16.8 USD
-0.03 (-0.18%)
16.8 USD
0 (0%)
SHC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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
SHC's Return On Assets of 1.74% is fine compared to the rest of the industry. SHC outperforms 70.18% of its industry peers.
SHC's Return On Equity of 10.07% is amongst the best of the industry. SHC outperforms 80.70% of its industry peers.
SHC's Return On Invested Capital of 9.23% is amongst the best of the industry. SHC outperforms 82.46% 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 13.99%.
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
SHC's Profit Margin of 4.82% is fine compared to the rest of the industry. SHC outperforms 70.18% of its industry peers.
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.
Looking at the Gross Margin, with a value of 55.98%, SHC is in the better half of the industry, outperforming 70.18% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SHC is destroying value.
SHC has more shares outstanding than it did 1 year ago.
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 1.68, we must say that SHC is in the distress zone and has some risk of bankruptcy.
SHC's Altman-Z score of 1.68 is in line compared to the rest of the industry. SHC outperforms 45.61% 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.
SHC has a Debt to FCF ratio of 25.87. This is comparable to the rest of the industry: SHC outperforms 57.89% of its industry peers.
SHC has a Debt/Equity ratio of 4.04. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 4.04, SHC is doing worse than 91.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.86
WACC10.67%
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.
The Current ratio of SHC (2.38) 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 49.12% of 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.
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.
SHC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.85% yearly.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
With a Price/Earnings ratio of 20.74, SHC is valued on the expensive side.
Based on the Price/Earnings ratio, SHC is valued cheaply inside the industry as 85.96% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.55, SHC is valued a bit cheaper.
A Price/Forward Earnings ratio of 17.62 indicates a rather expensive valuation of SHC.
Based on the Price/Forward Earnings ratio, SHC is valued cheaper than 89.47% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.78. SHC is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 17.62 |
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.
SHC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.1 | ||
| EV/EBITDA | 13.77 |
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.
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
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% |
16.8
-0.03 (-0.18%)
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 Cap4.77B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts81.54
Price Target19.31 (14.94%)
Short Float %3.79%
Short Ratio3.68
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)0.37%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)6.39%
EPS NY rev (3m)6.39%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.74 | ||
| Fwd PE | 17.62 | ||
| P/S | 4.15 | ||
| P/FCF | 55.1 | ||
| P/OCF | 19.9 | ||
| P/B | 8.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.77 |
EPS(TTM)0.81
EY4.82%
EPS(NY)0.95
Fwd EY5.68%
FCF(TTM)0.3
FCFY1.81%
OCF(TTM)0.84
OCFY5.02%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1
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 | 1.68 |
F-Score5
WACC10.67%
ROIC/WACC0.86
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.