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Sotera Health Co (SHC)



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Upturn Advisory Summary
08/28/2025: SHC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
1 Year Target Price $16
1 Year Target Price $16
3 | Strong Buy |
2 | Buy |
3 | Hold |
0 | Sell |
0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -11.14% | Avg. Invested days 32 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating ![]() ![]() | Upturn Advisory Performance ![]() | Stock Returns Performance ![]() |
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Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.60B USD | Price to earnings Ratio 180 | 1Y Target Price 16 |
Price to earnings Ratio 180 | 1Y Target Price 16 | ||
Volume (30-day avg) 8 | Beta 1.81 | 52 Weeks Range 9.53 - 17.08 | Updated Date 08/29/2025 |
52 Weeks Range 9.53 - 17.08 | Updated Date 08/29/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.09 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-08-08 | When - | Estimate 0.17 | Actual 0.2 |
Profitability
Profit Margin 2.14% | Operating Margin (TTM) 35.34% |
Management Effectiveness
Return on Assets (TTM) 7.24% | Return on Equity (TTM) 5.14% |
Valuation
Trailing PE 180 | Forward PE 20.2 | Enterprise Value 6618832017 | Price to Sales(TTM) 4.09 |
Enterprise Value 6618832017 | Price to Sales(TTM) 4.09 | ||
Enterprise Value to Revenue 5.89 | Enterprise Value to EBITDA 15.95 | Shares Outstanding 284047008 | Shares Floating 133899570 |
Shares Outstanding 284047008 | Shares Floating 133899570 | ||
Percent Insiders 2.46 | Percent Institutions 96.47 |
Upturn AI SWOT
Sotera Health Co

Company Overview
History and Background
Sotera Health Co. was formed in 2019 from Sterigenics International, a company with roots dating back to the 1920s in sterilization services. Initially part of GTCR and Warburg Pincus' portfolio, it went public in November 2020 (Nasdaq: SHC). The company provides sterilization and lab testing services.
Core Business Areas
- Sterilization Services: Offers gamma, electron beam, and ethylene oxide sterilization to medical device and pharmaceutical companies.
- Lab Services: Provides testing and analytical services to ensure product safety and efficacy.
- Nordion: Supplies Cobalt-60 used in gamma sterilization and provides related services.
Leadership and Structure
The leadership team includes Michael B. Petras Jr. (Chairman, President, and CEO). The organizational structure is hierarchical, with distinct business units focusing on sterilization, lab services, and Nordion.
Top Products and Market Share
Key Offerings
- Ethylene Oxide (EO) Sterilization: Sotera Health is a major provider of EO Sterilization which is necessary for certain medical devices. They hold a sizable portion of the market share in this segment (estimate: 30-40%). Competitors include Steris (STE) and Noxilizer. Revenue is not broken down by product but sterilization services make up a large portion of overall revenue.
- Gamma Sterilization: Gamma sterilization is another crucial segment. Market share is difficult to pinpoint exactly, but Sotera is estimated to be amongst the market leaders. Competitors include Steris (STE) and other smaller regional players.
- Lab Testing Services: These services ensure product safety, quality, and regulatory compliance. Sotera's lab services compete with other large analytical testing companies and smaller niche labs.
- Cobalt-60: Through its Nordion segment, Sotera provides Cobalt-60, the isotope that powers gamma sterilization facilities across the globe. This is a more specialized market with fewer competitors. Market share estimated at 40-50%.
Market Dynamics
Industry Overview
The medical device sterilization and testing market is driven by stringent regulatory requirements, increasing demand for medical devices, and the growing need for safe and effective healthcare products. This market is also influenced by technological advancements and increasing concerns about product safety.
Positioning
Sotera Health is positioned as a leading provider of sterilization and lab testing services for the healthcare industry. Its competitive advantages include its comprehensive service offerings, global footprint, and established relationships with key customers.
Total Addressable Market (TAM)
The global sterilization services market is estimated at several billion USD. Sotera Health is positioned to capture a significant portion of this market through its comprehensive services and global presence. The lab services market is also significant and growing due to increased regulation and safety concerns.
Upturn SWOT Analysis
Strengths
- Leading market position in sterilization services
- Comprehensive service offerings
- Global footprint and established customer relationships
- Strong regulatory expertise
- Nordion Segment
Weaknesses
- Dependence on Ethylene Oxide (EO) sterilization (regulatory and environmental concerns)
- Legal liabilities related to EO exposure
- Capital intensive nature of sterilization facilities
- Customer concentration
Opportunities
- Expanding service offerings into new geographies
- Developing alternative sterilization technologies
- Acquiring smaller competitors to consolidate market share
- Growing demand for lab testing services
- Increased outsourcing of sterilization services by medical device companies
Threats
- Increasing regulatory scrutiny of EO sterilization
- Potential for product liability claims
- Competition from other sterilization and lab testing providers
- Economic downturn impacting medical device sales
- Emergence of disruptive sterilization technologies
Competitors and Market Share
Key Competitors
- STE
- MMM
- B Braun
Competitive Landscape
Sotera Health competes on the basis of service offerings, quality, regulatory expertise, and geographic reach. It has an advantage in Cobalt-60, while Steris has a more diversified portfolio. MMM has a wide variety of medical products.
Major Acquisitions
Nelson Labs
- Year: 2014
- Acquisition Price (USD millions): 0
- Strategic Rationale: Expanded Sotera Health's lab testing capabilities and strengthened its position as a comprehensive service provider.
Growth Trajectory and Initiatives
Historical Growth: Sotera Health has experienced growth primarily through acquisitions and expansion of its service offerings. Growth has been tempered by EO regulatory concerns and related legal liabilities.
Future Projections: Future growth is projected to be driven by increased demand for sterilization and lab testing services, as well as expansion into new markets and service lines. However, future growth estimates may be impacted by regulatory changes.
Recent Initiatives: Recent initiatives include investments in new sterilization technologies, expansion of lab testing capabilities, and efforts to mitigate EO-related risks.
Summary
Sotera Health is a major player in the sterilization and lab testing services for the medical industry. They have a significant presence in a growing market, but face regulatory risks associated with Ethylene Oxide. A strength is their ownership of Cobalt-60, which is critical to Gamma Sterilization. They need to carefully manage liabilities and navigate new growth opportunities to maximize shareholder value.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q)
- Analyst Reports
- Industry Reports
- Company Website
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market share data is estimated and may vary. The AI-based rating is based on a limited set of factors and should not be the sole basis for investment decisions. All financials will be provided in the next iteration
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Sotera Health Co
Exchange NASDAQ | Headquaters Broadview Heights, OH, United States | ||
IPO Launch date 2020-11-20 | Chairman & CEO Mr. Michael B. Petras Jr. | ||
Sector Healthcare | Industry Diagnostics & Research | Full time employees 3000 | Website https://soterahealth.com |
Full time employees 3000 | Website https://soterahealth.com |
Sotera Health Company provides sterilization, lab testing, and advisory services for the healthcare industry in the United States, Canada, Europe, and internationally. The company operates through three segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment offers outsourced terminal sterilization and irradiation services using gamma irradiation, ethylene oxide processing, and electron beam irradiation technologies for the medical device, pharmaceutical, and food safety and advanced applications markets. The Nordion segment provides Cobalt-60 used in the sterilization and irradiation processes for the medical device, pharmaceutical, food safety, and high-performance materials industries, as well as in the treatment of cancer. It also offers gamma irradiation systems. The Nelson Labs segment provides outsourced microbiological and analytical chemistry testing and advisory services for the medical device and pharmaceutical industries. The company was formerly known as Sotera Health Topco, Inc. and changed its name to Sotera Health Company in October 2020. Sotera Health Company was incorporated in 2015 and is headquartered in Broadview Heights, Ohio.

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