Sotera Health CoSHC +1.28%74 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates SHC with a GF Score™ of 74/100 and a GF Value™ of $16.32 (Fairly Valued). The stock has 5 warning signs investors should review. Among 193 Medical Diagnostics & Research companies, Sotera Health Co ranks better than 99.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Sotera Health Co's annualized net income for the quarter that ended in Mar. 2026 was $106 Mil. Sotera Health Co's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $-770 Mil. Therefore, Sotera Health Co's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for Sotera Health Co's Return-on-Tangible-Equity or its related term are showing as below:
SHC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
SHC's Return-on-Tangible-Equity is ranked better than 99.48% of 193
companies
in the Medical Diagnostics & Research industry
Industry Median: 0.07
vs SHC: Negative Tangible Equity
Sotera Health Co (NAS:SHC) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Sotera Health Co Return-on-Tangible-Equity Related Terms
Sotera Health Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Sotera Health Co's Return-on-Tangible-Equity 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 VCYT, RDNT, BLLN: Return-on-Tangible-Equity Comparison
For the Diagnostics & Research subindustry, Sotera Health Co's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sotera Health Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Sotera Health Co's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
Sotera Health Co (SHC) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sotera Health Co and its competitors. According to the industry distribution chart, Sotera Health Co ranks #1 out of 193 companies in the Medical Diagnostics & Research industry, placing it in the top 0.5%.
Is Sotera Health Co's Return-on-Tangible-Equity too high?
Sotera Health Co's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, Sotera Health Co ranks #1 out of 193 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 Return-on-Tangible-Equity compare to VCYT and RDNT?
According to the Medical Diagnostics & Research industry distribution chart, Sotera Health Co ranks #1 out of 193 companies for Return-on-Tangible-Equity. This places Sotera Health Co in the top 1% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 0.07. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Medical Diagnostics & Research company?
The median Return-on-Tangible-Equity among Medical Diagnostics & Research companies is 0.07, based on 193 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Sotera Health Co and its competitors. For the Medical Diagnostics & Research industry, the median Return-on-Tangible-Equity is 0.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sotera Health Co's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 $16.32, compared to a current price of $17.75 — trading 8.7% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. Sotera Health Co's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Sotera Health Co (SHC), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 $17.75 is trading 8.7% above its estimated GF Value™ of $16.32.
GuruFocus considers Sotera Health Co to be Fairly Valued.
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
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