Sotera Health Return On Asset vs. Price To Earning

SHC Stock  USD 13.28  0.45  3.51%   
Considering the key profitability indicators obtained from Sotera Health's historical financial statements, Sotera Health Co is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Sotera Health's ability to earn profits and add value for shareholders. At present, Sotera Health's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 10.02, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.14. At present, Sotera Health's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 53.9 M, whereas Accumulated Other Comprehensive Income is forecasted to decline to (97.3 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.420.55
Way Down
Slightly volatile
Operating Profit Margin0.180.2637
Way Down
Slightly volatile
For Sotera Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sotera Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sotera Health Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sotera Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sotera Health Co over time as well as its relative position and ranking within its peers.
  

Sotera Health's Revenue Breakdown by Earning Segment

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Is Life Sciences Tools & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sotera Health. If investors know Sotera will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sotera Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.62)
Earnings Share
0.25
Revenue Per Share
3.969
Quarterly Revenue Growth
0.085
Return On Assets
0.0768
The market value of Sotera Health is measured differently than its book value, which is the value of Sotera that is recorded on the company's balance sheet. Investors also form their own opinion of Sotera Health's value that differs from its market value or its book value, called intrinsic value, which is Sotera Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sotera Health's market value can be influenced by many factors that don't directly affect Sotera Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sotera Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sotera Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sotera Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Sotera Health Price To Earning vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Sotera Health's current stock value. Our valuation model uses many indicators to compare Sotera Health value to that of its competitors to determine the firm's financial worth.
Sotera Health Co is rated second in return on asset category among its peers. It also is rated second in price to earning category among its peers reporting about  798.44  of Price To Earning per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sotera Health's earnings, one of the primary drivers of an investment's value.

Sotera Price To Earning vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

Sotera Health

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0768
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Sotera Health

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
61.32 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Sotera Price To Earning Comparison

Sotera Health is currently under evaluation in price to earning category among its peers.

Sotera Health Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Sotera Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sotera Health will eventually generate negative long term returns. The profitability progress is the general direction of Sotera Health's change in net profit over the period of time. It can combine multiple indicators of Sotera Health, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-92.7 M-97.3 M
Net Loss-210.2 M-199.7 M
Income Tax Expense54.7 M57.4 M
Net Interest Income-132.5 M-139.1 M
Operating Income276.7 M229.6 M
Net Loss-307 M-291.7 M
Income Before Tax106 M111.3 M
Total Other Income Expense Net-170.7 M-179.2 M
Net Income51.4 M53.9 M
Non Operating Income Net Other-6.1 M-6.4 M
Change To Netincome-58.8 M-55.9 M
Net Income Per Share 0.18  0.19 
Income Quality(2.88)(3.02)
Net Income Per E B T 0.48  0.46 

Sotera Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Sotera Health. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sotera Health position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sotera Health's important profitability drivers and their relationship over time.

Use Sotera Health in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sotera Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sotera Health will appreciate offsetting losses from the drop in the long position's value.

Sotera Health Pair Trading

Sotera Health Co Pair Trading Analysis

The ability to find closely correlated positions to Sotera Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sotera Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sotera Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sotera Health Co to buy it.
The correlation of Sotera Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sotera Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sotera Health moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sotera Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Sotera Health position

In addition to having Sotera Health in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Services Thematic Idea Now

Services
Services Theme
Companies involved in delivering services to business or consumers across different industries and sectors. The Services theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Services Theme or any other thematic opportunities.
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When determining whether Sotera Health offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Sotera Health's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Sotera Health Co Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Sotera Health Co Stock:
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You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
To fully project Sotera Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sotera Health at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sotera Health's income statement, its balance sheet, and the statement of cash flows.
Potential Sotera Health investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Sotera Health investors may work on each financial statement separately, they are all related. The changes in Sotera Health's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Sotera Health's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.