Sotera Health Co
NASDAQ:SHC

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Sotera Health Co
NASDAQ:SHC
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Price: 12.82 USD 3.3% Market Closed
Market Cap: 3.6B USD
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Intrinsic Value

The intrinsic value of one SHC stock under the Base Case scenario is 21 USD. Compared to the current market price of 12.82 USD, Sotera Health Co is Undervalued by 39%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

SHC Intrinsic Value
21 USD
Undervaluation 39%
Intrinsic Value
Price
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Sotera Health Co

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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Fundamental Analysis

Economic Moat
Sotera Health Co

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Annual
Quarterly
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Annual
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TTM

Balance Sheet Decomposition
Sotera Health Co

Current Assets 563.6m
Cash & Short-Term Investments 306.7m
Receivables 177.3m
Other Current Assets 79.6m
Non-Current Assets 2.6B
PP&E 1.1B
Intangibles 1.4B
Other Non-Current Assets 80.1m
Current Liabilities 195.5m
Accounts Payable 70.8m
Accrued Liabilities 82.6m
Other Current Liabilities 42.2m
Non-Current Liabilities 2.5B
Long-Term Debt 2.3B
Other Non-Current Liabilities 174.3m
Efficiency

Earnings Waterfall
Sotera Health Co

Revenue
1.4B USD
Cost of Revenue
-623.5m USD
Gross Profit
745.1m USD
Operating Expenses
-377.5m USD
Operating Income
367.7m USD
Other Expenses
-290.9m USD
Net Income
76.8m USD

Free Cash Flow Analysis
Sotera Health Co

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

Sotera Health achieved a notable 8.5% revenue growth year-over-year in Q3 2024, totaling $285 million, with adjusted EBITDA rising 9% to $146 million. Adjusted EPS increased to $0.17, up by $0.01 from last year. Key segments showed varied performance: Sterigenics grew 4.3%, while Nordion surged 28% due to timing in reactor harvests. Looking forward, the company reaffirms its 2024 guidance, expecting revenue and adjusted EBITDA growth between 4% to 6%. Adjusted EBITDA margins are anticipated to approach 50%, with specific declines expected in Nelson Labs revenue in Q4. Overall, positive trends indicate a robust market position.

What is Earnings Call?
Fundamental Scores

SHC Profitability Score
Profitability Due Diligence

Sotera Health Co's profitability score is 51/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
ROE is Increasing
Positive Operating Income
Positive 3-Years Revenue Growth
51/100
Profitability
Score

Sotera Health Co's profitability score is 51/100. The higher the profitability score, the more profitable the company is.

SHC Solvency Score
Solvency Due Diligence

Sotera Health Co's solvency score is 29/100. The higher the solvency score, the more solvent the company is.

Short-Term Solvency
Long-Term Solvency
Low Altman Z-Score
Positive Net Debt
29/100
Solvency
Score

Sotera Health Co's solvency score is 29/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

SHC Price Targets Summary
Sotera Health Co

Wall Street analysts forecast SHC stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for SHC is 17.78 USD with a low forecast of 15.15 USD and a high forecast of 21 USD.

Lowest
Price Target
15.15 USD
18% Upside
Average
Price Target
17.78 USD
39% Upside
Highest
Price Target
21 USD
64% Upside
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Dividends

Sotera Health Co
does not pay dividends
Shareholder Yield

Current shareholder yield for SHC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

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Ownership

SHC Insider Trading
Buy and sell transactions by insiders

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Profile

Sotera Health Co Logo
Sotera Health Co

Country

United States of America

Industry

Life Sciences Tools & Services

Market Cap

3.6B USD

Dividend Yield

0%

Description

Sotera Health Co. provides mission-critical sterilization, lab testing and advisory services to the medical device and pharmaceutical industries. The company is headquartered in Broadview Heights, Ohio and currently employs 3,000 full-time employees. The company went IPO on 2020-11-20. The firm operates through three segments: Sterigenics, Nordion and Nelson Labs. The Sterilization Services includes products, such as procedure kits and trays, implants, syringes, catheters, wound care products, medical protective barriers, including personal protective equipment (PPE), laboratory products and pharmaceuticals. Its lab testing and advisory services offer microbiological and analytical chemistry laboratory tests across the medical device and pharmaceutical industries. Its medical device testing services include microbiology, biocompatibility and toxicology assessments, material characterization, sterilization validation, sterility assurance. Its pharmaceutical lab testing services include microbiology, biocompatibility and toxicology assessments, extractables and leachables evaluations of pharmaceutical containers.

Contact

OHIO
Broadview Heights
9100 South Hills Blvd, Suite 300, Suite 300
+14402621410.0
soterahealth.com

IPO

2020-11-20

Employees

3 000

Officers

Chairman & CEO
Mr. Michael B. Petras Jr.
Senior VP & CFO
Mr. Jonathan M. Lyons
Senior VP, General Counsel & Secretary
Mr. Alexander Dimitrief
President of Sterigenics
Mr. Michael P. Rutz
Chief Information Officer
Mr. Robert G. Hauzie
Chief Marketing Officer
Ms. Kristin A. Gibbs
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Senior Vice President of Strategy & Corporate Development
Mr. William O. Lehmann Jr., J.D., M.B.A.
Chief Human Resources Officer
Ms. Sally R. Turner
Senior Vice President of Global Environmental, Health & Safety and Sustainability
Ms. Danielle J. Menture
President of Nelson Labs
Mr. Joseph A. Shrawder
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See Also

Discover More
What is the Intrinsic Value of one SHC stock?

The intrinsic value of one SHC stock under the Base Case scenario is 21 USD.

Is SHC stock undervalued or overvalued?

Compared to the current market price of 12.82 USD, Sotera Health Co is Undervalued by 39%.

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