NYSEHealth CareMedical - SpecialtiesSnapshot 2026-08-31
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Create your account →Warn: Primary pillar under pressure — EPS of $11.1 to $11.3 in fiscal 2027: EPS guidance $11.1-$11.3 vs target $11.1-$11.3.
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 steady revenue growth. The current thesis state is intact, supported by recent strong financial performance and management's commitment to growth targets.
The market appears to have priced in a neutral valuation compared to peers, with no significant expectations gap. The current valuation suggests that the stock is viewed as justified, reflecting its recent performance and growth outlook.
Fundamentals are likely to continue showing robust earnings quality, with management on track to meet revenue growth targets of 7-8% for fiscal 2027. However, there is a mixed outlook for free cash flow due to increased capital expenditures, which may impact overall performance.
The long-term thesis hinges on key factors such as the performance of sector bellwethers and the potential impact of economic conditions on job growth. Additionally, any changes in guidance from management could significantly affect investor sentiment.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats identified that could weaken the thesis.
as of 2026-08-31
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 is positioned well for the next few years, but it faces moderate risks that could influence its trajectory. Not investment advice.
