17.17 USD
+0.06 (+0.35%)
17.17 USD
0 (0%)
Taking everything into account, SHC scores 4 out of 10 in our fundamental rating. SHC was compared to 57 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 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.
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
Looking at the Return On Assets, with a value of 1.74%, SHC is in the better half of the industry, outperforming 70.18% of the companies in the same industry.
SHC has a Return On Equity of 10.07%. This is amongst the best in the industry. SHC outperforms 80.70% of its industry peers.
The Return On Invested Capital of SHC (9.23%) is better than 82.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 13.99%.
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
The Profit Margin of SHC (4.82%) is better than 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.
SHC has a Gross Margin of 55.98%. This is in the better half of the industry: SHC outperforms 70.18% of its industry peers.
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.
SHC has more shares outstanding than it did 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 1.70, we must say that SHC is in the distress zone and has some risk of bankruptcy.
SHC has a Altman-Z score of 1.70. This is comparable to the rest of the industry: SHC outperforms 43.86% of its industry peers.
SHC has a debt to FCF ratio of 25.87. This is a negative value and a sign of low solvency as SHC would need 25.87 years to pay back of all of its debts.
The Debt to FCF ratio of SHC (25.87) is comparable to the rest of the industry.
A Debt/Equity ratio of 4.04 is on the high side and indicates that SHC has dependencies on debt financing.
The Debt to Equity ratio of SHC (4.04) is worse than 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.7 |
ROIC/WACC0.84
WACC11.04%
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.
With a Current ratio value of 2.38, SHC perfoms like the industry average, outperforming 45.61% of the companies in the same industry.
A Quick Ratio of 2.16 indicates that SHC has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.16, SHC is in line with its industry, outperforming 47.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.38 | ||
| Quick Ratio | 2.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.00% over the past year.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
Looking at the last year, SHC shows a very negative growth in Revenue. The Revenue has decreased by -15.95% in the last year.
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%
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.
The Revenue is expected to grow by 6.85% on average over the next years.
EPS Next Y20.68%
EPS Next 2Y16.72%
EPS Next 3Y14.83%
EPS Next 5Y15.65%
Revenue Next Year5.31%
Revenue Next 2Y5.6%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.20, the valuation of SHC can be described as rather expensive.
85.96% of the companies in the same industry are more expensive than SHC, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.39. SHC is around the same levels.
The Price/Forward Earnings ratio is 18.00, which indicates a rather expensive current valuation of SHC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 87.72% of the companies listed in the same industry.
SHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaper than 89.47% of the companies in the same industry.
SHC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.31 | ||
| EV/EBITDA | 13.97 |
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.
SHC's earnings are expected to grow with 14.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.03
PEG (5Y)N/A
EPS Next 2Y16.72%
EPS Next 3Y14.83%
5. Dividend
5.1 Amount
No dividends for SHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
17.17
+0.06 (+0.35%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.01%
Inst Owner Change-3.16%
Ins Owners2.46%
Ins Owner Change-14.04%
Market Cap4.88B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts81.54
Price Target19.31 (12.46%)
Short Float %3.73%
Short Ratio3.24
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)8.47%
PT rev (3m)15.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)6.39%
EPS NY rev (3m)6.39%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.2 | ||
| Fwd PE | 18 | ||
| P/S | 4.24 | ||
| P/FCF | 56.31 | ||
| P/OCF | 20.34 | ||
| P/B | 8.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.97 |
EPS(TTM)0.81
EY4.72%
EPS(NY)0.95
Fwd EY5.55%
FCF(TTM)0.3
FCFY1.78%
OCF(TTM)0.84
OCFY4.92%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.03
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 | 1.7 |
F-Score5
WACC11.04%
ROIC/WACC0.84
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 Y20.68%
EPS Next 2Y16.72%
EPS Next 3Y14.83%
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 Year29.47%
EBIT Next 3Y13.67%
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 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.