STERIS plc (STE)

FairStock Score: 55/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach STERIS as a steady healthcare supplier, not a bargain-counter stock. It sells infection-prevention and sterilization products and services to healthcare and life-science customers, and that work is tied to necessary sterile processing rather than pure discretionary spending. The filed record is respectable: revenue was $5.1B in FY2024 (period ended 2024-03-31), $5.5B in FY2025 (period ended 2025-03-31), and $5.9B in FY2026 (period ended 2026-03-31); net income rose from $378.2M to $614.6M to $782.3M, and diluted EPS from $3.81 to $6.20 to $7.93. In fiscal Q1 2027 (quarter ended 2026-06-30), revenue was $1.5B and net income $200.1M. The balance sheet looks sound, with FairStock's debt-to-equity at 0.28 and Altman Z-Score 4.63, and trailing free cash flow of $925.6M gives a 4.1% FCF yield. But quality has limits: FairStock's ROCE is 6.80% and ROE 11.39%, not the high-return economics of a wide-moat compounder. At the 2026-10-26 close of $230.12, FairStock's P/E is 28.13, P/B 3.11, PEG 2.55, EV/EBITDA 14.75, and the Graham Number is $116.66, implying a -99.00% margin of safety. FairStock Score is 55/100 and the computed Lynch category is STALWART, based on 14.5% profit and 13.8% revenue growth over five years. I respect the franchise, but the price already reflects much of the steadiness.

In plain English: STERIS makes cleaning, sterilization and infection-prevention products and services for hospitals, labs and manufacturers. The business is profitable and growing, with steady cash generation and low debt, though the returns it earns on the capital it uses are only moderate. At the 2026-10-26 close of $230.12, the price looks full compared with its profits, accounting value and cash flow rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2027 10-Q (period ended 2026-06-30) · fiscal Q3 2026 10-Q (period ended 2025-12-31) · fiscal Q2 2026 10-Q (period ended 2025-09-30) · fiscal Q1 2026 10-Q (period ended 2025-06-30) · FY2026 10-K (period ended 2026-03-31) · FY2025 10-K (period ended 2025-03-31) · FY2024 10-K (period ended 2024-03-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer