Sotera Health Company
- Open
- 17.50
- Day high
- 17.89
- Day low
- 17.50
- Prev close
- 17.75
- Volume
- 54K
- Mkt cap
- $5.1B
- P/E (TTM)
- 43.5
- EPS (TTM)
- $0.41
- P/B
- 8.2
- P/S
- 4.3
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$482.9M over the last 3 months (0 open-market buys, 2 sales)
- 🏛Institutions accumulating (13F)
Sotera Health Company (SHC) is a Healthcare company listed on NASDAQ. The stock is up 55% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 2 sales (SEC Form 4). Drillr has 1 published research article covering SHC.
Sotera Health Company (SHC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SHC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 5, 2026 | $0.17 | $0.18 | +5.9% | $280M | +3.4% |
| Feb 24, 2026 | $0.24 | $0.26 | +8.3% | $303M | +11.8% |
| Nov 4, 2025 | $0.22 | $0.26 | +18.2% | $311M | +3.9% |
| Aug 8, 2025 | $0.17 | $0.20 | +17.6% | $294M | -3.5% |
| May 1, 2025 | $0.12 | $0.14 | +16.7% | $255M | -8.1% |
| Feb 27, 2025 | $0.21 | $0.21 | +0.0% | $290M | +11.8% |
| May 2, 2024 | $0.14 | $0.13 | -7.1% | $248M | +1.5% |
| Feb 27, 2024 | $0.26 | $0.26 | +0.0% | $310M | +2.7% |
| Nov 1, 2023 | $0.21 | $0.21 | +0.0% | $263M | -12.0% |
| Aug 3, 2023 | $0.18 | $0.21 | +16.7% | $255M | -1.4% |
| May 3, 2023 | $0.14 | $0.13 | -7.1% | $221M | -0.2% |
| Feb 28, 2023 | $0.22 | $0.25 | +13.6% | $252M | +1.7% |
SHC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| May 27, 2026 | Simon, Christopherdirector | Grant | 14,970 | — |
| May 27, 2026 | PETRELLA VINCENT Kdirector | Grant | 14,970 | — |
| May 27, 2026 | Chen Ruoxidirector | Grant | 14,970 | — |
| May 27, 2026 | Wheadon David E.director | Grant | 14,970 | — |
| May 27, 2026 | Klee Ann R.director | Grant | 14,970 | — |
| May 27, 2026 | SHADER ALTONdirector, officer: Chief Executive Officer | Grant | 375,939 | — |
| May 27, 2026 | SHADER ALTONdirector, officer: Chief Executive Officer | Grant | 203,634 | — |
| May 27, 2026 | SHADER ALTONdirector, officer: Chief Executive Officer | Grant | 101,817 | — |
| May 27, 2026 | Kyle Richard Gdirector | Grant | 14,970 | — |
| May 27, 2026 | Krause Kenneth D.director | Grant | 14,970 | — |
| May 27, 2026 | CUNNINGHAM SEAN LAURENCEdirector | Grant | 14,970 | — |
| May 27, 2026 | Flynn Karendirector | Grant | 14,970 | — |
| May 27, 2026 | Neary Jamesdirector | Grant | 14,970 | — |
| May 15, 2026 | WARBURG PINCUS & CO.director, 10 percent owner: | Sell | 19,102,952 | $15.17 |
| May 15, 2026 | GTCR INVESTMENT XI LLCdirector, 10 percent owner: | Sell | 12,735,301 | $15.17 |
Source: SHC SEC Form 4 filings, latest May 27, 2026. For informational purposes only — not investment advice.
See the full SHC insider & 13F page →Sotera Health Company company profile
Overview
Sotera Health Company (NASDAQ:SHC) is a mission-critical sterilization and laboratory testing services provider that went public in November 2020. Founded in 2017 and headquartered in Broadview Heights, Ohio, the company operates through three main business segments serving the medical device, pharmaceutical, and food industries. Sotera Health has achieved 19 consecutive years of revenue growth and plays an essential role in ensuring the safety and efficacy of medical products before they reach patients and consumers.
Business
Sotera Health operates in the specialized field of product sterilization and laboratory testing services, which are critical components of the healthcare supply chain. The company ensures that medical devices, pharmaceuticals, and other products are safe for human use through rigorous sterilization processes and comprehensive testing protocols. The company operates through three distinct business segments: Sterigenics represents the largest segment, providing sterilization services using gamma radiation, electron beam irradiation, and ethylene oxide (EO) processing. Gamma sterilization uses Cobalt-60 isotopes to emit gamma rays that penetrate products and packaging to eliminate microorganisms without damaging the product itself. Electron beam sterilization uses high-energy electrons for similar purposes but with faster processing times. Ethylene oxide is a chemical sterilization method particularly effective for heat-sensitive medical devices. This segment generates approximately 65-70% of total company revenue. Nordion specializes in producing and supplying Cobalt-60, the radioactive isotope essential for gamma sterilization. The company operates nuclear reactors in Canada to produce this critical material, which is then sold both internally to Sterigenics facilities and externally to other sterilization providers worldwide. This segment contributes roughly 15-20% of total revenue, though it experiences significant quarterly variability due to the timing of reactor harvest schedules. Nelson Labs provides comprehensive laboratory testing and advisory services for medical device and biopharmaceutical companies. These services include microbiological testing to detect harmful bacteria and viruses, analytical chemistry testing to verify product composition and purity, and expert advisory services to help companies navigate regulatory requirements. The segment accounts for approximately 20-25% of total revenue and serves as a complementary service to sterilization, as companies often require both testing and sterilization before bringing products to market.
Competitive moat
Sotera Health possesses a moderately strong economic moat built primarily on regulatory barriers, specialized assets, and switching costs. The company's sterilization services are mandated by regulatory agencies like the FDA, creating inelastic demand that customers cannot easily substitute or eliminate. The technical complexity and capital intensity of sterilization operations create significant barriers to entry, particularly for gamma sterilization facilities that require specialized handling of radioactive materials and extensive regulatory approvals. The company's control over Cobalt-60 production through Nordion provides a unique competitive advantage, as this isotope is essential for gamma sterilization and has limited global supply sources. The long-term nature of customer relationships, often spanning decades, reflects high switching costs due to the qualification processes required when changing sterilization providers. Medical device companies must revalidate their products with new sterilization providers, a time-consuming and expensive process that creates customer stickiness. However, the moat faces several challenges. Ethylene oxide litigation represents a significant threat, with ongoing lawsuits claiming health impacts from EO emissions potentially leading to facility closures or expensive remediation requirements. Regulatory pressure on EO emissions could force costly upgrades or operational changes. Alternative sterilization technologies continue to develop, though none have yet proven as cost-effective or widely applicable as traditional methods. The company's geographic concentration in certain markets creates vulnerability to local regulatory changes or competitive pressures. While the specialized nature of the business provides some protection, the moat is not insurmountable and requires ongoing investment in compliance, technology, and customer relationships to maintain its strength. The combination of regulatory necessity, specialized assets, and customer switching costs creates a solid but not impregnable competitive position.
Risks & safety
Sotera Health presents a mixed margin of safety profile with adequate liquidity but elevated leverage and litigation risks. Liquidity and Solvency: - Strong cash position of $304 million and total available liquidity of $715 million - Current ratio of 2.46 indicates solid short-term liquidity - Net leverage ratio of 3.6x, down from higher levels but still elevated - Debt-to-equity ratio of 5.8x reflects significant financial leverage - Free cash flow of $36 million in Q1 2025, though volatile historically Valuation Metrics: - EV/EBITDA of 10.4x appears reasonable for a specialized services company - Price-to-book ratio of 8.0x suggests premium valuation - Trading at approximately 12x forward EBITDA based on guidance Other Considerations: - Substantial litigation reserves and ongoing EO-related legal exposure - Mission-critical nature of services provides revenue stability - 19-year track record of consecutive revenue growth demonstrates business resilience - High fixed cost structure creates operational leverage in both directions
Recent development
Over the past few years, Sotera Health has focused on several key strategic initiatives while navigating significant legal and operational challenges. The company has invested heavily in capacity expansion across its Sterigenics network, completing multiple facility expansions to meet growing demand for sterilization services. These investments have been complemented by ongoing efforts to enhance operational efficiency and improve margins across all segments. A major strategic development has been the company's progress in Cobalt-60 supply chain security. The first cobalt insertion at the Darlington reactor in Canada represents a significant milestone, with the first harvest expected in 2028. This initiative aims to diversify and strengthen the global supply of this critical isotope, reducing dependence on existing sources and potentially capturing additional value in the supply chain. The company has made substantial progress in resolving ethylene oxide litigation, completing an $880 million settlement in Illinois and achieving partial settlements in Georgia. While new litigation has emerged in California, management expresses confidence in defending these cases based on scientific evidence. Concurrently, Sotera Health has invested in NESHAP regulatory compliance, implementing facility enhancements to meet evolving environmental regulations for EO emissions. Cross-selling initiatives between Sterigenics and Nelson Labs have shown positive results, with embedded lab services demonstrating continued growth. This strategy leverages the complementary nature of sterilization and testing services to provide customers with comprehensive solutions. The company has also focused on margin improvement initiatives at Nelson Labs, targeting a return to mid-30% segment margins through operational optimization and pricing strategies. Recent capital structure optimization included a $2.3 billion debt refinancing that extended maturities from 2026 to 2031 and reduced interest expenses. The company has maintained its focus on disciplined capital deployment while continuing to invest in growth opportunities and operational excellence initiatives.
SHC company profile · for informational purposes only — not investment advice.
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