Stericycle Inc (SRCL) Stock Fundamental Analysis
NASDAQ:SRCL - Nasdaq - US8589121081 - Common Stock - Currency: USD
Overall SRCL gets a fundamental rating of 3 out of 10. We evaluated SRCL against 84 industry peers in the Commercial Services & Supplies industry. While SRCL is still in line with the averages on profitability rating, there are concerns on its financial health. SRCL is valied quite expensively at the moment, while it does show a decent growth rate.
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.
SRCL had negative earnings in 4 of the past 5 years.
SRCL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of SRCL (0.66%) is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 1.42%, SRCL is in line with its industry, outperforming 44.71% of the companies in the same industry.
SRCL's Return On Invested Capital of 3.62% is in line compared to the rest of the industry. SRCL outperforms 42.35% of its industry peers.
SRCL had an Average Return On Invested Capital over the past 3 years of 3.93%. This is significantly below the industry average of 10.12%.
| Industry Rank | Sector 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%
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.
Looking at the Operating Margin, with a value of 8.35%, SRCL is in the better half of the industry, outperforming 61.18% of the companies in the same industry.
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 Rank | Sector 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%
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.
Compared to 5 years ago, SRCL has more shares outstanding
The debt/assets ratio for SRCL has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.17 indicates that SRCL is not a great score, but indicates only limited risk for bankruptcy at the moment.
SRCL has a Altman-Z score (2.17) which is in line with its industry peers.
A Debt/Equity ratio of 0.55 indicates that 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC0.45
WACC7.97%
2.3 Liquidity
SRCL has a Current Ratio of 1.13. This is a normal value and indicates that SRCL is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.13, SRCL is not doing good in the industry: 74.12% of the companies in the same industry are doing better.
SRCL has a Quick Ratio of 1.13. This is a normal value and indicates that SRCL is financially healthy and should not expect problems in meeting its short term obligations.
SRCL has a Quick ratio of 1.13. This is in the lower half of the industry: SRCL underperforms 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
SRCL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.74%, which is quite good.
Measured over the past years, SRCL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -15.70% on average per year.
Looking at the last year, SRCL shows a decrease in Revenue. The Revenue has decreased by -1.68% in the last year.
Measured over the past years, SRCL shows a decrease in Revenue. The Revenue has been decreasing by -5.27% on average per year.
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
SRCL is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.37% yearly.
SRCL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.90% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.96, which means the current valuation is very expensive for SRCL.
Compared to the rest of the industry, the Price/Earnings ratio of SRCL is on the same level as its industry peers.
SRCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.78, which indicates a rather expensive current valuation of SRCL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SRCL indicates a somewhat cheap valuation: SRCL is cheaper than 67.06% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, SRCL is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SRCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.43 |
4.3 Compensation for Growth
The 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%
5. Dividend
5.1 Amount
SRCL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.98
+0.51 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.4%
Inst Owner Change-99.65%
Ins Owners1.15%
Ins Owner Change-41.18%
Market Cap5.75B
Analysts71.43
Price Target63.01 (1.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%