SOTERA HEALTH CO (SHC)
US83601L1026 - Common Stock
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 is still in line with the averages on profitability rating, 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
In the past year SHC was profitable.
In the past year SHC has reported a negative cash flow from operations.
In multiple years SHC reported negative net income over the last 5 years.
Of the past 5 years SHC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.63%, SHC is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
SHC has a Return On Equity of 11.51%. This is amongst the best in the industry. SHC outperforms 82.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.54%, SHC belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SHC is below the industry average of 10.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 11.51% | ||
| ROIC | 7.54% |
ROA(3y)-0.57%
ROA(5y)-0.79%
ROE(3y)-11.83%
ROE(5y)N/A
ROIC(3y)7.9%
ROIC(5y)7.2%
1.3 Margins
Looking at the Profit Margin, with a value of 4.87%, SHC is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
The Operating Margin of SHC (26.37%) is better than 96.55% of its industry peers.
In the last couple of years the Operating Margin of SHC has grown nicely.
Looking at the Gross Margin, with a value of 55.00%, SHC is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
SHC's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.37% | ||
| PM (TTM) | 4.87% | ||
| GM | 55% |
OM growth 3Y1.54%
OM growth 5Y3.47%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.48%
GM growth 5Y2.81%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHC is destroying value.
The number of shares outstanding for SHC remains at a similar level 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 1.18, we must say that SHC is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of SHC (1.18) is comparable to the rest of the industry.
A Debt/Equity ratio of 5.16 is on the high side and indicates that SHC has dependencies on debt financing.
The Debt to Equity ratio of SHC (5.16) is worse than 93.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.18 |
ROIC/WACC0.62
WACC12.2%
2.3 Liquidity
A Current Ratio of 2.42 indicates that SHC has no problem at all paying its short term obligations.
With a Current ratio value of 2.42, SHC perfoms like the industry average, outperforming 46.55% of the companies in the same industry.
SHC has a Quick Ratio of 2.21. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 2.21, SHC perfoms like the industry average, outperforming 53.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
SHC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -16.49%.
The Revenue has been growing slightly by 4.55% in the past year.
Measured over the past years, SHC shows a small growth in Revenue. The Revenue has been growing by 7.06% on average per year.
EPS 1Y (TTM)-16.49%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q4%
Revenue 1Y (TTM)4.55%
Revenue growth 3Y8.65%
Revenue growth 5Y7.06%
Revenue growth Q2Q23.31%
3.2 Future
The Earnings Per Share is expected to grow by 8.25% 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 6.67% yearly.
EPS Next Y-10.97%
EPS Next 2Y3.08%
EPS Next 3Y8.25%
EPS Next 5YN/A
Revenue Next Year5.61%
Revenue Next 2Y6.31%
Revenue Next 3Y6.67%
Revenue Next 5YN/A
3.3 Evolution
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
The Price/Earnings ratio is 14.07, which indicates a correct valuation of SHC.
Based on the Price/Earnings ratio, SHC is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.56, SHC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 15.81, the valuation of SHC can be described as correct.
98.28% of the companies in the same industry are more expensive than SHC, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 20.34. SHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaper than 98.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.02 |
4.3 Compensation for Growth
SHC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.08%
EPS Next 3Y8.25%
5. Dividend
5.1 Amount
SHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SOTERA HEALTH CO
NASDAQ:SHC (5/14/2024, 7:00:34 PM)
After market: 11.4 0 (0%)11.4
+0.02 (+0.18%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 15.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.63% | ||
| ROE | 11.51% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.37% | ||
| PM (TTM) | 4.87% | ||
| GM | 55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.42 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-16.49%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.55%
Revenue growth 3Y8.65%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y