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Stericycle Inc (SRCL) Stock Fundamental Analysis

NASDAQ:SRCL - Nasdaq - US8589121081 - Common Stock - Currency: USD

61.98  +0.51 (+0.83%)

After market: 61.98 0 (0%)

Fundamental Rating

3

Taking everything into account, SRCL scores 3 out of 10 in our fundamental rating. SRCL was compared to 83 industry peers in the Commercial Services & Supplies industry. SRCL has a medium profitability rating, but doesn't score so well on its financial health evaluation. While showing a medium growth rate, SRCL is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

SRCL had positive earnings in the past year.
In the past year SRCL had a positive cash flow from operations.
In the past 5 years SRCL reported 4 times negative net income.
In the past 5 years SRCL always reported a positive cash flow from operatings.
SRCL Yearly Net Income VS EBIT VS OCF VS FCFSRCL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M 600M

1.2 Ratios

The Return On Assets of SRCL (0.66%) is comparable to the rest of the industry.
SRCL has a Return On Equity (1.42%) which is in line with its industry peers.
With a Return On Invested Capital value of 3.62%, SRCL perfoms like the industry average, outperforming 42.35% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SRCL is significantly below the industry average of 11.67%.
Industry RankSector Rank
ROA 0.66%
ROE 1.42%
ROIC 3.62%
ROA(3y)0.05%
ROA(5y)-1.25%
ROE(3y)0.1%
ROE(5y)-3.39%
ROIC(3y)3.93%
ROIC(5y)3.93%
SRCL Yearly ROA, ROE, ROICSRCL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 -10

1.3 Margins

Looking at the Profit Margin, with a value of 1.37%, SRCL is in line with its industry, outperforming 47.06% of the companies in the same industry.
SRCL's Operating Margin of 8.35% is fine compared to the rest of the industry. SRCL outperforms 61.18% of its industry peers.
In the last couple of years the Operating Margin of SRCL has declined.
SRCL has a better Gross Margin (38.58%) than 65.88% of its industry peers.
In the last couple of years the Gross Margin of SRCL has remained more or less at the same level.
Industry RankSector Rank
OM 8.35%
PM (TTM) 1.37%
GM 38.58%
OM growth 3Y1.79%
OM growth 5Y-5.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.25%
GM growth 5Y-1.05%
SRCL Yearly Profit, Operating, Gross MarginsSRCL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30 40

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRCL is destroying value.
SRCL has more shares outstanding than it did 1 year ago.
SRCL has more shares outstanding than it did 5 years ago.
The debt/assets ratio for SRCL has been reduced compared to a year ago.
SRCL Yearly Shares OutstandingSRCL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M
SRCL Yearly Total Debt VS Total AssetsSRCL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

2.2 Solvency

SRCL has an Altman-Z score of 2.17. This is not the best score and indicates that SRCL is in the grey zone with still only limited risk for bankruptcy at the moment.
SRCL has a Altman-Z score of 2.17. This is comparable to the rest of the industry: SRCL outperforms 50.59% of its industry peers.
SRCL has a Debt/Equity ratio of 0.55. This is a neutral value indicating SRCL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.55, SRCL perfoms like the industry average, outperforming 45.88% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF N/A
Altman-Z 2.17
ROIC/WACC0.45
WACC7.97%
SRCL Yearly LT Debt VS Equity VS FCFSRCL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

2.3 Liquidity

A Current Ratio of 1.13 indicates that SRCL should not have too much problems paying its short term obligations.
The Current ratio of SRCL (1.13) is worse than 74.12% of its industry peers.
A Quick Ratio of 1.13 indicates that SRCL should not have too much problems paying its short term obligations.
SRCL's Quick ratio of 1.13 is on the low side compared to the rest of the industry. SRCL is outperformed by 63.53% of its industry peers.
Industry RankSector Rank
Current Ratio 1.13
Quick Ratio 1.13
SRCL Yearly Current Assets VS Current LiabilitesSRCL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.74% over the past year.
The earnings per share for SRCL have been decreasing by -15.70% on average. This is quite bad
The Revenue has decreased by -1.68% in the past year.
SRCL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.27% yearly.
EPS 1Y (TTM)9.74%
EPS 3Y-5.65%
EPS 5Y-15.7%
EPS Q2Q%23.26%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y-0.2%
Revenue growth 5Y-5.27%
Sales Q2Q%-0.78%

3.2 Future

Based on estimates for the next years, SRCL will show a very strong growth in Earnings Per Share. The EPS will grow by 21.37% on average per year.
Based on estimates for the next years, SRCL will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.
EPS Next Y22.51%
EPS Next 2Y22.71%
EPS Next 3Y25.13%
EPS Next 5Y21.37%
Revenue Next Year2.13%
Revenue Next 2Y2.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.9%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SRCL Yearly Revenue VS EstimatesSRCL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 1B 2B 3B
SRCL Yearly EPS VS EstimatesSRCL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 28.96, SRCL can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as SRCL.
Compared to an average S&P500 Price/Earnings ratio of 27.19, SRCL is valued at the same level.
Based on the Price/Forward Earnings ratio of 21.78, the valuation of SRCL can be described as rather expensive.
67.06% of the companies in the same industry are more expensive than SRCL, based on the Price/Forward Earnings ratio.
SRCL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.33.
Industry RankSector Rank
PE 28.96
Fwd PE 21.78
SRCL Price Earnings VS Forward Price EarningsSRCL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

SRCL's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 16.43
SRCL Per share dataSRCL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

SRCL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as SRCL's earnings are expected to grow with 25.13% in the coming years.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y22.71%
EPS Next 3Y25.13%

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0

5. Dividend

5.1 Amount

SRCL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Stericycle Inc

NASDAQ:SRCL (11/1/2024, 8:00:01 PM)

After market: 61.98 0 (0%)

61.98

+0.51 (+0.83%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)11-01 2024-11-01/bmo
Earnings (Next)N/A N/A
Inst Owners90.4%
Inst Owner Change0%
Ins Owners1.15%
Ins Owner Change0%
Market Cap5.75B
Analysts71.43
Price Target63.01 (1.66%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-6.59%
Min EPS beat(2)-13.77%
Max EPS beat(2)0.6%
EPS beat(4)2
Avg EPS beat(4)-1.75%
Min EPS beat(4)-13.77%
Max EPS beat(4)13.33%
EPS beat(8)4
Avg EPS beat(8)-0.41%
EPS beat(12)4
Avg EPS beat(12)-7.09%
EPS beat(16)6
Avg EPS beat(16)-3.85%
Revenue beat(2)0
Avg Revenue beat(2)-3.52%
Min Revenue beat(2)-3.63%
Max Revenue beat(2)-3.41%
Revenue beat(4)0
Avg Revenue beat(4)-3.88%
Min Revenue beat(4)-5.65%
Max Revenue beat(4)-2.85%
Revenue beat(8)2
Avg Revenue beat(8)-3.12%
Revenue beat(12)2
Avg Revenue beat(12)-3.07%
Revenue beat(16)3
Avg Revenue beat(16)-2.6%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.75%
EPS NY rev (1m)2.76%
EPS NY rev (3m)-2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.1%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)0.73%
Valuation
Industry RankSector Rank
PE 28.96
Fwd PE 21.78
P/S 2.19
P/FCF N/A
P/OCF 73.87
P/B 2.27
P/tB N/A
EV/EBITDA 16.43
EPS(TTM)2.14
EY3.45%
EPS(NY)2.85
Fwd EY4.59%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)0.84
OCFY1.35%
SpS28.35
BVpS27.27
TBVpS-9.24
PEG (NY)1.29
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.66%
ROE 1.42%
ROCE 4.58%
ROIC 3.62%
ROICexc 3.65%
ROICexgc 12.66%
OM 8.35%
PM (TTM) 1.37%
GM 38.58%
FCFM N/A
ROA(3y)0.05%
ROA(5y)-1.25%
ROE(3y)0.1%
ROE(5y)-3.39%
ROIC(3y)3.93%
ROIC(5y)3.93%
ROICexc(3y)3.97%
ROICexc(5y)3.96%
ROICexgc(3y)17.82%
ROICexgc(5y)18.44%
ROCE(3y)4.98%
ROCE(5y)4.97%
ROICexcg growth 3Y-5.76%
ROICexcg growth 5Y-15.82%
ROICexc growth 3Y3.26%
ROICexc growth 5Y-6.36%
OM growth 3Y1.79%
OM growth 5Y-5.31%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-1.25%
GM growth 5Y-1.05%
F-Score7
Asset Turnover0.48
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF N/A
Debt/EBITDA 3.21
Cap/Depr 68.63%
Cap/Sales 5.59%
Interest Coverage 2.63
Cash Conversion 17.95%
Profit Quality N/A
Current Ratio 1.13
Quick Ratio 1.13
Altman-Z 2.17
F-Score7
WACC7.97%
ROIC/WACC0.45
Cap/Depr(3y)56.57%
Cap/Depr(5y)58.42%
Cap/Sales(3y)4.75%
Cap/Sales(5y)4.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.74%
EPS 3Y-5.65%
EPS 5Y-15.7%
EPS Q2Q%23.26%
EPS Next Y22.51%
EPS Next 2Y22.71%
EPS Next 3Y25.13%
EPS Next 5Y21.37%
Revenue 1Y (TTM)-1.68%
Revenue growth 3Y-0.2%
Revenue growth 5Y-5.27%
Sales Q2Q%-0.78%
Revenue Next Year2.13%
Revenue Next 2Y2.67%
Revenue Next 3Y3.39%
Revenue Next 5Y3.9%
EBIT growth 1Y-1.39%
EBIT growth 3Y1.59%
EBIT growth 5Y-10.3%
EBIT Next Year71.62%
EBIT Next 3Y32.09%
EBIT Next 5Y23.1%
FCF growth 1Y-997.4%
FCF growth 3Y-35.15%
FCF growth 5Y26.26%
OCF growth 1Y-42.25%
OCF growth 3Y-22.87%
OCF growth 5Y7.99%