# Sotera Health (SHC.US)

Canonical: https://gigainvestors.com/s/SHC

Analysis as of: 2026-10-16T07:31:52.740Z. Financial observations: FY2018–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $18.07 per share; close as of 2026-10-15.

Estimated value: low $3.04 per share, central $3.30 per share, high $3.65 per share. Buy at or below the central value $3.30 per share. Valuation as of 2026-10-16T07:31:52.740Z; scenarios are not confidence intervals.

Expected annual return: 3.9% at the stated quote. About 3.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- more than 2 net loss years

- Financial history: 9 years

- Years with declining revenue: 0

- Years with a net loss: 4

- Operating margin variation: 0.26×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.11×

- FY2019: 0.24×

- FY2020: 0.25×

- FY2021: 0.28×

- FY2022: 0.25×

- FY2023: 0.26×

- FY2024: 0.27×

- FY2025: 0.34×

- LTM to Jun 2026: 0.36×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 14.2%

- ROIC, second-lowest year: 13.1%

- Typical minus recent gross margin: 0.0 pp

- Typical gross margin (annual median): 54.7%

- Recent gross margin (lower of latest and 3-year median): 54.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 11.9%

- ROIC including acquisitions, ten-year median: 2.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2018: 4.5%

- FY2019: 13.1%

- FY2020: 14.2%

- FY2021: 14.4%

- FY2022: 22.2%

- FY2023: 13.2%

- FY2024: 13.8%

- FY2025: 17.9%

- LTM to Jun 2026: 19.3%

### economics: pass

- Owner earnings / net income, 5-yr: 1.51×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $86M

- Net income, five-year total: $57M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: -0.3 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.42×

- FY2022: 1.00×

- FY2023: 0.60×

- FY2024: 1.00×

- FY2025: 1.01×

### management: pass

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 13.1% vs 13.8%

- Per-share earnings: -0.09 to 0.18 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 3.8%

- Diluted shares, 5-year annual growth: 3.8%

- Per-share value change: $0.27

- Per-share value, starting three-year median: -$0.09

- Per-share value, ending three-year median: $0.18

- Buybacks concentrated in cheaper years (correlation): 0.10

- Average buyback yield: 0.2%

- Buyback history: 5 years

- Debt-funded buybacks: Yes

- ROIC, first three-year median: 13.1%

- ROIC, last three-year median: 13.8%

Chart: Earnings per share; fiscal year observations.

- FY2018: -$0.03

- FY2019: -$0.09

- FY2020: -$0.16

- FY2021: $0.42

- FY2022: -$0.83

- FY2023: $0.18

- FY2024: $0.16

- FY2025: $0.27

### accounting: pass

- Sloan accruals: -6.4%

- Receivables to sales index (DSRI): 1.01×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.68×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 2.30×

Chart: Sloan accruals; fiscal year observations.

- FY2018: -4.6%

- FY2019: -6.6%

- FY2020: -5.8%

- FY2021: -5.9%

- FY2022: -16.4%

- FY2023: 6.4%

- FY2024: -5.9%

- FY2025: -6.4%

## Holders

- [David Einhorn](https://gigainvestors.com/GLRE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 27% since Oct 2021 · sales +4.5%

Story as of 2026-10-16T09:59:34.593Z; price observation 2026-10-15.

Price needs cash profits to grow 27.7% a year for ten years

- 2025-08-11: SHC Q2 Deep Dive: Segment Execution Drives Upbeat Results and Raised Outlook ([finance.yahoo.com](https://finance.yahoo.com/news/shc-q2-deep-dive-segment-134715207.html))

- 2026-08-06: Sotera Health Delivers Strong Second-Quarter and First-Half 2026 Results and Raises FY 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/healthcare/articles/sotera-health-delivers-strong-second-110000373.html))

### Sales · FY2025–2026

sales +4.5%; source https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm; observed 2026-02-24.

- FY2018: $746M 

- FY2019: $778M 

- FY2020: $818M 

- FY2021: $931M 

- FY2022: $1.0B 

- FY2023: $1.0B 

- FY2024: $1.1B 

- FY2025: $1.2B 

- FY2026: $1.2B 

### Gross margin · FY2026

gross margin 54.7%; source https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm; observed 2026-02-24.

- FY2018: 47.9% 

- FY2019: 50.8% 

- FY2020: 54.2% 

- FY2021: 55.7% 

- FY2022: 55.5% 

- FY2023: 55.0% 

- FY2024: 54.7% 

- FY2025: 55.5% 

- FY2026: 54.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in diagnostics & research; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm (filed 2026-02-24); FY2025: revenue 1163617000; grossProfit 645534000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SHC.US: Sotera Health Company provides sterilization solutions, lab testing, and advisory services for the healthcare industry in the United States, Canada, Europe, and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment offers outsourced terminal sterilization and irradiation services using gamma irradiation, ethylene oxide processing, and electron beam irradiation technologies for medical devices, pharmaceutical, and food safety and advanced applications markets. The Nordion segment provides Cobalt-60 used in the sterilization and irradiation processes for the medical device, pharmaceutical, food safety, and high-performance materials industries, as well as in the treatment of cancer. It also offers gamma irradiation systems. The Nelson Labs segment provides outsourced microbiological and analytical chemistry testing and advisory services for the medical device and pharmaceutical industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.

### Why customers stay

Margins ranged from 54.7% to 55.5% during 2023–25; it earns 14.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 55%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 54.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 55.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 9-year return on capital observations [[2018,0.045202207874649694],[2019,0.1310136097619579],[2020,0.1423742065741499],[2021,0.14419527912911112],[2022,0.2216163370977908],[2023,0.13193274906781358],[2024,0.138457547044901],[2025,0.17853272727272726],[2026,0.19281365366429862]]; median 0.1423742065741499. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 55% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm (filed 2026-02-24); Gross margin observations: [[2021,0.5568268923152238],[2022,0.5549578703320855],[2023,0.550047270148901]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 3 of 8 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 72613000; owner earnings 68333000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 57257000; cash acquisitions 0; owner earnings 68612000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2020: growth capex 0; upkeep 53507000; cash acquisitions 0; owner earnings 51439000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2021: growth capex 0; upkeep 102162000; cash acquisitions 13530000; owner earnings 165622000. Growth capex plus acquisitions / owner earnings = 0.08169204574271534.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 36610227.301585436; upkeep 178364772.69841456; cash acquisitions 0; owner earnings 30936227.301585436. Growth capex plus acquisitions / owner earnings = 1.1834095652545589.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 15433000; upkeep 163637000; cash acquisitions 0; owner earnings 44398000. Growth capex plus acquisitions / owner earnings = 0.347605748006667.

- Source: https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 138018000; owner earnings 78958000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2018,175845000],[2019,691170000],[2020,150000000],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 2.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); SHC.US SharesStats.PercentInsiders = 2.405 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 27.7% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.39275206991400724. Price 18.07; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2020-11: $27.06 per share

- 2020-12: $27.44 per share

- 2021-01: $26.09 per share

- 2021-02: $26.15 per share

- 2021-03: $24.96 per share

- 2021-04: $25.76 per share

- 2021-05: $24.10 per share

- 2021-06: $24.23 per share

- 2021-07: $23.70 per share

- 2021-08: $24.46 per share

- 2021-09: $26.15 per share

- 2021-10: $24.70 per share

- 2021-11: $21.34 per share

- 2021-12: $23.55 per share

- 2022-01: $21.51 per share

- 2022-02: $21.87 per share

- 2022-03: $21.66 per share

- 2022-04: $20.38 per share

- 2022-05: $21.30 per share

- 2022-06: $19.59 per share

- 2022-07: $19.20 per share

- 2022-08: $16.91 per share

- 2022-09: $6.82 per share

- 2022-10: $6.88 per share

- 2022-11: $8.34 per share

- 2022-12: $8.33 per share

- 2023-01: $17.24 per share

- 2023-02: $16.69 per share

- 2023-03: $17.91 per share

- 2023-04: $16.77 per share

- 2023-05: $14.09 per share

- 2023-06: $18.84 per share

- 2023-07: $18.98 per share

- 2023-08: $16.14 per share

- 2023-09: $14.98 per share

- 2023-10: $12.66 per share

- 2023-11: $13.65 per share

- 2023-12: $16.85 per share

- 2024-01: $14.72 per share

- 2024-02: $15.01 per share

- 2024-03: $12.01 per share

- 2024-04: $11.20 per share

- 2024-05: $11.18 per share

- 2024-06: $11.87 per share

- 2024-07: $13.87 per share

- 2024-08: $15.44 per share

- 2024-09: $16.70 per share

- 2024-10: $15.67 per share

- 2024-11: $13.17 per share

- 2024-12: $13.68 per share

- 2025-01: $13.71 per share

- 2025-02: $12.47 per share

- 2025-03: $11.66 per share

- 2025-04: $11.50 per share

- 2025-05: $12.24 per share

- 2025-06: $11.12 per share

- 2025-07: $11.49 per share

- 2025-08: $16.37 per share

- 2025-09: $15.73 per share

- 2025-10: $16.60 per share

- 2025-11: $17.48 per share

- 2025-12: $17.64 per share

- 2026-01: $18.12 per share

- 2026-02: $16.25 per share

- 2026-03: $14.34 per share

- 2026-04: $15.56 per share

- 2026-05: $15.64 per share

- 2026-06: $17.75 per share

- 2026-07: $17.86 per share

- 2026-08: $18.90 per share

- 2026-09: $18.49 per share

- 2026-10: $18.07 per share

## Annual estimated value (USD per share)

- FY2022: low $4.79 per share, central $5.27 per share, high $5.90 per share

- FY2023: low $3.52 per share, central $3.87 per share, high $4.34 per share

- FY2024: low $2.60 per share, central $2.83 per share, high $3.15 per share

- FY2025: low $2.92 per share, central $3.17 per share, high $3.50 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1822479/000182247926000015/shc-20251231.htm); period 2025-12-31, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.