1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Narrow-moat Steris reported decent fiscal third-quarter results that met expectations. We had previously updated our model to account for the pending Cantel Medical acquisition, and we are leaving our $181 fair value estimate unchanged. Shares remain fairly valued following the decline in the stock price at market open, which we attribute to Steris’ announcement of CEO Walt Rosebrough’s retirement.
Steris is an Ireland-domiciled medical device company focused on sterilization services and infection prevention. The company is the global leader in contract sterilization services, ensuring the safe delivery of single-use and implantable medical equipment to hospitals around the world. Additionally, Steris sells sterilizers, washer-disinfectors, and other decontamination equipment and supplies for use by care provider facilities and in biopharma manufacturing sites. Domiciled in the United States before its 2015 inversion to Ireland, the firm continues to derive roughly 70% of revenue from its U.S. operations, 10% from the United Kingdom, and the remaining 20% from other international regions.
