Steris (STE)
NYSEHealth CareMedical - SpecialtiesSnapshot 2026-09-04
$224.59-0.99%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - SpecialtiesSnapshot 2026-09-04
Warn: Primary pillar under pressure — EPS of $11.1 to $11.3 in fiscal 2027: EPS $11.1-$11.3 vs $11.1-$11.3 target.
Steris aims to grow revenue by 7-8% in fiscal 2027. Free cash flow target is $850 million for 2027. The company has a moderate valuation with a PE of 21.17, cheaper than peers. Recent revenue growth from $1.39B to $1.59B in Q4 2026 shows positive momentum.
Steris missed Q4 earnings and cut guidance, raising concerns about sustaining revenue growth. EPS miss and guidance cut indicate possible margin pressure. CEO and CFO transitions may add uncertainty.
The price is about 5% above our fair value near $205, reflecting analyst expectations of about 8% revenue growth. Our view aligns with this but notes risks from recent earnings misses and guidance cuts.
Breaks if: EPS falls below $10.5 in FY27
Breaks if: Free cash flow falls below $800 million in FY27
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on consistent revenue growth. The current thesis state is intact, supported by strong recent financial performance and stable management.
The market appears to have a neutral valuation, with STE priced slightly cheap compared to its peers. There is a small expectations gap, indicating that the market does not fully anticipate significant changes in performance.
Fundamentals are likely to show continued revenue growth, with management targeting a 7-8% increase for fiscal 2027. However, there is mixed progress on free cash flow guidance, which was revised downward, posing a slight risk.
The long-term thesis hinges on management's ability to meet growth targets and external factors such as sector performance and economic conditions. Key triggers include guidance cuts or positive earnings from sector bellwethers.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improvement. There are no significant threats currently impacting the thesis.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management targets achieving $850 million in free cash flow for fiscal year 2027.
Breaks if: YoY revenue growth falls below 6% in FY27
Overall, STE's fundamentals remain strong, but external risks could impact its trajectory. Not investment advice.