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SRCL

StericycleNasdaqGS:SRCL Stock Report

Last Price

US$57.90

Market Cap

US$5.3b

7D

-2.3%

1Y

-16.0%

Updated

21 Jan, 2022

Data

Company Financials +
SRCL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth3/6
Past Performance2/6
Financial Health3/6
Dividends0/6

SRCL Stock Overview

Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions in the United States, Europe, and internationally.

Stericycle Competitors

Waste Management

NYSE:WM

US$63.3b

Republic Services

NYSE:RSG

US$40.6b

Waste Connections

NYSE:WCN

US$32.0b

Clean Harbors

NYSE:CLH

US$5.1b

Price History & Performance

Summary of all time highs, changes and price drops for Stericycle
Historical stock prices
Current Share PriceUS$57.90
52 Week HighUS$79.97
52 Week LowUS$55.76
Beta1.38
1 Month Change0.50%
3 Month Change-17.23%
1 Year Change-16.03%
3 Year Change33.13%
5 Year Change-25.37%
Change since IPO2,403.78%

Recent News & Updates

Oct 22

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.

Aug 08

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

SRCLUS Commercial ServicesUS 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

Is SRCL's price volatile compared to industry and market?
SRCL volatility
SRCL Average Weekly Movement4.0%
Commercial Services Industry Average Movement6.0%
Market Average Movement6.7%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
198914,700Cindy Millerhttps://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

How do Stericycle's earnings and revenue compare to its market cap?
SRCL fundamental statistics
Market CapUS$5.32b
Earnings (TTM)US$37.90m
Revenue (TTM)US$2.65b

140.3x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRCL income statement (TTM)
RevenueUS$2.65b
Cost of RevenueUS$1.62b
Gross ProfitUS$1.03b
ExpensesUS$989.70m
EarningsUS$37.90m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.41
Gross Margin38.84%
Net Profit Margin1.43%
Debt/Equity Ratio66.9%

How did SRCL perform over the long term?

See historical performance and comparison

Valuation

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/21 23:34
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.