SOTERA HEALTH CO (SHC) Fundamental Analysis & Valuation

NASDAQ:SHC • US83601L1026

Current stock price

13.13 USD
-0.41 (-3.03%)
At close:
13.13 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.
  • SHC had a positive operating cash flow in the past year.
  • 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

  • The Return On Assets of SHC (2.39%) is better than 71.43% of its industry peers.
  • SHC's Return On Equity of 12.86% is amongst the best of the industry. SHC outperforms 85.71% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 9.49%, SHC belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
  • SHC had an Average Return On Invested Capital over the past 3 years of 8.40%. This is below the industry average of 12.34%.
  • The last Return On Invested Capital (9.49%) for SHC is above the 3 year average (8.40%), which is a sign of increasing profitability.
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

  • Looking at the Profit Margin, with a value of 6.70%, SHC is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
  • SHC's Operating Margin of 31.11% is amongst the best of the industry. SHC outperforms 100.00% of its industry peers.
  • SHC's Operating Margin has improved in the last couple of years.
  • SHC has a better Gross Margin (55.48%) than 69.64% of its industry peers.
  • SHC's Gross Margin has been stable in the last couple of years.
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

  • SHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for SHC has been increased compared to 1 year ago.
  • Compared to 5 years ago, SHC has more shares outstanding
  • Compared to 1 year ago, SHC has an improved debt to assets ratio.
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

  • SHC has an Altman-Z score of 1.50. This is a bad value and indicates that SHC is not financially healthy and even has some risk of bankruptcy.
  • SHC has a Altman-Z score of 1.50. This is comparable to the rest of the industry: SHC outperforms 46.43% of its industry peers.
  • The Debt to FCF ratio of SHC is 15.00, which is on the high side as it means it would take SHC, 15.00 years of fcf income to pay off all of its debts.
  • SHC has a Debt to FCF ratio (15.00) which is in line with its industry peers.
  • SHC has a Debt/Equity ratio of 3.66. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 3.66, SHC is doing worse than 89.29% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 3.66
Debt/FCF 15
Altman-Z 1.5
ROIC/WACC0.87
WACC10.95%
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

  • A Current Ratio of 2.46 indicates that SHC has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.46, SHC is in line with its industry, outperforming 50.00% of the companies in the same industry.
  • SHC has a Quick Ratio of 2.24. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
  • SHC has a Quick ratio of 2.24. This is comparable to the rest of the industry: SHC outperforms 51.79% of its industry peers.
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.
  • Measured over the past years, SHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.93% on average per year.
  • Looking at the last year, SHC shows a very negative growth in Revenue. The Revenue has decreased by -13.72% in the last year.
  • SHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.30% yearly.
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

  • Based on estimates for the next years, SHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.94% on average per year.
  • The Revenue is expected to grow by 7.10% on average over the next years.
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 3Y6.34%
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

  • The Price/Earnings ratio is 15.27, which indicates a correct valuation of SHC.
  • Compared to the rest of the industry, the Price/Earnings ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 92.86% of the companies listed in the same industry.
  • The average S&P500 Price/Earnings ratio is at 24.88. SHC is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 13.49 indicates a correct valuation of SHC.
  • Based on the Price/Forward Earnings ratio, SHC is valued cheaply inside the industry as 91.07% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, SHC is valued a bit cheaper.
Industry RankSector Rank
PE 15.27
Fwd PE 13.49
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 cheaper than 92.86% of the companies in the same industry.
  • SHC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SHC is cheaper than 75.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 25.03
EV/EBITDA 11.52
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.
  • The decent profitability rating of SHC may justify a higher PE ratio.
PEG (NY)1.16
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 (3/27/2026, 8:00:01 PM)

After market: 13.13 0 (0%)

13.13

-0.41 (-3.03%)

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 Cap3.73B
Revenue(TTM)1.16B
Net Income(TTM)77.95M
Analysts84
Price Target21.17 (61.23%)
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 15.27
Fwd PE 13.49
P/S 3.21
P/FCF 25.03
P/OCF 13
P/B 6.16
P/tB N/A
EV/EBITDA 11.52
EPS(TTM)0.86
EY6.55%
EPS(NY)0.97
Fwd EY7.41%
FCF(TTM)0.52
FCFY4%
OCF(TTM)1.01
OCFY7.69%
SpS4.09
BVpS2.13
TBVpS-2.74
PEG (NY)1.16
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
WACC10.95%
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 3Y6.34%
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.