(SHC) Sotera Health - Overview
Sector: Healthcare | Industry: Diagnostics & Research | Exchange: NASDAQ (USA) | Market Cap: 4.466m USD | Total Return: 28.4% in 12m
Avg Turnover: 52.0M
EPS Trend: 80.1%
Qual. Beats: 0
Rev. Trend: 94.2%
Qual. Beats: 1
Warnings
Altman Z'' 0.78 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
Sotera Health Company (SHC) provides essential sterilization, lab testing, and advisory services for the global healthcare, pharmaceutical, and food safety industries. Operating through three specialized segments-Sterigenics, Nordion, and Nelson Labs-the company utilizes gamma irradiation, ethylene oxide, and electron beam technologies to ensure the safety and efficacy of medical devices and life sciences products.
As a provider of outsourced terminal sterilization, Sotera Health functions as a critical link in the medical supply chain, as approximately 90% of all medical device sterilization is performed using either ethylene oxide or gamma radiation. The company’s Nordion segment is a primary global supplier of Cobalt-60, a radioactive isotope essential for the gamma sterilization process and certain cancer treatments.
Investors may find it useful to evaluate the companys long-term contract structures and regulatory positioning on ValueRay. Headquartered in Ohio, the firm supports a broad international client base by providing microbiological testing and analytical chemistry services that assist manufacturers in meeting stringent global compliance standards.
- Ethylene oxide litigation settlements and regulatory compliance costs impact long-term liability
- Sterilization volume growth tracks global medical device and pharmaceutical manufacturing output
- Cobalt-60 supply chain stability remains critical for Nordion segment revenue generation
- Outsourced microbiological lab testing demand drives Nelson Labs margin expansion
- Rising interest rates influence debt service costs for highly leveraged balance sheet
| Net Income: 117.8m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.03 > 0.02 and ΔFCF/TA -0.43 > 1.0 |
| NWC/Revenue: 31.80% < 20% (prev 29.73%; Δ 2.08% < -1%) |
| CFO/TA 0.08 > 3% & CFO 259.1m > Net Income 117.8m |
| Net Debt (2.09b) to EBITDA (498.1m): 4.19 < 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 0.55%; Δ 5.45k% > 0.5%) |
| Asset Turnover: 37.55% > 50% (prev 35.73%; Δ 1.82% > 0%) |
| Interest Coverage Ratio: 2.43 > 6 (EBITDA TTM 498.1m / 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 363.9m / Avg Total Assets 3.17b) |
| D: -0.24 (Book Value of Equity -628.6m / Total Liabilities 2.61b) |
| Altman-Z'' = 0.78 = B |
| DSRI: 1.07 (Receivables 176.3m/153.1m, Revenue 1.19b/1.11b) |
| GMI: 1.00 (GM 55.01% / 55.17%) |
| 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 259.1m) / TA 3.24b) |
| Beneish M = -2.98 (Cap -4..+1) = A |
As of May 27, 2026, the stock is trading at USD 15.96 with a total of 3,068,790 shares traded.
Over the past week, the price has changed by +3.97%,
over one month by +0.95%,
over three months by -3.10% and
over the past year by +28.40%.
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 | 20.1 | 26.1% |
P/E Trailing = 38.1951
P/E Forward = 15.6495
P/S = 3.7554
P/B = 7.1738
P/EG = 1.6829
Revenue TTM = 1.19b USD
EBIT TTM = 363.9m USD
EBITDA TTM = 498.1m 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 = 6.55b USD (4.47b + Debt 2.40b - CCE 315.9m)
Interest Coverage Ratio = 2.43 (Ebit TTM 363.9m / Interest Expense TTM 149.6m)
EV/FCF = 69.12x (Enterprise Value 6.55b / FCF TTM 94.8m)
FCF Yield = 1.45% (FCF TTM 94.8m / Enterprise Value 6.55b)
FCF Margin = 7.97% (FCF TTM 94.8m / 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 = 2.02 (Enterprise Value 6.55b / Total Assets 3.24b)
Interest Expense / Debt = 6.23% (Interest Expense 149.6m / Debt 2.40b)
Taxrate = 37.60% (16.0m / 42.6m)
NOPAT = 227.1m (EBIT 363.9m * (1 - 37.60%))
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 = 4.19 (Net Debt 2.09b / EBITDA 498.1m)
Debt / FCF = 22.01 (Net Debt 2.09b / FCF TTM 94.8m)
Total Stockholder Equity = 572.6m (last 4 quarters mean from totalStockholderEquity)
RoA = 3.72% (Net Income 117.8m / Total Assets 3.24b)
RoE = 10.93% (Net Income TTM 117.8m / Total Stockholder Equity 1.08b)
RoCE = 11.36% (EBIT 363.9m / Capital Employed (Equity 1.08b + L.T.Debt 2.12b))
RoIC = 7.48% (NOPAT 227.1m / Invested Capital 3.03b)
WACC = 7.58% (E(4.47b)/V(6.87b) * Re(9.57%) + D(2.40b)/V(6.87b) * Rd(6.23%) * (1-Tc(0.38)))
Discount Rate = 9.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 73.33 | Cagr: 0.67%
[DCF] Terminal Value 74.14% ; FCFF base≈98.5m ; Y1≈91.5m ; Y5≈83.0m
[DCF] Fair Price = N/A (negative equity: EV 1.31b - Net Debt 2.09b = -772.4m; 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=-1.67% | Revisions=-40% | Analysts=10
EPS next Quarter (2026-09-30): EPS=0.27 | Chg30d=+0.44% | Revisions=+20% | Analysts=10
EPS current Year (2026-12-31): EPS=0.97 | Chg30d=+0.74% | Revisions=+20% | GrowthEPS=+12.9% | GrowthRev=+6.7%
EPS next Year (2027-12-31): EPS=1.06 | Chg30d=+1.40% | Revisions=+33% | GrowthEPS=+9.3% | GrowthRev=+5.9%
[Analyst] Revisions Ratio: -40%