19.35 USD
+0.16 (+0.83%)
19.35 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. While SHC belongs to the best of the industry regarding profitability, there are concerns on its financial health. SHC has a decent growth rate and is not valued too expensively.
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 1.74%, SHC is in the better half of the industry, outperforming 70.18% of the companies in the same industry.
- 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.
- SHC's Return On Invested Capital of 9.23% is amongst the best of the industry. SHC outperforms 82.46% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 13.75%.
- 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 71.93% of the companies in the same industry.
- In the last couple of years the Profit Margin of SHC has declined.
- Looking at the Operating Margin, with a value of 29.89%, SHC belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- SHC's Operating Margin has improved in the last couple of years.
- SHC has a Gross Margin of 55.98%. This is in the better half of the industry: SHC outperforms 70.18% of its industry peers.
- 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
- SHC has an Altman-Z score of 1.84. This is not the best score and indicates that SHC is in the grey zone with still only limited risk for bankruptcy at the moment.
- SHC has a Altman-Z score of 1.84. This is comparable to the rest of the industry: SHC outperforms 43.86% of its industry peers.
- 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.
- SHC's Debt to FCF ratio of 25.87 is in line compared to the rest of the industry. SHC outperforms 57.89% of its industry peers.
- A Debt/Equity ratio of 4.04 is on the high side and indicates that SHC has dependencies on debt financing.
- SHC has a worse Debt to Equity ratio (4.04) than 91.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.84 |
ROIC/WACC0.83
WACC11.1%
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.
- With a Current ratio value of 2.38, SHC perfoms like the industry average, outperforming 47.37% of the companies in the same industry.
- 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
- 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.
- 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
- The Earnings Per Share is expected to grow by 15.65% on average over the next years. This is quite good.
- 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 Y20.58%
EPS Next 2Y16.69%
EPS Next 3Y14.79%
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
- With a Price/Earnings ratio of 23.89, SHC is valued on the expensive side.
- SHC's Price/Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 84.21% of the companies in the same industry.
- SHC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.54.
- SHC is valuated rather expensively with a Price/Forward Earnings ratio of 20.30.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 89.47% of the companies listed in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.31. SHC is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 20.3 |
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 | 63.46 | ||
| EV/EBITDA | 15.14 |
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 14.79% in the coming years.
PEG (NY)1.16
PEG (5Y)N/A
EPS Next 2Y16.69%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
- No dividends for SHC!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
19.35
+0.16 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)11-04 2025-11-04/bmo
Earnings (Next)02-25 2026-02-25/amc
Inst Owners58.12%
Inst Owner Change0.06%
Ins Owners2.34%
Ins Owner Change-14.04%
Market Cap5.50B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts82.86
Price Target19.31 (-0.21%)
Short Float %3.5%
Short Ratio2.84
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)0%
PT rev (3m)15.42%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)2.53%
EPS NY rev (1m)-0.08%
EPS NY rev (3m)6.3%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.17%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.89 | ||
| Fwd PE | 20.3 | ||
| P/S | 4.78 | ||
| P/FCF | 63.46 | ||
| P/OCF | 22.92 | ||
| P/B | 9.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.14 |
EPS(TTM)0.81
EY4.19%
EPS(NY)0.95
Fwd EY4.93%
FCF(TTM)0.3
FCFY1.58%
OCF(TTM)0.84
OCFY4.36%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.16
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 | 1.84 |
F-Score5
WACC11.1%
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 Y20.58%
EPS Next 2Y16.69%
EPS Next 3Y14.79%
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 Year29.43%
EBIT Next 3Y13.68%
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 of SOTERA HEALTH CO (SHC) stock?
ChartMill assigns a valuation rating of 5 / 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.