STERLING CHECK CORP (STER) Fundamental Analysis & Valuation

NASDAQ:STER • US85917T1097

Current stock price

16.74 USD
-0.04 (-0.24%)
Last:

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

2

1. STER Profitability Analysis

1.1 Basic Checks

  • STER had positive earnings in the past year.
  • STER had a positive operating cash flow in the past year.
  • STER had negative earnings in 4 of the past 5 years.
  • Each year in the past 5 years STER had a positive operating cash flow.
STER Yearly Net Income VS EBIT VS OCF VS FCFSTER Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M

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.
  • STER has a Return On Equity of -2.07%. This is in the lower half of the industry: STER underperforms 70.51% of its industry peers.
  • The Return On Invested Capital of STER (2.06%) is worse than 65.38% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for STER is significantly below the industry average of 13.03%.
Industry RankSector 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
STER Yearly ROA, ROE, ROICSTER Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 0 2 -2 -4 -6 -8

1.3 Margins

  • STER has a Operating Margin (4.56%) which is in line with its industry peers.
  • STER's Gross Margin of 45.32% is in line compared to the rest of the industry. STER outperforms 52.56% of its industry peers.
  • In the last couple of years the Gross Margin of STER has declined.
Industry RankSector 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
STER Yearly Profit, Operating, Gross MarginsSTER Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 20 40

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3

2. STER Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STER is destroying value.
  • STER has less shares outstanding than it did 1 year ago.
  • STER has a worse debt/assets ratio than last year.
STER Yearly Shares OutstandingSTER Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M
STER Yearly Total Debt VS Total AssetsSTER Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 500M 1B

2.2 Solvency

  • STER has an Altman-Z score of 1.82. This is not the best score and indicates that STER is in the grey zone with still only limited risk for bankruptcy at the moment.
  • STER has a Altman-Z score of 1.82. This is in the lower half of the industry: STER underperforms 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.
  • Looking at the Debt to FCF ratio, with a value of 8.97, STER is doing worse than 60.26% of the companies in the same industry.
  • A Debt/Equity ratio of 0.73 indicates that STER is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.73, STER is not doing good in the industry: 62.82% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.73
Debt/FCF 8.97
Altman-Z 1.82
ROIC/WACC0.24
WACC8.51%
STER Yearly LT Debt VS Equity VS FCFSTER Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 200M 400M 600M

2.3 Liquidity

  • A Current Ratio of 1.62 indicates that STER should not have too much problems paying its short term obligations.
  • STER has a Current ratio of 1.62. This is in the better half of the industry: STER outperforms 61.54% of its industry peers.
  • STER has a Quick 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.
  • The Quick ratio of STER (1.62) is better than 64.10% of its industry peers.
Industry RankSector Rank
Current Ratio 1.62
Quick Ratio 1.62
STER Yearly Current Assets VS Current LiabilitesSTER Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

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

4

3. STER Growth Analysis

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.
  • Measured over the past years, STER shows a quite strong growth in Revenue. The Revenue has been growing by 16.59% on average per year.
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

  • The Earnings Per Share is expected to grow by 9.09% on average over the next years. This is quite good.
  • STER is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.13% yearly.
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.
STER Yearly Revenue VS EstimatesSTER Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
STER Yearly EPS VS EstimatesSTER Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

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Find the best growth stocksShow best growing peers

4

4. STER Valuation Analysis

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.
  • STER's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.33.
  • The Price/Forward Earnings ratio is 15.06, which indicates a correct valuation of STER.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of STER indicates a somewhat cheap valuation: STER is cheaper than 73.08% of the companies listed in the same industry.
  • STER's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.16.
Industry RankSector Rank
PE 18.81
Fwd PE 15.06
STER Price Earnings VS Forward Price EarningsSTER Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • STER's Enterprise Value to EBITDA is on the same level as the industry average.
  • STER's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 26.62
EV/EBITDA 21.88
STER Per share dataSTER EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 4 -4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.97%
EPS Next 3Y9.09%

More info and screens

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

0

5. STER Dividend Analysis

5.1 Amount

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

More info and screens

Find the best dividend stocksShow peers with best dividend

STER Fundamentals: All Metrics, Ratios and Statistics

STERLING CHECK CORP

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)11-08
Earnings (Next)N/A
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 RankSector 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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


What is the profitability of STER stock?

STERLING CHECK CORP (STER) has a profitability rating of 2 / 10.


What is the financial health of STERLING CHECK CORP (STER) stock?

The financial health rating of STERLING CHECK CORP (STER) is 3 / 10.