MA (±12%) and vs 200-day MA (±12%) were not evaluated, because the moving-average checks only run on stocks that clear the fundamentals first. The 8-filter list shows every stock that passes all of them.
What growth is STERIS' share price pricing in?
At $232.22, STE's free cash flow of $9.58 per share would have to grow 16.9% a year, fading to 2.5% by year 10, for this site's DCF (10% discount rate) to match the price. This site's baseline starts at 8%, so the price asks for more growth than the baseline. Change the assumptions.
Is STERIS's P/E ratio high or low compared with its own history?
STE trades at 27.9× trailing earnings. At the end of each of its last 5 fiscal years its P/E was between 27.9× and 179.1× (average 80.0×), so today's multiple is at or below the lowest of those years. Each year's P/E pairs net income per diluted share from the 10-K with the closing price at that fiscal year-end.
When does STERIS report earnings next?
STERIS's next earnings report is expected on November 5, 2026, with analysts expecting earnings of $2.70 per share. Dates come from the Finnhub earnings calendar and can move. In its last 4 quarters it beat the estimate 2 times, by an average of +1.0%.
Where do these numbers come from?
- Financial statements: STERIS's 10-K annual report for the year ended Mar 31, 2026, filed May 29, 2026 (filing index). Every earlier year in the 10-year financials comes from the company's older 10-K filings, all listed on SEC EDGAR.
- Prices and market data: quotes, P/E and analyst ratings from Finnhub; daily price history and the 52-week range from Twelve Data, both refreshed weekly. Short interest comes from FINRA, reported twice a month.
- How to check a figure: click any number in the card above to see its exact source, and read the Editorial Standards for every rule behind the checks.
About this STERIS plc analysis
This page shows every value-investing check the site runs on STERIS plc (STE) in one place: the 8 mechanical filters, the Buffett and Lynch checklists, a margin of safety from a disclosed DCF, earnings quality, shareholder yield and how it ranks against its sector peers. The numbers come from SEC filings and public market data, refreshed weekly, and the same rules apply to every stock on the stock list. See Editorial Standards for the sources and the rules, or run your own filters in the stock screener.