NasdaqCM:SMED

Stock Analysis Report

Executive Summary

Sharps Compliance Corp. provides medical, pharmaceutical, and hazardous waste management services in the United States.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.0%

SMED

0.008%

US Healthcare

-0.2%

US Market


1 Year Return

19.7%

SMED

-9.0%

US Healthcare

1.1%

US Market

SMED outperformed the Healthcare industry which returned -9% over the past year.

SMED outperformed the Market in United States of America which returned 1.1% over the past year.


Share holder returns

SMEDIndustryMarket
7 Day5.0%0.008%-0.2%
30 Day2.7%-0.8%2.5%
90 Day20.0%-1.5%1.6%
1 Year19.7%19.7%-7.6%-9.0%3.4%1.1%
3 Year-5.6%-5.6%29.6%24.4%45.2%35.8%
5 Year-4.2%-4.2%66.2%56.2%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sharps Compliance undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Sharps Compliance's share price is below the future cash flow value, and at a moderate discount (> 20%).

Sharps Compliance's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Sharps Compliance is overvalued based on earnings compared to the US Healthcare industry average.

Sharps Compliance is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Sharps Compliance is poor value based on expected growth next year.


Price Based on Value of Assets

Sharps Compliance is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

How is Sharps Compliance expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

31.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Sharps Compliance's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

Sharps Compliance's earnings are expected to grow significantly at over 20% yearly.

Sharps Compliance's revenue growth is positive but not above the United States of America market average.

Sharps Compliance's earnings growth is expected to exceed the United States of America market average.

Sharps Compliance's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Sharps Compliance will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Sharps Compliance performed over the past 5 years?

-44.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Sharps Compliance's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Sharps Compliance has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

Sharps Compliance has become profitable in the last year making it difficult to compare the US Healthcare industry average.


Return on Equity

Sharps Compliance has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Sharps Compliance used its assets less efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

Sharps Compliance has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Sharps Compliance's financial position?


Financial Position Analysis

Sharps Compliance is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Sharps Compliance's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Sharps Compliance's level of debt (5.6%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Sharps Compliance's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (63.1%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.1x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 12.8x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Sharps Compliance's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Sharps Compliance's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Sharps Compliance has not reported any payouts.

Unable to verify if Sharps Compliance's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Sharps Compliance has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

8.3yrs

Average management tenure


CEO

David Tusa (59yo)

9yrs

Tenure

US$449,200

Compensation

Mr. David P. Tusa, CPA, has been the President of Sharps Compliance Corp. since June 14, 2010 and as its Chief Executive Officer since September 30, 2010. Mr. Tusa served as the Chief Financial Officer of  ...


CEO Compensation Analysis

David's remuneration is about average for companies of similar size in United States of America.

David's compensation has increased in line with Sharps Compliance recently becoming profitable.


Management Age and Tenure

8.3yrs

Average Tenure

54yo

Average Age

The average tenure for the Sharps Compliance management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.8yrs

Average Tenure

75yo

Average Age

The average tenure for the Sharps Compliance board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$4,17517 Jun 19
Diana Diaz
EntityIndividual
Role
Chief Financial Officer
VP, CFO & Corporate Secretary
Shares1,250
Max PriceUS$3.34
BuyUS$16,50017 Jun 19
David Tusa
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$3.30
BuyUS$132,42914 Jun 19
Parris Holmes
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares40,000
Max PriceUS$3.34

Ownership Breakdown


Management Team

  • David Tusa (59yo)

    CEO, President & Director

    • Tenure: 9yrs
    • Compensation: US$449.20k
  • Diana Diaz (56yo)

    VP, CFO & Corporate Secretary

    • Tenure: 9.3yrs
    • Compensation: US$258.15k
  • Gregory Davis (52yo)

    Vice President of Operations

    • Tenure: 8.3yrs
    • Compensation: US$235.15k
  • Dennis Halligan (45yo)

    Vice President of Marketing

    • Tenure: 4.8yrs
    • Compensation: US$143.69k
  • Linda Brock

    Vice President of Sales

    • Tenure: 0.5yrs

Board Members

  • Parris Holmes (75yo)

    Independent Director

    • Tenure: 21.2yrs
    • Compensation: US$104.60k
  • David Tusa (59yo)

    CEO, President & Director

    • Tenure: 9yrs
    • Compensation: US$449.20k
  • F. Parker (77yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$105.91k
  • John Dalton (78yo)

    Independent Director

    • Tenure: 10.8yrs
    • Compensation: US$106.20k
  • Sharon Gabrielson (57yo)

    Chair of Board of Directors

    • Tenure: 0.3yrs

Company Information

Sharps Compliance Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sharps Compliance Corp.
  • Ticker: SMED
  • Exchange: NasdaqCM
  • Founded: 1992
  • Industry: Health Care Services
  • Sector: Healthcare
  • Market Cap: US$67.778m
  • Shares outstanding: 16.14m
  • Website: https://www.sharpsinc.com

Number of Employees


Location

  • Sharps Compliance Corp.
  • 9220 Kirby Drive
  • Suite 500
  • Houston
  • Texas
  • 77054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMEDNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJun 1998
ZSCBST (Boerse-Stuttgart)YesCommon StockDEEURJun 1998

Biography

Sharps Compliance Corp. provides medical, pharmaceutical, and hazardous waste management services in the United States. It offers Sharps Recovery System for the containment, transportation, treatment, and  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 23:49
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.