Detailed financial statements for Sotera Health Company (SHC): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Sotera Health Company, headquartered in Broadview Heights, Ohio, delivers essential sterilization, laboratory testing, and advisory services to a global clientele spanning North America, Europe, and various international regions. The firm's sterilization capabilities encompass gamma and electron beam irradiation, alongside ethylene oxide (EO) processing. Through its Nelson Labs division, Sotera Health conducts comprehensive microbiological and analytical chemistry analyses.
Analysis Summary
Sotera Health Company reported revenue of $1.16B in the most recent fiscal year, growing at a 5-year CAGR of 7.3%.
Trailing-twelve-month margins: gross margin 54.7%, operating margin 36.2%, net margin 13.4%. Free cash flow grew at 17.3% CAGR over 5 years.
At the current price of $18.55, SHC trades at a P/E of 32.36 and an ROE of 26.75%. Market capitalisation stands at $5.3B.
Balance sheet quality for SHC: current ratio of 2.5, net debt of $1.93B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $149.2M represents 191% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $746.1M | $778.3M | $818.2M | $931.5M | $1.00B | $1.05B | $1.10B | $1.16B |
| Cost of Revenue | $388.9M | $382.9M | $374.6M | $412.8M | $446.7M | $472.1M | $498.1M | $518.1M |
| Gross Profit | $357.3M | $395.4M | $443.6M | $518.7M | $557.0M | $577.2M | $602.3M | $645.5M |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Selling, General & Admin | $133.4M | $147.5M | $178.5M | $198.2M | $245.7M | $236.7M | $242.6M | $252.8M |
| Operating Expenses | $191.3M | $211.8M | $237.6M | $261.9M | $308.7M | $300.5M | $304.7M | $252.8M |
| Operating Income | $80.8M | $183.6M | $206.0M | $256.7M | $248.3M | $276.7M | $297.6M | $392.8M |
| EBITDA | $314.4M | $303.5M | $320.0M | $400.8M | -$17.4M | $406.8M | $442.2M | $442.3M |
| Interest Expense | $143.3M | $157.7M | $215.3M | $74.2M | $80.1M | $142.9M | $164.7M | $155.7M |
| Pre-tax Income | $24.2M | -$916,000 | -$38.9M | $175.7M | -$243.1M | $106.0M | $113.9M | $147.5M |
| Income Tax | $30.1M | $19.5M | -$1.4M | $58.6M | -$9.5M | $54.7M | $69.5M | $69.6M |
| Net Income | -$5.9M | -$20.9M | -$38.6M | $116.9M | -$233.6M | $51.4M | $44.4M | $77.9M |
| EPS | $-0.02 | $-0.07 | $-0.14 | $0.41 | $-0.83 | $0.18 | $0.16 | $0.27 |
| EPS (Diluted) | $-0.02 | $-0.07 | $-0.14 | $0.41 | $-0.83 | $0.18 | $0.16 | $0.27 |
| Shares Outstanding (Diluted) | $246.2M | $284.4M | $283.2M | $279.4M | $280.1M | $283.2M | $284.9M | $286.4M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $311.3M | $303.4M | $280.0M | $321.4M |
| Gross Profit | $177.6M | $165.9M | $144.0M | $178.0M |
| Operating Income | $111.2M | $136.1M | $86.6M | $106.8M |
| EBITDA | $138.4M | $146.3M | $108.8M | $145.8M |
| Net Income | $48.4M | $34.8M | $26.6M | $53.6M |
| EPS | $0.17 | $0.12 | $0.09 | $0.19 |
| EPS (Diluted) | $0.17 | $0.12 | $0.09 | $0.19 |
Balance Sheet (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $96.3M | $62.9M | $102.4M | $106.9M | $395.2M | $296.4M | $277.2M | $346.5M |
| Short-term Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Receivables | $141.6M | $111.6M | $131.0M | $134.0M | $155.7M | $175.5M | $165.8M | $176.3M |
| Inventory | $37.6M | $37.4M | $34.1M | $54.3M | $37.1M | $48.3M | $49.2M | $59.4M |
| Total Current Assets | $312.9M | $252.4M | $315.0M | $346.0M | $645.0M | $557.2M | $526.0M | $613.4M |
| Property, Plant & Equipment | $586.4M | $582.0M | $655.8M | $690.7M | $801.0M | $971.0M | $1.06B | $1.16B |
| Goodwill | $1.02B | $1.04B | $1.12B | $1.12B | $1.10B | $1.11B | $1.08B | $1.10B |
| Intangible Assets | $766.1M | $696.0M | $643.4M | $598.8M | $491.3M | $416.3M | $317.7M | $288.2M |
| Total Assets | $2.71B | $2.58B | $2.76B | $2.79B | $3.12B | $3.13B | $3.07B | $3.26B |
| Accounts Payable | $46.4M | $42.0M | $52.4M | $72.9M | $74.1M | $71.0M | $55.1M | $78.0M |
| Short-term Debt | $15.3M | $16.3M | 0 | 0 | $197.1M | $4.8M | $14.8M | $23.2M |
| Total Current Liabilities | $143.4M | $124.0M | $140.6M | $161.2M | $791.6M | $230.7M | $191.0M | $249.6M |
| Long-term Debt | $2.19B | $2.80B | $1.82B | $1.74B | $1.75B | $2.22B | $2.21B | $2.13B |
| Total Liabilities | $2.66B | $3.22B | $2.31B | $2.20B | $2.77B | $2.69B | $2.67B | $2.66B |
| Retained Earnings | -$10.4M | -$550.5M | -$589.1M | -$472.2M | -$705.8M | -$654.4M | -$610.0M | -$532.1M |
| Total Equity | $44.4M | -$642.6M | $452.3M | $586.1M | $350.2M | $443.7M | $404.9M | $606.0M |
| Total Debt | $2.24B | $2.85B | $1.91B | $1.83B | $2.03B | $2.33B | $2.35B | $2.27B |
| Net Debt | $2.14B | $2.79B | $1.81B | $1.72B | $1.64B | $2.03B | $2.07B | $1.93B |
| Working Capital | $169.5M | $128.4M | $174.4M | $184.8M | -$146.6M | $326.6M | $335.0M | $363.8M |
Cash Flow (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Net Income | -$5.9M | -$20.4M | -$37.5M | $117.1M | -$233.6M | $51.4M | $44.4M | $77.9M |
| Depreciation & Amortization | $146.8M | $146.7M | $143.6M | $150.9M | $145.6M | $160.3M | $163.6M | $139.0M |
| Stock-based Compensation | $6.9M | $6.9M | $11.0M | $13.9M | $21.2M | $32.2M | $36.8M | $30.9M |
| Change in Working Capital | $4.0M | -$8.4M | -$11.8M | -$12.6M | $409.2M | -$403.3M | -$42.6M | $28.0M |
| Operating Cash Flow | $119.6M | $149.0M | $120.6M | $281.5M | $278.0M | -$147.7M | $224.2M | $287.2M |
| Capital Expenditure | -$72.6M | -$57.3M | -$53.5M | -$102.2M | -$182.4M | -$215.0M | -$179.1M | -$138.0M |
| Acquisitions | $162.8M | 0 | -$105.2M | -$57.0M | $450,000 | 0 | 0 | 0 |
| Stock Repurchased | 0 | 0 | -$34.0M | -$1.4M | -$393,000 | -$4.1M | -$4.4M | 0 |
| Dividends Paid | -$175.8M | -$691.2M | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $47.0M | $91.8M | $67.1M | $179.4M | $95.6M | -$362.7M | $45.1M | $149.2M |
Growth & Margins (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +4.3% | +5.1% | +13.9% | +7.8% | +4.5% | +4.9% | +5.7% | |
| Net Income Growth (YoY) | -255.2% | -85.2% | +402.7% | -299.8% | +122.0% | -13.6% | +75.6% | |
| EPS Growth (YoY) | -201.7% | -95.0% | +392.9% | -302.4% | +121.7% | -11.1% | +68.8% | |
| Shares Change (YoY) | +15.5% | -0.4% | -1.4% | +0.3% | +1.1% | +0.6% | +0.5% | |
| FCF Growth (YoY) | +95.5% | -26.9% | +167.4% | -46.7% | -479.5% | +112.4% | +230.8% | |
| Gross Margin | 47.9% | 50.8% | 54.2% | 55.7% | 55.5% | 55.0% | 54.7% | 55.5% |
| Operating Margin | 10.8% | 23.6% | 25.2% | 27.6% | 24.7% | 26.4% | 27.0% | 33.8% |
| EBITDA Margin | 42.1% | 39.0% | 39.1% | 43.0% | -1.7% | 38.8% | 40.2% | 38.0% |
| Net Margin | -0.8% | -2.7% | -4.7% | 12.5% | -23.3% | 4.9% | 4.0% | 6.7% |
| FCF Margin | 6.3% | 11.8% | 8.2% | 19.3% | 9.5% | -34.6% | 4.1% | 12.8% |
| Effective Tax Rate | 124.3% | -2,129.8% | 3.5% | 33.3% | 3.9% | 51.5% | 61.0% | 47.2% |
Per-Share Data (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.19 | $0.32 | $0.24 | $0.64 | $0.34 | $-1.28 | $0.16 | $0.52 |
| Dividends Per Share | $0.71 | $2.43 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $246.2M | $284.4M | $283.2M | $279.2M | $280.1M | $281.0M | $282.8M | $284.0M |
What to look at in Healthcare / Pharma
The R&D pipeline is the invisible asset. Patents expiring = revenues evaporating. Look at innovation and cash flow.
- R&D / Revenue — Shows investment in future pipeline. Serious pharma reinvests 15-20%
- 5y EPS growth — After patent expirations, are they still growing?
- Gross margin — Branded pharma >70%. Generics much lower — defines the business type
- FCF / Net Income — Earnings quality — big pharma should convert >90%
- ROIC — Capital reinvested efficiently — key in pharma due to long R&D cycles
- Net debt / EBITDA — Pharma acquisitions pile up debt — watch the post-M&A picture
- P/E vs own 10y history — The best comparison is with its own history, not with peers
Profitability
| Return on Equity | 26.75% |
| Return on Invested Capital | 8.80% |
| Return on Assets | 4.94% |
| Gross Margin | 54.72% |
| Operating Margin | 36.24% |
| Net Margin | 13.44% |
Financial Health
| Debt / Equity | 3.41 |
| Current Ratio | 2.80 |
| Piotroski F-Score | 7 |
| Altman Z-Score | 1.79 |
Key Ratios (10y)
| Year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| P/E | -1,054.62 | -349.58 | -196.00 | 57.44 | -10.04 | 93.61 | 85.50 | 65.33 |
| P/B | 139.28 | -11.11 | 17.18 | 11.22 | 6.66 | 10.67 | 9.55 | 8.27 |
| P/S | 8.28 | 9.17 | 9.50 | 7.06 | 2.32 | 4.51 | 3.52 | 4.30 |
| Gross Margin | 47.9% | 50.8% | 54.2% | 55.7% | 55.5% | 55.0% | 54.7% | 55.5% |
| Operating Margin | 10.8% | 23.6% | 25.2% | 27.6% | 24.7% | 26.4% | 27.0% | 33.8% |
| Net Margin | -0.8% | -2.7% | -4.7% | 12.5% | -23.3% | 4.9% | 4.0% | 6.7% |
Related companies: ALKS · BLCO · GKOS · MMSI · OPCH · OSCR
Explore sector: Healthcare · Medical - Diagnostics & Research
More sections of SHC: Overview · Valuation · Statistics · Estimates · Technical · Ownership · News · Events
Discover more: Weekly Radar: the S&P 500 through the Buffett and Lynch methods · Investment Academy — learn to analyze stocks