SHC

Sotera Health Company

Fundamental data last updated:September 6, 2026

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company profile

SECTOR

Healthcare

industry

Medical - Diagnostics & Research

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Sotera Health Company provides sterilization, and lab testing and advisory services in the United States, Canada, Europe, and internationally. The company's sterilization services include gamma and electron beam irradiation, and EO processing; Nelson Labs comprise microbiological and analytical chemistry testing; and advisory services for medical device and biopharmaceutical industries. It serves medical devices; pharmaceuticals; food and agricultural products; and commercial, advanced, and specialty application industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2017 and is headquartered in Broadview Heights, Ohio.

 


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VALUATION

P/E

38.09

Market Cap ($M USD)

$4.49B

Forward P/E

12.50

PEG

0.06

PRICE TO SALES

3.78

PRICE TO BOOK

7.21

EV / EBITDA

12.94

5-Year Average P/E

Free Cash Flow Yield

2.11%

DCF Value

$-3.01

Graham Number

$4.51

Price to FCF

47.38

EV to FCF

68.00

Earnings Yield

2.63%

FCF Yield

2.11%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$0.41

Next Year EPS Growth Estimate

$1.26

Next Year Revenue Growth Estimate

$1.48B

Return on Equity (ROE)

20.57%

FREE CASH FLOW

Operating Margin

35.52%

Debt-to-Equity

3.75

Piotroski F-Score

7

Altman Z-Score

1.70

Return on Invested Capital (ROIC)

13.95%

Current Ratio

2.82

Quick Ratio

2.52

Net Debt to EBITDA

3.92

Interest Coverage

2.82

Gross Profit margin

55.01%

FCF PER SHARE

$0.33

REVENUE PER SHARE

$4.17

Analyze SHC on TradingView

Gainseekers Quantitative Analysis

Summary

SHC Sotera Health Company appears to be a paradox in valuation. Despite a snapshot price that traded significantly below its DCF Value, the Forward P/E of 12.52 suggests the market expects robust future earnings growth. However, the Altman Z-score of 1.69 raises red flags about financial distress risk. The Earnings Yield of 2.62% is underwhelming, hinting at limited immediate returns. This stock is a complex blend of potential and peril, with the market potentially mispricing its intrinsic value.

AI Exposure / Tech Reliance

Operating in the Medical - Diagnostics & Research industry, SHC is well-positioned to leverage AI advancements. The sector's reliance on data analytics and precision diagnostics aligns with AI's strengths, offering opportunities for enhanced operational efficiency. This adaptability could bolster SHC's competitive edge in a rapidly evolving tech landscape.

The Bull Case

For the value-driven investor, SHC offers compelling reasons to buy. The ROIC of 13.69% indicates efficient capital use, while a Piotroski F-Score of 7 suggests strong financial health. With a robust Operating Margin of 34.86%, the company demonstrates significant pricing power. Despite a modest FCF Yield, these metrics collectively paint a picture of a company capable of generating substantial returns on investment.

The Bear Case

Yet, SHC is not without its pitfalls. The Price/Book ratio of 7.22 and Price/Sales of 3.78 signal potential overvaluation concerns. The EV to FCF ratio of 68.09 underscores a troubling cash flow situation, suggesting that the company struggles to convert earnings into free cash. Additionally, a Net Debt to EBITDA ratio of 3.92 highlights leverage risks, making it vulnerable in volatile markets.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$22.00

Institutional Ownership %

1-Year Beta

1.82

Insider Buying % (6 Mo)

Distance to 52-Week High

26.03%

Distance to 52-Week Low

31.46%

EARNINGS SURPRISE %

5.88%

50-DAY SMA

$15.16

200-DAY SMA

$16.26

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.