18.98 USD
+0.29 (+1.55%)
19 USD
+0.02 (+0.11%)
We assign a fundamental rating of 4 out of 10 to SHC. SHC was compared to 57 industry peers in the Life Sciences Tools & Services industry. While SHC belongs to the best of the industry regarding profitability, there are concerns on its financial health. SHC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- SHC had positive earnings in the past year.
- SHC had a positive operating cash flow in the past year.
- In multiple years SHC reported negative net income over the last 5 years.
- SHC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- SHC has a better Return On Assets (1.74%) than 70.18% of its industry peers.
- SHC's Return On Equity of 10.07% is amongst the best of the industry. SHC outperforms 80.70% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.23%, SHC belongs to the top of the industry, outperforming 82.46% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SHC is significantly below the industry average of 13.75%.
- The 3 year average ROIC (8.04%) for SHC is below the current ROIC(9.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 10.07% | ||
| ROIC | 9.23% |
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 better Profit Margin (4.82%) than 71.93% of its industry peers.
- SHC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 29.89%, SHC belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- SHC's Operating Margin has improved in the last couple of years.
- With a decent Gross Margin value of 55.98%, SHC is doing good in the industry, outperforming 70.18% of the companies in the same industry.
- In the last couple of years the Gross Margin of SHC has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.89% | ||
| PM (TTM) | 4.82% | ||
| GM | 55.98% |
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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SHC is destroying value.
- Compared to 1 year ago, SHC has more shares outstanding
- SHC has more shares outstanding than it did 5 years ago.
- SHC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.80, we must say that SHC is in the distress zone and has some risk of bankruptcy.
- SHC has a Altman-Z score (1.80) which is comparable to the rest of the industry.
- The Debt to FCF ratio of SHC is 25.87, which is on the high side as it means it would take SHC, 25.87 years of fcf income to pay off all of its debts.
- SHC has a Debt to FCF ratio (25.87) which is comparable to the rest of the industry.
- SHC has a Debt/Equity ratio of 4.04. This is a high value indicating a heavy dependency on external financing.
- With a Debt to Equity ratio value of 4.04, SHC is not doing good in the industry: 91.23% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.8 |
ROIC/WACC0.82
WACC11.25%
2.3 Liquidity
- SHC has a Current Ratio of 2.38. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
- SHC has a Current ratio (2.38) which is comparable to the rest of the industry.
- SHC has a Quick Ratio of 2.16. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.16, SHC is in line with its industry, outperforming 49.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
- SHC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.00%, which is quite good.
- Measured over the past years, SHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.34% on average per year.
- Looking at the last year, SHC shows a very negative growth in Revenue. The Revenue has decreased by -15.95% in the last year.
- The Revenue has been growing slightly by 7.17% on average over the past years.
EPS 1Y (TTM)8%
EPS 3Y-7.34%
EPS 5YN/A
EPS Q2Q%52.94%
Revenue 1Y (TTM)-15.95%
Revenue growth 3Y5.71%
Revenue growth 5Y7.17%
Sales Q2Q%9.05%
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 15.65% yearly.
- Based on estimates for the next years, SHC will show a small growth in Revenue. The Revenue will grow by 6.85% on average per year.
EPS Next Y20.58%
EPS Next 2Y16.69%
EPS Next 3Y14.79%
EPS Next 5Y15.65%
Revenue Next Year5.31%
Revenue Next 2Y5.6%
Revenue Next 3Y5.78%
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
- Based on the Price/Earnings ratio of 23.43, the valuation of SHC can be described as rather expensive.
- SHC's Price/Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 85.96% of the companies in the same industry.
- SHC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 19.91, the valuation of SHC can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, SHC is valued cheaper than 92.98% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.30. SHC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.43 | ||
| Fwd PE | 19.91 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaper than 91.23% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.25 | ||
| EV/EBITDA | 14.85 |
4.3 Compensation for Growth
- The 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 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y16.69%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
- No dividends for SHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
18.98
+0.29 (+1.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-24 2026-02-24/amc
Inst Owners58.12%
Inst Owner Change0.24%
Ins Owners2.34%
Ins Owner Change-14.04%
Market Cap5.39B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts82.86
Price Target20.85 (9.85%)
Short Float %3.45%
Short Ratio2.63
Dividend
| Industry Rank | Sector 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)16.17%
Min EPS beat(2)14.56%
Max EPS beat(2)17.78%
EPS beat(4)4
Avg EPS beat(4)12.29%
Min EPS beat(4)3.1%
Max EPS beat(4)17.78%
EPS beat(8)6
Avg EPS beat(8)7.28%
EPS beat(12)9
Avg EPS beat(12)7.47%
EPS beat(16)13
Avg EPS beat(16)7.3%
Revenue beat(2)2
Avg Revenue beat(2)3.57%
Min Revenue beat(2)1.52%
Max Revenue beat(2)5.63%
Revenue beat(4)3
Avg Revenue beat(4)2.11%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)5.63%
Revenue beat(8)6
Avg Revenue beat(8)0.06%
Revenue beat(12)7
Avg Revenue beat(12)-0.33%
Revenue beat(16)10
Avg Revenue beat(16)0.07%
PT rev (1m)7.97%
PT rev (3m)24.62%
EPS NQ rev (1m)0.26%
EPS NQ rev (3m)3.57%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)6.3%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)-2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.43 | ||
| Fwd PE | 19.91 | ||
| P/S | 4.69 | ||
| P/FCF | 62.25 | ||
| P/OCF | 22.48 | ||
| P/B | 9.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.85 |
EPS(TTM)0.81
EY4.27%
EPS(NY)0.95
Fwd EY5.02%
FCF(TTM)0.3
FCFY1.61%
OCF(TTM)0.84
OCFY4.45%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.14
PEG (5Y)N/A
Graham Number5.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.74% | ||
| ROE | 10.07% | ||
| ROCE | 11.68% | ||
| ROIC | 9.23% | ||
| ROICexc | 10.27% | ||
| ROICexgc | 21.53% | ||
| OM | 29.89% | ||
| PM (TTM) | 4.82% | ||
| GM | 55.98% | ||
| FCFM | 7.53% |
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%
ROICexgc growth 3Y-8.13%
ROICexgc 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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Debt/EBITDA | 4.55 | ||
| Cap/Depr | 106.02% | ||
| Cap/Sales | 13.32% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 49.11% | ||
| Profit Quality | 156.3% | ||
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.16 | ||
| Altman-Z | 1.8 |
F-Score5
WACC11.25%
ROIC/WACC0.82
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%
EPS 3Y-7.34%
EPS 5YN/A
EPS Q2Q%52.94%
EPS Next Y20.58%
EPS Next 2Y16.69%
EPS Next 3Y14.79%
EPS Next 5Y15.65%
Revenue 1Y (TTM)-15.95%
Revenue growth 3Y5.71%
Revenue growth 5Y7.17%
Sales Q2Q%9.05%
Revenue Next Year5.31%
Revenue Next 2Y5.6%
Revenue Next 3Y5.78%
Revenue Next 5Y6.85%
EBIT growth 1Y-6.5%
EBIT growth 3Y5.04%
EBIT growth 5Y9.46%
EBIT Next Year29.43%
EBIT Next 3Y13.68%
EBIT Next 5Y12.3%
FCF growth 1Y122.75%
FCF growth 3Y-36.88%
FCF growth 5Y-13.23%
OCF growth 1Y250.92%
OCF growth 3Y-7.31%
OCF growth 5Y8.51%
SOTERA HEALTH CO / SHC FAQ
What is the fundamental rating for SHC stock?
ChartMill assigns a fundamental rating of 4 / 10 to SHC.
What is the valuation status of SOTERA HEALTH CO (SHC) stock?
ChartMill assigns a valuation rating of 5 / 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.