Sotera Health CoSHC +2.43%74 Operating Margin % is 27.08% as of Mar. 2026, which is 5% above its 10-year median of 25.78. 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 204 Medical Diagnostics & Research companies, Sotera Health Co ranks better than 97.55% on this metric.
Sotera Health Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Sotera Health Co's Operating Margin % or its related term are showing as below:
SHC'
s Operating Margin % Range Over the Past 10 Years
Min: 22.24 Med: 25.78 Max: 32.03
Current: 32.03
SHC's Operating Margin % is ranked better than 97.55% of 204
companies
in the Medical Diagnostics & Research industry
Industry Median: -3.195
vs SHC: 32.03
Sotera Health Co's 5-Year Average Operating Margin % Growth Rate was 3.10% per year.
Sotera Health Co (NAS:SHC) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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 Margin % Related Terms
Sotera Health Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sotera Health Co's Operating Margin % 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.
SHC vs BLLN, RDNT, TWST: Operating Margin % Comparison
For the Diagnostics & Research subindustry, Sotera Health Co's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sotera Health Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sotera Health Co's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Sotera Health Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (SHC) has a Operating Margin % of 27.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sotera Health Co and its competitors. This is near median its historical median of 25.78. Over the past decade, Sotera Health Co's Operating Margin % has ranged from 22.24 to 32.03. According to the industry distribution chart, Sotera Health Co ranks #5 out of 204 companies in the Medical Diagnostics & Research industry, placing it in the top 2.5%.
Is Sotera Health Co's Operating Margin % too high?
Sotera Health Co's current Operating Margin % of 27.08% is near median its 10-year median of 25.78. Over the past 10 years, this metric has ranged from a low of 22.24 to a high of 32.03. Based on the distribution chart, Sotera Health Co ranks #5 out of 204 companies in the Medical Diagnostics & Research industry, which is in the top quartile — a strong position 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 Operating Margin % compare to BLLN and RDNT?
According to the Medical Diagnostics & Research industry distribution chart, Sotera Health Co ranks #5 out of 204 companies for Operating Margin %. This places Sotera Health Co in the top 3% of its industry — outperforming the majority of peers. Historically, Sotera Health Co's own Operating Margin % has ranged from 22.24 to 32.03 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Medical Diagnostics & Research company?
A good Operating Margin % depends on the Medical Diagnostics & Research industry context. However, Operating Margin % 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 Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Sotera Health Co and its competitors. Sotera Health Co's current Operating Margin % is 27.08%, which is near median its own 10-year median of 25.78. 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 Operating Margin % is 27.08%, which is near median its 10-year median of 25.78. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Sotera Health Co (SHC), the current Operating Margin % is 27.08% 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:
Operating Margin %: 27.08% (near median its 10-year median of 25.78)
GF Value™: $16.31 vs. price of $17.10 (4.8% above fair value)
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 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 Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHC has been successfully added to your 
