SHC (Sotera Health Co) Interest Coverage: 2.18 (As of Mar. 2026) — 16% Above Median


SHC Sotera Health Co SHC
74 GF Score
Price $17.10
GF Value $16.31
Valuation Fairly Valued
! 3 Warning Signs
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What is Sotera Health Co Interest Coverage?

Sotera Health Co SHC +2.43% 74 Interest Coverage is 2.18 as of Mar. 2026, which is 16% above its 10-year median of 1.88. GuruFocus rates SHC with a GF Score™ of 74/100 and a GF Value™ of $16.31 (Fairly Valued). The stock has 3 warning signs investors should review. Among 95 Medical Diagnostics & Research companies, Sotera Health Co ranks worse than 84.21% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sotera Health Co's Operating Income for the three months ended in Mar. 2026 was $76 Mil. Sotera Health Co's Interest Expense for the three months ended in Mar. 2026 was $-35 Mil. Sotera Health Co's interest coverage for the quarter that ended in Mar. 2026 was 2.18. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sotera Health Co's Interest Coverage or its related term are showing as below:

SHC' s Interest Coverage Range Over the Past 10 Years
Min: 0.96   Med: 1.88   Max: 3.46
Current: 2.55


SHC's Interest Coverage is ranked worse than
84.21% of 95 companies
in the Medical Diagnostics & Research industry
Industry Median: 9.05 vs SHC: 2.55

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Sotera Health Co  (NAS:SHC) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Sotera Health Co Interest Coverage Related Terms


Sotera Health Co Interest Coverage Historical Data

* Premium members only.

The historical data trend for Sotera Health Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Sotera Health Co Interest Coverage Chart

Sotera Health Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial 3.46 3.10 1.94 1.81 2.32

Sotera Health Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.40 2.18 2.84 3.01 2.18

SHC vs BLLN, RDNT, TWST: Interest Coverage Comparison

For the Diagnostics & Research subindustry, Sotera Health Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Sotera Health Co Interest Coverage vs Medical Diagnostics & Research Industry

For the Medical Diagnostics & Research industry and Healthcare sector, Sotera Health Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sotera Health Co's Interest Coverage falls into.


SHC
74GF Score
Sotera Health Co SHC
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Sotera Health Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sotera Health Co's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Sotera Health Co's Interest Expense was $-156 Mil. Its Operating Income was $362 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,250 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*362.034/-155.722
=2.32

Sotera Health Co's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Sotera Health Co's Interest Expense was $-35 Mil. Its Operating Income was $76 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,247 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*75.827/-34.745
=2.18

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 2.18 mean?
Sotera Health Co (SHC) has a Interest Coverage of 2.18 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sotera Health Co and its competitors. This is 16% above median its historical median of 1.88. Over the past decade, Sotera Health Co's Interest Coverage has ranged from 0.96 to 3.46. According to the industry distribution chart, Sotera Health Co ranks #80 out of 95 companies in the Medical Diagnostics & Research industry, placing it in the top 84.2%.
Is Sotera Health Co's Interest Coverage too high?
Sotera Health Co's current Interest Coverage of 2.18 is 16% above median its 10-year median of 1.88. Over the past 10 years, this metric has ranged from a low of 0.96 to a high of 3.46. The Medical Diagnostics & Research industry median Interest Coverage is 9.05. Sotera Health Co's value of 2.18 is 75.9% below this industry median. Based on the distribution chart, Sotera Health Co ranks #80 out of 95 companies in the Medical Diagnostics & Research industry, which is in the bottom quartile relative to peers. Overall, Sotera Health Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Sotera Health Co's Interest Coverage compare to BLLN and RDNT?
According to the Medical Diagnostics & Research industry distribution chart, Sotera Health Co ranks #80 out of 95 companies for Interest Coverage. This places Sotera Health Co in the lower half of its industry. The industry median Interest Coverage is 9.05. Sotera Health Co's value of 2.18 is 75.9% below this benchmark. Historically, Sotera Health Co's own Interest Coverage has ranged from 0.96 to 3.46 over the past decade. While the company's 10-year median is 1.88 vs. the industry median of 9.05, Sotera Health Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Medical Diagnostics & Research company?
The median Interest Coverage among Medical Diagnostics & Research companies is 9.05, based on 95 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Sotera Health Co's current Interest Coverage of 2.18 is 75.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Sotera Health Co and its competitors. For the Medical Diagnostics & Research industry, the median Interest Coverage is 9.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotera Health Co's current Interest Coverage is 2.18, which is 16% above median its own 10-year median of 1.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sotera Health Co stock overvalued right now?
Based on GuruFocus' analysis, Sotera Health Co (SHC) is currently considered Fairly Valued. The stock's GF Value™ is $16.31, compared to a current price of $17.10 — trading 4.8% above its estimated fair value. The current Interest Coverage is 2.18, which is 16% above median its 10-year median of 1.88 and 75.9% below the Medical Diagnostics & Research industry median of 9.05. Sotera Health Co's overall GF Score™ is 74/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Sotera Health Co (SHC), the current Interest Coverage is 2.18 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Sotera Health Co (SHC) Overvalued in 2026?

Based on GuruFocus' analysis, Sotera Health Co stock appears to be overvalued. The current stock price of $17.10 is trading 4.8% above its estimated GF Value™ of $16.31. GuruFocus considers Sotera Health Co to be Fairly Valued.

Key valuation signals for SHC:

  • Interest Coverage: 2.18 (16% above median its 10-year median of 1.88)
  • GF Value™: $16.31 vs. price of $17.10 (4.8% above fair value)
  • GF Score™: 74/100 with 3 warning signs
  • Industry Position: 75.9% below the Medical Diagnostics & Research median (#80 of 95)

No single metric tells the full story. See the SHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Sotera Health Co Business Description

Address 9100 South Hills Boulevard, Suite 300, Broadview Heights, OH, USA, 44147
Sotera Health Co provides sterilization, analytical lab testing, and advisory services to help ensure that medical, pharmaceutical, and food products are safe for healthcare practitioners, patients, and consumers. The company operates in three reportable segments: Sterigenics, Nordion, and Nelson Labs. The Sterigenics segment, which generates maximum revenue, provides outsourced terminal sterilization and irradiation services for medical devices, pharmaceuticals, food safety, and other application markets using three core technologies: gamma irradiation, EO processing, and E-beam irradiation. Geographically, the company generates maximum revenue from the United States, followed by Canada, Europe, and other regions.
74GF Score

Get the complete analysis for SHC

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$17.10
Price
$16.31
GF Value