16.74 USD
-0.04 (-0.24%)
STER gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 88 industry peers in the Professional Services industry. Both the profitability and financial health of STER have multiple concerns. STER is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- STER had positive earnings in the past year.
- In the past year STER had a positive cash flow from operations.
- In the past 5 years STER reported 4 times negative net income.
- STER had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With a Return On Assets value of -1.04%, STER is not doing good in the industry: 71.79% of the companies in the same industry are doing better.
- 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 Return On Invested Capital of 2.06%. This is in the lower half of the industry: STER underperforms 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 11.85%.
| 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's Operating Margin of 4.56% is in line compared to the rest of the industry. STER outperforms 44.87% of its industry peers.
- Looking at the Gross Margin, with a value of 45.32%, STER is in line with its industry, outperforming 52.56% of the companies in the same industry.
- In the last couple of years the Gross Margin of STER has declined.
| 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
- STER has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- STER has less shares outstanding than it did 1 year ago.
- Compared to 1 year ago, STER has a worse debt to assets ratio.
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's Altman-Z score of 1.82 is on the low side compared to the rest of the industry. STER is outperformed by 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.
- The Debt to FCF ratio of STER (8.97) is worse than 60.26% of its industry peers.
- A Debt/Equity ratio of 0.73 indicates that STER is somewhat dependend on debt financing.
- STER has a Debt to Equity ratio of 0.73. This is in the lower half of the industry: STER underperforms 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
- A Current Ratio of 1.62 indicates that STER should not have too much problems paying its short term obligations.
- STER has a better Current ratio (1.62) than 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.
- STER has a Quick ratio of 1.62. This is in the better half of the industry: STER outperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.62 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
- The earnings per share for STER have decreased strongly by -12.75% in the last year.
- The Revenue has decreased by -0.32% in the past year.
- STER shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.59% yearly.
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
- Based on estimates for the next years, STER will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.09% on average per year.
- Based on estimates for the next years, STER will show a quite strong growth in Revenue. The Revenue will grow by 8.13% on average per year.
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.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 18.81, STER is valued on the expensive side.
- STER's Price/Earnings ratio is a bit cheaper when compared to the industry. STER is cheaper than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, STER is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.06, STER is valued correctly.
- Based on the Price/Forward Earnings ratio, STER is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
- STER's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.29.
| 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
- No dividends for STER!.
| 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)11-08 2024-11-08/amc
Earnings (Next)N/A 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 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.
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.
How profitable is STERLING CHECK CORP (STER) stock?
STERLING CHECK CORP (STER) has a profitability rating of 2 / 10.
Can you provide the PE and PB ratios for STER stock?
The Price/Earnings (PE) ratio for STERLING CHECK CORP (STER) is 18.81 and the Price/Book (PB) ratio is 2.23.