SOTERA HEALTH CO (SHC) Stock Fundamental Analysis
USA - NASDAQ:SHC - US83601L1026 - Common Stock
16.34 USD
-0.24 (-1.45%)
16.34 USD
0 (0%)
Taking everything into account, SHC scores 4 out of 10 in our fundamental rating. SHC was compared to 58 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 valuation in line with the averages, but it does not seem to be growing.
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.
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
SHC has a Return On Assets of 0.75%. This is in the better half of the industry: SHC outperforms 62.07% 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 74.14% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.33%, SHC belongs to the best of the industry, outperforming 81.03% 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 13.49%.
The last Return On Invested Capital (8.33%) for SHC is above the 3 year average (8.04%), which is a sign of increasing profitability.
| 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's Profit Margin of 2.13% is fine compared to the rest of the industry. SHC outperforms 62.07% of its industry peers.
SHC's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 27.85%, SHC belongs to the top of the industry, outperforming 98.28% of the companies in the same industry.
In the last couple of years the Operating Margin of SHC has grown nicely.
SHC's Gross Margin of 55.53% is fine compared to the rest of the industry. SHC outperforms 67.24% of its industry peers.
In the last couple of years the Gross Margin of SHC has grown nicely.
| 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
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
The debt/assets ratio for SHC is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that SHC is in the distress zone and has some risk of bankruptcy.
SHC has a Altman-Z score of 1.58. This is comparable to the rest of the industry: SHC outperforms 43.10% 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 56.90% of its industry peers.
SHC has a Debt/Equity ratio of 4.49. This is a high value indicating a heavy dependency on external financing.
SHC has a Debt to Equity ratio of 4.49. This is amonst the worse of the industry: SHC underperforms 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 20.55 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.77
WACC10.79%
2.3 Liquidity
SHC has a Current Ratio of 2.47. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
SHC has a Current ratio (2.47) which is in line with its industry peers.
A Quick Ratio of 2.23 indicates that SHC has no problem at all paying its short term obligations.
SHC has a Quick ratio (2.23) which is in line with its industry peers.
| 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%.
SHC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.17% yearly.
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
The Earnings Per Share is expected to grow by 13.74% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 22.69, SHC is valued on the expensive side.
SHC's Price/Earnings ratio is a bit cheaper when compared to the industry. SHC is cheaper than 79.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.19, SHC is valued at the same level.
SHC is valuated rather expensively with a Price/Forward Earnings ratio of 18.27.
Based on the Price/Forward Earnings ratio, SHC is valued cheaply inside the industry as 84.48% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.50. SHC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.27 |
4.2 Price Multiples
93.10% of the companies in the same industry are more expensive than SHC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHC is valued a bit cheaper than 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.18 | ||
| EV/EBITDA | 14.17 |
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.
A more expensive valuation may be justified as SHC's earnings are expected to grow with 12.31% in the coming years.
PEG (NY)1.69
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 |
16.34
-0.24 (-1.45%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners54.34%
Inst Owner Change0.04%
Ins Owners2.46%
Ins Owner Change1.87%
Market Cap4.64B
Revenue(TTM)1.12B
Net Income(TTM)24.01M
Analysts80
Price Target16.73 (2.39%)
Short Float %4.17%
Short Ratio4.25
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)0%
PT rev (3m)10.5%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)7.9%
EPS NY rev (1m)0%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.69 | ||
| Fwd PE | 18.27 | ||
| P/S | 4.13 | ||
| P/FCF | 41.18 | ||
| P/OCF | 17.44 | ||
| P/B | 9.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.17 |
EPS(TTM)0.72
EY4.41%
EPS(NY)0.89
Fwd EY5.47%
FCF(TTM)0.4
FCFY2.43%
OCF(TTM)0.94
OCFY5.73%
SpS3.96
BVpS1.8
TBVpS-3.12
PEG (NY)1.69
PEG (5Y)N/A
Graham Number5.4
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%
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 Turnover0.35
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 | 1.58 |
F-Score5
WACC10.79%
ROIC/WACC0.77
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 Year28.63%
EBIT Next 3Y13.25%
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%
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 for SHC stock?
ChartMill assigns a valuation rating of 5 / 10 to SOTERA HEALTH CO (SHC). This can be considered as Fairly Valued.
How profitable is SOTERA HEALTH CO (SHC) stock?
SOTERA HEALTH CO (SHC) has a profitability rating of 7 / 10.
What is the financial health of SOTERA HEALTH CO (SHC) stock?
The financial health rating of SOTERA HEALTH CO (SHC) is 3 / 10.