Latest Ratios: P/E Ratio 67.7x · EV/EBITDA 13.4x · ROE 15.4%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $5.2B | $5.1B | $3.9B | $4.8B | $2.3B | $6.6B | $7.8B | — | — |
| Enterprise Value | $7.1B | $7.0B | $6.0B | $6.8B | $4.0B | $8.3B | $9.6B | — | — |
| P/E Ratio → | 67.74 | 65.33 | 85.50 | 93.61 | — | 57.44 | — | — | — |
| P/S Ratio | 4.48 | 4.34 | 3.54 | 4.55 | 2.32 | 7.06 | 9.50 | — | — |
| P/B Ratio | 8.64 | 8.34 | 9.63 | 10.75 | 6.66 | 11.23 | 17.10 | — | — |
| P/FCF | 34.96 | 33.87 | 86.43 | — | 24.41 | 36.68 | 115.87 | — | — |
| P/OCF | 18.16 | 17.59 | 17.39 | — | 8.39 | 23.37 | 64.46 | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 6.00 | 5.43 | 6.48 | 3.96 | 8.91 | 11.71 | — | — |
| EV / EBITDA | 13.43 | 13.12 | 12.94 | 15.65 | 10.08 | 20.36 | 27.40 | — | — |
| EV / EBIT | 18.19 | 23.02 | 21.43 | 27.33 | — | 33.21 | 54.30 | — | — |
| EV / FCF | — | 46.79 | 132.41 | — | 41.53 | 46.27 | 142.81 | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 55.5% | 55.5% | 54.7% | 55.0% | 55.5% | 55.7% | 54.2% | 50.8% | 47.9% |
| Operating Margin | 33.8% | 33.8% | 27.0% | 26.4% | 24.7% | 27.6% | 25.2% | 23.6% | 10.8% |
| Net Profit Margin | 6.7% | 6.7% | 4.0% | 4.9% | -23.3% | 12.5% | -4.7% | -2.7% | -0.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.4% | 15.4% | 10.5% | 12.9% | -49.9% | 22.5% | -8.5% | — | -12.9% |
| ROA | 2.5% | 2.5% | 1.4% | 1.6% | -7.9% | 4.2% | -1.4% | -0.8% | -0.2% |
| ROIC | 11.8% | 11.8% | 9.0% | 9.3% | 8.7% | 8.4% | 7.0% | 6.4% | 2.8% |
| ROCE | 13.3% | 13.3% | 10.3% | 10.6% | 10.0% | 9.8% | 8.1% | 7.3% | 3.2% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 3.75 | 3.75 | 5.81 | 5.24 | 5.80 | 3.12 | 4.20 | — | 49.19 |
| Debt / EBITDA | 4.28 | 4.28 | 5.10 | 5.35 | 5.16 | 4.48 | 5.46 | 8.62 | 9.83 |
| Net Debt / Equity | — | 3.18 | 5.12 | 4.58 | 4.67 | 2.94 | 3.97 | — | 47.08 |
| Net Debt / EBITDA | 3.62 | 3.62 | 4.50 | 4.67 | 4.16 | 4.22 | 5.17 | 8.43 | 9.41 |
| Debt / FCF | — | 12.92 | 45.98 | — | 17.12 | 9.59 | 26.94 | 30.35 | 45.61 |
| Interest Coverage | 1.95 | 1.95 | 1.69 | 1.74 | -2.03 | 3.37 | 0.82 | 0.99 | 1.17 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.46 | 2.46 | 2.75 | 2.42 | 0.81 | 2.15 | 2.24 | 2.04 | 2.18 |
| Quick Ratio | 2.22 | 2.22 | 2.50 | 2.21 | 0.77 | 1.81 | 2.00 | 1.73 | 1.92 |
| Cash Ratio | 1.39 | 1.39 | 1.45 | 1.29 | 0.50 | 0.66 | 0.73 | 0.51 | 0.67 |
| Asset Turnover | — | 0.36 | 0.36 | 0.34 | 0.32 | 0.33 | 0.30 | 0.30 | 0.28 |
| Inventory Turnover | 8.72 | 8.72 | 10.13 | 9.77 | 12.03 | 7.60 | 10.99 | 10.24 | 10.34 |
| Days Sales Outstanding | — | 55.29 | 55.00 | 61.06 | 56.63 | 52.53 | 58.45 | 52.33 | 69.27 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 1.5% | 1.5% | 1.2% | 1.1% | — | 1.7% | — | — | — |
| FCF Yield | 2.9% | 3.0% | 1.2% | — | 4.1% | 2.7% | 0.9% | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.1% | 0.1% | 0.0% | 0.0% | 0.4% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.1% | 0.1% | 0.0% | 0.0% | 0.4% | — | — |
| Shares Outstanding | — | $286M | $285M | $283M | $280M | $279M | $283M | $284M | $246M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying SHC stock.
Sotera Health Company's current P/E ratio is 67.7x. The historical average is 75.5x. This places it at the 50th percentile of its historical range.
Sotera Health Company's current EV/EBITDA is 13.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 16.6x.
Sotera Health Company's return on equity (ROE) is 15.4%. The historical average is -1.4%.
Based on historical data, Sotera Health Company is trading at a P/E of 67.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Sotera Health Company has 55.5% gross margin and 33.8% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Sotera Health Company's Debt/EBITDA ratio is 4.3x, indicating high leverage. A ratio above 4x may signal elevated financial risk.
Key Metrics
Top Statement Risk
Elevated leverage and regulatory overhang
Metrics are mathematically derived from official filings.
Margin Expansion Masks Earnings Volatility
Gross margin improved to 55.4% in 2026Q2 from 51.2% in 2024Q1, per reported figures, while operating margin surged to 33.2%, indicating strong pricing power and operating leverage.
The gross margin expansion reflects SHC's toll-gate pricing power in sterilization services, where regulatory validation creates customer inertia. Operating margin volatility, swinging from 21.4% in 2024Q1 to 44.9% in 2025Q4, suggests that quarterly results are heavily influenced by non-recurring items and cost timing, not just core operations. Net margin of 16.7% in 2026Q2, up from 2.5% in 2024Q1, appears to be recovering from litigation-related charges, but investors should monitor whether this level is sustainable given potential compliance costs.
Return on Capital Remains Subdued
ROIC improved to 3.1% in 2026Q2 from 1.6% in 2024Q1, as reported in financial statements, but remains low relative to peers like STRL at 38.8%, reflecting heavy asset intensity.
The low ROIC is driven by a large asset base anchored in goodwill and PPE, which together represent roughly 70% of total assets, per reported figures. While margins are strong, asset turnover of 0.10x is exceptionally low, indicating that the capital invested in sterilization facilities and acquisitions is not yet generating commensurate returns. The gradual improvement in ROIC from 1.6% to 3.1% suggests that the company is slowly deleveraging and rebuilding equity, but the pace is modest compared to the high returns seen in asset-light peers like MEDP.
Working Capital Efficiency Shows Mixed Signals
Cash conversion cycle improved to 36 days in 2026Q2 from 46 days in 2024Q1, based on reported data, driven by faster receivables collection and extended payables, though inventory days remain stable.
DSO fell to 53 days in 2026Q2 from 58 days in 2024Q1, suggesting improved collection efficiency, while DPO rose to 56 days from 50 days, indicating SHC is taking longer to pay suppliers, which may reflect increased negotiating power. DIO remained flat near 40 days, implying stable inventory management in the isotope and testing segments. The improvement in CCC is positive, but the quarterly volatility in FCF margin, ranging from -10.2% to 20.7%, suggests that working capital swings are a significant source of cash flow noise.
Leverage Eases but Debt Service Remains Tight
Debt-to-equity fell to 3.41 in 2026Q2 from 5.46 in 2024Q1, as reported, yet interest coverage of 3.27x remains thin, indicating limited cushion for rising rates or earnings shocks.
The deleveraging trend is encouraging, with D/EBITDA improving to 16.19x from 25.07x over the same period, but the absolute level of debt at $2.3B remains over three times equity. Interest coverage of 3.27x in 2026Q2, up from 1.26x in 2024Q1, suggests that earnings are now more than sufficient to cover interest, but the margin of safety is still narrow compared to investment-grade peers. The elevated leverage, combined with potential litigation settlements and EPA-mandated capex, implies that SHC has limited financial flexibility to absorb unexpected cash outflows.
Liquidity Buffer Provides Modest Protection
Current ratio improved to 2.80 in 2026Q2 from 3.20 in 2024Q1, with cash of $356.7M, as reported, offering a reasonable buffer against operational shocks, though quick ratio of 2.53 indicates low inventory dependence.
The liquidity position appears adequate for normal operations, with current assets covering current liabilities nearly three times over. However, the decline in the current ratio from 3.20 to 2.80 suggests that SHC is deploying cash into debt reduction or capex, which may reduce the buffer over time. Given the potential for litigation payouts and compliance-related capital expenditures, the current liquidity level may be sufficient for near-term needs but could be strained under a severe stress scenario involving multiple adverse events.
Misapplied ROIC Ignores Intangible Burden
ROIC of 3.1% in 2026Q2, per reported figures, understates the underlying cash-generative power of sterilization assets because it includes heavy goodwill amortization from PE-era acquisitions, which is non-cash and not reflective of operational efficiency.
The most commonly misapplied ratio for SHC is ROIC, as the large goodwill balance of $1.1B, roughly one-third of total assets, depresses the denominator without contributing to operating income. Analysts should adjust ROIC by excluding goodwill and related intangibles, or by using cash-based returns such as CFROI, which would likely show a higher return on invested capital. This adjustment is critical because the market may be undervaluing SHC's core sterilization franchise based on a distorted ROIC that fails to capture the true economics of the business.