SOTERA HEALTH CO (SHC) Stock Fundamental Analysis
NASDAQ:SHC - US83601L1026 - Common Stock
16.01 USD
+0.27 (+1.72%)
Taking everything into account, SHC scores 4 out of 10 in our fundamental rating. SHC was compared to 55 industry peers in the Life Sciences Tools & Services industry. SHC has an excellent profitability rating, but there are concerns on its financial health. SHC has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SHC was profitable.
In the past year SHC had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: SHC reported negative net income in multiple years.
Of the past 5 years SHC 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SHC (0.75%) is better than 63.64% of its industry peers.
Looking at the Return On Equity, with a value of 4.70%, SHC is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
SHC's Return On Invested Capital of 8.33% is amongst the best of the industry. SHC outperforms 81.82% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 15.96%.
The 3 year average ROIC (8.04%) for SHC is below the current ROIC(8.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 4.7% | ||
| ROIC | 8.33% |
ROA(3y)-1.47%
ROA(5y)-0.34%
ROE(3y)-14.75%
ROE(5y)-6.62%
ROIC(3y)8.04%
ROIC(5y)7.61%
1.3 Margins
SHC has a Profit Margin of 2.13%. This is in the better half of the industry: SHC outperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of SHC has declined.
Looking at the Operating Margin, with a value of 27.85%, SHC belongs to the top of the industry, outperforming 98.18% of the companies in the same industry.
SHC's Operating Margin has improved in the last couple of years.
SHC's Gross Margin of 55.53% is fine compared to the rest of the industry. SHC outperforms 67.27% of its industry peers.
SHC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.85% | ||
| PM (TTM) | 2.13% | ||
| GM | 55.53% |
OM growth 3Y-0.64%
OM growth 5Y2.13%
PM growth 3Y-31.23%
PM growth 5YN/A
GM growth 3Y-0.57%
GM growth 5Y1.5%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHC is destroying value.
SHC has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SHC has more shares outstanding
The debt/assets ratio for SHC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.53, we must say that SHC is in the distress zone and has some risk of bankruptcy.
SHC's Altman-Z score of 1.53 is in line compared to the rest of the industry. SHC outperforms 47.27% of its industry peers.
SHC has a debt to FCF ratio of 20.55. This is a negative value and a sign of low solvency as SHC would need 20.55 years to pay back of all of its debts.
SHC has a Debt to FCF ratio of 20.55. This is comparable to the rest of the industry: SHC outperforms 56.36% of its industry peers.
A Debt/Equity ratio of 4.49 is on the high side and indicates that SHC has dependencies on debt financing.
With a Debt to Equity ratio value of 4.49, SHC is not doing good in the industry: 92.73% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 20.55 | ||
| Altman-Z | 1.53 |
ROIC/WACC0.79
WACC10.57%
2.3 Liquidity
A Current Ratio of 2.47 indicates that SHC has no problem at all paying its short term obligations.
With a Current ratio value of 2.47, SHC perfoms like the industry average, outperforming 47.27% of the companies in the same industry.
SHC has a Quick Ratio of 2.23. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.23, SHC perfoms like the industry average, outperforming 50.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
The earnings per share for SHC have decreased by -8.86% in the last year.
SHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.34% yearly.
SHC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.48%.
The Revenue has been growing slightly by 7.17% on average over the past years.
EPS 1Y (TTM)-8.86%
EPS 3Y-7.34%
EPS 5YN/A
EPS Q2Q%5.26%
Revenue 1Y (TTM)-16.48%
Revenue growth 3Y5.71%
Revenue growth 5Y7.17%
Sales Q2Q%23.8%
3.2 Future
SHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.74% yearly.
SHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.85% yearly.
EPS Next Y13.43%
EPS Next 2Y13.03%
EPS Next 3Y12.31%
EPS Next 5Y13.74%
Revenue Next Year5.13%
Revenue Next 2Y5.56%
Revenue Next 3Y5.75%
Revenue Next 5Y6.85%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.24 indicates a rather expensive valuation of SHC.
80.00% of the companies in the same industry are more expensive than SHC, based on the Price/Earnings ratio.
SHC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.03.
A Price/Forward Earnings ratio of 17.90 indicates a rather expensive valuation of SHC.
SHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 85.45% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.54, SHC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 17.9 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaply inside the industry as 85.45% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, SHC is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.35 | ||
| EV/EBITDA | 13.67 |
4.3 Compensation for Growth
SHC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHC has a very decent profitability rating, which may justify a higher PE ratio.
SHC's earnings are expected to grow with 12.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.66
PEG (5Y)N/A
EPS Next 2Y13.03%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
SHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SHC (9/11/2025, 12:37:02 PM)
16.01
+0.27 (+1.72%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners49.93%
Inst Owner Change0.5%
Ins Owners2.51%
Ins Owner Change1.87%
Market Cap4.55B
Analysts80
Price Target16.73 (4.5%)
Short Float %8.93%
Short Ratio10.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.14%
Min EPS beat(2)13.73%
Max EPS beat(2)14.56%
EPS beat(4)3
Avg EPS beat(4)5.82%
Min EPS beat(4)-8.09%
Max EPS beat(4)14.56%
EPS beat(8)6
Avg EPS beat(8)5.7%
EPS beat(12)9
Avg EPS beat(12)6.13%
EPS beat(16)13
Avg EPS beat(16)6.3%
Revenue beat(2)2
Avg Revenue beat(2)4.08%
Min Revenue beat(2)2.53%
Max Revenue beat(2)5.63%
Revenue beat(4)3
Avg Revenue beat(4)2.1%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)5.63%
Revenue beat(8)5
Avg Revenue beat(8)-0.32%
Revenue beat(12)6
Avg Revenue beat(12)-0.52%
Revenue beat(16)10
Avg Revenue beat(16)0.04%
PT rev (1m)10.5%
PT rev (3m)8.3%
EPS NQ rev (1m)7.12%
EPS NQ rev (3m)1.81%
EPS NY rev (1m)5.1%
EPS NY rev (3m)4.89%
Revenue NQ rev (1m)1.8%
Revenue NQ rev (3m)2.88%
Revenue NY rev (1m)1.3%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 17.9 | ||
| P/S | 4.04 | ||
| P/FCF | 40.35 | ||
| P/OCF | 17.09 | ||
| P/B | 8.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.67 |
EPS(TTM)0.72
EY4.5%
EPS(NY)0.89
Fwd EY5.59%
FCF(TTM)0.4
FCFY2.48%
OCF(TTM)0.94
OCFY5.85%
SpS3.96
BVpS1.8
TBVpS-3.12
PEG (NY)1.66
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.75% | ||
| ROE | 4.7% | ||
| ROCE | 10.54% | ||
| ROIC | 8.33% | ||
| ROICexc | 9.38% | ||
| ROICexgc | 19.95% | ||
| OM | 27.85% | ||
| PM (TTM) | 2.13% | ||
| GM | 55.53% | ||
| FCFM | 10.02% |
ROA(3y)-1.47%
ROA(5y)-0.34%
ROE(3y)-14.75%
ROE(5y)-6.62%
ROIC(3y)8.04%
ROIC(5y)7.61%
ROICexc(3y)9.2%
ROICexc(5y)8.42%
ROICexgc(3y)32.15%
ROICexgc(5y)28.54%
ROCE(3y)10.18%
ROCE(5y)9.64%
ROICexcg growth 3Y-8.13%
ROICexcg growth 5Y-2.77%
ROICexc growth 3Y3.93%
ROICexc growth 5Y7.64%
OM growth 3Y-0.64%
OM growth 5Y2.13%
PM growth 3Y-31.23%
PM growth 5YN/A
GM growth 3Y-0.57%
GM growth 5Y1.5%
F-Score5
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 20.55 | ||
| Debt/EBITDA | 4.87 | ||
| Cap/Depr | 96.36% | ||
| Cap/Sales | 13.64% | ||
| Interest Coverage | 1.83 | ||
| Cash Conversion | 56.34% | ||
| Profit Quality | 469.47% | ||
| Current Ratio | 2.47 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 1.53 |
F-Score5
WACC10.57%
ROIC/WACC0.79
Cap/Depr(3y)123.61%
Cap/Depr(5y)95.16%
Cap/Sales(3y)18.31%
Cap/Sales(5y)14.49%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.86%
EPS 3Y-7.34%
EPS 5YN/A
EPS Q2Q%5.26%
EPS Next Y13.43%
EPS Next 2Y13.03%
EPS Next 3Y12.31%
EPS Next 5Y13.74%
Revenue 1Y (TTM)-16.48%
Revenue growth 3Y5.71%
Revenue growth 5Y7.17%
Sales Q2Q%23.8%
Revenue Next Year5.13%
Revenue Next 2Y5.56%
Revenue Next 3Y5.75%
Revenue Next 5Y6.85%
EBIT growth 1Y-13.8%
EBIT growth 3Y5.04%
EBIT growth 5Y9.46%
EBIT Next Year25.74%
EBIT Next 3Y12.6%
EBIT Next 5Y12.14%
FCF growth 1Y132.96%
FCF growth 3Y-36.88%
FCF growth 5Y-13.23%
OCF growth 1Y300.08%
OCF growth 3Y-7.31%
OCF growth 5Y8.51%