Stericycle Stock Analysis, Valuation (NASDAQ:SRCL)

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$76.02 $0.4 (0.53%) SRCL stock closing price Feb 16, 2018 (Closing)
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Stericycle
Updated on : Feb 16, 2018
previous close
SRCL 76 (0%)
S&P 500 2732.2 (0%)
Closing Price On: Feb 16, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Waste Removal Services
Sector :
Business Services
5 Quarter Revenue
Revenue Growth
2017-Q3
$million
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
2.4%
Sector Average:
8.4%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Debt/Equity Ratio
Debt:
2.78B
Debt/Equity Ratio:
 0.99
Compared to the industry
Cash Flow
Operating cash flow:
$155M
Net Income:
$39M
PROS      CONS
Cash Flow
FCF Margin
PE Valuation
Recent Growth
Operating Margins
Net Margins
High Debt Burden
ROIC
ROE
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
SRCL PS :
1.8
Industry PS :
1.7
Sector:   Business Services.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
1%
Return on Equity:
-1%
Free Cash Flow Margin:
14.3%
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Stericycle Stock Analysis

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Watch the robo advisor video of Stericycle stock analysis on Amigobulls. Our SRCL analysis video highlights revenue and profit trends along with other important metrics such as valuation to find what makes the stock attractive.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Stericycle Inc Stock Rating 2.2/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for SRCL stock analysis. Stericycle valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. Stericycle stock rating is our opinion about the business fundamentals of the company.

Should you buy SRCL stock?

  • The company has an operating cash flow which is 4 times the net income.
  • SRCL stock is trading at an earnings multiple of 17.5 which is better than the industry average of 21.8.
  • Stericycle has a healthy FCF (Free Cash Flow) margin of 14.3%.

Should you sell SRCL stock?

  • Stericycle revenue saw a decline of -0.8% YoY in 2017 Q3.
  • Stericycle had a poor average operating margin of 2.4% over the last 4 quarters.
  • Stericycle posted an average Net loss of -0.8% in the last twelve months.
  • Stericycle is debt laden and has a high debt/equity ratio of  0.99.
  • Stericycle has a poor return on invested capital of 1%.
  • Stericycle has a negative return on equity of -1%. This indicates that the firm is inefficient at generating profits.

Comments on this video and Stericycle stock

Amigobulls Stericycle stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of SRCL stock. The fundamentals of a company are vital to identify long-term investment opportunities.

While doing a study of the company financials, Stericycle revenue growth and profit or net income are two main metrics which help in identifying whether SRCL stock is overvalued or undervalued. Investors could make use of SRCL technical analysis to check whether the fundamental story is reflected in the market sentiment.