SHC
HealthcareSotera Health Company · Medical - Diagnostics & Research · $4B
What is Sotera Health Company?
Sotera Health Company is a specialized healthcare services provider focused on sterilization and laboratory testing for medical devices, pharmaceuticals, and food products. Headquartered in Broadview Heights, Ohio, the company operates across North America, Europe, and international markets.
Sotera Health generates revenue through two primary service lines. Its sterilization segment uses gamma irradiation, electron beam irradiation, and ethylene oxide processing to ensure medical devices and other products are safe for use. Its Nelson Labs division provides microbiological and analytical chemistry testing, along with advisory services tailored to medical device and biopharmaceutical manufacturers. These services are essential for regulatory compliance across the healthcare supply chain.
Sotera Health Company was incorporated in 2017 and adopted its current name in October 2020.
- Gamma and electron beam irradiation sterilization services
- Ethylene oxide sterilization processing
- Microbiological and analytical chemistry testing via Nelson Labs
- Advisory services for medical device and biopharmaceutical industries
- Testing and sterilization for food and agricultural products
Is SHC a Good Stock to Buy?
UQS Score rates SHC as Below Average overall, reflecting a mixed profile across its five quality pillars.
Valuation stands out as the relative bright spot in SHC's profile, rated Good — suggesting the market may not be pricing in excessive optimism. Quality, Moat, and Growth each register as Neutral, indicating the business holds a functional but not differentiated position within the healthcare services sector.
The Risk pillar is rated Weak, which is the most significant drag on SHC's composite score and warrants careful consideration for investors evaluating downside exposure.
Pro members can view the complete pillar breakdown and underlying financial metrics to form a more complete picture of SHC's risk-reward profile. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SHC pay dividends?
No — Sotera Health Company does not currently pay a dividend.
Sotera Health does not currently pay a dividend. For a company carrying a Weak Risk rating, retaining cash rather than distributing it can reflect a focus on debt management and operational stability. Income-oriented investors should note that SHC is not positioned as a yield-generating holding at this time.
When does SHC report earnings?
Sotera Health reports earnings on a quarterly cadence, consistent with standard practice for US-listed equities.
The company's Neutral Growth pillar suggests revenue and earnings trends have been neither notably accelerating nor declining relative to sector peers. Investors tracking quarterly results should watch for commentary on sterilization volumes and any developments related to regulatory or litigation matters.
For the most recent quarter's results and guidance, visit Sotera Health's investor relations page directly.
SHC Price History
-33.7% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Sotera Health Company?
Based on Sotera Health Company's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SHC Long-term Outlook
SHC's Growth pillar is rated Neutral, pointing to a business that is growing in line with — rather than outpacing — the broader healthcare services sector. The Weak Risk rating introduces meaningful uncertainty around the forward outlook, as operational or legal headwinds could weigh on trajectory. The Good Valuation rating may provide some buffer, but it does not offset the risk profile on its own.
Growth drivers
- Steady demand for sterilization services as medical device production continues globally
- Expansion of lab testing and advisory services to biopharmaceutical clients
- Growing regulatory requirements driving outsourced compliance testing demand
Key risks
- Weak Risk pillar signals elevated exposure to financial or operational vulnerabilities
- Regulatory and litigation risks tied to ethylene oxide sterilization practices
- Competitive pressure in contract sterilization and lab testing markets
SHC vs Peers
Sotera Health operates in a niche corner of healthcare services, with peers spanning diagnostic imaging, genomics, and molecular diagnostics.
RadNet focuses on outpatient diagnostic imaging centers, operating in a different service segment but competing for healthcare outsourcing budgets.
Twist Bioscience is a synthetic biology company serving genomics and research markets, representing a higher-growth but earlier-stage profile than SHC.
BillionToOne specializes in molecular diagnostics and precision medicine testing, targeting a more specialized clinical segment than Sotera's sterilization focus.
Frequently Asked Questions
What does Sotera Health do?
Sotera Health provides sterilization services and laboratory testing for medical devices, pharmaceuticals, and food products. Its two main divisions are a sterilization segment — using gamma, electron beam, and ethylene oxide methods — and Nelson Labs, which handles microbiological testing and regulatory advisory services for healthcare manufacturers.
Does SHC pay dividends?
No, Sotera Health does not currently pay a dividend. The company retains its cash, which may reflect priorities around managing its balance sheet and operational obligations rather than returning capital to shareholders through distributions.
When does SHC report earnings?
Sotera Health follows a standard quarterly earnings cadence for US-listed companies. For the exact dates of upcoming reports and access to past results, check the investor relations section of Sotera Health's official website.
Is SHC a good stock to buy?
UQS Score rates SHC as Below Average, driven primarily by a Weak Risk pillar. While Valuation is rated Good and several other pillars are Neutral, the elevated risk profile is a meaningful consideration. The full pillar breakdown is available to Pro members on uqs-score.com.
Is SHC overvalued?
SHC's Valuation pillar is rated Good, suggesting the stock is not trading at a significant premium relative to its fundamentals. However, a favorable valuation rating alone does not offset concerns raised by the Weak Risk pillar. Investors should weigh both dimensions together.
How does SHC compare to its competitors?
Sotera Health occupies a specialized niche in contract sterilization and lab testing. Compared to peers like RadNet, Twist Bioscience, and BillionToOne, SHC's business model is more infrastructure-oriented and compliance-driven. Its Below Average UQS Score reflects a more challenged risk profile relative to some healthcare services peers.
What is SHC's market cap bracket?
Sotera Health is classified as a mid-cap company. This places it in a range where institutional coverage exists but the stock may carry more volatility than large-cap healthcare peers, particularly given its Weak Risk pillar rating.
Who founded Sotera Health?
Sotera Health Company was incorporated in 2017 and rebranded under its current name in October 2020. Detailed founding history and leadership background are publicly available through the company's official investor relations materials.
Is SHC a long-term quality holding?
As a long-term quality indicator, SHC's Below Average UQS Score — anchored by a Weak Risk pillar — suggests the business currently presents more uncertainty than higher-rated peers. Long-term investors focused on quality may want to monitor improvements in the Risk and Growth pillars before forming a conviction view.
What is the main competitive advantage of Sotera Health?
Sotera Health's Moat pillar is rated Neutral, indicating a functional but not strongly differentiated competitive position. Its advantage lies in operating specialized sterilization infrastructure and accredited testing labs that require significant regulatory approval — creating meaningful barriers to entry even without a dominant market position.
What sector does SHC belong to?
Sotera Health operates in the Healthcare sector, specifically within healthcare services and outsourced compliance solutions. It serves medical device manufacturers, pharmaceutical companies, and food producers that require third-party sterilization and testing to meet regulatory standards.
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Pro Analysis
SHC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 49.5 | 56.7 | 42.0 | 53.2 | 24.1 | 70.2 | +1.8 |
| May 10, 2026 | 47.7 | 33.3 | 42.0 | 53.2 | 39.4 | 82.1 | 0.0 |
| May 8, 2026 | 47.7 | 33.3 | 42.0 | 53.2 | 39.4 | 82.3 | -0.4 |
| May 7, 2026 | 48.1 | 52.4 | 42.0 | 53.0 | 20.4 | 72.0 | -0.1 |
| May 3, 2026 | 48.2 | 52.4 | 42.0 | 53.0 | 20.4 | 73.2 | 0.0 |
| Apr 26, 2026 | 48.2 | 52.4 | 42.0 | 53.0 | 20.4 | 73.1 | +0.5 |
| Apr 19, 2026 | 47.7 | 52.4 | 42.0 | 53.0 | 20.4 | 69.5 | -0.2 |
| Apr 18, 2026 | 47.9 | 52.4 | 42.0 | 53.0 | 20.4 | 71.2 | -0.6 |
| Apr 14, 2026 | 48.5 | 52.4 | 42.0 | 53.0 | 20.4 | 75.2 | -0.2 |
| Apr 12, 2026 | 48.7 | 52.4 | 42.0 | 53.0 | 20.4 | 76.1 | -0.1 |
SHC — Pillar Breakdown
Quality
— 56.7/100 (25%)Sotera Health Company shows solid profitability with healthy returns on capital and reasonable margins.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 53.2/100 (20%)Sotera Health Company shows steady but unspectacular growth, typical for mature companies.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 24.1/100 (15%)Sotera Health Company presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 69.9/100 (15%)Sotera Health Company trades at a reasonable valuation with decent earnings yield and FCF multiples.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 42/100 (25%)Sotera Health Company possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SHC.
Score Composition
Financial Data
More Stock Analysis
How is the SHC UQS Score Calculated?
The UQS (Unified Quality Score) for Sotera Health Company is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Sotera Health Company's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Sotera Health Company is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.