Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
STERIS Is Building a Backlog Boom As it Ends FY25—But Can It Turn Orders Into Real Growth?
STERIS exited FY25 with clear operational momentum, delivering 6% organic revenue growth and 12% EPS growth for the year, alongside record $787M in free cash flow and a de-risked 1.4x leverage profile. Q4 EBIT margin expanded +110bps Y/Y to 24.8%, driven by pricing, mix, and productivity gains. Healthcare led with 6% organic growth and 25% EBIT margin, supported by strong U.S. procedural volumes and enterprise wins, while AST posted 9% growth with services up 7%, positioning it as a structurally advantaged supply chain node. Life Sciences showed margin strength (+360bps), with improving capital order trends into FY26. Management’s FY26 guide (6–7% organic revenue growth, 7–10% EPS growth) embeds $30M tariff headwinds and assumes $20M in restructuring savings and a legal-related spend tailwind, signaling achievable margin progression. The company’s localized North American footprint (~85%) and proactive sourcing mitigate external risks, while renewed M&A readiness adds optional upside. With a building Healthcare and Life Sciences backlog and no capacity constraints flagged in AST, STERIS appears well positioned for sustained growth. Can STERIS effectively convert its record backlog into durable revenue acceleration and margin expansion through FY26—while navigating tariff impacts and ensuring consistent execution across its diversified growth engines?
