18.99 USD
-0.21 (-1.09%)
19 USD
+0.01 (+0.05%)
Taking everything into account, SHC scores 4 out of 10 in our fundamental rating. SHC was compared to 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.
Of the past 5 years SHC 4 years had a positive operating cash flow.
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 has a better Return On Equity (10.07%) than 80.70% of its industry peers.
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 13.75%.
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
SHC has a better Profit Margin (4.82%) than 71.93% of its industry peers.
SHC's Profit Margin has declined in the last couple of years.
SHC has a better Operating Margin (29.89%) than 100.00% of its industry peers.
SHC's Operating Margin has improved in the last couple of years.
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.
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.
The number of shares outstanding for SHC has been increased compared to 1 year ago.
Compared to 5 years ago, SHC has more shares outstanding
Compared to 1 year ago, SHC has a worse debt to assets ratio.
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 (1.84) which is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 25.87, SHC is in line with its industry, outperforming 57.89% of the companies in the same industry.
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 | 1.84 |
ROIC/WACC0.83
WACC11.11%
2.3 Liquidity
A Current Ratio of 2.38 indicates that SHC has no problem at all paying its short term obligations.
SHC's Current ratio of 2.38 is in line compared 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
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.
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.
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.
The Revenue is expected to grow by 6.85% on average over the next years.
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.
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
A Price/Earnings ratio of 23.44 indicates a rather expensive valuation of SHC.
Based on the Price/Earnings ratio, SHC is valued cheaper than 84.21% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.25. SHC is around the same levels.
SHC is valuated rather expensively with a Price/Forward Earnings ratio of 19.92.
SHC's Price/Forward Earnings ratio is rather cheap when compared to the industry. SHC is cheaper than 87.72% of the companies in the same industry.
SHC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.44 | ||
| Fwd PE | 19.92 |
4.2 Price Multiples
SHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SHC is cheaper than 87.72% of the companies in the same industry.
SHC's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.28 | ||
| EV/EBITDA | 15.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
SHC has a very decent profitability rating, which 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)1.14
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% |
18.99
-0.21 (-1.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners58.12%
Inst Owner Change0.06%
Ins Owners2.34%
Ins Owner Change-14.04%
Market Cap5.39B
Revenue(TTM)1.15B
Net Income(TTM)55.42M
Analysts82.86
Price Target19.31 (1.69%)
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 | 23.44 | ||
| Fwd PE | 19.92 | ||
| P/S | 4.69 | ||
| P/FCF | 62.28 | ||
| P/OCF | 22.5 | ||
| P/B | 9.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.15 |
EPS(TTM)0.81
EY4.27%
EPS(NY)0.95
Fwd EY5.02%
FCF(TTM)0.3
FCFY1.61%
OCF(TTM)0.84
OCFY4.45%
SpS4.05
BVpS1.94
TBVpS-2.93
PEG (NY)1.14
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
WACC11.11%
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.