18.115 USD
-0.16 (-0.85%)
Overall SHC gets a fundamental rating of 5 out of 10. We evaluated SHC against 58 industry peers in the Life Sciences Tools & Services industry. SHC has an excellent profitability rating, but there are concerns on its financial health. SHC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- In the past year SHC was profitable.
- 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
- SHC's Return On Assets of 1.74% is fine compared to the rest of the industry. SHC outperforms 70.69% of its industry peers.
- SHC's Return On Equity of 10.07% is amongst the best of the industry. SHC outperforms 81.03% of its industry peers.
- SHC has a Return On Invested Capital of 9.23%. This is amongst the best in the industry. SHC outperforms 82.76% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 13.29%.
- The last Return On Invested Capital (9.23%) for SHC is above the 3 year average (8.04%), which is a sign of increasing profitability.
| 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 72.41% of its industry peers.
- SHC's Profit Margin has declined in the last couple of years.
- SHC has a better Operating Margin (29.89%) than 100.00% of its industry peers.
- SHC's Operating Margin has improved in the last couple of years.
- The Gross Margin of SHC (55.98%) is better than 70.69% of its industry peers.
- SHC's Gross Margin has improved in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
- SHC has a worse debt/assets ratio than last year.
2.2 Solvency
- Based on the Altman-Z score of 1.78, we must say that SHC is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 1.78, SHC is in line with its industry, outperforming 44.83% 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.
- The Debt to Equity ratio of SHC (4.04) is worse than 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.78 |
ROIC/WACC0.82
WACC11.23%
2.3 Liquidity
- A Current Ratio of 2.38 indicates that SHC has no problem at all paying its short term obligations.
- SHC has a Current ratio (2.38) which is comparable to the rest of the industry.
- 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 48.28% of its industry peers.
| 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.
- 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 -15.95%.
- 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.
- 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 Y20.93%
EPS Next 2Y16.36%
EPS Next 3Y14.51%
EPS Next 5Y15.65%
Revenue Next Year5.31%
Revenue Next 2Y5.6%
Revenue Next 3Y5.78%
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.
- 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 22.36, the valuation of SHC can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 87.93% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 28.60. SHC is valued slightly cheaper when compared to this.
- A Price/Forward Earnings ratio of 19.11 indicates a rather expensive valuation of SHC.
- 93.10% of the companies in the same industry are more expensive than SHC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, SHC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.36 | ||
| Fwd PE | 19.11 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaper than 91.38% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHC indicates a somewhat cheap valuation: SHC is cheaper than 60.34% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.41 | ||
| EV/EBITDA | 14.61 |
4.3 Compensation for Growth
- SHC's 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 14.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.07
PEG (5Y)N/A
EPS Next 2Y16.36%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
- No dividends for SHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SOTERA HEALTH CO / SHC FAQ
What is the fundamental rating for SHC stock?
ChartMill assigns a fundamental rating of 5 / 10 to SHC.
What is the valuation status of SOTERA HEALTH CO (SHC) stock?
ChartMill assigns a valuation rating of 6 / 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.