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Sotera Health Company (SHC)

NEUTRAL
HealthcareDiagnostics & ResearchUnited States

Fundamental

58

Price

$19.54

Market Cap

$5.48B

Part 1 · What the company is worth

Overview

Sotera Health Company provides sterilization solutions, lab testing, and advisory services for the healthcare industry in the United States, Canada, Europe, and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment offers outsourced terminal sterilization and irradiation services using gamma irradiation, ethylene oxide processing, and electron beam irradiation technologies for medical devices, pharmaceutical, and food safety and advanced applications markets. The Nordion segment provides Cobalt-60 used in the sterilization and irradiation processes for the medical device, pharmaceutical, food safety, and high-performance materials industries, as well as in the treatment of cancer. It also offers gamma irradiation systems. The Nelson Labs segment provides outsourced microbiological and analytical chemistry testing and advisory services for the medical device and pharmaceutical 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 2015 and is headquartered in Broadview Heights, Ohio.

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Direct competitors

Who this company fights with for the same customers

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No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$1.22B

Trailing 12 months (through 6/30/2026)

Net Income

$163M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$149M

Total Equity

$606M

Total Liabilities

$2.66B

Current Ratio

2.80

Interest Coverage

-

Debt/EBITDA

3.93

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseOvervalued

Fair Value

$13.10

Current Price

$19.54

Margin of Safety

-49.1%

Fair Value Range

$8.52 - $17.69

Estimation Methods

Analyst price target:$22.72
Discounted cash flow (DCF):$6.90
Earnings multiple (P/E):$9.99
Graham growth formula:$9.28
Earnings power value (EPV):$6.43
Justified P/B:$3.14
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:$23.68
Revenue multiple:Not enough data to compute it
Analyst Consensus:Strong Buy (12B / 3H / 0S)
Last Earnings Surprise:+7.62%

Valuation Metrics

P/E Ratio

33.63

ROE

12.9%

P/B Ratio

8.22

P/FCF

48.54

Gross Margin

55.0%

ROIC

-

Profitability Radar

Value Creation (Economic Moat)

ROIC

-

WACC

10.4%

ROIC − WACC

-

Fundamental Analysis Criteria

Passed (13)

  • EPS shows upward trend
  • Gross Margin 55.0%
  • Positive Free Cash Flow
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 20.6%
  • Revenue Growth 5Y 7.3%
  • Analyst Consensus 80% Buy
  • Earnings Surprise avg 8.4%
  • Earnings Quality (OCF/NI) 1.79
  • Net Margin Trend 13.4% vs 2.1%
  • Piotroski F-Score 6/9

Failed (9)

  • Price CAGR -5.48%
  • P/FCF 48.54
  • P/B Ratio 8.22
  • Debt/Equity ratio
  • CapEx intensity
  • Low reliance on intangibles
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Share Dilution 4.0%

Unavailable (5)

  • ROIC NaN%
  • Dividend Payout NaN%
  • Operating Margin NaN%
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.79

High quality: earnings backed by cash

Share Dilution

4.0%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Michael B. Petras Jr.Executive Chairman of the Board56
Mr. Jonathan M. LyonsSenior VP & CFO47
Mr. Michael P. RutzPresident of Sterigenics U.S., LLC54
Mr. Alton E. ShaderCEO & Director52
Mr. Robert G. HauzieChief Information Officer-
Ms. Erika OstrowskiSenior VP, General Counsel & Corporate Secretary-
Ms. Kristin A. GibbsChief Marketing Officer-
Mr. William O. Lehmann Jr., J.D., M.B.A.Senior Vice President of Strategy & Corporate Development59
Ms. Sally R. TurnerChief Human Resources Officer-
Ms. Danielle J. MentureSenior Vice President of Global Environmental, Health & Safety and Sustainability-

Audit Risk

4

Board Risk

7

Compensation Risk

5

Shareholder Rights Risk

7

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for SHC, sourced from Markets Gazette.

  • 3/15/2026NEUTRAL
    Sotera Health Shares Rise 18% in a Year. Here's What a $37 Million Stake Trim Signals

    Sotera Health Company shares have seen an 18% increase over the past year, with recent activity indicating a significant stake trim by an insider amounting to $37 million. Sotera Health provides crucial sterilization and laboratory testing services to highly regulated industries globally, playing a vital role in maintaining essential supply chains. While the stock has performed well, the substantial insider sale could signal a divergence of opinion on future valuation or a need for liquidity, warranting investor attention.

  • 3/2/2026NEGATIVE
    Sotera Health Up 30% This Past Year, so Why Did One Fund Sell $4 Million in Shares?

    Sotera Health, a global provider of sterilization and laboratory solutions to the healthcare, pharmaceutical, and food industries, has seen an impressive 30% growth over the past year. Despite this robust performance, an unidentified fund divested $4 million worth of shares. This move raises questions among investors: why would an institutional entity sell such a significant stake in a rapidly growing company? It could signal strategic profit-taking, a portfolio rebalancing, or potentially a less optimistic view on the company's future prospects not yet apparent to the broader market. Investors should closely monitor upcoming developments and the rationale behind this significant divestment.

  • 2/24/2026NEUTRAL
    Insights into Sotera Health Q4 Earnings

    Investors are keenly awaiting insights into Sotera Health's fourth-quarter earnings, a pivotal event for assessing the company's performance and future outlook. Analyzing quarterly results is crucial for understanding financial health, revenue growth, and profitability, all of which directly influence market sentiment and investment decisions. While specific details are yet to be disclosed, market focus remains on how Sotera Health navigated operational challenges and opportunities during the period. Key data points, such as revenue, earnings per share (EPS), and future guidance, will be scrutinized to identify trends and potential catalysts for the stock price. Results meeting or exceeding expectations could bolster confidence, whereas a disappointment might trigger a negative reaction.

via Markets Gazette