Sotera Health Company cash flow to debt ratio of 12.63% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Sotera Health Company's free cash flow has increased 230.81% from $45.09M last year to $149.18M, signaling increasing performance

Sotera Health Company's debt to equity ratio is 3.41, which means that the company's assets are unhealthy financed, signaling financial risk.

Sotera Health Company's debt has decreased relative to shareholder equity from 5.81 last year to 3.41 today, signaling strengthened financials

Sotera Health Company has a net debt to EBITDA ratio of 4.36x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Sotera Health Company's interest coverage ratio of 3.07 indicates that earnings with margin can cover interest payments on company debt

Sotera Health Company's profit margin has increased (233.17%) in the last year from 4.03% to 13.44%, signaling increasing performance

Sotera Health Company's short-term assets of $613.41M exceed its short-term liabilities of $249.58M

Sotera Health Company's return on assets of 4.94% is lower than the 5.00% threshold, indicating inefficient asset utilization

Sotera Health Company's return on equity of 26.75%, is higher than 15.00%, indicating good performance

Sotera Health Company's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Sotera Health Company had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Sotera Health Company has positive free cash flow, indicating the company generates cash after capital expenditures

Sotera Health Company has a free cash flow yield of 2.76%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Sotera Health Company's yearly earnings has increased 75.57% since last year from $44.40M to $77.95M, signaling increasing performance

Sotera Health Company's yearly revenue has increased 5.74% since last year from $1.10B to $1.16B, signaling increasing performance

ROIC 8.80% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Sotera Health Company's 3-year revenue CAGR of 5.05% is positive, indicating growing revenue over the past 3 years

Sotera Health Company had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Sotera Health Company had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Sotera Health Company is overvalued relative to its fair value price of 2.54 based on Discounted Cash Flow model

Sotera Health Company has an earnings yield of 3.02%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Sotera Health Company is overvalued relative to its fair value price of 0.69 based on EBITDA multiple model

Sotera Health Company has an EV/EBITDA ratio of 16.59x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Sotera Health Company has insufficient data to evaluate this check.

Sotera Health Company had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Sotera Health Company has a price-to-book ratio of 8.14x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Sotera Health Company has a price-to-sales ratio of 4.46x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue