18.51 USD
-0.39 (-2.06%)
18.51 USD
0 (0%)
Taking everything into account, SHC scores 5 out of 10 in our fundamental rating. SHC was compared to 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 has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
- SHC had positive earnings in the past year.
- SHC had a positive operating cash flow in the past year.
- In multiple years SHC reported negative net income over the last 5 years.
- Of the past 5 years SHC 4 years had a positive operating cash flow.
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.
- Looking at the Return On Equity, with a value of 10.07%, SHC belongs to the top of the industry, outperforming 80.70% of the companies in the same industry.
- SHC has a better Return On Invested Capital (9.23%) than 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 13.29%.
- 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
- 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.
- SHC's Profit Margin has declined in the last couple of years.
- With an excellent Operating Margin value of 29.89%, SHC belongs to the best 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's Gross Margin of 55.98% is fine compared to the rest of the industry. SHC outperforms 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
- 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.
- The number of shares outstanding for SHC has been increased compared to 5 years ago.
- The debt/assets ratio for SHC is higher compared to a year ago.
2.2 Solvency
- Based on the Altman-Z score of 1.79, we must say that SHC is in the distress zone and has some risk of bankruptcy.
- SHC has a Altman-Z score of 1.79. This is comparable to the rest of the industry: SHC outperforms 42.11% 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 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.
- A Debt/Equity ratio of 4.04 is on the high side and indicates that SHC has dependencies on debt 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 | 1.79 |
ROIC/WACC0.82
WACC11.25%
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 47.37% of its industry peers.
- A Quick Ratio of 2.16 indicates that SHC has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.16, SHC is in line with its industry, outperforming 49.12% of the companies in the same 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.
- 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 Y20.93%
EPS Next 2Y16.36%
EPS Next 3Y14.51%
EPS Next 5Y15.65%
Revenue Next Year5.31%
Revenue Next 2Y5.6%
Revenue Next 3Y5.78%
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
- The Price/Earnings ratio is 22.85, which indicates a rather expensive current valuation of SHC.
- Based on the Price/Earnings ratio, SHC is valued cheaply inside the industry as 85.96% of the companies are valued more expensively.
- SHC's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 19.53, SHC is valued on the expensive side.
- SHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 92.98% 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.85 | ||
| Fwd PE | 19.53 |
4.2 Price Multiples
- SHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SHC is cheaper than 91.23% of the companies in the same industry.
- SHC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SHC is cheaper than 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.71 | ||
| EV/EBITDA | 14.75 |
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.
- SHC's earnings are expected to grow with 14.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.09
PEG (5Y)N/A
EPS Next 2Y16.36%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
- SHC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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.