(SHC) Sotera Health - Ratings and Ratios

Sotera Health Company (NASDAQ:SHC) is a global provider of critical sterilization, lab testing, and advisory services to the healthcare, medical device, pharmaceutical, and food safety industries. The company operates through three distinct business segments: Sterigenics, Nordion, and Nelson Labs. Sterigenics specializes in outsourced terminal sterilization services using gamma irradiation, ethylene oxide (EO) processing, and electron beam (E-beam) technologies. This segment serves the medical device, pharmaceutical, food safety, and advanced applications markets. Nordion supplies Cobalt-60, a critical isotope used for sterilization, food irradiation, and cancer treatment, while also offering gamma irradiation systems. Nelson Labs provides comprehensive microbiological and analytical chemistry testing, along with advisory services, to ensure compliance and safety for medical devices and pharmaceuticals. Headquartered in Broadview Heights, Ohio, Sotera Health was formed in 2015 and rebranded from Sotera Health Topco, Inc. in October 2020.

From a technical perspective, SHC is currently trading at $11.26 with a 20-day average volume of 1.25 million shares. The stocks short-term trend (SMA 20: $10.77) suggests bearish momentum, while the medium-term (SMA 50: $11.69) and long-term (SMA 200: $13.78) trends indicate a broader downtrend. The Average True Range (ATR) of $0.57 reflects moderate price volatility. On the fundamental side, Soteras market capitalization stands at $2.98 billion, with a trailing P/E of 65.63 and a forward P/E of 20.20, signaling high valuations. The price-to-book (P/B) ratio of 7.44 indicates a premium to book value, while the price-to-sales (P/S) ratio of 2.71 reflects moderate revenue multiples. The return on equity (RoE) of 10.96% suggests reasonable profitability relative to equity.

3-Month Forecast: Based on the technical and fundamental data, Sotera Health Co (SHC) is expected to face headwinds in the near term. The stocks bearish momentum, as indicated by the SMA 20 and SMA 50 trends, coupled with its high valuation multiples (P/E, P/B), may limit upside potential. However, the forward P/E of 20.20 suggests investor expectations of improved earnings. The moderate ATR of $0.57 indicates that price fluctuations are likely to remain contained. Overall, SHC is projected to trade sideways to slightly lower over the next three months, with potential support near the SMA 200 level of $13.78 and resistance at the SMA 50 level of $11.69.