18.81 USD
+0.01 (+0.05%)
18.91 USD
+0.1 (+0.53%)
SHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 57 industry peers in the Life Sciences Tools & Services industry. SHC has an excellent profitability rating, but there are concerns on its financial health. SHC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
SHC had positive earnings in the past year.
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
With a decent Return On Assets value of 1.74%, SHC is doing good in the industry, outperforming 70.18% of the companies in the same industry.
The Return On Equity of SHC (10.07%) is better than 80.70% of its industry peers.
With an excellent Return On Invested Capital value of 9.23%, SHC belongs to the best of the industry, outperforming 82.46% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 14.00%.
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's Profit Margin of 4.82% is fine compared to the rest of the industry. SHC outperforms 70.18% of its industry peers.
SHC's Profit Margin has declined in the last couple of years.
SHC has a Operating Margin of 29.89%. 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.
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
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.
SHC has more shares outstanding than it did 5 years ago.
SHC has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.81 indicates that SHC is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.81, SHC perfoms like the industry average, outperforming 45.61% of the companies in the same 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.
The Debt to FCF ratio of SHC (25.87) 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.
SHC has a Debt to Equity ratio of 4.04. This is amonst the worse of the industry: SHC underperforms 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.83
WACC11.11%
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 of 2.38. This is comparable to the rest of the industry: SHC outperforms 45.61% of its industry peers.
A Quick Ratio of 2.16 indicates that SHC has no problem at all paying its short term obligations.
SHC's Quick ratio of 2.16 is in line compared to the rest of the industry. SHC outperforms 47.37% of its industry peers.
| 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
Based on estimates for the next years, SHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.65% on average per year.
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 3Y5.75%
Revenue Next 5Y6.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 23.22, SHC is valued on the expensive side.
84.21% of the companies in the same industry are more expensive than SHC, based on the Price/Earnings ratio.
SHC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.00, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.73 indicates a rather expensive valuation of SHC.
Based on the Price/Forward Earnings ratio, SHC is valued cheaply inside the industry as 87.72% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.70, SHC is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 19.73 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 89.47% of the companies listed 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 | 61.69 | ||
| EV/EBITDA | 14.92 |
4.3 Compensation for Growth
The 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.
SHC's earnings are expected to grow with 14.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.13
PEG (5Y)N/A
EPS Next 2Y16.69%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
SHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
18.81
+0.01 (+0.05%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.12%
Inst Owner Change0%
Ins Owners2.34%
Ins Owner Change-14.04%
Market Cap5.34B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts81.54
Price Target19.31 (2.66%)
Short Float %3.5%
Short Ratio2.84
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)0%
PT rev (3m)15.42%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)6.3%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 19.73 | ||
| P/S | 4.65 | ||
| P/FCF | 61.69 | ||
| P/OCF | 22.28 | ||
| P/B | 9.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.92 |
EPS(TTM)0.81
EY4.31%
EPS(NY)0.95
Fwd EY5.07%
FCF(TTM)0.3
FCFY1.62%
OCF(TTM)0.84
OCFY4.49%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.13
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 | 1.81 |
F-Score5
WACC11.11%
ROIC/WACC0.83
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 3Y5.75%
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.