NasdaqGS:SRCL

Stock Analysis Report

Executive Summary

Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions to the healthcare, retail, and commercial businesses in the United States and internationally.

Rewards

Trading at 36.5% below its fair value

Earnings are forecast to grow 105.28% per year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been diluted in the past year



Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Stericycle's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRCL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.0%

SRCL

2.8%

US Commercial Services

1.7%

US Market


1 Year Return

51.7%

SRCL

23.1%

US Commercial Services

23.2%

US Market

Return vs Industry: SRCL exceeded the US Commercial Services industry which returned 23.7% over the past year.

Return vs Market: SRCL exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

SRCLIndustryMarket
7 Day3.0%2.8%1.7%
30 Day1.1%4.2%4.2%
90 Day17.0%4.9%11.9%
1 Year51.7%51.7%27.7%23.1%25.8%23.2%
3 Year-21.2%-21.2%66.8%55.8%52.8%42.9%
5 Year-53.1%-53.1%108.6%87.4%75.2%55.8%

Price Volatility Vs. Market

How volatile is Stericycle's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Stericycle undervalued compared to its fair value and its price relative to the market?

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRCL ($62.01) is trading below our estimate of fair value ($97.72)

Significantly Below Fair Value: SRCL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SRCL is unprofitable, so we can't compare its PE Ratio to the Commercial Services industry average.

PE vs Market: SRCL is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SRCL's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SRCL is overvalued based on its PB Ratio (2.3x) compared to the US Commercial Services industry average (2.1x).


Next Steps

Future Growth

How is Stericycle forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

105.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRCL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: SRCL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SRCL's is expected to become profitable in the next 3 years.

Revenue vs Market: SRCL's revenue (2.5% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: SRCL's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SRCL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Stericycle performed over the past 5 years?

-61.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRCL is currently unprofitable.

Growing Profit Margin: SRCL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SRCL is unprofitable, and losses have increased over the past 5 years at a rate of -61.5% per year.

Accelerating Growth: Unable to compare SRCL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SRCL is unprofitable, making it difficult to compare its past year earnings growth to the Commercial Services industry (-1.3%).


Return on Equity

High ROE: SRCL has a negative Return on Equity (-18%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stericycle's financial position?


Financial Position Analysis

Short Term Liabilities: SRCL's short term assets ($750.5M) do not cover its short term liabilities ($795.7M).

Long Term Liabilities: SRCL's short term assets ($750.5M) do not cover its long term liabilities ($3.4B).


Debt to Equity History and Analysis

Debt Level: SRCL's debt to equity ratio (110.3%) is considered high.

Reducing Debt: SRCL's debt to equity ratio has increased from 89.2% to 110.3% over the past 5 years.

Debt Coverage: SRCL's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: SRCL is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: SRCL has a low level of unsold assets or inventory.

Debt Coverage by Assets: SRCL's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Stericycle's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SRCL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SRCL's dividend yield against the top 25% of dividend payers, as the company has not reported any 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

What is the CEO of Stericycle's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Cindy Miller (56yo)

0.7yrs

Tenure

US$2,375,730

Compensation

Ms. Cindy J. Miller has been the President of Stericycle, Inc. since October 1, 2018, Chief Executive Officer since May 2, 2019 and as its Director since February 28, 2019. Ms. Miller served as Chief Opera ...


CEO Compensation Analysis

Compensation vs Market: Cindy's total compensation ($USD2.38M) is below average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Insufficient data to compare Cindy's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

56yo

Average Age

Experienced Management: SRCL's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.7yrs

Average Tenure

64yo

Average Age

Experienced Board: SRCL's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 6%.


Management Team

  • Rich Hoffman (52yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 2.7yrs
  • Kurt Rogers (47yo)

    Executive VP

    • Tenure: 2.5yrs
    • Compensation: US$1.00m
  • David Stahl (54yo)

    Executive VP & Chief Information Officer

    • Tenure: 1.8yrs
  • Dan Ginnetti (50yo)

    Executive Vice President of International

    • Tenure: 0.6yrs
    • Compensation: US$1.73m
  • Janet Zelenka (60yo)

    Executive VP & CFO

    • Tenure: 0.6yrs
  • Jennifer Koenig

    Vice President of Corporate Communications & Investor Relations

    • Michael Weisman (60yo)

      Executive VP and Chief Ethics & Compliance Officer

      • Tenure: 1.8yrs
    • Cindy Miller (56yo)

      President

      • Tenure: 0.7yrs
      • Compensation: US$2.38m
    • Joe Reuter (57yo)

      Executive VP & Chief People Officer

      • Tenure: 1yrs
    • Richard Moore (57yo)

      Executive Vice President of North American Operations

      • Tenure: 1yrs

    Board Members

    • Mike Zafirovski (65yo)

      Independent Director

      • Tenure: 7.2yrs
      • Compensation: US$185.00k
    • Thomas Chen (69yo)

      Independent Director

      • Tenure: 5.7yrs
      • Compensation: US$185.00k
    • Brian Anderson (68yo)

      Independent Director

      • Tenure: 3yrs
      • Compensation: US$200.00k
    • Ronee Hagen (73yo)

      Independent Director

      • Tenure: 1.6yrs
      • Compensation: US$148.50k
    • Kay Priestly (63yo)

      Independent Director

      • Tenure: 1.6yrs
      • Compensation: US$148.50k
    • Bob Murley (69yo)

      Chairman

      • Tenure: 1.8yrs
      • Compensation: US$260.00k
    • Steve Hooley (55yo)

      Independent Director

      • Tenure: 0.8yrs
    • Lynn Bleil (56yo)

      Independent Director

      • Tenure: 4.7yrs
      • Compensation: US$191.25k
    • J. Hackney (49yo)

      Independent Director

      • Tenure: 0.8yrs
    • Cindy Miller (56yo)

      President

      • Tenure: 0.7yrs
      • Compensation: US$2.38m

    Company Information

    Stericycle, Inc.'s company bio, 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
    • Market Cap: US$5.822b
    • Shares outstanding: 91.13m
    • Website: https://www.stericycle.com

    Number of Employees


    Location

    • Stericycle, Inc.
    • 28161 North Keith Drive
    • Lake Forest
    • Illinois
    • 60045
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SRCLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1996
    SY9DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1996
    0L9OLSE (London Stock Exchange)YesCommon StockGBUSDAug 1996
    SY9ETLX (Eurotlx)YesCommon StockITEURAug 1996

    Biography

    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. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 23:39
    End of Day Share Price2020/01/17 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.