SHC (Sotera Health Co) Operating Income: $381 Mil (TTM As of Mar. 2026)


SHC Sotera Health Co SHC
74 GF Score
Price $17.86
GF Value $16.33
Valuation Fairly Valued
! 4 Warning Signs
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What is Sotera Health Co Operating Income?

Sotera Health Co SHC -0.42% 74 Operating Income is $381 Mil as of Mar. 2026. GuruFocus rates SHC with a GF Score™ of 74/100 and a GF Value™ of $16.33 (Fairly Valued). The stock has 4 warning signs investors should review.

Sotera Health Co's Operating Income for the three months ended in Mar. 2026 was $76 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $381 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sotera Health Co's Operating Income for the three months ended in Mar. 2026 was $76 Mil. Sotera Health Co's Revenue for the three months ended in Mar. 2026 was $280 Mil. Therefore, Sotera Health Co's Operating Margin % for the quarter that ended in Mar. 2026 was 27.08%.

Good Sign:

Sotera Health Co operating margin is expanding. Margin expansion is usually a good sign.

Sotera Health Co's 5-Year average Growth Rate for Operating Margin % was 3.10% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sotera Health Co's annualized ROC % for the quarter that ended in Mar. 2026 was 6.79%. Sotera Health Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 25.85%.

Sotera Health Co  (NAS:SHC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Sotera Health Co's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=303.308 * ( 1 - 37.6% )/( (2789.592 + 2784.812)/ 2 )
=189.264192/2787.202
=6.79 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3263.19 - 128.977 - ( 344.621 - max(0, 249.584 - 613.41+344.621))
=2789.592

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=3235.898 - 136.939 - ( 314.147 - max(0, 207.804 - 585.971+314.147))
=2784.812

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Sotera Health Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=309.432/( ( (1163.957 + max(5.461, 0)) + (1176.348 + max(48.302, 0)) )/ 2 )
=309.432/( ( 1169.418 + 1224.65 )/ 2 )
=309.432/1197.034
=25.85 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(139.329 + 54.375 + 38.148) - (128.977 + 17.999 + 79.415)
=5.461

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(137.256 + 57.494 + 38.008) - (136.939 + 13.741 + 33.776)
=48.302

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Sotera Health Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=75.827/280.045
=27.08 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Sotera Health Co Operating Income Related Terms

Sotera Health Co Operating Income Historical Data

* Premium members only.

The historical data trend for Sotera Health Co's Operating Income 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.

Sotera Health Co Operating Income Chart

Sotera Health Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial 256.73 248.35 276.69 297.63 362.03

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
Operating Income 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 57.04 88.43 111.18 105.38 75.83
SHC
74GF Score
Sotera Health Co SHC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Sotera Health Co Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $381 Mil.

* 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.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $381 Mil mean?
Sotera Health Co (SHC) has a Operating Income of $381 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sotera Health Co and its competitors.
Is Sotera Health Co's Operating Income too high?
Sotera Health Co's current Operating Income is $381 Mil. 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 Operating Income compare to VCYT and RDNT?
Sotera Health Co's Operating Income of $381 Mil can be compared against companies in the Medical Diagnostics & Research industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Medical Diagnostics & Research company?
A good Operating Income depends on the Medical Diagnostics & Research industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sotera Health Co and its competitors. Sotera Health Co's current Operating Income is $381 Mil. 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 $16.33, compared to a current price of $17.86 — trading 9.3% above its estimated fair value. The current Operating Income is $381 Mil. Sotera Health Co's overall GF Score™ is 74/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Sotera Health Co (SHC), the current Operating Income is $381 Mil 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 $17.86 is trading 9.3% above its estimated GF Value™ of $16.33. GuruFocus considers Sotera Health Co to be Fairly Valued.

Key valuation signals for SHC:

  • Operating Income: $381 Mil
  • GF Value™: $16.33 vs. price of $17.86 (9.3% above fair value)
  • GF Score™: 74/100 with 4 warning signs

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

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

$17.86
Price
$16.33
GF Value