16.74 USD
-0.04 (-0.24%)
We assign a fundamental rating of 3 out of 10 to STER. STER was compared to 86 industry peers in the Professional Services industry. STER has a bad profitability rating. Also its financial health evaluation is rather negative. STER is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year STER was profitable.
STER had a positive operating cash flow in the past year.
In the past 5 years STER reported 4 times negative net income.
In the past 5 years STER always reported a positive cash flow from operatings.
1.2 Ratios
STER's Return On Assets of -1.04% is on the low side compared to the rest of the industry. STER is outperformed by 71.79% of its industry peers.
Looking at the Return On Equity, with a value of -2.07%, STER is doing worse than 70.51% of the companies in the same industry.
The Return On Invested Capital of STER (2.06%) is worse than 65.38% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for STER is significantly below the industry average of 12.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.04% | ||
| ROE | -2.07% | ||
| ROIC | 2.06% |
ROA(3y)0.01%
ROA(5y)-1.46%
ROE(3y)0%
ROE(5y)-3.28%
ROIC(3y)2.58%
ROIC(5y)N/A
1.3 Margins
STER has a Operating Margin (4.56%) which is comparable to the rest of the industry.
STER has a Gross Margin (45.32%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of STER has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | N/A | ||
| GM | 45.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.7%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STER is destroying value.
The number of shares outstanding for STER has been reduced compared to 1 year ago.
The debt/assets ratio for STER is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.82 indicates that STER is not a great score, but indicates only limited risk for bankruptcy at the moment.
STER's Altman-Z score of 1.82 is on the low side compared to the rest of the industry. STER is outperformed by 69.23% of its industry peers.
STER has a debt to FCF ratio of 8.97. This is a slightly negative value and a sign of low solvency as STER would need 8.97 years to pay back of all of its debts.
STER has a Debt to FCF ratio of 8.97. This is in the lower half of the industry: STER underperforms 60.26% of its industry peers.
STER has a Debt/Equity ratio of 0.73. This is a neutral value indicating STER is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.73, STER is doing worse than 62.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 8.97 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.24
WACC8.51%
2.3 Liquidity
STER has a Current Ratio of 1.62. This is a normal value and indicates that STER is financially healthy and should not expect problems in meeting its short term obligations.
STER's Current ratio of 1.62 is fine compared to the rest of the industry. STER outperforms 61.54% of its industry peers.
A Quick Ratio of 1.62 indicates that STER should not have too much problems paying its short term obligations.
STER's Quick ratio of 1.62 is fine compared to the rest of the industry. STER outperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
The earnings per share for STER have decreased strongly by -12.75% in the last year.
Looking at the last year, STER shows a decrease in Revenue. The Revenue has decreased by -0.32% in the last year.
STER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.59% yearly.
EPS 1Y (TTM)-12.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-17.86%
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y16.59%
Revenue growth 5YN/A
Sales Q2Q%5.33%
3.2 Future
Based on estimates for the next years, STER will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.09% on average per year.
Based on estimates for the next years, STER will show a quite strong growth in Revenue. The Revenue will grow by 8.13% on average per year.
EPS Next Y-8.3%
EPS Next 2Y5.97%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year6.36%
Revenue Next 2Y7.66%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.81 indicates a rather expensive valuation of STER.
Compared to the rest of the industry, the Price/Earnings ratio of STER indicates a somewhat cheap valuation: STER is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. STER is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.06 indicates a correct valuation of STER.
Based on the Price/Forward Earnings ratio, STER is valued a bit cheaper than 73.08% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, STER is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as STER.
STER's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.62 | ||
| EV/EBITDA | 21.88 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.97%
EPS Next 3Y9.09%
5. Dividend
5.1 Amount
No dividends for STER!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:STER (10/30/2024, 8:00:00 PM)
16.74
-0.04 (-0.24%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners84.64%
Inst Owner Change0%
Ins Owners0.47%
Ins Owner Change0%
Market Cap1.64B
Revenue(TTM)736.54M
Net Income(TTM)-15.17M
Analysts52.31
Price Target16.83 (0.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.66%
Min EPS beat(2)-29.87%
Max EPS beat(2)-15.44%
EPS beat(4)0
Avg EPS beat(4)-18.8%
Min EPS beat(4)-29.87%
Max EPS beat(4)-13.71%
EPS beat(8)2
Avg EPS beat(8)-11.35%
EPS beat(12)6
Avg EPS beat(12)0.84%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.46%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)0.74%
Revenue beat(4)1
Avg Revenue beat(4)-3.29%
Min Revenue beat(4)-8.28%
Max Revenue beat(4)0.74%
Revenue beat(8)1
Avg Revenue beat(8)-2.85%
Revenue beat(12)5
Avg Revenue beat(12)1.14%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.01%
PT rev (3m)2.01%
EPS NQ rev (1m)-11.11%
EPS NQ rev (3m)-18.42%
EPS NY rev (1m)-4.93%
EPS NY rev (3m)-11.63%
Revenue NQ rev (1m)-0.38%
Revenue NQ rev (3m)-1.31%
Revenue NY rev (1m)0.89%
Revenue NY rev (3m)-0.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.81 | ||
| Fwd PE | 15.06 | ||
| P/S | 2.23 | ||
| P/FCF | 26.62 | ||
| P/OCF | 19.5 | ||
| P/B | 2.23 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.88 |
EPS(TTM)0.89
EY5.32%
EPS(NY)1.11
Fwd EY6.64%
FCF(TTM)0.63
FCFY3.76%
OCF(TTM)0.86
OCFY5.13%
SpS7.52
BVpS7.49
TBVpS-4.32
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.04% | ||
| ROE | -2.07% | ||
| ROCE | 2.6% | ||
| ROIC | 2.06% | ||
| ROICexc | 2.18% | ||
| ROICexgc | 44.9% | ||
| OM | 4.56% | ||
| PM (TTM) | N/A | ||
| GM | 45.32% | ||
| FCFM | 8.37% |
ROA(3y)0.01%
ROA(5y)-1.46%
ROE(3y)0%
ROE(5y)-3.28%
ROIC(3y)2.58%
ROIC(5y)N/A
ROICexc(3y)2.75%
ROICexc(5y)N/A
ROICexgc(3y)51.21%
ROICexgc(5y)N/A
ROCE(3y)3.27%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.7%
GM growth 5YN/A
F-Score3
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.73 | ||
| Debt/FCF | 8.97 | ||
| Debt/EBITDA | 5.55 | ||
| Cap/Depr | 35.59% | ||
| Cap/Sales | 3.06% | ||
| Interest Coverage | 0.91 | ||
| Cash Conversion | 86.87% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 1.82 |
F-Score3
WACC8.51%
ROIC/WACC0.24
Cap/Depr(3y)27.76%
Cap/Depr(5y)27.08%
Cap/Sales(3y)2.81%
Cap/Sales(5y)3.7%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-17.86%
EPS Next Y-8.3%
EPS Next 2Y5.97%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue 1Y (TTM)-0.32%
Revenue growth 3Y16.59%
Revenue growth 5YN/A
Sales Q2Q%5.33%
Revenue Next Year6.36%
Revenue Next 2Y7.66%
Revenue Next 3Y8.13%
Revenue Next 5YN/A
EBIT growth 1Y-27.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year23.82%
EBIT Next 3Y15.9%
EBIT Next 5YN/A
FCF growth 1Y71.64%
FCF growth 3Y57.18%
FCF growth 5YN/A
OCF growth 1Y48.64%
OCF growth 3Y38.83%
OCF growth 5YN/A
STERLING CHECK CORP / STER FAQ
What is the fundamental rating for STER stock?
ChartMill assigns a fundamental rating of 3 / 10 to STER.
Can you provide the valuation status for STERLING CHECK CORP?
ChartMill assigns a valuation rating of 4 / 10 to STERLING CHECK CORP (STER). This can be considered as Fairly Valued.
How profitable is STERLING CHECK CORP (STER) stock?
STERLING CHECK CORP (STER) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for STER stock?
The Price/Earnings (PE) ratio for STERLING CHECK CORP (STER) is 18.81 and the Price/Book (PB) ratio is 2.23.