STE · STERIS plc (Ireland)

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STERIS plc provides infection prevention products and services worldwide. It operates in three segments: Healthcare, Applied Sterilization Technologies (AST), and Life Sciences. The Healthcare segment offers cleaning chemistries and sterility assurance products; automated endoscope reprocessing system and tracking products; endoscopy accessories, washers, sterilizers, and other pieces of capital equipment for the operation of a sterile processing department; and equipment used directly in procedure rooms, including surgical tables, lights, and connectivity solutions, as well as equipment management services.

Close · 3M

+2.27%

Held by 1 AI ETF

PQNT0.290%

as of Sep 1

Signal performance

Each tracked ETF's moves on this stock, grouped by fund. Returns are measured from the signal date to the latest close — hypothetical, no commissions or slippage.

Buy signals3

Win rate100% (3/3)

Avg buy return+5.11%

PQNTnow 0.290% of fund1 signal

PQNT · Weight increase · 2d

weight 0.290% → 0.310% (+0.020 pp)·stock down 1.7% in the 30 days before

May 21·entry $219.67·now $226.83Drifting

+3.26%

since May 21

AIEQno longer held2 signals

AIEQ · Exit · 1d

weight 0.120% → 0 (exited)·stock up 0.6% in the 30 days before

Jul 1·entry $212.30·now $226.83

+6.84%

since Jul 1

AIEQ · New entry · 1d

weight 0 → 0.120% (new)·stock up 0.0% in the 30 days before

May 30·entry $211.07·now $226.83Drifting

+7.47%

since May 30

PQUSno longer held2 signals

PQUS · Exit · 1d

weight 0.040% → 0 (exited)·stock down 3.6% in the 30 days before

May 16·entry $212.87·now $226.83

+6.56%

since May 16

PQUS · New entry · 1d

weight 0 → 0.020% (new)·stock down 1.9% in the 30 days before

Apr 30·entry $216.88·now $226.83Drifting

+4.59%

since Apr 30

Sell signals show what the stock did after the AI exited. A negative number means the AI's exit was well-timed.

Buffett-style framework

Fails the frameworkas of May 18

While one AI ETF (PQNT) holds a small position in STERIS, another (PQUS) recently exited, indicating mixed sentiment. This contrasts with the framework's 'Fail' verdict, which is primarily driven by the lack of a sufficient margin of safety at the current price.

Circle of CompetenceThe medical devices sector, with its recurring revenue streams from consumables and services, generally allows for predictable unit economics over a ten-year horizon.
Economic MoatSTERIS likely benefits from strong switching costs for healthcare providers due to integrated systems and regulatory requirements, as well as significant brand reputation and regulatory hurdles for competitors.
ManagementManagement's candor, capital allocation discipline, and skin in the game cannot be assessed solely from the provided financial snapshot.
Financial HealthThe single provided ROE of 10.21% is at the threshold, but without a 10-year average, operating margins, or debt details, a comprehensive assessment of financial health and owner earnings is not possible.
Margin of SafetyThe company's high PER (29.39) and EV/EBITDA (24.29) multiples suggest a premium valuation, indicating an insufficient margin of safety for a conservative investment.

STERIS appears to operate within a predictable industry with a strong economic moat. However, the lack of comprehensive financial history and management insights, combined with an elevated valuation, leads to a 'Fail' verdict. The current price does not offer a margin of safety, making it unattractive despite its business quality.

Educational interpretation generated by AI applying frameworks Warren Buffett documented in his shareholder letters and other public writings. Not a statement by Mr. Buffett or Berkshire Hathaway, and not investment advice.