Sotera Health Company (SHC) AI Stock Analysis

Sotera Health Company provides essential sterilization, lab testing, and advisory services globally across the United States, Canada, and Europe. The company offers gamma and electron beam irradiation alongside ethylene oxide processing. Through its Nelson Labs division, it supplies microbiological and analytical chemistry testing. These services support industries such as medical devices, pharmaceuticals, food and agriculture, and advanced commercial applications. Sotera Health also provides advisory services for medical device and biopharmaceutical clients to help navigate regulatory compliance and optimize product development processes.

Between FY2021 and FY2025, Sotera Health expanded annual revenue from $931.5M to $1.16B, reflecting a 5-year CAGR of 7.3%. Annual revenue growth reached 13.9% in FY2021, 7.8% in FY2022, 4.5% in FY2023, 4.9% in FY2024, and 5.7% in FY2025. Operating margin rose from 27.6% in FY2021 to 33.8% in FY2025, while gross margin remained stable at 55.5% in FY2025. Net income rebounded from -$233.6M in FY2022 to $77.9M in FY2025. In the trailing twelve months, revenue was $1.22B with a profit margin of 13.4%. For the latest quarter ended June 30, 2026, quarterly revenue grew 9.2% year-over-year, and quarterly earnings grew 569.5%.

As of June 30, 2026, Sotera Health held $356.7M in cash and short-term investments against total debt of $2.27B, resulting in net debt of $1.91B. Shareholders' equity was $665.6M, yielding a debt-to-equity ratio of 3.41 and a current ratio of 2.80. In FY2025, operating cash flow generated $287.2M, supporting $138.0M in capital expenditures and leaving free cash flow of $149.2M. Over five years, the company's share count increased 3.0%.

At a share price of $17.89, Sotera Health has a market capitalization of $5.11B and an enterprise value of $7.13B. The stock trades at a trailing P/E of 31.4x and a forward P/E of 17.8x, compared to medians of 24.6x and 17.3x for its US-listed Healthcare peers. Its EV to EBITDA multiple sits at 13.4x, above the peer median of 12.0x, while price-to-sales is 4.2x versus 4.1x for peers. Over the past year, SHC returned 9.6%, trailing the S&P 500 return of 16.8%, and its 5-year return of -31.6% lagged the index return of 83.0%.

Wall Street analysts maintain 5 Strong Buy, 3 Buy, 1 Hold, and 1 Sell ratings on Sotera Health. The mean price target is $22.61, representing a 26.4% upside compared to the last close of $17.89. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $1.25B and EPS of $0.98, an expected EPS increase of 14.4%. Over the last four quarters, the company beat EPS estimates 4 times. The next earnings date is scheduled for November 3, 2026.

This page is an AI-written research summary of Sotera Health Company (SHC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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