STERICYCLE INC (SRCL)
US8589121081 - Common Stock
Taking everything into account, SRCL scores 3 out of 10 in our fundamental rating. SRCL was compared to 85 industry peers in the Commercial Services & Supplies industry. Both the profitability and financial health of SRCL have multiple concerns. SRCL is valued correctly, but it does not seem to be growing.
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.
Each year in the past 5 years SRCL had a positive operating cash flow.
1.2 Ratios
SRCL's Return On Assets of -0.36% is in line compared to the rest of the industry. SRCL outperforms 41.67% of its industry peers.
With a Return On Equity value of -0.77%, SRCL perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
SRCL has a Return On Invested Capital of 3.48%. This is comparable to the rest of the industry: SRCL outperforms 42.86% 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 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.36% | ||
| ROE | -0.77% | ||
| ROIC | 3.48% |
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
SRCL has a better Operating Margin (7.97%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of SRCL has declined.
Looking at the Gross Margin, with a value of 38.20%, SRCL is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 | 7.97% | ||
| PM (TTM) | N/A | ||
| GM | 38.2% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRCL is destroying value.
Compared to 1 year ago, SRCL has more shares outstanding
The number of shares outstanding for SRCL has been increased compared to 5 years ago.
Compared to 1 year ago, SRCL has an improved debt to assets ratio.
2.2 Solvency
SRCL has an Altman-Z score of 1.88. This is not the best score and indicates that SRCL is in the grey zone with still only limited risk for bankruptcy at the moment.
SRCL has a Altman-Z score (1.88) which is in line with its industry peers.
SRCL has a debt to FCF ratio of 1089.15. This is a negative value and a sign of low solvency as SRCL would need 1089.15 years to pay back of all of its debts.
SRCL has a Debt to FCF ratio (1089.15) which is in line with its industry peers.
A Debt/Equity ratio of 0.55 indicates that SRCL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, SRCL is in line with its industry, outperforming 55.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 1089.15 | ||
| Altman-Z | 1.88 |
ROIC/WACC0.43
WACC8.01%
2.3 Liquidity
A Current Ratio of 1.11 indicates that SRCL should not have too much problems paying its short term obligations.
SRCL has a Current ratio of 1.11. This is in the lower half of the industry: SRCL underperforms 72.62% of its industry peers.
SRCL has a Quick Ratio of 1.11. 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 1.11. This is comparable to the rest of the industry: SRCL outperforms 40.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
SRCL shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.26%.
SRCL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -15.70% yearly.
The Revenue has decreased by -3.11% in the past 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)-11.26%
EPS 3Y-5.65%
EPS 5Y-15.7%
EPS growth Q2Q16.33%
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y-0.2%
Revenue growth 5Y-5.27%
Revenue growth Q2Q-2.84%
3.2 Future
Based on estimates for the next years, SRCL will show a very strong growth in Earnings Per Share. The EPS will grow by 21.42% on average per year.
Based on estimates for the next years, SRCL will show a small growth in Revenue. The Revenue will grow by 3.90% on average per year.
EPS Next Y26.05%
EPS Next 2Y23.46%
EPS Next 3Y25.93%
EPS Next 5Y21.42%
Revenue Next Year2.47%
Revenue Next 2Y3.1%
Revenue Next 3Y3.88%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.62 indicates a rather expensive valuation of SRCL.
SRCL's Price/Earnings ratio is a bit cheaper when compared to the industry. SRCL is cheaper than 65.48% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.60. SRCL is around the same levels.
With a Price/Forward Earnings ratio of 16.15, SRCL is valued correctly.
69.05% of the companies in the same industry are more expensive than SRCL, based on the Price/Forward Earnings ratio.
SRCL's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SRCL is on the same level as its industry peers.
SRCL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3321.18 | ||
| EV/EBITDA | 13.4 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SRCL's earnings are expected to grow with 25.93% in the coming years.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y23.46%
EPS Next 3Y25.93%
5. Dividend
5.1 Amount
No dividends for SRCL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STERICYCLE INC
NASDAQ:SRCL (5/17/2024, 7:00:01 PM)
After market: 46.53 0 (0%)46.53
-0.22 (-0.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.32B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 16.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.91
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.36% | ||
| ROE | -0.77% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 7.97% | ||
| PM (TTM) | N/A | ||
| GM | 38.2% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-11.26%
EPS 3Y-5.65%
EPS 5Y
EPS growth Q2Q
EPS Next Y26.05%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.11%
Revenue growth 3Y-0.2%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y