STE Value Scorecard - Steris

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

45/60

moderate value score

Earnings & returns

EPS Trend

5/5

Diluted EPS: $1.07 (2023), $3.81 (2024), $6.20 (2025), $7.93 (2026). It rose every year; the framework scores that as 5.

ROE Trend

2/5

ROE (net income / common equity): 1.8% (2023), 6.0% (2024), 9.3% (2025), 10.9% (2026). Median 7.7%, lowest 1.8%; the framework scores a median 5-10% as 2.

ROIC

3/5

ROIC of 11.5%: operating income of $1.10B divided by $9.59B of capital (total assets $10.74B minus current liabilities $1.15B), fiscal year to Mar 31, 2026, as filed in the 10-K (SEC EDGAR). The framework scores 10-15% as 3.

Profit Margins

4/5

Net margin of 13.3%; the framework scores 10-20% as 4; gross margin 44.4%, operating margin 19.2%.

Balance sheet & cash

Debt-to-Equity

5/5

Debt-to-equity of 0.28; the framework scores below 0.3 as 5 (total debt $2.04B, total cash $482.30M).

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $394.98M (2023), $613.00M (2024), $778.00M (2025), $972.40M (2026). It rose every year; the framework scores that as 5.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $1.91B (2023), $2.09B (2024), $2.48B (2025), $3.02B (2026). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

5/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $8.18 x (8.5 + 2 x 20.0) x (4.4 / 4.5) = $387.91 (EPS CAGR 44.3% capped at 20%). Current price $222.66; price is 42.6% below the model value.

DCF Value

1/5

FCF/share = $8.193, stage 1 growth = 7.5% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $38.26, PV of terminal value = $107.47, DCF value = $145.73. Current price $222.66; price is 52.8% above the model value.

Margin of Safety

3/5

Graham value $387.91 (price is 42.6% below the model value); DCF value $145.73 (price is 52.8% above the model value).

Price-to-Book

2/5

P/B of 3.01; the framework scores 3.0-5.0 as 2.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 0 of 9 years (2018-2026); lowest 4.6%, highest 11.5%.

Gross margin, each year

Between 39.3% and 44.6% over 10 years (a range of 5.3 points).

Competition, in the company’s own words · 10-K filed May 29, 2026

We compete with a number of large companies that have significant product portfolios and global reach, as well as a number of small companies with very limited product offerings and operations in one or a limited number of countries. On a product basis, competitors include 3M, Baxter, Boston Scientific, Belimed, Ecolab, Fortive, Getinge, Karl Storz, Olympus, Ruhof, SteelCo, Stryker, Skytron and Wassenburg. On a service line basis, competitors include BBraun, Crothall, Olympus and Pentax.

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2023-2026: dividends or buybacks paid in every year (pass); $1.61B paid out against $2.76B of free cash flow (pass); total debt $3.25B to $2.09B, down 35.7%, 1.3x EBITDA (pass: not up more than 10%); shares outstanding 0.10B to 0.10B, down 0.8% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $8.18, g = 20.0%, Y = 4.5
    g capped at 20.0% (3-year EPS CAGR was 44.3%)
    IV = $387.91
    Current price $222.66 vs Graham value $387.91 — price is 42.6% below the model value.

  DCF:
    FCF/share = $8.193
    Stage 1 growth = 7.5% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $8.808 → PV $8.007
      Y2: $9.469 → PV $7.825
      Y3: $10.179 → PV $7.647
      Y4: $10.942 → PV $7.474
      Y5: $11.763 → PV $7.304
    Stage 1 PV sum = $38.26
    Terminal value at end of Y5 = $173.08
    PV of terminal value = $107.47
    DCF value = $145.73
    Current price $222.66 vs DCF value $145.73 — price is 52.8% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $222.66. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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