17.7 USD
+0.29 (+1.67%)
17.7 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SHC. SHC was compared to 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
In the past year SHC was profitable.
SHC had a positive operating cash flow in the past year.
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
SHC has a Return On Assets of 1.74%. This is in the better half of the industry: SHC outperforms 70.18% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 9.23%, SHC belongs to the top 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 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
SHC has a Profit Margin of 4.82%. This is in the better half 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.
The Gross Margin of SHC (55.98%) is better than 70.18% 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
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.
The number of shares outstanding for SHC has been increased compared to 5 years ago.
SHC has a worse debt/assets ratio than last year.
2.2 Solvency
SHC has an Altman-Z score of 1.74. This is a bad value and indicates that SHC is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.74, SHC is in line with its industry, outperforming 43.86% 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.
With a Debt to FCF ratio value of 25.87, SHC perfoms like the industry average, outperforming 57.89% of the companies in the same 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 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.74 |
ROIC/WACC0.83
WACC11.05%
2.3 Liquidity
A Current Ratio of 2.38 indicates that SHC has no problem at all paying its short term obligations.
SHC's Current ratio of 2.38 is in line compared to the rest of the industry. SHC outperforms 45.61% of its industry peers.
SHC has a Quick Ratio of 2.16. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SHC (2.16) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
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
The Earnings Per Share is expected to grow by 15.65% on average over the next years. This is quite good.
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
SHC is valuated rather expensively with a Price/Earnings ratio of 21.85.
Based on the Price/Earnings ratio, SHC is valued cheaper than 84.21% of the companies in the same industry.
SHC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.56, SHC is valued on the expensive side.
Based on the Price/Forward Earnings ratio, SHC is valued cheaper than 87.72% of the companies in the same industry.
SHC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.85 | ||
| Fwd PE | 18.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.05 | ||
| EV/EBITDA | 14.27 |
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 14.83% in the coming years.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y16.72%
EPS Next 3Y14.83%
5. Dividend
5.1 Amount
SHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
17.7
+0.29 (+1.67%)
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 Cap5.03B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts81.54
Price TargetN/A
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 | 21.85 | ||
| Fwd PE | 18.56 | ||
| P/S | 4.37 | ||
| P/FCF | 58.05 | ||
| P/OCF | 20.97 | ||
| P/B | 9.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.27 |
EPS(TTM)0.81
EY4.58%
EPS(NY)0.95
Fwd EY5.39%
FCF(TTM)0.3
FCFY1.72%
OCF(TTM)0.84
OCFY4.77%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.06
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 | 1.74 |
F-Score5
WACC11.05%
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 Y20.68%
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.