Sotera Health SHC
United StatesHealthcare · Diagnostics & ResearchUSD
22.72 USD (+26.9%)
9 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Sotera Health Company is a provider of sterilization services and laboratory science, operating through its Sterigenics, Nordion, and Nelson Labs brands, offering critical solutions for product safety in the healthcare and life sciences industries.
Key points
from its scores- ✓Strong growth8.3
- ✓Very solid balance sheet7.0
- ✕Little or no dividend1.5
- ✕Unfavourable risk and backdrop1.9
- !Somewhat demanding valuation5.1
AI analysis
bottom line, main risk, context and newsBusiness quality and growth are attractive, but debt and cash generation limit near-term re-rating potential.
Sotera Health shows exceptional earnings growth of 569.5% and an ROE of 27.78%, with an operating margin of 37.96% reflecting a solid competitive moat. However, net debt of 3.31x EBITDA and low free cash flow conversion (26.7%) are weaknesses that the market discounts with a forward P/E of 16.64.
The main risk is financial leverage (Net Debt/EBITDA of 3.31) which, in a rising rate environment, could pressure the balance sheet and limit financial flexibility.
Context and risks
Sotera Health operates in the sterilization services and laboratory science sector, with inherent regulatory exposure to FDA approvals and health and safety regulations. The moderate governance and regulatory risk of the country of domicile (United States) is reflected in a slight penalty, with no known specific litigation or investigations aggravating the risk profile.
Is Sotera Health stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Healthcare median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 31.4 | 26.7 | +17% |
| EV / EBITDA | 12.2 | 14.5 | −16% |
| Price / book | 7.7 | 4.1 | +87% |
| Price / sales | 4.2 | 3.4 | +23% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.1 out of 10 (median for Healthcare: 4.7).
Average analyst target: 22.72 USD, +26.9% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 31.4
- Forward P/E
- 16.6
- EV / EBITDA
- 12.2
- Price / book
- 7.7
- Price / sales
- 4.2
- PEG
- 1.31
- Market cap
- 5.1B USD
- Enterprise value
- 7.0B USD
Profitability
- ROE
- 27.8%
- ROA
- 8.6%
- ROIC (approx.)
- 15.7%
- Gross margin
- 55.0%
- Operating margin
- 38.0%
- Net margin
- 13.4%
- Free cash flow
- 154.0M USD
- FCF yield
- 3.0%
- Cash conversion
- 27%
Solvency
- Total debt
- 2.3B USD
- Net debt
- 1.9B USD
- Cash
- 357.0M USD
- EBITDA
- 576.6M USD
- Net debt / EBITDA
- 3.31
- Debt / equity
- 340.73
- Current ratio
- 2.80
- Quick ratio
- 2.40
Growth
- Revenue growth
- +9.2%
- Earnings growth
- +569.5%
- EPS (TTM)
- 0.57 USD
- EPS (forward)
- 1.08 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 1.85
- Analyst consensus
- Buy (9)
- Target price
- 22.72 USD
- 52-week range
- 13.09 – 19.85
Recent news
All SHC news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about Sotera Health
Is Sotera Health stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Healthcare median (within 15%). Valuation score: 5.1 out of 10 (median for Healthcare: 4.7). Average analyst target: 22.72 USD, +26.9% versus the price. This is not investment advice.
What score does Sotera Health get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,369 of 2,130 (better than 35% of the companies analysed). Its strongest category is Growth (8.3) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is Sotera Health's P/E ratio?
Its P/E is 31.4: the share price equals 31.4 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 16.6.
How much is Sotera Health worth on the stock market?
Its market capitalisation is 5.1B USD and its enterprise value, debt included, is 7.0B USD.
How much debt does Sotera Health have?
Its net debt (debt minus cash) is 1.9B USD. That is 3.31 times its EBITDA; the Healthcare median is 1.53.
Does Sotera Health pay a dividend?
It pays no dividend, or almost none.
How has Sotera Health stock performed over the last year?
It has risen 16.6% over the last year, excluding dividends. Over the last 52 weeks it has traded between 13.09 and 19.85 USD. Past performance does not guarantee future results.
What do analysts think of Sotera Health?
9 analysts cover it; their average recommendation is “Buy” and their average target is 22.72 USD (+26.9% versus the price). It is an estimate, not market data.