STERICYCLE INC (SRCL)
US8589121081 - Common Stock
Overall SRCL gets a fundamental rating of 3 out of 10. We evaluated SRCL against 85 industry peers in the Commercial Services & Supplies industry. SRCL has a bad profitability rating. Also its financial health evaluation is rather negative. SRCL has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year SRCL was profitable.
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 has a Return On Assets (-0.36%) which is in line with 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.
Measured over the past 3 years, the Average Return On Invested Capital for SRCL is significantly below the industry average of 10.04%.
| 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's Operating Margin of 7.97% is fine compared to the rest of the industry. SRCL outperforms 66.67% of its industry peers.
SRCL's Operating Margin has declined in the last couple of years.
SRCL has a better Gross Margin (38.20%) than 66.67% of its industry peers.
SRCL's Gross Margin has been stable in the last couple of years.
| 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
SRCL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for SRCL has been increased compared to 1 year ago.
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.
The Debt to FCF ratio of SRCL (1089.15) is worse than 60.71% of its industry peers.
SRCL has a Debt/Equity ratio of 0.55. This is a neutral value indicating SRCL is somewhat dependend on debt financing.
SRCL has a Debt to Equity ratio (0.55) which is comparable to the rest of the 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's Current ratio of 1.11 is on the low side compared to the rest of the industry. SRCL is outperformed by 72.62% of its industry peers.
A Quick Ratio of 1.11 indicates that SRCL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, SRCL is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
| 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.
SRCL shows a decrease in Revenue. In the last year, the revenue decreased by -3.11%.
SRCL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -5.27% yearly.
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
The Earnings Per Share is expected to grow by 21.42% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 3.90% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
Based on the Price/Earnings ratio of 23.62, the valuation of SRCL can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of SRCL indicates a somewhat cheap valuation: SRCL is cheaper than 64.29% of the companies listed in the same industry.
SRCL is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.15, which is the current average of the S&P500 Index.
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 valuation a bit cheaper than the S&P500 average which is at 20.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.62 | ||
| Fwd PE | 16.15 |
4.2 Price Multiples
SRCL's Enterprise Value to EBITDA ratio is in line with the industry average.
60.71% of the companies in the same industry are cheaper than SRCL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3321.18 | ||
| EV/EBITDA | 13.44 |
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.
SRCL's earnings are expected to grow with 25.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)N/A
EPS Next 2Y23.46%
EPS Next 3Y25.93%
5. Dividend
5.1 Amount
SRCL does not give a dividend.
| 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)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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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