📊 SHC Key Takeaways
Is Sotera Health Co (SHC) a Good Investment?
Sotera Health demonstrates solid operational fundamentals with strong revenue growth (5.7% YoY) and exceptional gross margins (55.5%), supported by robust cash flow generation ($287.2M operating cash flow, $149.2M free cash flow). However, the company's aggressive leverage (3.53x Debt/Equity ratio with $2.1B long-term debt) paired with flat net income growth creates material financial risk that constrains upside potential.
Why Buy Sotera Health Co Stock? SHC Key Strengths
- Exceptional gross margins (55.5%) demonstrating strong pricing power and operational efficiency
- Robust cash generation with $287.2M operating cash flow and 12.8% FCF margin supporting debt service capacity
- Strong liquidity position with 2.46x current ratio and $344.6M cash reserves providing financial flexibility
- Consistent revenue growth of 5.7% YoY in defensive healthcare services sector
SHC Stock Risks: Sotera Health Co Investment Risks
- Excessive leverage with 3.53x Debt/Equity ratio and $2.1B long-term debt limiting financial flexibility
- Stagnant net income growth (flat YoY) despite 5.7% revenue growth suggests margin compression or operational headwinds
- Low ROA of 2.4% indicates asset-heavy business model with limited capital efficiency
- Implied interest coverage ratio appears tight given $2.1B debt against $147.5M operating income, constraining debt reduction capacity
Key Metrics to Watch
- Net income growth trajectory and operating margin expansion to validate revenue growth sustainability
- Debt reduction progress and leverage ratio trajectory to assess deleveraging commitment
- Free cash flow stability and allocation between debt paydown versus growth investments
Sotera Health Co (SHC) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.46x current ratio provides a solid financial cushion.
SHC Profit Margin, ROE & Profitability Analysis
SHC vs Services Sector: How Sotera Health Co Compares
How Sotera Health Co compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Sotera Health Co Stock Overvalued? SHC Valuation Analysis 2026
Based on fundamental analysis, Sotera Health Co has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Sotera Health Co Balance Sheet: SHC Debt, Cash & Liquidity
SHC Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Sotera Health Co's revenue has grown significantly by 25% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.18 reflects profitable operations.
SHC Revenue Growth, EPS Growth & YoY Performance
SHC Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $285.5M | $17.0M | $0.06 |
| Q2 2025 | $276.6M | -$5.3M | $-0.02 |
| Q1 2025 | $248.2M | N/A | $0.02 |
| Q3 2024 | $263.2M | $12.7M | $0.04 |
| Q2 2024 | $255.3M | $8.8M | $0.03 |
| Q1 2024 | $220.6M | N/A | $0.01 |
| Q3 2023 | $248.7M | $12.7M | $0.04 |
| Q2 2023 | $255.3M | $23.5M | $0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Sotera Health Co Dividends, Buybacks & Capital Allocation
SHC SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Sotera Health Co (CIK: 0001822479)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SHC
What is the AI rating for SHC?
Sotera Health Co (SHC) has an AI rating of HOLD with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SHC's key strengths?
Claude: Exceptional gross margins (55.5%) demonstrating strong pricing power and operational efficiency. Robust cash generation with $287.2M operating cash flow and 12.8% FCF margin supporting debt service capacity.
What are the risks of investing in SHC?
Claude: Excessive leverage with 3.53x Debt/Equity ratio and $2.1B long-term debt limiting financial flexibility. Stagnant net income growth (flat YoY) despite 5.7% revenue growth suggests margin compression or operational headwinds.
What is SHC's revenue and growth?
Sotera Health Co reported revenue of $1.2B.
Does SHC pay dividends?
Sotera Health Co does not currently pay dividends.
Where can I find SHC SEC filings?
Official SEC filings for Sotera Health Co (CIK: 0001822479) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SHC's EPS?
Sotera Health Co has a diluted EPS of $0.27.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SHC a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Sotera Health Co has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SHC stock overvalued or undervalued?
Valuation metrics for SHC: ROE of 12.9% (sector avg: 16%), net margin of 6.7% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy SHC stock in 2026?
Our dual AI analysis gives Sotera Health Co a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SHC's free cash flow?
Sotera Health Co's operating cash flow is $287.2M, with capital expenditures of $138.0M. FCF margin is 12.8%.
How does SHC compare to other Services stocks?
Vs Services sector averages: Net margin 6.7% (avg: 10%), ROE 12.9% (avg: 16%), current ratio 2.46 (avg: 1.5).
Is Sotera Health Co carrying too much debt?
SHC has a debt-to-equity ratio of 3.53x, which is above the Services sector average of 0.7x. However, the current ratio of 2.46 suggests adequate short-term liquidity.