Stericycle Inc (SRCL) Fundamental Analysis & Valuation

NASDAQ:SRCL • US8589121081

61.98 USD
+0.51 (+0.83%)
At close: Nov 1, 2024
61.98 USD
0 (0%)
After Hours: 11/1/2024, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This SRCL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SRCL. SRCL was compared to 82 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. SRCL is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. SRCL Profitability Analysis

1.1 Basic Checks

  • In the past year SRCL was profitable.
  • In the past year SRCL had a positive cash flow from operations.
  • In the past 5 years SRCL reported 4 times negative net income.
  • Each year in the past 5 years SRCL had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 0 200M -200M 400M

1.2 Ratios

  • With a Return On Assets value of 0.66%, SRCL perfoms like the industry average, outperforming 42.35% of the companies in the same industry.
  • SRCL's Return On Equity of 1.42% is in line compared to the rest of the industry. SRCL outperforms 44.71% of its industry peers.
  • 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.
  • Measured over the past 3 years, the Average Return On Invested Capital for SRCL is significantly below the industry average of 10.53%.
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 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.
  • The Operating Margin of SRCL (8.35%) is better than 61.18% of its industry peers.
  • In the last couple of years the Operating Margin of SRCL has declined.
  • SRCL's Gross Margin of 38.58% is fine compared to the rest of the industry. SRCL outperforms 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 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. SRCL Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRCL is destroying value.
  • Compared to 1 year ago, SRCL has more shares outstanding
  • The debt/assets ratio for SRCL has been reduced compared to a year ago.
SRCL Yearly Shares OutstandingSRCL Yearly Shares OutstandingYearly Shares Outstanding 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 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

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's Altman-Z score of 2.17 is in line compared 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.
  • SRCL has a Debt to Equity ratio of 0.55. This is comparable to the rest of the industry: SRCL outperforms 45.88% of its industry peers.
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 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

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.
  • SRCL has a Current ratio of 1.13. This is in the lower half of the industry: SRCL underperforms 74.12% of its industry peers.
  • 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.
  • Looking at the Quick ratio, with a value of 1.13, SRCL is doing worse than 63.53% of the companies in the same industry.
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 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. SRCL Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 9.74% over the past year.
  • 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.
  • SRCL shows a decrease in Revenue. In the last year, the revenue decreased by -1.68%.
  • 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

  • The Earnings Per Share is expected to grow by 21.37% on average over the next years. This is a very strong growth
  • 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

  • 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 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 1 2 3 4

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3

4. SRCL Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 28.96, the valuation of SRCL can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as SRCL.
  • When comparing the Price/Earnings ratio of SRCL to the average of the S&P500 Index (26.29), we can say SRCL is valued inline with the index average.
  • The Price/Forward Earnings ratio is 21.78, which indicates a rather expensive current valuation of SRCL.
  • SRCL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SRCL is cheaper than 67.06% of the companies in the same industry.
  • SRCL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.57.
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

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SRCL.
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.
  • SRCL's earnings are expected to grow with 25.13% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)N/A
EPS Next 2Y22.71%
EPS Next 3Y25.13%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SRCL Dividend Analysis

5.1 Amount

  • No dividends for SRCL!.
Industry RankSector Rank
Dividend Yield N/A

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Find the best dividend stocksShow peers with best dividend

SRCL Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)N/A
Inst Owners90.4%
Inst Owner Change0%
Ins Owners1.15%
Ins Owner Change0%
Market Cap5.75B
Revenue(TTM)2.66B
Net Income(TTM)36.00M
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
Graham NumberN/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%
ROICexgc growth 3Y-5.76%
ROICexgc 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%

Stericycle Inc / SRCL FAQ

Can you provide the ChartMill fundamental rating for Stericycle Inc?

ChartMill assigns a fundamental rating of 3 / 10 to SRCL.


Can you provide the valuation status for Stericycle Inc?

ChartMill assigns a valuation rating of 3 / 10 to Stericycle Inc (SRCL). This can be considered as Overvalued.


What is the profitability of SRCL stock?

Stericycle Inc (SRCL) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for SRCL stock?

The Price/Earnings (PE) ratio for Stericycle Inc (SRCL) is 28.96 and the Price/Book (PB) ratio is 2.27.


Is the dividend of Stericycle Inc sustainable?

The dividend rating of Stericycle Inc (SRCL) is 0 / 10 and the dividend payout ratio is 0%.