SOTERA HEALTH CO (SHC) Stock Fundamental Analysis
USA - NASDAQ:SHC - US83601L1026 - Common Stock
16.43 USD
-0.18 (-1.08%)
16.43 USD
0 (0%)
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 has an excellent profitability rating, but there are concerns on its financial health. SHC is valued correctly, but it does not seem to be growing.
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
Looking at the Return On Assets, with a value of 0.75%, SHC is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 4.70%, SHC is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
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.
SHC had an Average Return On Invested Capital over the past 3 years of 8.04%. This is significantly below the industry average of 13.50%.
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
Looking at the Profit Margin, with a value of 2.13%, SHC is in the better half of the industry, outperforming 67.24% of the companies in the same industry.
In the last couple of years the Profit Margin of SHC has declined.
SHC has a better Operating Margin (27.85%) than 98.28% of its industry peers.
SHC's Operating Margin has improved in the last couple of years.
SHC has a Gross Margin of 55.53%. This is in the better half of the industry: SHC outperforms 68.97% 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
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
SHC has an Altman-Z score of 1.58. This is a bad value and indicates that SHC is not financially healthy and even 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 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.
SHC has a Debt to FCF ratio of 20.55. This is comparable to the rest of the industry: SHC outperforms 56.90% of its industry peers.
A Debt/Equity ratio of 4.49 is on the high side and indicates that SHC has dependencies on debt financing.
SHC has a worse Debt to Equity ratio (4.49) than 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.49 | ||
| Debt/FCF | 20.55 | ||
| Altman-Z | 1.58 |
ROIC/WACC0.77
WACC10.81%
2.3 Liquidity
A Current Ratio of 2.47 indicates that SHC has no problem at all paying its short term obligations.
The Current ratio of SHC (2.47) is comparable to the rest of the industry.
SHC has a Quick Ratio of 2.23. This indicates that SHC is financially healthy and has no problem in meeting its short term obligations.
SHC has a Quick ratio (2.23) which is comparable to the rest of the industry.
| 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%.
Measured over the past years, SHC shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.34% on average per year.
SHC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -16.48%.
The Revenue has been growing slightly by 7.17% on average over the past years.
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
SHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.74% yearly.
The Revenue is expected to grow by 6.85% on average over the next years.
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 22.82, the valuation of SHC can be described as rather expensive.
Based on the Price/Earnings ratio, SHC is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
SHC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.03.
Based on the Price/Forward Earnings ratio of 18.37, the valuation of SHC can be described as rather expensive.
Based on the Price/Forward Earnings ratio, SHC is valued cheaper than 84.48% of the companies in the same industry.
SHC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 18.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SHC is valued cheaply inside the industry as 93.10% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SHC indicates a somewhat cheap valuation: SHC is cheaper than 62.07% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.41 | ||
| EV/EBITDA | 14.19 |
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.
A more expensive valuation may be justified as SHC's earnings are expected to grow with 12.31% in the coming years.
PEG (NY)1.7
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 |
16.43
-0.18 (-1.08%)
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-0.06%
Ins Owners2.46%
Ins Owner Change1.87%
Market Cap4.67B
Revenue(TTM)1.12B
Net Income(TTM)24.01M
Analysts80
Price Target17.8 (8.34%)
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)6.4%
PT rev (3m)17.58%
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)1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.82 | ||
| Fwd PE | 18.37 | ||
| P/S | 4.15 | ||
| P/FCF | 41.41 | ||
| P/OCF | 17.54 | ||
| P/B | 9.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.19 |
EPS(TTM)0.72
EY4.38%
EPS(NY)0.89
Fwd EY5.44%
FCF(TTM)0.4
FCFY2.41%
OCF(TTM)0.94
OCFY5.7%
SpS3.96
BVpS1.8
TBVpS-3.12
PEG (NY)1.7
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 | 1.58 |
F-Score5
WACC10.81%
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.