Sotera Health Co. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Masimo Corp.

Lantheus Holdings, Inc.

Envista Holdings Corp.

Natera, Inc.

Inspire Medical Systems, Inc.

Sotera Health Co.

Shockwave Medical, Inc.

Haemonetics Corp.

Bausch + Lomb Corp.

QuidelOrtho Corp.

Dentsply Sirona, Inc.

Why is Sotera Health Co. ?

Healthy long term growth as Net Sales has grown by an annual rate of 7.30% and Operating profit at 9.99%

The company has declared Positive results for the last 4 consecutive quarters

NET PROFIT(HY) At USD 73.46 MM has Grown at 53.55%
ROCE(HY) Highest at 22.73%
RAW MATERIAL COST(Y) Fallen by -9.18% (YoY)

With ROCE of 17.28%, it has a fair valuation with a 2.32 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 44.61%, its profits have risen by 103% ; the PEG ratio of the company is 0.2

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 44.61% in the last 1 year, much higher than market (S&P 500) returns of 25.41%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Sotera Health Co. should be less than 10%
Overall Portfolio exposure to Pharmaceuticals & Biotechnology should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Pharmaceuticals & Biotechnology)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Sotera Health Co. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Sotera Health Co.

44.61%

0.81

39.93%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.30%

EBIT Growth (5y)

9.99%

EBIT to Interest (avg)

2.66

Debt to EBITDA (avg)

3.73

Net Debt to Equity (avg)

4.64

Sales to Capital Employed (avg)

0.41

Tax Ratio

71.81%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

14.37%

ROE (avg)

32.04%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.23

EV to EBIT

13.40

EV to EBITDA

10.05

EV to Capital Employed

2.32

EV to Sales

4.79

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

17.28%

ROE (Latest)

25.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

NET PROFIT(HY)

At USD 73.46 MM has Grown at 53.55%

ROCE(HY)

Highest at 22.73%

RAW MATERIAL COST(Y)

Fallen by -9.18% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 313.94 %

-2What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 8.53 times

OPERATING PROFIT MARGIN(Q)

Lowest at 42.18 %

Here's what is working for Sotera Health Co.

Net Profit

At USD 73.46 MM has Grown at 53.55%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

Debt-Equity Ratio

Lowest at 313.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -9.18% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Sotera Health Co.

Operating Profit Margin

Lowest at 42.18 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Inventory Turnover Ratio

Lowest at 8.53 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio