Steris (STE)
Key Statistics
EV/EBIT = 29.9x
ROE = 9.46%
Debt/Equity = 33%
FCF Yield = 3%
Dividend Yield = .96%
Market Cap = $23.35 billion
The Company
STERIS plc (STE) is a global company (based in Ireland) that provides sterilization, infection prevention, and surgical products and services to the healthcare, pharmaceutical, and research industries.
Its main customers include hospitals, pharmaceutical companies, and medical device manufacturers. STERIS plays a crucial role in helping these organizations maintain safe, sterile environments for patients and workers alike.
The company’s products include medical equipment such as sterilizers and surgical tables, as well as consumable items like disinfectants, detergents, and other infection prevention supplies.
In addition to selling products, STERIS also offers outsourced services such as equipment maintenance and sterilization.
This mix of products and services allows STERIS to support nearly every stage of medical instrument use—from manufacturing and cleaning to storage and reuse.
STERIS was founded in 1985 in Mentor, Ohio, by microbiologist Dr. Raymond Kralovic. His goal was to find a better, safer way to sterilize delicate surgical instruments. At the time, traditional steam sterilizers worked well for many tools, but not for those made of heat-sensitive materials like fiber optics or plastic. These tools were becoming more common in minimally invasive surgeries, and they required a new solution.
Kralovic’s breakthrough invention was SYSTEM 1, a low-temperature liquid chemical sterilization system. Unlike steam sterilizers that use high heat, SYSTEM 1 used a special liquid chemical solution to kill bacteria, viruses, and other dangerous microbes. This allowed hospitals to safely clean and reuse fragile surgical instruments—like endoscopes and laparoscopic tools—without damaging them. SYSTEM 1 functioned much like a high-tech washing machine, but specifically for sensitive medical tools. It was a game-changer in surgical care, reducing equipment costs, increasing safety, and improving the overall efficiency of healthcare operations.
To turn his invention into a commercial success, Kralovic partnered with businessman Bill Sanford. Sanford became the company’s first CEO and provided the business strategy needed to scale the idea into a full-fledged company. In 1987, the business was officially renamed STERIS Corporation, and within a few years, it had become a recognized name in infection prevention and sterilization.
STERIS went public in 1992 on the NASDAQ stock exchange and later moved to the New York Stock Exchange in 1998 under the ticker symbol STE. Over the years, the company expanded its product line and global footprint, becoming known for key offerings like its V-PRO sterilizers, AMSCO surgical tables, and Clorox Healthcare cleaning products. One major turning point was the acquisition of AMSCO International in 1996, which significantly expanded STERIS’s reach and product capabilities.
In 2015, STERIS made a major move by acquiring Synergy Health, a UK-based sterilization and healthcare company, for $1.9 billion. This acquisition led to a corporate inversion, meaning STERIS changed its legal headquarters to the United Kingdom. In 2019, it moved again, this time to Ireland, for tax efficiency. These strategic decisions helped the company operate more globally while keeping costs competitive.
In recent years, STERIS has continued to grow through acquisitions. It bought Key Surgical in 2020 and Cantel Medical in 2021, both of which strengthened its offerings in infection prevention and endoscopy.
Today, the company operates through three main business segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences.
