Added to YB: 2026-05-19
Pitch date: 2026-05-16
SHC [bullish]
Sotera Health Company
-0.46%
current return
Author Info
Company Info
Sotera Health Company provides sterilization solutions, lab testing, and advisory services for the healthcare industry in the United States, Canada, Europe, and internationally.
Market Cap
$4.4B
Pitch Price
$15.30
Price Target
40.00 (+163%)
Dividend
N/A
EV/EBITDA
11.01
P/E
37.39
EV/Sales
5.31
Sector
Life Sciences Tools and Services
Category
value
Musings for the weekend - Codex and the anti-bubble (a large cap and some medtech) - Sotera Health Company
SHC: Mission-critical sterilization/lab testing for med devices/pharma w/ 50%+ EBITDA margins, 9% rev CAGR since 2005, ~100% top-10 renewal rates. Trades 9x EBITDA vs 12-13x peer Steris despite superior margins. PE overhang cleared (GTCR/Warburg exit complete). Litigation risk manageable: even assuming $1M/claim ($620M total) = 10.7x FY26 EBITDA. Fair value 15-20x EBITDA = $20-$40 PT vs $15 current.
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