Sotera Health Company (SHC)
NASDAQ:SHC
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Sotera Health
(NASDAQ:SHC)
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Rating:58Neutral
Price Target:
$15.00
▼(-13.79% Downside)
Action:ReiteratedDate:04/01/26
The score is supported by improving fundamentals and a constructive 2026 outlook (growth, slight margin expansion, cash generation and leverage reduction). It is weighed down by a still debt-heavy balance sheet, high earnings multiple (P/E ~64), and bearish technicals with the stock trading below key moving averages despite oversold readings.
Positive Factors
Durable recurring services and long revenue streak
Sotera’s core businesses are mission-critical, fee-for-service sterilization, lab testing and isotope supply used in regulated life-science production. Twenty years of consecutive revenue growth indicate entrenched customer relationships, high switching costs and predictable baseline demand that support multi‑quarter visibility.
Negative Factors
Elevated leverage and debt-heavy capital structure
A still-high absolute debt load constrains strategic flexibility and amplifies interest‑rate and refinancing exposure. Even with improvement, leverage leaves less cushion for demand shocks, increases fixed costs, and prioritizes cash for debt service over discretionary investments for at least several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Durable recurring services and long revenue streak
Sotera’s core businesses are mission-critical, fee-for-service sterilization, lab testing and isotope supply used in regulated life-science production. Twenty years of consecutive revenue growth indicate entrenched customer relationships, high switching costs and predictable baseline demand that support multi‑quarter visibility.
Read all positive factors
Sotera Health (SHC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.46B
Dividend YieldN/A
Average Volume (3M)3.39M
Price to Earnings (P/E)64.3
Beta (1Y)1.21
Revenue Growth2.67%
EPS Growth-21.96%
CountryUS
Employees3,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)0.26
Shares Outstanding284,392,100
10 Day Avg. Volume2,885,864
30 Day Avg. Volume3,393,689
Financial Highlights & Ratios
PEG Ratio0.93
Price to Book (P/B)8.27
Price to Sales (P/S)4.30
P/FCF Ratio33.58
Enterprise Value/Market Cap1.45
Enterprise Value/Revenue5.55
Enterprise Value/Gross Profit10.00
Enterprise Value/Ebitda14.45
Forecast
1Y Price Target
$21.80Price Target Upside25.29% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)0.96
Revenue Forecast (FY)$1.24B
Sotera Health Business Overview & Revenue Model
Company Description
Sotera Health Company provides sterilization, and lab testing and advisory services in the United States, Canada, Europe, and internationally. The company's sterilization services include gamma and electron beam irradiation, and EO processing; Nel...
How the Company Makes Money
Sotera Health makes money by selling outsourced, fee-based services and products that help life-sciences customers sterilize products, validate manufacturing processes, and comply with quality and regulatory requirements.
1) Contract sterilizatio...
Sotera Health Key Performance Indicators (KPIs)
Any
Net Revenue by Segment
Breaks down Sotera's revenue by business line, revealing which segments drive sales growth and where demand is strongest or weakest. A concentrated revenue base increases dependence on a few markets, while diversified growth across segments signals resilience. Tracking segment revenue trends highlights areas of pricing power, volume gains, or contract wins that are likely to shape future earnings.
Breaks down Sotera's revenue by business line, revealing which segments drive sales growth and where demand is strongest or weakest. A concentrated revenue base increases dependence on a few markets, while diversified growth across segments signals resilience. Tracking segment revenue trends highlights areas of pricing power, volume gains, or contract wins that are likely to shape future earnings.
Data provided by:
The Fly
The FlySotera Health Earnings Call Summary
Earnings Call Date:Feb 24, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call communicated solid operational and financial progress: full-year revenue and adjusted EBITDA growth, margin expansion (~118 bps), strong free cash flow ($210M), reduced leverage (3.2x), lowered interest costs and concrete commercial and regulatory achievements (customer satisfaction >80%, Nordion license renewal, XBU growth). Offsetting items were notable: Nordion experienced a sizable quarter-over-quarter revenue and income decline due to harvest timing, Nelson Labs faced advisory headwinds and Q1 softness, Sterigenics has a weaker commercial cohort and a soft start to 2026, and near-term margin/CapEx pressure from greenfield X-ray build and rising depreciation. Overall, the positives (consistent growth, margin expansion, cash generation, balance sheet improvements and clear guidance) outweigh the transitory and segment-specific headwinds.Positive Updates
Full-Year Revenue Growth
2025 total company revenue increased 5.7% to $1.164 billion (5.2% constant currency vs. 2024). 2026 revenue guidance of $1.233B–$1.251B (5%–6.5% constant currency growth).
Negative Updates
Nordion Revenue and Margin Decline
Nordion Q4 revenue decreased 12.3% to $50M due to Cobalt-60 harvest timing (unfavorable volume and mix -15%). Segment income fell 18.9% to $29M and segment margins contracted ~466 basis points to 57.5%.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Revenue Growth
2025 total company revenue increased 5.7% to $1.164 billion (5.2% constant currency vs. 2024). 2026 revenue guidance of $1.233B–$1.251B (5%–6.5% constant currency growth).
Read all positive updates
Company Guidance
Sotera guided 2026 full‑year revenue of $1.233–$1.251 billion (5.0%–6.5% constant‑currency growth, with an estimated ~100 bps foreign‑currency tailwind weighted to H1 and largest in Q1) and adjusted EBITDA of $632–$641 million (5.5%–7.0% CC growth; implied adjusted EBITDA margin ≈51.2% at the midpoints, slightly above 2025’s 51%), with company pricing around the midpoint of its 3%–4% long‑term range. By segment, Sterigenics is expected to deliver mid‑ to high‑single‑digit CC revenue growth (Q1 mid‑single digits; Q1 the lightest quarter), Nordion low‑ to mid‑single‑digit CC growth (H1 ≈40%–45% of FY revenue, Q2 heavier than Q1), and Nelson Labs low‑single‑digit CC growth for the year with Q1 down low‑ to mid‑single digits. Other guidance assumptions include interest expense of $135–$145 million, an adjusted net‑income tax rate of 27%–29%, adjusted EPS of $0.93–$1.01, higher depreciation, diluted weighted‑average shares of ~289–291 million, capital expenditures of $175–$225 million, continued reduction in net leverage, and no assumed M&A.Sotera Health Financial Statement Overview
Summary
Income Statement
73
Positive
Balance Sheet
44
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.16B | 1.10B | 1.05B | 1.00B | 931.48M |
| Gross Profit | 645.53M | 602.29M | 577.16M | 557.00M | 518.67M |
| EBITDA | 303.23M | 442.20M | 406.83M | -17.41M | 400.81M |
| Net Income | 77.95M | 44.40M | 51.38M | -233.57M | 116.88M |
Balance Sheet | |||||
| Total Assets | 3.26B | 3.07B | 3.13B | 3.12B | 2.79B |
| Cash, Cash Equivalents and Short-Term Investments | 346.46M | 277.24M | 296.41M | 395.21M | 106.92M |
| Total Debt | 2.27B | 2.35B | 2.33B | 2.03B | 1.83B |
| Total Liabilities | 2.66B | 2.67B | 2.69B | 2.77B | 2.20B |
| Stockholders Equity | 606.03M | 404.91M | 443.73M | 350.24M | 586.10M |
Cash Flow | |||||
| Free Cash Flow | 149.18M | 45.09M | -362.71M | 95.58M | 179.38M |
| Operating Cash Flow | 287.19M | 224.16M | -147.73M | 277.96M | 281.55M |
| Investing Cash Flow | -135.14M | -179.00M | -214.91M | -181.90M | -159.83M |
| Financing Cash Flow | -100.53M | -50.56M | 265.96M | 197.76M | -117.29M |
Sotera Health Technical Analysis
Positive
17.40
Price Trends
15.55
Positive
16.57
Negative
15.62
Positive
Market Momentum
0.04
Negative
62.39
Neutral
97.38
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHC, the sentiment is Positive. The current price of 17.4 is above the 20-day moving average (MA) of 14.24, above the 50-day MA of 15.55, and above the 200-day MA of 15.62, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 62.39 is Neutral, neither overbought nor oversold. The STOCH value of 97.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHC.
Sotera Health Risk Analysis
Sotera Health disclosed 46 risk factors in its most recent earnings report. Sotera Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Sotera Health Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $8.64B | 23.17 | 11.85% | 3.31% | 5.32% | 336.29% | |
70 Neutral | $21.19B | 19.42 | 13.88% | 1.80% | 13.74% | 14.87% | |
61 Neutral | $19.41B | 24.21 | 34.94% | ― | -2.39% | ― | |
58 Neutral | $4.46B | 64.26 | 14.98% | ― | 2.67% | -21.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | $8.78B | -69.93 | -4.40% | ― | -0.92% | -118.96% |
* Healthcare Sector Average
SHC
Sotera Health
15.93
5.43
51.71%
CRL
Charles River Labs
179.31
73.39
69.29%
ILMN
Illumina
130.32
55.73
74.72%
QGEN
Qiagen
41.76
0.38
0.91%
DGX
Quest Diagnostics
194.16
29.89
18.20%
Sotera Health Corporate Events
Business Operations and StrategyExecutive/Board Changes
Sotera Health Adds Independent Director Amid Board Reshuffle
Positive
Mar 16, 2026
On March 12, 2026, Sotera Health director Constantine S. Mihas notified the board that he would resign as a Class I director effective March 16, 2026, following a reduction in the number of directors certain stockholders are entitled to designate,...
Regulatory Filings and Compliance
Sotera Health Completes Large Secondary Shareholder Stock Sale
Neutral
Mar 6, 2026
On March 4, 2026, Sotera Health Company and certain selling stockholders entered into an underwriting agreement with Wells Fargo Securities, LLC for the secondary sale of 25,000,000 shares of Sotera Health common stock at $15.270 per share. On Mar...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Sotera Health Announces General Counsel Transition and Retirement
Positive
Feb 24, 2026
In 2025 Sotera Health posted its 20th consecutive year of revenue growth, with full‑year net revenues rising 5.7% to $1.164 billion and net income increasing to $78 million from $44 million in 2024. Adjusted EBITDA climbed 8.2% to $594 milli...
Executive/Board Changes
Sotera Health Adds Independent Director to Board Committees
Positive
Feb 5, 2026
On February 4, 2026, Sotera Health Company expanded its Board of Directors from eleven to twelve members and appointed former Timken chief executive Richard G. Kyle as a Class III director, with immediate effect. Kyle, an experienced industrial ex...
Business Operations and StrategyFinancial Disclosures
Sotera Health Projects Continued Revenue Growth and Momentum
Positive
Jan 12, 2026
On January 12, 2026, Sotera Health presented at the 44th Annual J.P. Morgan Healthcare Conference in Cleveland, providing a business update and announcing that 2025 revenue was expected to surpass $1.16 billion, representing at least 5.5% year-ove...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.