NYSE · Healthcare

STERIS plc

STE · Medical Devices

$202.61

▲ 3.21 (1.61%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

A⤢

Gross Profit Margin 43.9%

Operating Margin 19.9%

Net Income Margin 13.9%

Fin. Health

D⤢

Years to Pay Off Debt 9.5 yrs

Working Capital vs Long-Term Debt -$563M

Working Capital $1.2B

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.75x

Cash Flow

C⤢

Free Cash Flow $245M

CapEx % of Net Income 41.0%

Owner Earnings $434M

Profitability

Gross Profit Margin 43.9%

Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.

Operating Margin 19.9%

Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.

Net Income Margin 13.9%

Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.

Financial Health

Years to Pay Off Debt 9.5 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$563M

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $1.2B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

Cash Flow

Free Cash Flow $245M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 41.0%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $434M

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About STERIS plc

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

Market Data

Market Cap $19.7B

Enterprise Value $21.8B

P/E (TTM) 25.55

Dividend Yield 1.23%

Exchange NYSE

Key Margins

Gross Profit 43.9%

Operating Margin 19.9%

Net Margin 13.9%

Company Info

Sector Healthcare

Industry Medical Devices

Employees 17937

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering STERIS plc at $202.61.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $202.61, the stock trades at a 232% premium to its Graham Number of $60.95. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	43.9%▲	43.8%•	N/A
Operating Margin %	19.9%▲	18.3%•	N/A
Net Income %	13.9%▲	12.9%•	N/A
Diluted EPS	2.24▲	1.96•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$10.7B	$10.6B	N/A
Total Debt	$2.1B▲	$2.1B•	N/A
Working Capital	$1.2B▼	$1.4B•	N/A
Years to Pay Debt	9.48	10.65	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$245M▲	$200M•	N/A
Owner Earnings	$434M	$414M	N/A
CapEx % of Net Income	41.0%	51.2%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	83	-99
Tax Rate For Calcs	0	0
Normalized EBITDA	442,700	395,100
Total Unusual Items	300	-400
Total Unusual Items Excluding Goodwill	300	-400
Net Income From Continuing Operation Net Minority Interest	220,200	192,800
Reconciled Depreciation	123,400	122,000
Reconciled Cost Of Revenue	891,200	840,700
EBITDA	443,000	394,700
EBIT	319,600	272,700
Net Interest Income	-12,300	-12,000
Interest Expense	15,100	14,900
Interest Income	2,800	2,900
Normalized Income	219,983	193,101
Net Income From Continuing And Discontinued Operation	220,200	192,800
Total Expenses	1,271,800	1,222,500
Total Operating Income As Reported	316,800	273,200
Diluted Average Shares	98,400	98,600
Basic Average Shares	98,000	98,200
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	220,200	192,900
Net Income Common Stockholders	220,200	192,900
Net Income	220,200	192,800
Minority Interests	-100	-1,500
Net Income Including Noncontrolling Interests	220,300	194,300
Net Income Discontinuous Operations	0	0
Net Income Continuous Operations	220,300	194,300
Tax Provision	84,200	63,500
Pretax Income	304,500	257,800
Other Income Expense	300	-3,700
Other Non Operating Income Expenses	0	-3,300	100
Special Income Charges	300	-400
Gain On Sale Of Business			112
Restructuring And Mergern Acquisition	-300	400
Net Non Operating Interest Income Expense	-12,300	-12,000
Interest Expense Non Operating	15,100	14,900
Interest Income Non Operating	2,800	2,900
Operating Income	316,500	273,700
Operating Expense	380,600	381,800
Research And Development	28,800	29,500
Selling General And Administration	351,800	352,300
Gross Profit	697,100	655,500
Cost Of Revenue	891,200	840,700
Total Revenue	1,588,400	1,496,200
Operating Revenue	1,588,400	1,496,200

Balance Sheet

	2026	2025	2024
Ordinary Shares Number	97,800	98,147
Share Issued	97,800	98,147
Net Debt	1,492,200	1,474,700
Total Debt	2,087,200	2,053,700
Tangible Book Value	1,368,800	1,231,000
Invested Capital	9,115,400	9,052,900
Working Capital	1,249,600	1,363,900
Net Tangible Assets	1,368,800	1,231,000
Capital Lease Obligations	155,400	155,300
Common Stock Equity	7,183,600	7,154,500
Total Capitalization	8,996,500	9,052,900
Total Equity Gross Minority Interest	7,197,200	7,167,900
Minority Interest	13,600	13,400
Stockholders Equity	7,183,600	7,154,500
Other Equity Interest	-100
Gains Losses Not Affecting Retained Earnings	-113,100	-42,700
Other Equity Adjustments	-113,100	-42,700
Retained Earnings	3,015,900	2,857,400
Capital Stock	4,280,900	4,339,800
Common Stock	4,280,900	4,339,800
Total Liabilities Net Minority Interest	3,540,000	3,423,500
Total Non Current Liabilities Net Minority Interest	2,395,000	2,501,200
Other Non Current Liabilities	22,000	16,400
Employee Benefits	10,000	10,300
Non Current Pension And Other Postretirement Benefit Plans	8,400	8,600
Tradeand Other Payables Non Current	300	1,900
Non Current Deferred Liabilities	390,700	414,500
Non Current Deferred Taxes Liabilities	390,700	414,500
Long Term Debt And Capital Lease Obligation	1,932,500	2,019,300
Long Term Capital Lease Obligation	119,600	120,900
Long Term Debt	1,812,900	1,898,400
Long Term Provisions	39,500	38,800
Current Liabilities	1,145,000	922,300
Other Current Liabilities	271,500	218,300
Current Deferred Liabilities	59,100	58,800
Current Deferred Revenue	59,100	58,800
Current Debt And Capital Lease Obligation	154,700	34,400
Current Capital Lease Obligation	35,800	34,400
Current Debt	118,900		125,000
Other Current Borrowings	118,900		125,000
Pensionand Other Post Retirement Benefit Plans Current	221,100	188,200
Current Provisions	15,000	16,500
Payables And Accrued Expenses	423,600	406,100
Current Accrued Expenses	56,200	111,100
Interest Payable	6,200	17,100
Payables	367,400	295,000
Total Tax Payable	28,600	9,900
Income Tax Payable	28,600	9,900
Accounts Payable	338,800	285,100
Total Assets	10,737,200	10,591,400
Total Non Current Assets	8,342,700	8,305,200
Other Non Current Assets	211,400	93,600
Goodwill And Other Intangible Assets	5,814,800	5,923,500
Other Intangible Assets	1,620,000	1,691,500
Goodwill	4,194,800	4,232,000
Net PPE	2,316,500	2,288,100
Accumulated Depreciation	-1,944,600	-1,917,500
Gross PPE	4,261,100	4,205,600
Construction In Progress	509,500	586,600
Other Properties	985,100	984,100
Machinery Furniture Equipment	1,750,600	1,625,000
Buildings And Improvements	903,600
Land And Improvements	112,300	112,200
Current Assets	2,394,600	2,286,200
Other Current Assets	230,400	198,400
Inventory	631,800	673,500
Inventories Adjustments Allowances	-39,400	-40,200
Other Inventories	-100
Finished Goods	355,200	384,000
Work In Process	90,700	92,900
Raw Materials	225,400	236,800
Receivables	1,092,800	990,600
Accounts Receivable	1,092,800	990,600
Allowance For Doubtful Accounts Receivable	-27,300	-29,100
Gross Accounts Receivable	1,120,100	1,019,700
Cash Cash Equivalents And Short Term Investments	439,600	423,700
Cash And Cash Equivalents	439,600	423,700

Cash Flow

	2026	2025	2024
Free Cash Flow	245,200	199,500
Repurchase Of Capital Stock	-74,300	-50,100
Repayment Of Debt	34,800	0
Capital Expenditure	-90,200	-98,700
End Cash Position	439,600	423,700
Beginning Cash Position	423,700	319,200
Effect Of Exchange Rate Changes	-4,400	2,900
Changes In Cash	20,300	101,600
Financing Cash Flow	-97,900	-98,000
Cash Flow From Continuing Financing Activities	-97,800	-98,100
Net Other Financing Charges	-200	-1,400
Proceeds From Stock Option Exercised	600	15,400
Cash Dividends Paid	-61,800	-61,900
Common Stock Dividend Paid	-61,800	-61,900
Net Common Stock Issuance	-74,300	-50,100
Common Stock Payments	-74,300	-50,100
Net Issuance Payments Of Debt	37,800	0
Net Long Term Debt Issuance	37,800	0
Long Term Debt Payments	34,800	0
Investing Cash Flow	-217,200	-98,500
Cash Flow From Continuing Investing Activities	-217,300	-98,400
Net Investment Purchase And Sale	-127,200	-5,000	0
Purchase Of Investment	-127,200	-5,000	0
Net Business Purchase And Sale	0	-5,100
Sale Of Business	0	0
Purchase Of Business	0	-5,100
Net PPE Purchase And Sale	-90,100	-88,300
Sale Of PPE	100		4
Purchase Of PPE	-90,200	-98,700
Operating Cash Flow	335,400	298,200
Cash Flow From Continuing Operating Activities	335,300	298,200
Change In Working Capital	13,500	-36,000
Change In Other Current Assets	-32,700	-15,500
Change In Payables And Accrued Expense	131,200	-3,200
Change In Accrued Expense	74,300	25,600
Change In Payable	56,900	-28,800
Change In Account Payable	56,900	-28,800
Change In Inventory	38,500	-1,800
Change In Receivables	-123,500	-15,500
Changes In Account Receivables	-123,500	-15,500
Other Non Cash Items	-17,700	-1,000
Stock Based Compensation	12,900	15,700
Deferred Tax	-16,700	-100
Deferred Income Tax	-16,700	-100
Depreciation Amortization Depletion	123,400	122,000
Operating Gains Losses	-300	3,200	300
Gain Loss On Sale Of PPE	300	3,200
Gain Loss On Sale Of Business	-600	0
Net Income From Continuing Operations	220,300	194,400

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.5B ▲ $1.6B +7.3%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Gross Margin

Prior year: 43.3% ▲ 43.9% +0.6pp

Buffett: consistent gross margin above 40% signals durable pricing power and competitive moat.

Operating Margin

Prior year: 21.4% ▲ 19.9% -1.5pp

Graham: operating margin reflects true business economics before financing. Trend matters as much as level.

Net Margin

Prior year: 9.8% ▲ 13.9% +4.0pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$1.6B/qtr (≈$6.4B ann.)

vs > $1.5B annualised revenue

✅ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

2.09x current ratio

vs ≥ 2.0x

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$245M

vs Positive

Operating Cash Flow

$335M

Latest quarter · Buffett's cash reality check

ROIC

2.6%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

2.7x

Net Assets: $7.2B

Peers & Industry Comparison

Medical Devices — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
STE	$202.61	$19.7B	25.55	43.9%	13.9%	$1.6B
MDT Medtronic plc.	$79.34	$101.9B	21.0	65.4%	13.2%	$36.4B
ABT Abbott Laboratories	$88.41	$154.0B	24.8	56.5%	13.9%	$45.1B
SYK Stryker Corporation	$307.80	$118.0B	35.7	64.7%	13.2%	$25.3B
BSX Boston Scientific Corporation	$45.29	$67.3B	18.9	68.9%	17.3%	$20.6B
EW Edwards Lifesciences Corporatio	$87.36	$50.3B	47.2	77.9%	17.4%	$6.3B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.30%

Low — management has little skin in the game

Return on Equity (ROE)

3.1%

Weak — poor returns on equity

Return on Assets (ROA)

2.1%

Fair — average asset utilization

Share Buybacks (Latest Year)

$236M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+1.6% YoY

Debt is roughly stable

Leadership Team

Daniel Carestio

President, CEO & Director

Age 52

Pay: $2,840,320

1.290% of net income

Julie Winter

Vice President of Investor Relations & Corporate Communications

Walter Rosebrough Jr.

CEO Emeritus & Senior Advisor

Age 71

Pay: $1,156,398

0.525% of net income

Top Institutional Holders

Institution	% Owned	Shares
Blackrock Inc.	9.26%	9,026,621
Vanguard Capital Management LLC	6.53%	6,366,378
State Street Corporation	5.12%	4,991,868
Vanguard Portfolio Management LLC	5.08%	4,950,040
Morgan Stanley	4.51%	4,394,263
Massachusetts Financial Services Co.	4.11%	4,010,349
Wellington Management Group, LLP	2.95%	2,873,365
Orbis Allan Gray Ltd	2.66%	2,592,912

Risk Analysis

Beta (Market Risk)

0.92

Low volatility — more stable than the market

Short Interest

2.1% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.29x

Conservative balance sheet — low financial risk

Current Ratio

2.09x

Strong liquidity — Graham approved

52-Week Price Range

Low: $195.14 Current: $202.61 High: $269.44

Currently at 10% of 52-week range

STERIS plc

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Quarter vs Same Quarter Last Year

Quarterly Health Checks

Operating Cash Flow

ROIC

Market Cap / Net Assets

Peers & Industry Comparison

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis