Sotera Health Company
Sotera Health Company Fundamental Analysis
Sotera Health Company (SHC) shows weak financial fundamentals with a PE ratio of 48.71, profit margin of 6.70%, and ROE of 14.98%. The company generates $1.2B in annual revenue with moderate year-over-year growth of 4.88%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SHC's fundamental strength across five key dimensions:
Efficiency Score
WeakSHC struggles to generate sufficient returns from assets.
Valuation Score
ModerateSHC shows balanced valuation metrics.
Growth Score
WeakSHC faces weak or negative growth trends.
Financial Health Score
ModerateSHC shows balanced financial health with some risks.
Profitability Score
WeakSHC struggles to sustain strong margins.
Key Financial Metrics
Is SHC Expensive or Cheap?
P/E Ratio
SHC trades at 48.71 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SHC's PEG of 1.16 indicates fair valuation.
Price to Book
The market values Sotera Health Company at 6.27 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 4.20 times EBITDA. This is generally considered low.
How Well Does SHC Make Money?
Net Profit Margin
For every $100 in sales, Sotera Health Company keeps $6.70 as profit after all expenses.
Operating Margin
Core operations generate 33.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.98 in profit for every $100 of shareholder equity.
ROA
Sotera Health Company generates $2.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Sotera Health Company produces operating cash flow of $285.58M, showing steady but balanced cash generation.
Free Cash Flow
Sotera Health Company generates strong free cash flow of $147.35M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.52 in free cash annually.
FCF Yield
SHC converts 3.87% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
48.71
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.16
vs 25 benchmark
P/B Ratio
Price to book value ratio
6.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.27
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
3.75
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How SHC Stacks Against Its Sector Peers
| Metric | SHC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 48.71 | 28.25 | Worse (Expensive) |
| ROE | 14.98% | 780.00% | Weak |
| Net Margin | 6.70% | -20122.00% (disorted) | Weak |
| Debt/Equity | 3.75 | 0.30 | Weak (High Leverage) |
| Current Ratio | 2.46 | 4.66 | Strong Liquidity |
| ROA | 2.39% | -14687.00% (disorted) | Weak |
SHC outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Sotera Health Company's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.20%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
314.17%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
51.28%
Industry Style: Defensive, Growth, Innovation
High Growth