CluenexSotera Health SHC
Sotera Health scores average on business quality (4.7 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Sotera Health does
Sotera Health provides critical sterilization and lab testing services to medical device and pharmaceutical companies, charging fees to ensure product safety before market release.
- What it does best
Sotera delivers an operating margin of 32.8%, ranking in the top decile of its sector at 88th percentile. This efficiency stems from entrenched regulatory compliance and specialized facility networks that customers cannot easily replicate.
- The main risk
A heavy debt load creates vulnerability, with total debt at $2.2B and interest coverage sitting thin at 2.8x. Any operational slip threatens the cash flow needed to service these obligations.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin leads at 32.8% and ROE reaches 26.7%, supported by pricing power. This high-margin setup allows profitability to expand efficiently as scale increases.
Strict regulatory standards lock in medical device and pharma customers who rely on Sotera's certified sterilization network. Operating margin ranks in the sector's top decile at 88th percentile.
Revenue growth crawls at 5.8%, reaching $1.2B. This pace sits in the middle of the pack at the 36th sector percentile.
Debt-to-equity is elevated at 3.7x and interest coverage is just 2.8x, leaving little margin for error. Free cash flow sits at $113M, getting softer.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
2 sold $24.0M outside pre-planned sales.
Our sealed record on SHC
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Sotera Health scores average on the Cluenex quality check (4.7 of 10), measured against its own industry. Profitability is strong, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 2 sold $24.0M outside pre-planned sales.
Nov 2, 2026, before the open.
See SHC today
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Cite this page: Cluenex, “Sotera Health (SHC)”, https://cluenex.com/stocks/shc/, data as of Oct 10, 2026.