STE · STERIS plc (Ireland)

Back to holdings

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

-5.82%

Held by 1 AI ETF

PQNT0.290%

as of Jul 21

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 rate33% (1/3)

Avg buy return-0.62%

PQNTnow 0.290% of fund1 signal

PQNT · Weight increase · 2d

STERIS plc, with a PER of 30.33 and PBR of 3.37, alongside 7.96% revenue growth and 10.21% ROE, presents a fundamental profile that PQNT's AI-driven factor exposure strategy, combining valuation and growth metrics, finds suitable within its ex-US developed-market mandate. The consecutive weight increase, initiated by Pictet Asset Management's ETF on 2026-05-20, corresponds with STERIS trading at $215.97, which is approximately 80% of its 52-week high and following a -17.2% 90-day return. This specific timing suggests that PQNT's AI signals, integrating sentiment and momentum factors, interpreted the recent share price depreciation in this Health Care company as an opportune moment for allocation, indicating the underlying fundamentals remained appealing despite market pressure.

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

May 21·entry $219.67·now $214.47Fresh

-2.37%

since May 21

AIEQno longer held2 signals

AIEQ · Exit · 1d

Amplify ETFs' AIEQ, which uses IBM Watson NLP to process vast amounts of textual data for daily stock rankings, swiftly removed STERIS plc from its portfolio on 2026-07-01. The fund's daily rebalancing cadence and its focus on a relatively concentrated 140-180 US stocks mean it quickly drops holdings where sentiment or fundamentals decline. STERIS's -14.1% 90-day return likely signaled a sustained negative sentiment trend, causing its ranking to fall below the necessary threshold for inclusion. This specific algorithmic approach prioritized immediate portfolio optimization over continued exposure to a stock experiencing significant price erosion.

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

Jul 1·entry $212.30·now $214.47

+1.02%

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 $214.47Fresh

+1.61%

since May 30

PQUSno longer held2 signals

PQUS · Exit · 1d

STERIS plc, currently priced at $212.11, sits at 79% of its 52-week high, having registered a 90-day return of -18.2% and a one-year return of -4.5%. This persistent downward price trajectory likely triggered the AI ranking system employed by Pictet Asset Management’s PQUS fund, which focuses on US large-cap companies with measured turnover. The fund's AI methodology, integrating sector-balance and concentration rules, probably flagged STERIS’s declining price action as a negative signal during a periodic rebalance. Consequently, despite a 7.96% revenue growth and 10.21% return on equity, the stock’s valuation at a PER of 29.39 and PBR of 3.37, coupled with recent underperformance, led to its removal. The weight reduction from 0.0400% to 0.0000% on May 16, 2026, directly reflects the AI system's re-evaluation of STERIS within the ~165 US large-cap portfolio based on its established criteria.

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

May 16·entry $212.87·now $214.47

+0.75%

since May 16

PQUS · New entry · 1d

The AI ETF likely initiated a small position in STE due to its stable revenue growth (7.96%) and decent profitability (ROE 10.21%) within the defensive healthcare sector, signaling a focus on quality and consistent performance despite slightly elevated valuation multiples. For retail investors, this highlights the strategy of starting small with fundamentally sound companies in resilient sectors, prioritizing long-term stability and growth over immediate valuation concerns.

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

Apr 30·entry $216.88·now $214.47Fresh

-1.11%

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.