18.58 USD
-0.01 (-0.05%)
18.58 USD
0 (0%)
SHC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 58 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 has a decent growth rate and is not valued too expensively.
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.
- 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 70.69% of the companies in the same industry.
- SHC has a better Return On Equity (10.07%) than 81.03% of its industry peers.
- With an excellent Return On Invested Capital value of 9.23%, SHC belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for SHC is significantly below the industry average of 13.29%.
- 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 72.41% of the companies in the same industry.
- SHC's Profit Margin has declined in the last couple of years.
- 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.
- SHC has a better Gross Margin (55.98%) 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
- SHC has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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.
- The debt/assets ratio for SHC is higher compared to a year ago.
2.2 Solvency
- SHC has an Altman-Z score of 1.80. This is a bad value and indicates that SHC is not financially healthy and even has some risk of bankruptcy.
- SHC has a Altman-Z score (1.80) which is in line with 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.
- With a Debt to FCF ratio value of 25.87, SHC perfoms like the industry average, outperforming 56.90% of the companies in the same industry.
- 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 | 1.8 |
ROIC/WACC0.82
WACC11.23%
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 46.55% of its industry peers.
- 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.
- 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
- 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.
- The Revenue for SHC has decreased by -15.95% in the past year. This is quite bad
- 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
- 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 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
- SHC is valuated rather expensively with a Price/Earnings ratio of 22.94.
- 86.21% of the companies in the same industry are more expensive than SHC, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 28.87. SHC is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 19.60, SHC is valued on the expensive side.
- 93.10% of the companies in the same industry are more expensive than SHC, based on the Price/Forward Earnings ratio.
- SHC is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.94 | ||
| Fwd PE | 19.6 |
4.2 Price Multiples
- SHC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. SHC is cheaper than 91.38% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, SHC is valued a bit cheaper than the industry average as 60.34% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.94 | ||
| EV/EBITDA | 14.79 |
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 14.51% in the coming years.
PEG (NY)1.1
PEG (5Y)N/A
EPS Next 2Y16.36%
EPS Next 3Y14.51%
5. Dividend
5.1 Amount
- No dividends for SHC!.
| 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 5 / 10 to SHC.
What is the valuation status of SOTERA HEALTH CO (SHC) stock?
ChartMill assigns a valuation rating of 6 / 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.