STERLING CHECK CORP (STER) Stock Fundamental Analysis
USA - NASDAQ:STER - US85917T1097 - Common Stock
16.74 USD
-0.04 (-0.24%)
Overall STER gets a fundamental rating of 3 out of 10. We evaluated STER against 86 industry peers in the Professional Services industry. STER has a bad profitability rating. Also its financial health evaluation is rather negative. STER has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year STER was profitable.
In the past year STER had a positive cash flow from operations.
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
The Return On Assets of STER (-1.04%) is worse than 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.
STER has a worse Return On Invested Capital (2.06%) 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 22.50%.
| 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 in line with its industry peers.
STER has a Gross Margin of 45.32%. This is comparable to the rest of the industry: STER outperforms 52.56% of its industry peers.
STER's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STER is destroying value.
Compared to 1 year ago, STER has less shares outstanding
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.
The Altman-Z score of STER (1.82) is worse than 69.23% of its industry peers.
The Debt to FCF ratio of STER is 8.97, which is on the high side as it means it would take STER, 8.97 years of fcf income to pay off 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.
STER has a Debt/Equity ratio of 0.73. This is a neutral value indicating STER is somewhat dependend on debt financing.
STER has a worse Debt to Equity ratio (0.73) than 62.82% of its industry peers.
| 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 has a Current ratio of 1.62. This is in the better half 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.
The Quick ratio of STER (1.62) is better than 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
STER shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.75%.
The Revenue has decreased by -0.32% in the past 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.
The Revenue is expected to grow by 8.13% on average over the next years. This is quite good.
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
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 18.81, the valuation of STER can be described as rather expensive.
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 26.35.
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 is valuated cheaply when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| 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 is on the same level as 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
STER does not give a dividend.
| 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.
What is the valuation status for STER stock?
ChartMill assigns a valuation rating of 4 / 10 to STERLING CHECK CORP (STER). This can be considered as Fairly Valued.
Can you provide the profitability details for STERLING CHECK CORP?
STERLING CHECK CORP (STER) has a profitability rating of 2 / 10.
What are the PE and PB ratios of STERLING CHECK CORP (STER) stock?
The Price/Earnings (PE) ratio for STERLING CHECK CORP (STER) is 18.81 and the Price/Book (PB) ratio is 2.23.
Can you provide the financial health for STER stock?
The financial health rating of STERLING CHECK CORP (STER) is 3 / 10.