What Can We Learn From Sotera Health Company (SHC)’s Valuation Ratios?


Sotera Health Company (NASDAQ:SHC) finished Thursday with an addition of $0.09 to close at $7.41, an upside of 1.23 percent. An average of 8,586,620 shares of common stock have been traded in the last five days. There was a fall of -$7.67 in the past week, and it reached a new high 6 times over the past 12 months. The last 20 days have seen an average of 3,456,280 shares traded, while the 50-day average volume stands at 1,832,792.

SHC stock has decreased by -60.18% in the last month. The company shares reached their 1-month lowest point of $7.11 on 09/22/22. With the stock rallying to its 52-week high on 06/06/22, shares of the company touched a low of $7.16 and a high of $27.38 in 52 weeks. It has reached a new high 2 times so far this year and lost -68.54% or -$16.14 in price. In spite of this, the price is down -72.94% from the 52-week high.

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Valuation Metrics

Sotera Health Company (SHC) has a trailing price-to-earnings (P/E) ratio of 16.84. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.21, the price-to-book (PB) ratio at 3.26, and the price-to-cash flow ratio at 16.97.

Financial Health

The quick ratio of Sotera Health Company for the three months ended March 30 was 2.50, and the current ratio was 2.80, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.83 and a total debt to equity ratio of 2.84 for the quarter ending March 30. Its gross profit as reported stood at $518.67 million compared to revenue of $931.48 million.

Earnings Surprise

For the three-month period that ended March 30, Sotera Health Company had $1.75 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $30.42 million in the quarter, while revenues were shrunk -40.04%. The analyst consensus anticipated Sotera Health Company’s latest quarter earnings to come in at $0.19 per share, but it turned out to be $0.22, a 15.80% surprise. For the quarter, EBITDA amounted to $109.86 million. Shareholders own equity worth $282.9 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Sotera Health Company (SHC) price momentum. RSI 9-day as of the close on 22 September was 7.33%, suggesting the stock is oversold, with historical volatility in this time frame at 196.64%.

As of today, SHC’s price is $9.50 -50.86% or -$7.67 from its 5-day moving average. SHC is currently trading -60.35% lower than its 20-day SMA and -63.64% lower than its 100-day SMA. However, the stock’s current price level is -59.57% below the SMA50 and -65.79% below the SMA200.

The stochastic %K and %D were 2.29% and 2.44%, respectively, and the average true range (ATR) was 1.15. With the 14-day stochastic at 2.94% and the average true range at 1.01, the RSI (14) stands at 10.85%. The stock has reached -4.53 on the 9-day MACD Oscillator while the 14-day reading was at -5.97.

Analyst Ratings

JP Morgan downgraded Sotera Health Company (NASDAQ: SHC) to a an Underweight rating in its most recent analyst report. Previously, the stock was rated as an Overweight. The consensus rating for Sotera Health Company (SHC) among analysts is Hold. According to current brokerage recommendations, 1 brokerage firm advise that investors sell SHC, while 4 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is SHC’s price target for the next 12 months?

Analysts predict a range of price targets between $9.00 and $30.00, with a median target of $22.00. Taking a look at these predictions, the average price target given by analysts for Sotera Health Company (SHC) stock is $20.14.


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