Sotera Health Co (SHC) stock analysis
Close on Nov 13, 2026Market cap $4.74BP/E 29.1Yield –
StockData Score
Prices as of Nov 13, 2026How the score works
Weak7 of 30 checks passed
Sotera Health passes 7 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 1/6
- Growth
- 1/6
- Past performance
- 3/6
- Financial health
- 2/6
- Dividend
- 0/6
What stands out
P/E below its 5-year median
Sotera Health's P/E of 29.1 is below its own 5-year median of 60.2.
Growing faster than the industry
Revenue grew 8.1% over the last twelve months; the Health Services median is 2.0%.
Return on equity above the industry
Sotera Health's return on equity of 27.8% is above the Health Services median of 3.6%.
Net margin above its 5-year average
Net margin was 13.4% over the last twelve months, against a 5-year average of 1.0%.
What to watch
Return on equity under 15%
Return on equity was 27.8% over the last twelve months and averaged 2.3% over five years; we look for 15% on both.
High debt
Debt is 321% of shareholders' equity, above the 40% we consider low.
Revenue growing under 10% a year
Revenue grew 5.1% a year over the last three fiscal years, short of the 10% we look for.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 13.7% of total debt; we look for at least 20%.
Valuation1/6
P/E below its 5-year median
Sotera Health's P/E of 29.1 is below its own 5-year median of 60.2.
P/E above the industry
Sotera Health's P/E of 29.1 is above the Health Services median of 24.0.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Sotera Health's price-to-book of 7.12 is above the Health Services median of 4.85.
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growing under 10% a year
Revenue grew 5.1% a year over the last three fiscal years, short of the 10% we look for.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 8.1% over the last twelve months; the Health Services median is 2.0%.
Guidance lowered
Sotera Health lowered its Full-Year 2026 Net revenues outlook on Nov 3, 2026.
Gross margin slipping
Gross margin was 55.0% over the last twelve months, against 55.5% a year earlier.
Past performance3/6
Return on equity under 15%
Return on equity was 27.8% over the last twelve months and averaged 2.3% over five years; we look for 15% on both.
Return on invested capital
Needs operating income and invested capital.
Return on equity above the industry
Sotera Health's return on equity of 27.8% is above the Health Services median of 3.6%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was 13.4% over the last twelve months, against a 5-year average of 1.0%.
Net margin above the industry
Sotera Health's net margin of 13.4% is above the Health Services median of -1.0%.
Financial health2/6
High debt
Debt is 321% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 403% five years ago to 321%.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals 13.7% of total debt; we look for at least 20%.
Interest coverage
Interest expense is not reported separately.
Short-term assets cover short-term debts
Current assets are 2.80 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is 1.40; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Sotera Health has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itWe don't publish a fair value for Sotera Health. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 60.2
- Health Services median 24.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $42.56M
- Value traded per 1% price move
- $28.54M
Downside
Medium risk
- Typical loss in a bad month
- 20.9%
- Volatility (annualized)
- 30%
- Sharpe ratio, 1 year
- -0.08
- Beta to the S&P 500 (5Y)
- 1.59
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +5.7% | +5.1% | +7.3% | – | |
| Gross profit | +7.2% | +5.0% | +7.8% | – | |
| Net income | +75.6% | – | – | – | |
| EPS, diluted | +68.8% | – | – | – | |
| Free cash flow | +230.8% | +16.0% | +17.3% | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 15.4% | |
| Return on assets | – | – | 2.5% | |
| Current ratio | – | 2.24 | 2.46 | |
| Debt to equity | – | 4.03 | 3.53 | |
| Net debt to EBITDA | – | 6.40× | – | |
| Inventory turnover | – | – | 10.0× | |
| Capex to revenue | – | 6.5% | 11.9% | |
| Diluted shares | – | 238M | 286M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Sotera Health generated $1.22B from operations and spent $816.60M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 6.7% | 0.37× | 6.27× | 15.4% |
| FY2024 | 4.0% | 0.35× | 7.31× | 10.5% |
| FY2023 | 4.9% | 0.34× | 7.87× | 12.9% |
| FY2022 | -23.3% | 0.34× | 6.31× | -49.9% |
| FY2021 | 12.5% | 0.34× | 5.35× | 22.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$77.95M
- Cash generatingOperating cash flow above zero$287.20M
- Return on assets improvedROA up on the prior year1.4% → 2.5%
- Earnings backed by cashOperating cash flow above net income$287.20M vs $77.95M
- Less leverageLong-term debt to assets fell71.9% → 65.2%
- Better liquidityCurrent ratio rose2.75 → 2.46
- No dilutionShare count did not rise285M → 286M
- Gross margin improvedGross margin up on the prior year54.73% → 55.48%
- More efficientAsset turnover rose0.35 → 0.38
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