Stock analysis · Bull Rankings model

SHC analysis

Sotera Health CompanyDiagnostics & Research. Scored on the same transparent model behind the daily rankings.

SHC
Sotera Health Company · Diagnostics & Research
FCF$113mC
Rev+8.1%B
D/E3.41D
P/E34.3xC+
PEG1.31B
68.4Score
$19.57$5.6B
1Y Target$22.72Analyst consensus · 9 analysts
5Y Target$33.27Compound horizon
10Y Target$49.35Long-dated conviction
FCF$113mTTM
C
FCF $113m — modest; watch for margin expansion
Rev+8.1%TTM YoY
B
Revenue +8.1% — at or above S&P median
D/E3.41
D
D/E 3.41 — most levered decile in Healthcare (≈95th pctile)
P/E34.3x
C+
P/E 34.3 — above the Healthcare median (≈75th pctile)
PEG1.31
B
PEG 1.31 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 68.4
Quality62.0
Growth76.5
Value67.5
Entry · Margin of safety
52-week rangeNear 52-week high
1% off the 12-month high
vs DCF fair value374% aboveest. fair value ~$4
What the price assumes: free cash flow compounding at ~51% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability20% · Bgross profit ÷ total assets (Novy-Marx)
ROIC8.4% · Breturn on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Diagnostics & Research · market cap $5.6b. Trading near 52-week high of $19.85 — momentum setup, limited technical margin of safety. 9 sell-side analysts rate this a Buy with a mean 1-yr target of $22.72 (implying +16% upside).
Moat
Net margin 13% beats the market median by a meaningful margin — the company is keeping more of every revenue dollar than the average S&P constituent. ROE 25% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately.
Risk
D/E 3.41 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.77 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.
Horizon
1-3 yr $22.72 (9-analyst consensus) — fundamentals + valuation re-rating. 5 yr $33.27 at ~11% CAGR — compounding case rests on the competitive position widening. 10 yr $49.35 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

SHC vs the Top Picks average

PillarSHCBook avgDiff
Quality0.620.84-0.22
Growth0.770.84-0.07
Value0.680.78-0.11

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+9.3 over 47 daily scores
From 59.1 (Jun 22) → 68.4 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+1.4%
90-day change+1.4%
Forward EPS estimate$1.07

Over the last 90 days, what analysts expect SHC to earn is drifting higher (+1.4%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
102
Position size
$1,996
4.0% of portfolio
Stop price
$14.68
25% below $19.57
$ at risk if stopped
$499.04
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Sotera Health Company (SHC): score, valuation & FAQ

Sotera Health Company (SHC) is a Diagnostics & Research company that scores 68.4 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

The model flags D/E (D) as weaker areas. On valuation, SHC sits about 374% above our discounted-cash-flow fair value — the current price implies roughly 51% annual free-cash-flow growth over the next decade.

Is SHC a good stock to buy?

Bull Rankings scores SHC 68.4 out of 100 on its quality-growth model, which is a solid, above-average reading. A score is a quantitative screen of Sotera Health Company's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does SHC score 68.4 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). SHC grades middle-of-pack across the strip, and is held back by D/E (D). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is SHC overvalued or undervalued?

Based on $19.57, SHC sits about 374% above our discounted-cash-flow fair value — the current price implies roughly 51% annual free-cash-flow growth over the next decade. It trades at a 34.3x P/E (graded C+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SHC?

D/E 3.41 is elevated — limits strategic flexibility and raises refinancing exposure if rates stay higher for longer. Trading within 1% of the 52-week high — limited technical margin of safety; a momentum reversal would test conviction. Beta 1.77 implies above-market volatility — position-size to the drawdowns this name will produce in a market correction, not to its bull-case return.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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