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STE Steris

healthcare · 2026-10-02

N/A
too hard · 64
Owner-earnings value$200.30
Price$209.34
Margin of safety -4.3%

Quality gate · 64/100

Returns on capital 3.1/30
Consistency 20.3/22
Margins / pricing power 12.6/16
Balance sheet 12.7/16
Cash conversion 10/10
Capital allocation 4.8/6

⚠ sub-hurdle returns (median roic 7% < 9%)

Median ROIC7.2%
Gross margin44.4%
Net debt / EBITDA1.0x
FCF conversion147%
Share count / yr-0.3%
Profitable years4/4

Moat & management

Owner-earnings inputs

Owner earnings (TTM)925.60M
Owner-earnings yield4.5%
Free-cash-flow yield4.5%
Growth used (normalized)9.4%
Market-implied growth (reverse DCF)10.5%
Terminal growth3.0%
Discount rate (hurdle)9.3%

Projected owner earnings

YrOwner earningsGrowthPV
11.01B 9.4%925.84M
21.10B 8.7%920.07M
31.19B 8.0%908.38M
41.27B 7.3%890.95M
51.36B 6.5%868.08M
61.44B 5.8%840.18M
71.51B 5.1%807.72M
81.58B 4.4%771.28M
91.64B 3.7%731.49M
101.68B 3.0%689.02M

⚠ maintenance capex ≈ min(capex, D&A), capped at FCF · Price pays for ~10%/yr owner-earnings growth over 10y (reverse DCF); model credits 9%.

History

DateQualityPriceValueMoSRating
2026-10-02 64 $209.34 $200.30 -4.3% N/A
2026-08-13 64 $236.60 $212.39 -10.2% N/A
2026-07-02 63 $212.30 $206.56 -2.7% N/A
2026-06-25 63 $207.17 $206.56 -0.3% N/A
2026-06-23 63 $203.21 $206.56 +1.6% N/A