16.84 USD
-0.09 (-0.53%)
16.65 USD
-0.19 (-1.13%)
Overall SHC gets a fundamental rating of 4 out of 10. We evaluated SHC against 58 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SHC was profitable.
SHC had a positive operating cash flow in the past year.
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 70.69% of its industry peers.
The Return On Equity of SHC (10.07%) is better than 81.03% of its industry peers.
SHC has a Return On Invested Capital of 9.23%. This is amongst the best in the industry. SHC outperforms 82.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHC is significantly below the industry average of 13.53%.
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
SHC has a Profit Margin of 4.82%. This is in the better half of the industry: SHC outperforms 70.69% of its industry peers.
In the last couple of years the Profit Margin of SHC has declined.
The Operating Margin of SHC (29.89%) is better than 100.00% of its industry peers.
SHC's Operating Margin has improved in the last couple of years.
The Gross Margin of SHC (55.98%) is better than 70.69% 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.
The number of shares outstanding for SHC has been increased compared to 1 year ago.
The number of shares outstanding for SHC has been increased compared to 5 years ago.
SHC has a worse debt/assets ratio than last year.
2.2 Solvency
SHC has an Altman-Z score of 1.68. 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 1.68, SHC perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
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 56.90% 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's Debt to Equity ratio of 4.04 is on the low side compared to the rest of the industry. SHC is outperformed by 91.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.04 | ||
| Debt/FCF | 25.87 | ||
| Altman-Z | 1.68 |
ROIC/WACC0.88
WACC10.43%
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 (2.38) which is in line with 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 48.28% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -7.34% on average over the past years.
The Revenue for SHC has decreased by -15.95% in the past year. This is quite bad
The Revenue has been growing slightly by 7.17% on average over the past years.
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
SHC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.65% yearly.
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 Y13.43%
EPS Next 2Y13.03%
EPS Next 3Y12.31%
EPS Next 5Y15.65%
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.
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 20.79 indicates a rather expensive valuation of SHC.
Compared to the rest of the industry, the Price/Earnings ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 86.21% of the companies listed in the same industry.
SHC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.37.
A Price/Forward Earnings ratio of 18.83 indicates a rather expensive valuation of SHC.
SHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 87.93% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SHC to the average of the S&P500 Index (36.20), we can say SHC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SHC indicates a rather cheap valuation: SHC is cheaper than 91.38% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as SHC.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.23 | ||
| EV/EBITDA | 13.77 |
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)1.55
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 |
16.84
-0.09 (-0.53%)
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-3.16%
Ins Owners2.46%
Ins Owner Change-3.65%
Market Cap4.78B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts81.67
Price Target19.31 (14.67%)
Short Float %3.79%
Short Ratio3.68
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)15.42%
PT rev (3m)14.85%
EPS NQ rev (1m)3.31%
EPS NQ rev (3m)2.62%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-2.11%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.79 | ||
| Fwd PE | 18.83 | ||
| P/S | 4.16 | ||
| P/FCF | 55.23 | ||
| P/OCF | 19.95 | ||
| P/B | 8.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.77 |
EPS(TTM)0.81
EY4.81%
EPS(NY)0.89
Fwd EY5.31%
FCF(TTM)0.3
FCFY1.81%
OCF(TTM)0.84
OCFY5.01%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.55
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
WACC10.43%
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 5Y15.65%
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 5Y12.3%
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.