| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 3/6 |
| Past Performance | 2/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
SRCL Stock Overview
Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions in the United States, Europe, and internationally.
Stericycle Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$57.90 |
| 52 Week High | US$79.97 |
| 52 Week Low | US$55.76 |
| Beta | 1.38 |
| 1 Month Change | 0.50% |
| 3 Month Change | -17.23% |
| 1 Year Change | -16.03% |
| 3 Year Change | 33.13% |
| 5 Year Change | -25.37% |
| Change since IPO | 2,403.78% |
Recent News & Updates
Stericycle: A Neutral View
I am negative on SRCL's recovery prospects in the short term, as there has been a delay in the return of workers back to office. But I have a favorable opinion of Stericycle's capital allocation initiatives in relation to debt reduction and business or asset sales. Stericycle currently trades at consensus forward FY 2021 and FY 2022 normalized P/E multiples of 26.9 times and 25.2 times, respectively, and this seems expensive.
Stericycle: A Successful Turnaround Is Likely
Revenues declined in 2018, 2019, and 2020 as the company is divesting some businesses. Long-term debt has dramatically declined in recent quarters. The company is highly profitable. Shares are down by ~55% from all-time highs in 2015. This is a turnaround play worth the risk at this price.
Shareholder Returns
| SRCL | US Commercial Services | US Market | |
|---|---|---|---|
| 7D | -2.3% | -4.7% | -6.1% |
| 1Y | -16.0% | 10.1% | 4.2% |
Return vs Industry: SRCL underperformed the US Commercial Services industry which returned 11.2% over the past year.
Return vs Market: SRCL underperformed the US Market which returned 6.6% over the past year.
Price Volatility
| SRCL volatility | |
|---|---|
| SRCL Average Weekly Movement | 4.0% |
| Commercial Services Industry Average Movement | 6.0% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.6% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: SRCL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: SRCL's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 14,700 | Cindy Miller | https://www.stericycle.com |
Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions in the United States, Europe, and internationally. It operates through the segments North America and International. The company provides regulated waste and compliance services comprising medical waste disposal; pharmaceutical waste disposal; hazardous waste management; maritime waste services; and compliance programs under the Steri-Safe, Clinical Services, First Practice Management, SeguriMed, and EnviroAssure brand names.
Stericycle Fundamentals Summary
| SRCL fundamental statistics | |
|---|---|
| Market Cap | US$5.32b |
| Earnings (TTM) | US$37.90m |
| Revenue (TTM) | US$2.65b |
140.3x
P/E Ratio2.0x
P/S RatioIs SRCL overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SRCL income statement (TTM) | |
|---|---|
| Revenue | US$2.65b |
| Cost of Revenue | US$1.62b |
| Gross Profit | US$1.03b |
| Expenses | US$989.70m |
| Earnings | US$37.90m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.41 |
| Gross Margin | 38.84% |
| Net Profit Margin | 1.43% |
| Debt/Equity Ratio | 66.9% |
How did SRCL perform over the long term?
See historical performance and comparisonValuation
Is Stericycle undervalued compared to its fair value and its price relative to the market?
30.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SRCL ($57.9) is trading below our estimate of fair value ($83.04)
Significantly Below Fair Value: SRCL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SRCL is poor value based on its PE Ratio (140.3x) compared to the US Commercial Services industry average (25.6x).
PE vs Market: SRCL is poor value based on its PE Ratio (140.3x) compared to the US market (16.7x).
Price to Earnings Growth Ratio
PEG Ratio: SRCL is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: SRCL is overvalued based on its PB Ratio (2.2x) compared to the US Commercial Services industry average (2.1x).
Future Growth
How is Stericycle forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
53.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SRCL's forecast earnings growth (53.3% per year) is above the savings rate (2%).
Earnings vs Market: SRCL's earnings (53.3% per year) are forecast to grow faster than the US market (13.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SRCL's revenue (4.8% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: SRCL's revenue (4.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: SRCL's Return on Equity is forecast to be low in 3 years time (10%).
Past Performance
How has Stericycle performed over the past 5 years?
-35.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SRCL has a large one-off loss of $118.8M impacting its September 30 2021 financial results.
Growing Profit Margin: SRCL became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: SRCL has become profitable over the past 5 years, growing earnings by -35.7% per year.
Accelerating Growth: SRCL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SRCL has become profitable in the last year, making it difficult to compare its past year earnings growth to the Commercial Services industry (35.3%).
Return on Equity
High ROE: SRCL's Return on Equity (1.6%) is considered low.
Financial Health
How is Stericycle's financial position?
Financial Position Analysis
Short Term Liabilities: SRCL's short term assets ($570.2M) do not cover its short term liabilities ($687.2M).
Long Term Liabilities: SRCL's short term assets ($570.2M) do not cover its long term liabilities ($2.4B).
Debt to Equity History and Analysis
Debt Level: SRCL's net debt to equity ratio (65.3%) is considered high.
Reducing Debt: SRCL's debt to equity ratio has reduced from 105.4% to 66.9% over the past 5 years.
Debt Coverage: SRCL's debt is well covered by operating cash flow (22.7%).
Interest Coverage: SRCL's interest payments on its debt are well covered by EBIT (3.7x coverage).
Balance Sheet
Dividend
What is Stericycle current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SRCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SRCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SRCL's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SRCL's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SRCL's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.0yrs
Average management tenure
CEO
Cindy Miller (59 yo)
3.25yrs
Tenure
US$5,574,228
Compensation
Ms. Cindy J. Miller serves as an Independent Director at UGI Corporation since September 1, 2020. Ms. Miller has been the President of Stericycle, Inc. since October 1, 2018 and serves as its Chief Executi...
CEO Compensation Analysis
Compensation vs Market: Cindy's total compensation ($USD5.57M) is about average for companies of similar size in the US market ($USD6.45M).
Compensation vs Earnings: Cindy's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: SRCL's management team is considered experienced (3 years average tenure).
Board Members
Experienced Board: SRCL's board of directors are considered experienced (3.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Stericycle, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Stericycle, Inc.
- Ticker: SRCL
- Exchange: NasdaqGS
- Founded: 1989
- Industry: Environmental and Facilities Services
- Sector: Commercial Services
- Implied Market Cap: US$5.319b
- Shares outstanding: 91.86m
- Website: https://www.stericycle.com
Number of Employees
Location
- Stericycle, Inc.
- 2355 Waukegan Road
- Bannockburn
- Illinois
- 60015
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/21 23:34 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.