Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions to the healthcare, retail, and commercial businesses in the United States and internationally.
The last earnings update was 55 days ago.
Discounted Cash Flow Calculation for DB:SY9 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:SY9 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Stericycle's share price is below the future cash flow value, and at a moderate discount (> 20%).
Stericycle's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Stericycle's earnings available for a low price, and how does
this compare to other companies in the same industry?
Stericycle's earnings are expected to grow significantly at over 20% yearly.
Stericycle's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Stericycle's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Charles A. Alutto, also known as Charlie, has been the Chief Executive Officer and Director of Stericycle, Inc. since January 2013 and November 15, 2012 respectively and also served as its President since January 2013 until 2018. His career with Stericycle began in 1997 as an Area Vice President of Sales. From there, he moved into roles with increasing responsibility including Vice President of Healthcare Sales and Marketing, Vice President and Managing Director of Stericycle (SRCL ) Europe, and President of Stericycle US Healthcare Compliance Solutions. Before Stericycle, he spent nine years with the New York-based Environmental Control Company. He started his career as a sales representative and progressed to Director of Sales and Marketing. He earned a Bachelor’s of Science degree in finance from the Providence College in 1988 and Masters of Business Administration from Saint John’s University in 1991.
Charlie's compensation has increased whilst company is loss making.
Charlie's remuneration is about average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Stericycle management team is less than 2 years, this suggests a new team.
CEO & Director
Executive VP & CFO
Senior VP & Chief Accounting Officer
Executive VP & Chief Information Officer
Vice President of Corporate Communications & Investor Relations
Executive VP and Chief Ethics & Compliance Officer
Executive VP of Communication & Related Services
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Stericycle board of directors is about average.
Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions to the healthcare, retail, and commercial businesses in the United States and internationally. It operates through three segments: Domestic and Canada Regulated Waste and Compliance; International Regulated Waste and Compliance; and Domestic Communication and Related Services. It collects and processes regulated and specialized waste for disposal services; and collects personal and confidential information for secure destruction, recall/return, and communication services. The company’s services also include medical waste disposal, pharmaceutical waste disposal, hazardous waste management, sustainability solutions for expired or unused inventory, secure information destruction of documents and e-media, and compliance services; and regulated recall and returns management communication, logistics, and data management services for expired, withdrawn, or recalled products. In addition, it offers compliance programs under the Steri-Safe, Clinical Services, First Practice Management, SeguriMed, and EnviroAssure brand names; and live voice and automated communication services, including afterhours answering, appointment scheduling, appointment reminders, secure messaging, and event registration. The company serves healthcare businesses, including hospitals, physician and dental practices, outpatient clinics, long-term care facilities, etc.; retailers and manufacturers; financial and professional service providers; governmental entities; and other businesses. Stericycle, Inc. was founded in 1989 and is headquartered in Lake Forest, Illinois.
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