SHC

Sotera Health Co

Healthcare


Presented:04/11/2024
Price:$11.42
Cap:$3.23B
Current Price:$15.38
Cap:$4.36B

Presented

Date04/11/2024
Price$11.42
Market Cap$3.23B
Ent Value$6.80B
P/E Ratio63.55x
Book Value$1.57
Div Yield0%
Shares O/S282.83M
Ave Daily Vol1,762,482
Short Int10.89%

Current

Price$15.38
Market Cap$4.36B
Sotera Health Co. provides mission-critical sterilization, lab testing and advisory services to the medical device and pharmaceutical industries. It also provides end-to-end sterilization as well as microbiological and analytical lab testing and advisory services to help ensure that medical, pharmaceutical and food products are safe for healthcare practitioners, patients and consumers. The firm operates through the following businesses: Sterigenics, Nordion, and Nelson Labs. The Sterigenics business provides outsourced terminal sterilization and irradiation services for the medical device, pharmaceutical, food safety and advanced applications markets by using following technologies: gamma irradiation, EO processing and E-beam irradiation. The Nordion business provides Co-60 and gamma irradiators, which are the key components to the gamma sterilization process. The Nelson Labs business provides outsourced microbiological and analytical chemistry testing and advisory services for the medical device and pharmaceutical industries. The company was founded in 1978 and is headquartered in Broadview Heights, OH.

Publicly traded companies mentioned herein: Sotera Health Co (SHC), Steris PLC (STE), Tyra Biosciences Inc (TYRA)

Highlights

The presenter is long shares of Sotera Health Co (SHC), a specialized healthcare services and medtech company focused on sterilization using ethylene oxide and which essentially operates in a duopoly with STERIS. The stock has gone from ~$17 per share to $11.50 in the last two months due to legal challenges related to environmental concerns. Despite this setback, there is a reasonable case that this reaction is overdone. SHC trades at ~9x EBITDA (excluding any liabilities) compared to STERIS at 15x, and the stock should rerate higher as more detail emerges around the litigation / number of plaintiffs.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.