top of page
Search

Steris (STE)

  • Writer: Abacus Research
    Abacus Research
  • Nov 26, 2019
  • 1 min read

Steris is a high quality sterilisation business, with ~6.5% sustainable organic growth due to pricing power and volume growth. Regarding business positioning, there is little not to like. 


We would argue that Steris has all the markings of compounder, and has got to the point where the balance sheet has delevered and synergies have run out, therefore a deal or share buy backs should be on the cards. 


Ethylene Oxide is causing a lot of concern, however we are unconcerned by the EPA's focus as we do not see Ethylene Oxide as a risk for Steris.  Unfortunately, as for many other defensives, we find the risk reward balanced. 


Potential Upside: $174(+16%)

Sensible Downside: $122(-20%)


 
 
 

Recent Posts

See All
Axon:

Axon is shifting from selling individual tools to providing an interconnected ecosystem. Hardware like TASERs and cameras now act as "data generators" that feed directly into high-margin software modu

 
 
 
C.H. Robinson

CHRW has been going through significant change, They are retaking market share. The new CEO has transformed the company by bringing in a lean / AI, that has helped CHRW to grow earnings despite strugg

 
 
 
Brookfield (BN):

We initially wrote up BN in Jan 2024, it has increased 70%, so why mention it again? Firstly, we think the fundamentals are as good now as they were 2 yrs ago, with a >15% IRR on offer. BN is not a we

 
 
 

Comments

bottom of page