A Business at a Glance
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Sotera Health Co
SHC
$5.0B
Mkt Cap
$17.35
-0.80%
Sotera Health Co (SHC) has a current P/E ratio of 64.3, compared to its historical median P/E of 74.9. The stock is currently considered Fair based on its historical valuation range.
Sotera Health Co (SHC) has a 5-year average return on invested capital (ROIC) of 7.8%. This is below average and may indicate limited pricing power.
Sotera Health Co (SHC) has a market capitalization of $5.0B. It is classified as a mid-cap stock.
Sotera Health Co (SHC) does not currently pay a regular dividend.
Based on historical P/E analysis, Sotera Health Co (SHC) appears fair. The current P/E of 64.3 is 14% below its historical median of 74.9. The estimated fair value CAGR (P/E method) is 11.0%.
Sotera Health Co (SHC) operates in the Services-Misc Health & Allied Services, Nec industry, within the Healthcare sector.
Sotera Health Co (SHC) reported annual revenue of $1.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Sotera Health is a leading global provider of mission-critical end-to-end sterilization solutions, microbiological and analytical lab testing, and advisory services for the healthcare industry, serving over 40 of the top 50 medical device companies and nine of the top ten global pharmaceutical companies. The company operates three primary business segments: Sterigenics, which provides terminal sterilization services using gamma irradiation, EO processing, and E-beam irradiation across 62 facilities in over 50 countries; Nordion, which supplies medical isotopes and sterilization services; and Nelson Labs, which delivers microbiological testing and analytical services. Sterigenics' sterilization services are essential, often government-mandated steps in manufacturing medical devices, pharmaceuticals, and food products, with customers determining sterilization methods based on product requirements and regulatory needs. The business model is asset-intensive with capital expenditures supporting facility expansion and technology development, while generating recurring revenue from deeply embedded, mission-critical services in customer supply chains. Nelson Labs operates on a testing and advisory services model, with segment income margins in the low to mid-30s range. The company's competitive moat derives from its industry-recognized scientific expertise, regulatory compliance capabilities, global facility network strategically positioned near customer manufacturing sites, and the essential nature of its services in healthcare product safety and regulatory approval processes.
【Steady operational leverage ahead】 Management expects continued margin expansion in 2026 driven primarily by Sterigenics operating leverage, with stable margins anticipated across Nordion and Nelson Labs segments. Sterigenics is positioned to deliver mid to high single-digit constant currency revenue growth, supported by new capacity additions including an X-Ray facility and continued investment in alternative sterilization modalities such as NO2-based technologies. Nelson Labs is expected to return to low single-digit growth in 2026 after lapping prior-year expert advisory services headwinds, with segment income margins improving throughout the year to the low to mid-30s range. The company remains focused on deleveraging toward its 2x–3x net leverage target range, with net leverage expected to improve further in 2026 as adjusted free cash flow generation supports both debt reduction and capital investment in growth initiatives.
| Metric | Target | Period |
|---|---|---|
| Total company revenue | $1.233 billion–$1.251 billion | FY2026 |
| Adjusted EBITDA | $632 million–$641 million | FY2026 |
| Adjusted EPS | $0.93–$1.01 | FY2026 |
| Interest expense | $135 million–$145 million | FY2026 |
| Capital expenditures | $175 million–$225 million | FY2026 |
Total company revenue (FY2026): “we expect total company revenue to increase to a range of $1.23 billion-$1.25 billion, representing constant currency growth of 5%-6.5% versus 2025”
Adjusted EBITDA (FY2026): “Adjusted EBITDA to grow to a range of $632 million-$641 million or 5.5%-7% constant currency growth”
Adjusted EPS (FY2026): “We expect Adjusted EPS in the range of $0.93-$1.01”
Interest expense (FY2026): “we expect interest expense between $135 million and $145 million”
Capital expenditures (FY2026): “Capital expenditures are expected to be in the range of $175 million-$225 million”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.2B | 1.2B | 1.1B | 1.0B | 1.0B | 931M |
| Net Income | 118M | 78M | 44M | 51M | -234M | 115M |
| EPS | $0.41 | $0.27 | $0.16 | $0.18 | $-0.83 | $0.41 |
| Free Cash Flow | 97M | 149M | 45M | -363M | 96M | 179M |
| ROIC | 0.0% | 3.8% | 7.5% | 7.7% | 12.0% | 7.7% |
| Gross Margin | 55.3% | 55.5% | 54.7% | 55.0% | 55.5% | 55.7% |
| Debt/Equity | 3.44 | 3.59 | 5.56 | 5.08 | 5.63 | 3.05 |
| Dividends/Share | $0.00 | - | - | - | - | $0.00 |
| Operating Income | 0 | 154M | 298M | 277M | 248M | 257M |
| Operating Margin | 0.0% | 13.2% | 27.0% | 26.4% | 24.7% | 27.6% |
| ROE | 18.9% | 15.4% | 10.4% | 12.9% | -49.9% | 22.2% |
| Shares Outstanding | 286M | 289M | 277M | 284M | 281M | 281M |
| Metric | ||||||||
|---|---|---|---|---|---|---|---|---|
| Income Statement | ||||||||
| Revenue | 778M | 818M | 931M | 1.0B | 1.0B | 1.1B | 1.2B | 1.2B |
| Gross Margin | 50.8% | 54.2% | 55.7% | 55.5% | 55.0% | 54.7% | 55.5% | 55.3% |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 147M | 179M | 198M | 246M | 237M | 243M | 253M | 258M |
| EBIT | 184M | 206M | 257M | 248M | 277M | 298M | 154M | 0 |
| Op. Margin | 23.6% | 25.2% | 27.6% | 24.7% | 26.4% | 27.0% | 13.2% | 0.0% |
| Net Income | -21M | -39M | 115M | -234M | 51M | 44M | 78M | 118M |
| Net Margin | -2.7% | -4.7% | 12.4% | -23.3% | 4.9% | 4.0% | 6.7% | 9.9% |
| Non-Recurring | 5.8M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | ||||||||
| ROIC | 20.3% | 10.1% | 7.7% | 12.0% | 7.7% | 7.5% | 3.8% | 0.0% |
| ROE | 7.0% | 40.9% | 22.2% | -49.9% | 12.9% | 10.4% | 15.4% | 18.9% |
| ROA | -26.0% | -2.7% | 4.2% | -7.9% | 1.6% | 1.4% | 2.5% | 3.6% |
| Cash Flow | ||||||||
| Op. Cash Flow | 149M | 121M | 282M | 278M | -148M | 224M | 287M | 261M |
| Free Cash Flow | 92M | 67M | 179M | 96M | -363M | 45M | 149M | 97M |
| Owner Earnings | 75M | 46M | 203M | 192M | -257M | 103M | 161M | 31M |
| CapEx | 57M | 54M | 102M | 182M | 215M | 179M | 138M | 164M |
| Maint. CapEx | 67M | 63M | 64M | 64M | 77M | 84M | 95M | 192M |
| Growth CapEx | 0 | 0 | 38M | 118M | 138M | 95M | 43M | 0 |
| D&A | 67M | 63M | 64M | 64M | 77M | 84M | 95M | 192M |
| CapEx/OCF | N/A | 44.4% | 36.3% | 65.6% | N/A | 79.9% | 48.1% | 62.9% |
| Capital Allocation | ||||||||
| Dividends Paid | 691M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 34M | 0 | 0 | 0 | 0 | 0 | 0 |
| Buyback Yield | N/A | 0.5% | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Stock-Based Comp | 6.9M | 11M | 14M | 21M | 32M | 37M | 31M | 38M |
| Debt Repayment | 2.6B | 1.2B | 100M | 0 | 2.5M | 2.3B | 86M | 86M |
| Balance Sheet | ||||||||
| Net Debt | 2.5B | 1.8B | 1.7B | 1.6B | 2.0B | 2.0B | 1.8B | 1.8B |
| Cash & Equiv. | 63M | 102M | 107M | 395M | 296M | 277M | 345M | 314M |
| Long-Term Debt | 2.6B | 1.8B | 1.7B | 1.7B | 2.2B | 2.2B | 2.1B | 2.1B |
| Debt/Equity | -3.99 | 4.14 | 3.05 | 5.63 | 5.08 | 5.56 | 3.59 | 3.44 |
| Interest Coverage | 1.2 | 104.7 | 102.4 | 71.9 | 63.0 | 49.1 | 25.2 | 25.2 |
| Equity | -641M | 452M | 586M | 350M | 444M | 405M | 606M | 623M |
| Total Assets | 80M | 2.8B | 2.8B | 3.1B | 3.1B | 3.1B | 3.3B | 3.2B |
| Total Liabilities | 721M | 2.3B | 2.2B | 2.8B | 2.7B | 2.7B | 2.7B | 2.6B |
| Intangibles | N/A | 643M | 599M | 491M | 416M | 318M | 288M | 279M |
| Retained Earnings | N/A | -589M | -472M | -706M | -654M | -610M | -532M | -506M |
| Working Capital | N/A | 174M | 185M | -147M | 327M | 335M | 364M | 378M |
| Current Assets | N/A | 315M | 346M | 645M | 557M | 526M | 613M | 586M |
| Current Liabilities | 724K | 141M | 161M | 792M | 231M | 191M | 250M | 208M |
| Per Share Data | ||||||||
| EPS | -0.09 | -0.16 | 0.41 | -0.83 | 0.18 | 0.16 | 0.27 | 0.41 |
| Owner EPS | 0.33 | 0.19 | 0.72 | 0.68 | -0.90 | 0.37 | 0.56 | 0.11 |
| Book Value | -2.77 | 1.87 | 2.08 | 1.24 | 1.56 | 1.46 | 2.10 | 2.18 |
| Cash Flow/Share | 0.64 | 0.50 | 1.00 | 0.99 | -0.52 | 0.81 | 0.99 | 1.08 |
| Dividends/Share | 2.98 | 0.00 | 0.00 | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 231.7M | 241.4M | 281.4M | 281.4M | 283.8M | 277.1M | 288.7M | 286.0M |
| Valuation | ||||||||
| P/E Ratio | N/A | N/A | 57.0 | N/A | 95.3 | 84.2 | 65.6 | 42.1 |
| P/FCF | N/A | 99.2 | 36.6 | 22.9 | N/A | 82.8 | 34.3 | 51.2 |
| EV/EBIT | N/A | 40.2 | 31.9 | 14.3 | 23.6 | N/A | 769.4 | N/A |
| Price/Book | N/A | 14.7 | 11.4 | 6.3 | 11.0 | 9.2 | 8.4 | 8.0 |
| Price/Sales | N/A | 7.9 | 7.6 | 4.7 | 4.3 | 3.5 | 3.4 | 4.2 |
| FCF Yield | N/A | 1.0% | 2.7% | 4.4% | -7.4% | 1.2% | 2.9% | 2.0% |
| Market Cap | N/A | 6.7B | 6.7B | 2.2B | 4.9B | 3.7B | 5.1B | 5.0B |
| Avg. Price | N/A | 26.75 | 24.84 | 16.70 | 15.81 | 13.86 | 13.77 | 17.35 |
| Year-End Price | N/A | 27.58 | 23.36 | 7.79 | 17.16 | 13.48 | 17.70 | 17.35 |
Sotera Health Co passes 2 of 9 quality checks, indicating weak fundamentals.
Sotera Health Co trades at 64.3x trailing earnings, compared to its 15-year median P/E of 74.9x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 33.1x vs a median of 36.6x. The company's 5-year average ROIC is 7.8% with a gross margin of 55.3%. At current prices, the estimated annualized return to fair value is -2.3%.
Sotera Health Co (SHC) has a net profit margin of 6.7%. This is a modest margin.
Sotera Health Co (SHC) generated $149 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Sotera Health Co (SHC) has a debt-to-equity ratio of 3.59. This indicates higher leverage, which may increase financial risk.
Sotera Health Co (SHC) reported earnings per share (EPS) of $0.27 in its most recent fiscal year.
Sotera Health Co (SHC) has a return on equity (ROE) of 15.4%. This indicates the company generates strong returns for shareholders.
Sotera Health Co (SHC) has a 5-year average gross margin of 55.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 7 years of financial data for Sotera Health Co (SHC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Sotera Health Co (SHC) has a book value per share of $2.10, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued margin expansion in 2026 driven primarily by Sterigenics operating leverage, with stable margins anticipated across Nordion and Nelson Labs segments. Sterigenics is positioned to deliver mid to high single-digit constant currency revenue growth, supported by new capacity additions including an X-Ray facility and continued investment in alternative sterilization modalities such as NO2-based technologies. Nelson Labs is expected to return to low single-digit growth in 2026 after lapping prior-year expert advisory services headwinds, with segment income margins improving throughout the year to the low to mid-30s range. The company remains focused on deleveraging toward its 2x–3x net leverage target range, with net leverage expected to improve further in 2026 as adjusted free cash flow generation supports both debt reduction and capital investment in growth initiatives.
Based on recent SEC filings and earnings calls, Sotera Health Co (SHC) has provided the following forward guidance: Total company revenue: $1.233 billion–$1.251 billion (FY2026); Adjusted EBITDA: $632 million–$641 million (FY2026); Adjusted EPS: $0.93–$1.01 (FY2026); Interest expense: $135 million–$145 million (FY2026); Capital expenditures: $175 million–$225 million (FY2026).
No recent press releases.