SOTERA HEALTH CO (SHC) Stock Fundamental Analysis
USA - NASDAQ:SHC - US83601L1026 - Common Stock
16.56 USD
-0.15 (-0.9%)
16.56 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 has a great profitability rating, there are quite some concerns on its financial health. SHC has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
SHC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.75%, SHC is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
The Return On Equity of SHC (4.70%) is better than 74.14% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 13.49%.
The 3 year average ROIC (8.04%) for SHC is below the current ROIC(8.33%), indicating increased profibility in the last year.
| 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.
In the last couple of years the Profit Margin of SHC has declined.
The Operating Margin of SHC (27.85%) is better than 98.28% of its industry peers.
In the last couple of years the Operating Margin of SHC has grown nicely.
SHC has a Gross Margin of 55.53%. This is in the better half of the industry: SHC outperforms 67.24% of its industry peers.
SHC's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHC is destroying value.
SHC has more shares outstanding than it did 1 year ago.
SHC has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, SHC has a worse debt to assets ratio.
2.2 Solvency
SHC has an Altman-Z score of 1.59. 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 (1.59) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of SHC (20.55) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.49 is on the high side and indicates that SHC has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 4.49, SHC is doing worse than 91.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 20.55 | ||
| Altman-Z | 1.59 |
ROIC/WACC0.77
WACC10.76%
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.
Looking at the Current ratio, with a value of 2.47, SHC is in line with its industry, outperforming 48.28% of the companies in the same industry.
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
SHC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.86%.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
The Revenue for SHC has decreased by -16.48% in the past year. This is quite bad
Measured over the past years, SHC shows a small growth in Revenue. The Revenue has been growing by 7.17% on average per year.
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
Based on estimates for the next years, SHC will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.74% on average per year.
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
Based on the Price/Earnings ratio of 23.00, the valuation of SHC can be described as rather expensive.
Based on the Price/Earnings ratio, SHC is valued cheaply inside the industry as 81.03% of the companies are valued more expensively.
SHC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.83.
A Price/Forward Earnings ratio of 18.52 indicates a rather expensive valuation of SHC.
Based on the Price/Forward Earnings ratio, SHC is valued cheaper than 84.48% of the companies in the same industry.
SHC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23 | ||
| Fwd PE | 18.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaper than 93.10% of the companies in the same industry.
62.07% of the companies in the same industry are more expensive than SHC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.74 | ||
| EV/EBITDA | 14.25 |
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)1.71
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 |
16.56
-0.15 (-0.9%)
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 Cap4.70B
Revenue(TTM)1.12B
Net Income(TTM)24.01M
Analysts80
Price Target16.73 (1.03%)
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 | 23 | ||
| Fwd PE | 18.52 | ||
| P/S | 4.18 | ||
| P/FCF | 41.74 | ||
| P/OCF | 17.68 | ||
| P/B | 9.2 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.25 |
EPS(TTM)0.72
EY4.35%
EPS(NY)0.89
Fwd EY5.4%
FCF(TTM)0.4
FCFY2.4%
OCF(TTM)0.94
OCFY5.66%
SpS3.96
BVpS1.8
TBVpS-3.12
PEG (NY)1.71
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 | 1.59 |
F-Score5
WACC10.76%
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.