SHC Stock Analysis: Sotera Health | NASDAQ
Diagnostics & Research | NASDAQ, USA | Market Cap: 5.244m USD | 12M Return: 54.9% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 43.8M
EPS Trend: 80.1%
Qual. Beats: 0
Rev. Trend: 94.2%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 5.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Sotera Health Company (NASDAQ: SHC) is a U.S.-based provider of sterilization, laboratory testing, and advisory services to the healthcare industry, with operations spanning North America, Europe, and other international markets. Headquartered in Broadview Heights, Ohio, the company is organized into three operating segments: Sterigenics, Nordion, and Nelson Labs. It was incorporated in 2015 and completed its IPO in November 2020.
The Sterigenics segment offers outsourced terminal sterilization and irradiation services using gamma irradiation, ethylene oxide (EtO) processing, and electron beam technologies. The Nordion segment supplies Cobalt-60 for use in sterilization, irradiation processes, cancer treatment, and high-performance materials, while also providing gamma irradiation systems. The Nelson Labs segment delivers outsourced microbiological and analytical chemistry testing, along with advisory services, primarily to medical device and pharmaceutical customers.
SHC is classified within the Life Sciences Tools & Services sub-industry of the broader Health Care sector, reflecting its role as a mission-critical outsourced partner for medical device and pharmaceutical manufacturers. Sterilization services such as EtO and gamma irradiation are essential steps in the medical device supply chain, helping ensure product safety and regulatory compliance before products reach end users.
- Ethylene oxide lawsuits and EPA emissions scrutiny pressure Sterigenics margins
- Nordion Cobalt-60 demand supports high-margin sterilization inputs
- Nelson Labs testing and advisory revenue grows on pharma compliance needs
| Net Income: 117.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.37 > 1.0 |
| NWC/Revenue: 31.80% < 20% (prev 29.73%; Δ 2.08% < -1%) |
| CFO/TA 0.08 > 3% & CFO 261.1m > Net Income 117.8m |
| Net Debt (2.09b) to EBITDA (488.8m): 4.27 < 3 |
| Current Ratio: 2.82 > 1.5 & < 3 |
| Outstanding Shares: last quarter (287.6m) vs 12m ago 1.43% < -2% |
| Gross Margin: 55.01% > 18% (prev 55.17%; Δ -0.16% > 0.5%) |
| Asset Turnover: 37.55% > 50% (prev 35.73%; Δ 1.82% > 0%) |
| Interest Coverage Ratio: 2.37 > 6 (EBIT TTM 354.6m / Interest Expense TTM 149.6m) |
| A: 0.12 (Total Current Assets 586.0m - Total Current Liabilities 207.8m) / Total Assets 3.24b |
| B: -0.16 (Retained Earnings -505.5m / Total Assets 3.24b) |
| C: 0.11 (EBIT TTM 354.6m / Avg Total Assets 3.17b) |
| D: 0.24 (Book Value of Equity 622.5m / Total Liabilities 2.61b) |
| Altman-Z'' = 1.26 = BB |
| DSRI: 1.07 (Receivables 176.3m/153.1m, Revenue 1.19b/1.11b) |
| GMI: 1.00 (GM 55.17% / 55.01%) |
| AQI: 0.96 (AQ_t 0.46 / AQ_t-1 0.47) |
| SGI: 1.07 (Revenue 1.19b / 1.11b) |
| TATA: -0.04 (NI 117.8m - CFO 261.1m) / TA 3.24b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of July 11, 2026, the stock is trading at USD 18.42 with a total of 2,246,693 shares traded. Over the past week, the price has changed by +2.73%, over one month by +13.21%, over three months by +19.92% and over the past year by +54.92%.
Current recommended Stop Loss: 17.20 (which is 6.6% or 2.4 ATR below the current price).
Sotera Health has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy SHC.
- StrongBuy: 3
- Buy: 2
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 20.2 | 9.8% |
P/E Trailing = 42.7674
P/E Forward = 17.6678
P/S = 4.4101
P/B = 8.0075
P/EG = 1.6829
Revenue TTM = 1.19b USD
EBIT TTM = 354.6m USD
EBITDA TTM = 488.8m USD
Long Term Debt = 2.12b USD (from longTermDebt, last quarter)
Short Term Debt = 23.3m USD (from shortTermDebt, last quarter)
Debt = 2.40b USD (from shortLongTermDebtTotal, last quarter) + Leases 131.9m
Net Debt = 2.09b USD (calculated: Debt 2.40b - CCE 315.9m)
Enterprise Value = 7.33b USD (5.24b + Debt 2.40b - CCE 315.9m)
Interest Coverage Ratio = 2.37 (Ebit TTM 354.6m / Interest Expense TTM 149.6m)
EV/FCF = 75.69x (Enterprise Value 7.33b / FCF TTM 96.8m)
FCF Yield = 1.32% (FCF TTM 96.8m / Enterprise Value 7.33b)
FCF Margin = 8.14% (FCF TTM 96.8m / Revenue TTM 1.19b)
Net Margin = 9.91% (Net Income TTM 117.8m / Revenue TTM 1.19b)
Gross Margin = 55.01% ((Revenue TTM 1.19b - Cost of Revenue TTM 535.0m) / Revenue TTM)
Gross Margin QoQ = 51.43% (prev 54.68%)
Tobins Q-Ratio = 2.27 (Enterprise Value 7.33b / Total Assets 3.24b)
Interest Expense / Debt = 6.23% (Interest Expense 149.6m / Debt 2.40b)
Taxrate = 42.52% (87.1m / 204.9m)
NOPAT = 203.8m (EBIT 354.6m * (1 - 42.52%))
Current Ratio = 2.82 (Total Current Assets 586.0m / Total Current Liabilities 207.8m)
Debt / Equity = 3.86 (Debt 2.40b / totalStockholderEquity, last quarter 622.5m)
Debt / EBITDA = 4.27 (Net Debt 2.09b / EBITDA 488.8m)
Debt / FCF = 21.54 (Net Debt 2.09b / FCF TTM 96.8m)
Total Stockholder Equity = 572.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.72% (Net Income 117.8m / Total Assets 3.24b)
RoE = 20.57% (Net Income TTM 117.8m / Total Stockholder Equity 572.6m)
RoCE = 13.15% (EBIT 354.6m / Capital Employed (Equity 572.6m + L.T.Debt 2.12b))
RoIC = 6.81% (NOPAT 203.8m / Invested Capital 2.99b)
WACC = 7.45% (E(5.24b)/V(7.65b) * Re(9.23%) + D(2.40b)/V(7.65b) * Rd(6.23%) * (1-Tc(0.43)))
Discount Rate = 9.23% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.33 | Cagr: 0.67%
[DCF] Terminal Value 74.45% ; FCFF base≈99.7m ; Y1≈94.3m ; Y5≈88.7m
[DCF] Fair Price = N/A (negative equity: EV 1.40b - Net Debt 2.09b = -688.8m; debt exceeds intrinsic value)
EPS Correlation: 80.07 | EPS CAGR: 9.20% | SUE: 0.64 | # QB: 0
Revenue Correlation: 94.21 | Revenue CAGR: 6.47% | SUE: 1.50 | # QB: 1
EPS current Quarter (2026-06-30): EPS=0.24 | Chg30d=-0.37% | Revisions=-40% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.27 | Chg30d=-0.11% | Revisions=-40% | Analysts=10
EPS current Year (2026-12-31): EPS=0.97 | Chg30d=-0.36% | Revisions=-40% | GrowthEPS=+12.7% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=1.06 | Chg30d=+0.03% | Revisions=+38% | GrowthEPS=+9.7% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -21% (up=4, down=7)