Sotera Health Company Common Stock
SHC
$15.66
-0.32%
Sotera Health Company is a specialized provider of outsourced sterilization, analytical lab testing, and advisory services, ensuring the safety of medical devices, pharmaceuticals, and food products within the Healthcare sector. The company operates as a critical, niche player in the Medical - Diagnostics & Research industry, with its Sterigenics segment being the dominant revenue driver through its gamma irradiation, ethylene oxide (EO) processing, and E-beam irradiation technologies. The current investor narrative is heavily influenced by the company's volatile path to profitability, as evidenced by its recent quarterly swings from a net loss in Q1 2025 to significant net income in Q4 2025, alongside ongoing scrutiny of its high debt levels and the essential but capital-intensive nature of its sterilization services.…
SHC
Sotera Health Company Common Stock
$15.66
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SHC 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Sotera Health Company Common Stock's 12-month outlook, with a consensus price target around $20.36 and implied upside of +30.0% versus the current price.
Average Target
$20.36
3 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
3
covering this stock
Price Range
$13 - $20
Analyst target range
Analyst coverage is extremely limited, with only 3 analysts providing estimates, which is insufficient for a robust consensus view and typically indicates this is a smaller-cap stock with lower institutional interest, leading to potentially higher volatility and less efficient price discovery. The available data shows estimated EPS for the next period averaging $1.26, with a tight range from $1.26 to $1.27, and estimated revenue averaging $1.48 billion, but no consensus price target, recommendation distribution, or target price range is provided, leaving the implied market upside or downside unclear. The institutional ratings history shows a mix of actions, including a recent upgrade to 'Buy' by Citigroup in February 2026 and an earlier upgrade to 'Overweight' by Piper Sandler in January 2026, suggesting some analysts see a turning point, but the overall lack of breadth in coverage means these signals should be interpreted with caution.
SHC Technical Analysis
The stock is in a pronounced downtrend, having declined 10.81% over the past three months and 13.68% year-to-date, significantly underperforming the broader market as indicated by a -19.23 relative strength over the same 3-month period. Currently trading at $15.27, the price sits at approximately 77% of its 52-week range ($10.80 to $19.85), indicating it is much closer to its yearly lows than highs, which suggests a potential value opportunity but also reflects persistent selling pressure and negative sentiment. The short-term momentum is bearish and accelerating, with a 1-month price drop of 4.74%, which contrasts sharply with the SPY's 5.6% gain over the same period, highlighting severe stock-specific weakness and a relative strength reading of -10.34. Key technical support is clearly defined at the 52-week low of $10.80, while immediate overhead resistance lies near the recent highs around $19.85; a breakdown below $10.80 would signal a new leg down, whereas a sustained move above the descending trendline is needed for any recovery. The stock's beta of 1.82 confirms it is approximately 82% more volatile than the market, which amplifies both downside risk and potential upside moves, a critical factor for risk-aware investors given the current negative price action.
Beta
1.82
1.82x market volatility
Max Drawdown
-32.1%
Largest decline past year
52-Week Range
$11-$20
Price range past year
Annual Return
+27.7%
Cumulative gain past year
| Period | SHC Return | S&P 500 |
|---|---|---|
| 1m | +0.2% | +4.8% |
| 3m | -10.5% | +8.2% |
| 6m | -4.1% | +13.1% |
| 1y | +27.7% | +27.9% |
| ytd | -11.5% | +9.3% |
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SHC Fundamental Analysis
Revenue growth is modest but positive, with Q4 2025 revenue of $303.4 million representing a 4.56% year-over-year increase; however, examining the quarterly sequence reveals volatility, as revenue dipped from $311.3 million in Q3 to $303.4 million in Q4, suggesting potential near-term growth deceleration or seasonality in its service-based model. Profitability has been highly inconsistent, swinging from a net loss of -$13.3 million in Q1 2025 to a net income of $34.8 million in Q4 2025, though the gross margin remains robust at 54.68% for the latest quarter, indicating the underlying service business is fundamentally sound but burdened by high operating and interest expenses. The balance sheet shows significant financial leverage with a debt-to-equity ratio of 3.75, posing a material risk, but this is partially offset by strong liquidity evidenced by a current ratio of 2.46 and the generation of positive free cash flow (TTM FCF of $147.1 million), which provides the company with internal resources to service debt and fund operations.
Quarterly Revenue
$303441000.0B
2025-12
Revenue YoY Growth
+0.04%
YoY Comparison
Gross Margin
+0.54%
Latest Quarter
Free Cash Flow
$147129000.0B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is SHC Overvalued?
Given the company's positive but minimal trailing net income, the primary valuation metric selected is the Price-to-Sales (PS) ratio, as earnings are too volatile for a meaningful P/E analysis at this stage. The stock trades at a trailing PS ratio of 4.30, which is a sales-based multiple, and a forward PE of 14.42, suggesting the market anticipates a significant improvement in profitability from current depressed EPS levels. Peer comparison data is not available in the provided dataset, preventing a direct sector premium/discount analysis; however, the EV/Sales multiple of 5.36 offers an enterprise value perspective, though without industry benchmarks its relative expensiveness cannot be quantified. Historically, the current PS ratio of 4.30 is near the lower end of its observable range over recent quarters, which has seen figures as high as 16.51 in Q4 2025, indicating the stock is trading at a substantial discount to its own recent history, potentially pricing in heightened concerns over debt and earnings volatility.
PE
64.3x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range -77x~442x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
22.9x
Enterprise Value Multiple
