| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 39 | 28.1x | 17.3x | Bottom tier | |
Growth | 65 | 8.4% | 7.1% | Around median | |
Quality | 68 | 9.5% | 4.5% | Top tier | |
Safety | 84 | 1.0x | 2.6x | Top tier | |
Capital Return | 79 | 1.10% | 0.06% | Top tier | |
Momentum | 59 | -13.9% | -1.6% | Around median | |
Sentiment | 37 | 6 | 3 | Bottom tier |
The floor: what the company is worth if growth stopped today
65% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
STERIS plc, listed under the ticker STE on NYSE, operates in infection prevention and contamination control, generating revenue from equipment, consumables, chemicals, and services across Healthcare, AST, and Life Sciences. Its operations include automated endoscope reprocessing equipment, sterilization and cleaning chemicals, endoscope and instrument repair, and equipment for sterile pharmaceutical manufacturing environments. Equipment sales expand subsequent demand for chemicals, consumables, and services, a relationship management explained on the 2026-08-06 call when discussing how Healthcare benefited from prior equipment sales.
In quarter 1 of fiscal year 2027 (ending 2026-06), revenue reached $1.5 billion, with year-over-year growth of 7.3%, net income of $200.1 million, and diluted earnings per share of $2.05. Gross margin was 45.8% versus 45.1% in quarter 1 of fiscal year 2026 (ending 2025-06), and operating margin was 19.1% versus 17.7%. Net income increased from $177.4 million in the comparable period, while operating cash flow was $367.1 million versus $420.0 million, making the improvement in profitability stronger than the quarterly cash collection trend.
Business performance varied in quarter 1 of fiscal year 2027: Healthcare organic constant-currency revenue grew 6%, with services growing 10%, consumables 9%, and capital equipment 1%. AST organic constant-currency growth was 5%, with customers continuing to reduce inventories, while Life Sciences recorded growth of 8%, driven by equipment growth of 17% and consumables growth of 8%. Healthcare and Life Sciences chemicals stand out as a shared foundation for expansion, with revenue exceeding $700 million, which the company is targeting with a $600 million investment in the Formulated Chemistry Center of Excellence in North Carolina.
Q1 FY2027 (2026-06)
Last 12 months to 2026-06-30
When: 2026-11-04
Continued year-over-year revenue growth at the 7.3% threshold
Operating margin holding at the 19.1% threshold
The indicative value from the discounted cash flow model is $366, with a range of $289 to $487 and a discount rate of 9.4%; it measures the value of expected cash generation and follows analysts' earnings estimates, with low confidence. The indicative median analyst price target is $270, with a range of $269 to $275 from two analysts, versus a consensus average of $271.33 and a consensus buy recommendation; the targets reflect growth expectations, with low confidence. The industry-multiple value is $178, with a range of $125 to $218, valuing STERIS in line with its peers using a median sales multiple of 2.9 times for twenty companies, while the no-growth value is $78 and measures current after-tax operating profit remaining constant forever at a discount rate of 9.4%. The values associated with continued operations and growth agree in exceeding the no-growth value, but they differ clearly: the discounted cash flow model is higher than analyst targets, which are higher than the industry-multiple value, because each method prices a different component of expected cash, growth, and peer comparison. Analyst targets tend toward optimism and cash flow models toward conservatism across companies, but the ordering of STERIS values illustrates that this general tendency does not determine the outcome for every company.
Figures in the text are as of 2026-10-09; the live price is shown at the top of the page.
STERIS sells equipment and then supplies chemicals, consumables, and endoscope and instrument repair services associated with its use. In quarter 1 of fiscal year 2027 (ending 2026-06), Healthcare consumables grew 9% and services 10%, compared with equipment growth of 1%. Management explained on the 2026-08-06 call that automated endoscope reprocessing equipment supports demand for its dedicated chemicals, and that approximately one-third of Healthcare's business is related to endoscopy.
AST recorded organic constant-currency growth of 5% in quarter 1 of fiscal year 2027 (ending 2026-06), with services growth of 6% and weak service volumes due to continued customer inventory reductions. Management expects this dynamic to continue during quarter 2 of fiscal year 2027, followed by a clearer improvement in quarter 3 of fiscal year 2027. It maintained its forecast for segment growth of between 7% and 8% in fiscal year 2027, making the recovery in volumes the decisive factor in achieving that forecast.
Automated analysis for informational purposes only — not investment advice.
When: Fiscal year 2027
Achieving the minimum AST organic growth forecast of 7%
Achieving the free cash flow forecast of $800 million
On the 2026-08-06 call, the company announced a $600 million investment in the Formulated Chemistry Center of Excellence to expand the production and distribution of infection prevention and contamination control chemicals. The project adds $75 million to capital expenditure in fiscal year 2027, bringing total expected spending to approximately $450 million, with expected free cash flow of $800 million. Management expects the initial operating impact to be cost-neutral, followed by improved benefits from scale and automation, with a return on invested capital exceeding 10% within three to five years of the center's opening.
Net income was $200.1 million in quarter 1 of fiscal year 2027 (ending 2026-06), versus $177.4 million in quarter 1 of fiscal year 2026 (ending 2025-06). However, quarterly operating cash flow was $367.1 million versus $420.0 million, so the increase in profit was not accompanied by a similar quarterly cash improvement. Over the last 12 months through 2026-06-30, operating cash flow was $1.3 billion, equivalent to 160% of net income of $805.1 million, and free cash flow was $925.6 million.
The indicative discounted cash flow model value is $366, compared with an indicative median analyst price target of $270, both with low confidence. The industry-multiple value is $178 using a median sales multiple of 2.9 times for twenty companies, while the no-growth value is $78. The divergence reflects differences between assumptions of continued growth and future cash, peer comparisons, and holding after-tax operating profit constant forever; the two cash-based models use a discount rate of 9.4%, with a ten-year Treasury yield of 5.27% as of 2026-10-06.