Stericycle Inc (SRCL) Stock Fundamental Analysis
NASDAQ:SRCL - Nasdaq - US8589121081 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to SRCL. SRCL was compared to 84 industry peers in the Commercial Services & Supplies industry. There are concerns on the financial health of SRCL while its profitability can be described as average. While showing a medium growth rate, SRCL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
SRCL had positive earnings in the past year.
SRCL had a positive operating cash flow in the past year.
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 0.66% is in line compared to the rest of the industry. SRCL outperforms 42.35% of its industry peers.
SRCL has a Return On Equity (1.42%) which is comparable to the rest of the industry.
SRCL has a Return On Invested Capital (3.62%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for SRCL is significantly below the industry average of 11.08%.
| Industry Rank | Sector 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%
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.
With a decent Operating Margin value of 8.35%, SRCL is doing good in the industry, outperforming 61.18% of the companies in the same industry.
In the last couple of years the Operating Margin of SRCL has declined.
With a decent Gross Margin value of 38.58%, SRCL is doing good in the industry, outperforming 65.88% 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 | 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%
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
Compared to 5 years ago, SRCL has more shares outstanding
Compared to 1 year ago, SRCL has an improved debt to assets ratio.
2.2 Solvency
SRCL has an Altman-Z score of 2.17. 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 (2.17) which is in line with its industry peers.
A Debt/Equity ratio of 0.55 indicates that SRCL is somewhat dependend on debt financing.
The Debt to Equity ratio of SRCL (0.55) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.17 |
ROIC/WACC0.45
WACC7.97%
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.
The Current ratio of SRCL (1.13) is worse than 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.
SRCL's Quick ratio of 1.13 is on the low side compared to the rest of the industry. SRCL is outperformed by 63.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
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.
The Revenue has decreased by -1.68% 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)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
Based on estimates for the next years, SRCL will show a very strong growth in Earnings Per Share. The EPS will grow by 21.37% on average per year.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.96, SRCL can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of SRCL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.82. SRCL is around the same levels.
The Price/Forward Earnings ratio is 21.78, which indicates a rather expensive current valuation of SRCL.
67.06% 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 valuation a bit cheaper than the S&P500 average which is at 35.24.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.96 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as SRCL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.43 |
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%
5. Dividend
5.1 Amount
SRCL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
61.98
+0.51 (+0.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryCommercial Services & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners90.4%
Inst Owner Change-2.96%
Ins Owners1.15%
Ins Owner Change0%
Market Cap5.75B
Analysts71.43
Price Target63.01 (1.66%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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 Rank | Sector 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
Profitability
| Industry Rank | Sector 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%
ROICexcg growth 3Y-5.76%
ROICexcg 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 Rank | Sector 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%