SOTERA HEALTH CO (SHC) Stock Fundamental Analysis
USA - NASDAQ:SHC - US83601L1026 - Common Stock
15.63 USD
+0.4 (+2.63%)
SHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 58 industry peers in the Life Sciences Tools & Services industry. SHC scores excellent on profitability, but there are concerns on its financial health. SHC has a correct valuation and a medium 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 70.69% of the companies in the same industry.
SHC has a better Return On Equity (10.07%) than 81.03% of its industry peers.
SHC's Return On Invested Capital of 9.23% is amongst the best of the industry. SHC outperforms 82.76% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SHC is significantly below the industry average of 13.56%.
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
Looking at the Profit Margin, with a value of 4.82%, SHC is in the better half of the industry, outperforming 70.69% of the companies in the same industry.
In the last couple of years the Profit Margin of SHC has declined.
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 70.69% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHC is destroying value.
Compared to 1 year ago, SHC has more shares outstanding
Compared to 5 years ago, SHC has more shares outstanding
SHC has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.58, we must say that SHC is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.58, SHC perfoms like the industry average, outperforming 43.10% of the companies in the same industry.
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.
SHC has a Debt to FCF ratio (25.87) which is in line with its industry peers.
SHC has a Debt/Equity ratio of 4.04. This is a high value indicating a heavy dependency on external financing.
SHC has a worse Debt to Equity ratio (4.04) than 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.88
WACC10.45%
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 of 2.38. This is comparable to the rest of the industry: SHC outperforms 46.55% 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.
SHC has a Quick ratio (2.16) which is in line with its industry peers.
| 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.
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
The Earnings Per Share is expected to grow by 13.74% 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 6.85% 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
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
A Price/Earnings ratio of 19.30 indicates a rather expensive valuation of SHC.
87.93% of the companies in the same industry are more expensive than SHC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.46, SHC is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 17.48, the valuation of SHC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SHC is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
SHC is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
94.83% of the companies in the same industry are more expensive than SHC, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHC is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.26 | ||
| EV/EBITDA | 12.84 |
4.3 Compensation for Growth
The 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 12.31% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y13.03%
EPS Next 3Y12.31%
5. Dividend
5.1 Amount
No dividends for SHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SHC (11/19/2025, 2:58:27 PM)
15.63
+0.4 (+2.63%)
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 Change-3.24%
Ins Owners2.46%
Ins Owner Change1.87%
Market Cap4.44B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts81.67
Price Target17.8 (13.88%)
Short Float %4.11%
Short Ratio3.44
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)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)6.4%
PT rev (3m)17.01%
EPS NQ rev (1m)2.93%
EPS NQ rev (3m)2.24%
EPS NY rev (1m)0%
EPS NY rev (3m)5.1%
Revenue NQ rev (1m)-1.9%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.3 | ||
| Fwd PE | 17.48 | ||
| P/S | 3.86 | ||
| P/FCF | 51.26 | ||
| P/OCF | 18.51 | ||
| P/B | 8.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.84 |
EPS(TTM)0.81
EY5.18%
EPS(NY)0.89
Fwd EY5.72%
FCF(TTM)0.3
FCFY1.95%
OCF(TTM)0.84
OCFY5.4%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.44
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 | 1.58 |
F-Score5
WACC10.45%
ROIC/WACC0.88
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 Y13.43%
EPS Next 2Y13.03%
EPS Next 3Y12.31%
EPS Next 5Y13.74%
Revenue 1Y (TTM)-15.95%
Revenue growth 3Y5.71%
Revenue growth 5Y7.17%
Sales Q2Q%9.05%
Revenue Next Year5.13%
Revenue Next 2Y5.56%
Revenue Next 3Y5.75%
Revenue Next 5Y6.85%
EBIT growth 1Y-6.5%
EBIT growth 3Y5.04%
EBIT growth 5Y9.46%
EBIT Next Year28.63%
EBIT Next 3Y13.25%
EBIT Next 5Y12.14%
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.