Sotera Health Net Income vs. Return On Asset
| SHC Stock | USD 13.30 0.48 3.74% |
Net Income | First Reported 2019-09-30 | Previous Quarter 8.8 M | Current Value 17 M | Quarterly Volatility 75.4 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.42 | 0.55 |
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| Operating Profit Margin | 0.18 | 0.2637 |
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For Sotera Health profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Sotera Health to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Sotera Health Co utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Sotera Health's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Sotera Health Co over time as well as its relative position and ranking within its peers.
Sotera |
Sotera Health's Revenue Breakdown by Earning Segment
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Is Life Sciences Tools & Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Sotera Health. If investors know Sotera will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Sotera Health listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.62) | Earnings Share 0.25 | Revenue Per Share 3.969 | Quarterly Revenue Growth 0.085 | Return On Assets 0.0768 |
The market value of Sotera Health is measured differently than its book value, which is the value of Sotera that is recorded on the company's balance sheet. Investors also form their own opinion of Sotera Health's value that differs from its market value or its book value, called intrinsic value, which is Sotera Health's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Sotera Health's market value can be influenced by many factors that don't directly affect Sotera Health's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Sotera Health's value and its price as these two are different measures arrived at by different means. Investors typically determine if Sotera Health is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Sotera Health's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Sotera Health Return On Asset vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Sotera Health's current stock value. Our valuation model uses many indicators to compare Sotera Health value to that of its competitors to determine the firm's financial worth. Sotera Health Co is rated below average in net income category among its peers. It is rated second in return on asset category among its peers . The ratio of Net Income to Return On Asset for Sotera Health Co is about 668,958,333 . At present, Sotera Health's Net Income is projected to decrease significantly based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Sotera Health's earnings, one of the primary drivers of an investment's value.Sotera Return On Asset vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Sotera Health |
| = | 51.38 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Sotera Health |
| = | 0.0768 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Sotera Return On Asset Comparison
Sotera Health is currently under evaluation in return on asset category among its peers.
Sotera Health Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Sotera Health, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Sotera Health will eventually generate negative long term returns. The profitability progress is the general direction of Sotera Health's change in net profit over the period of time. It can combine multiple indicators of Sotera Health, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -92.7 M | -97.3 M | |
| Net Loss | -210.2 M | -199.7 M | |
| Income Tax Expense | 54.7 M | 57.4 M | |
| Net Interest Income | -132.5 M | -139.1 M | |
| Operating Income | 276.7 M | 229.6 M | |
| Net Loss | -307 M | -291.7 M | |
| Income Before Tax | 106 M | 111.3 M | |
| Total Other Income Expense Net | -170.7 M | -179.2 M | |
| Net Income | 51.4 M | 53.9 M | |
| Non Operating Income Net Other | -6.1 M | -6.4 M | |
| Change To Netincome | -58.8 M | -55.9 M | |
| Net Income Per Share | 0.18 | 0.19 | |
| Income Quality | (2.88) | (3.02) | |
| Net Income Per E B T | 0.48 | 0.46 |
Sotera Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Sotera Health. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Sotera Health position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Sotera Health's important profitability drivers and their relationship over time.
Use Sotera Health in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Sotera Health position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sotera Health will appreciate offsetting losses from the drop in the long position's value.Sotera Health Pair Trading
Sotera Health Co Pair Trading Analysis
The ability to find closely correlated positions to Sotera Health could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Sotera Health when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Sotera Health - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Sotera Health Co to buy it.
The correlation of Sotera Health is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Sotera Health moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Sotera Health moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Sotera Health can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Sotera Health position
In addition to having Sotera Health in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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To fully project Sotera Health's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Sotera Health at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Sotera Health's income statement, its balance sheet, and the statement of cash flows.