SOTERA HEALTH CO (SHC) Fundamental Analysis & Valuation

NASDAQ:SHC • US83601L1026

Current stock price

13.5 USD
-0.06 (-0.44%)
At close:
13.5 USD
0 (0%)
After Hours:

This SHC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. SHC Profitability Analysis

1.1 Basic Checks

  • SHC had positive earnings in the past year.
  • In the past year SHC had a positive cash flow from operations.
  • SHC had positive earnings in 4 of the past 5 years.
  • Of the past 5 years SHC 4 years had a positive operating cash flow.
SHC Yearly Net Income VS EBIT VS OCF VS FCFSHC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 200M -200M

1.2 Ratios

  • SHC has a Return On Assets of 2.39%. This is in the better half of the industry: SHC outperforms 70.18% of its industry peers.
  • Looking at the Return On Equity, with a value of 12.86%, SHC belongs to the top of the industry, outperforming 85.96% of the companies in the same industry.
  • The Return On Invested Capital of SHC (9.49%) is better than 85.96% of its industry peers.
  • SHC had an Average Return On Invested Capital over the past 3 years of 8.40%. This is below the industry average of 11.85%.
  • The 3 year average ROIC (8.40%) for SHC is below the current ROIC(9.49%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 2.39%
ROE 12.86%
ROIC 9.49%
ROA(3y)1.82%
ROA(5y)0.42%
ROE(3y)11.78%
ROE(5y)-2.34%
ROIC(3y)8.4%
ROIC(5y)8.27%
SHC Yearly ROA, ROE, ROICSHC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 2023 2024 2025 0 -20 -40 -60

1.3 Margins

  • SHC has a Profit Margin of 6.70%. This is in the better half of the industry: SHC outperforms 71.93% of its industry peers.
  • SHC has a Operating Margin of 31.11%. This is amongst the best in the industry. SHC outperforms 100.00% of its industry peers.
  • In the last couple of years the Operating Margin of SHC has grown nicely.
  • The Gross Margin of SHC (55.48%) is better than 70.18% of its industry peers.
  • In the last couple of years the Gross Margin of SHC has remained more or less at the same level.
Industry RankSector Rank
OM 31.11%
PM (TTM) 6.7%
GM 55.48%
OM growth 3Y7.94%
OM growth 5Y4.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.01%
GM growth 5Y0.46%
SHC Yearly Profit, Operating, Gross MarginsSHC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40

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3

2. SHC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHC is destroying value.
  • The number of shares outstanding for SHC has been increased compared to 1 year ago.
  • SHC has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for SHC has been reduced compared to a year ago.
SHC Yearly Shares OutstandingSHC Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M 200M 250M
SHC Yearly Total Debt VS Total AssetsSHC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

2.2 Solvency

  • Based on the Altman-Z score of 1.50, we must say that SHC is in the distress zone and has some risk of bankruptcy.
  • SHC has a Altman-Z score (1.50) which is comparable to the rest of the industry.
  • SHC has a debt to FCF ratio of 15.00. This is a negative value and a sign of low solvency as SHC would need 15.00 years to pay back of all of its debts.
  • With a Debt to FCF ratio value of 15.00, SHC perfoms like the industry average, outperforming 57.89% of the companies in the same industry.
  • A Debt/Equity ratio of 3.66 is on the high side and indicates that SHC has dependencies on debt financing.
  • SHC's Debt to Equity ratio of 3.66 is on the low side compared to the rest of the industry. SHC is outperformed by 89.47% of its industry peers.
Industry RankSector Rank
Debt/Equity 3.66
Debt/FCF 15
Altman-Z 1.5
ROIC/WACC0.87
WACC10.87%
SHC Yearly LT Debt VS Equity VS FCFSHC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B

2.3 Liquidity

  • SHC has a Current Ratio of 2.46. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
  • SHC's Current ratio of 2.46 is in line compared to the rest of the industry. SHC outperforms 49.12% of its industry peers.
  • A Quick Ratio of 2.24 indicates that SHC has no problem at all paying its short term obligations.
  • The Quick ratio of SHC (2.24) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.46
Quick Ratio 2.24
SHC Yearly Current Assets VS Current LiabilitesSHC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M

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4

3. SHC Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 22.86% over the past year.
  • SHC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.93% yearly.
  • The Revenue for SHC has decreased by -13.72% in the past year. This is quite bad
  • Measured over the past years, SHC shows a small growth in Revenue. The Revenue has been growing by 7.30% on average per year.
EPS 1Y (TTM)22.86%
EPS 3Y-3.93%
EPS 5YN/A
EPS Q2Q%23.81%
Revenue 1Y (TTM)-13.72%
Revenue growth 3Y5.05%
Revenue growth 5Y7.3%
Sales Q2Q%4.56%

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 10.94% yearly.
  • SHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.10% yearly.
EPS Next Y13.17%
EPS Next 2Y10.88%
EPS Next 3Y10.78%
EPS Next 5Y10.94%
Revenue Next Year6.83%
Revenue Next 2Y6.41%
Revenue Next 3Y6.29%
Revenue Next 5Y7.1%

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.
SHC Yearly Revenue VS EstimatesSHC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B
SHC Yearly EPS VS EstimatesSHC Yearly EPS VS EstimatesYearly EPS VS Estimates 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 0.2 0.4 0.6 0.8 1

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6

4. SHC Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 15.70 indicates a correct valuation of SHC.
  • SHC's Price/Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 91.23% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.23. SHC is valued slightly cheaper when compared to this.
  • SHC is valuated correctly with a Price/Forward Earnings ratio of 13.87.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 89.47% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 23.28. SHC is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 15.7
Fwd PE 13.87
SHC Price Earnings VS Forward Price EarningsSHC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaply inside the industry as 92.98% of the companies are valued more expensively.
  • 73.68% of the companies in the same industry are more expensive than SHC, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 25.74
EV/EBITDA 11.53
SHC Per share dataSHC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4

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.
PEG (NY)1.19
PEG (5Y)N/A
EPS Next 2Y10.88%
EPS Next 3Y10.78%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SHC Dividend Analysis

5.1 Amount

  • SHC does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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SHC Fundamentals: All Metrics, Ratios and Statistics

SOTERA HEALTH CO

NASDAQ:SHC (3/20/2026, 8:22:36 PM)

After market: 13.5 0 (0%)

13.5

-0.06 (-0.44%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)02-24
Earnings (Next)04-29
Inst Owners74.33%
Inst Owner Change-2.97%
Ins Owners2.26%
Ins Owner Change-3.53%
Market Cap3.84B
Revenue(TTM)1.16B
Net Income(TTM)77.95M
Analysts84
Price Target20.85 (54.44%)
Short Float %3.99%
Short Ratio3.83
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)11.97%
Min EPS beat(2)6.15%
Max EPS beat(2)17.78%
EPS beat(4)4
Avg EPS beat(4)13.05%
Min EPS beat(4)6.15%
Max EPS beat(4)17.78%
EPS beat(8)7
Avg EPS beat(8)8.06%
EPS beat(12)9
Avg EPS beat(12)6.9%
EPS beat(16)13
Avg EPS beat(16)7.51%
Revenue beat(2)2
Avg Revenue beat(2)0.91%
Min Revenue beat(2)0.31%
Max Revenue beat(2)1.52%
Revenue beat(4)4
Avg Revenue beat(4)2.5%
Min Revenue beat(4)0.31%
Max Revenue beat(4)5.63%
Revenue beat(8)6
Avg Revenue beat(8)-0.11%
Revenue beat(12)7
Avg Revenue beat(12)-0.36%
Revenue beat(16)10
Avg Revenue beat(16)0.03%
PT rev (1m)0%
PT rev (3m)7.97%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)2.69%
EPS NY rev (3m)2.05%
Revenue NQ rev (1m)-0.47%
Revenue NQ rev (3m)-0.67%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)0.89%
Valuation
Industry RankSector Rank
PE 15.7
Fwd PE 13.87
P/S 3.3
P/FCF 25.74
P/OCF 13.37
P/B 6.34
P/tB N/A
EV/EBITDA 11.53
EPS(TTM)0.86
EY6.37%
EPS(NY)0.97
Fwd EY7.21%
FCF(TTM)0.52
FCFY3.89%
OCF(TTM)1.01
OCFY7.48%
SpS4.09
BVpS2.13
TBVpS-2.74
PEG (NY)1.19
PEG (5Y)N/A
Graham Number6.42
Profitability
Industry RankSector Rank
ROA 2.39%
ROE 12.86%
ROCE 12.01%
ROIC 9.49%
ROICexc 10.72%
ROICexgc 22.27%
OM 31.11%
PM (TTM) 6.7%
GM 55.48%
FCFM 12.82%
ROA(3y)1.82%
ROA(5y)0.42%
ROE(3y)11.78%
ROE(5y)-2.34%
ROIC(3y)8.4%
ROIC(5y)8.27%
ROICexc(3y)9.38%
ROICexc(5y)9.27%
ROICexgc(3y)20.62%
ROICexgc(5y)28.75%
ROCE(3y)10.63%
ROCE(5y)10.47%
ROICexgc growth 3Y-26.82%
ROICexgc growth 5Y0.97%
ROICexc growth 3Y1.8%
ROICexc growth 5Y10.63%
OM growth 3Y7.94%
OM growth 5Y4.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.01%
GM growth 5Y0.46%
F-Score6
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 3.66
Debt/FCF 15
Debt/EBITDA 4.45
Cap/Depr 100.96%
Cap/Sales 11.86%
Interest Coverage 2.21
Cash Conversion 57.58%
Profit Quality 191.38%
Current Ratio 2.46
Quick Ratio 2.24
Altman-Z 1.5
F-Score6
WACC10.87%
ROIC/WACC0.87
Cap/Depr(3y)115.51%
Cap/Depr(5y)107.9%
Cap/Sales(3y)16.21%
Cap/Sales(5y)15.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.86%
EPS 3Y-3.93%
EPS 5YN/A
EPS Q2Q%23.81%
EPS Next Y13.17%
EPS Next 2Y10.88%
EPS Next 3Y10.78%
EPS Next 5Y10.94%
Revenue 1Y (TTM)-13.72%
Revenue growth 3Y5.05%
Revenue growth 5Y7.3%
Sales Q2Q%4.56%
Revenue Next Year6.83%
Revenue Next 2Y6.41%
Revenue Next 3Y6.29%
Revenue Next 5Y7.1%
EBIT growth 1Y3.2%
EBIT growth 3Y13.39%
EBIT growth 5Y11.93%
EBIT Next Year28.07%
EBIT Next 3Y13.16%
EBIT Next 5Y11.92%
FCF growth 1Y230.81%
FCF growth 3Y15.99%
FCF growth 5Y17.33%
OCF growth 1Y28.12%
OCF growth 3Y1.09%
OCF growth 5Y18.95%

SOTERA HEALTH CO / SHC Fundamental Analysis FAQ

What is the fundamental rating for SHC stock?

ChartMill assigns a fundamental rating of 5 / 10 to SHC.


What is the valuation status of SOTERA HEALTH CO (SHC) stock?

ChartMill assigns a valuation rating of 6 / 10 to SOTERA HEALTH CO (SHC). This can be considered as Fairly Valued.


What is the profitability of SHC stock?

SOTERA HEALTH CO (SHC) has a profitability rating of 7 / 10.


How financially healthy is SOTERA HEALTH CO?

The financial health rating of SOTERA HEALTH CO (SHC) is 3 / 10.