Stericycle (SRCL) Hits New Lifetime High
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Stericycle as such a stock due to the following factors:
- SRCL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $55.8 million.
- SRCL has traded 127,594 shares today.
- SRCL is trading at a new lifetime high.
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More details on SRCL:
Stericycle, Inc., together with its subsidiaries, provides regulated and compliance solutions to the healthcare and commercial businesses. The company collects and processes specialized waste for disposal services. SRCL has a PE ratio of 36.6. Currently there are 10 analysts that rate Stericycle a buy, no analysts rate it a sell, and 4 rate it a hold.
The average volume for Stericycle has been 400,300 shares per day over the past 30 days. Stericycle has a market cap of $11.8 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.24 and a short float of 3.5% with 7.28 days to cover. Shares are up 7.2% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Stericycle as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 2.9%. Since the same quarter one year prior, revenues rose by 19.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.06, which illustrates the ability to avoid short-term cash problems.
- STERICYCLE INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, STERICYCLE INC increased its bottom line by earning $3.78 versus $3.56 in the prior year. This year, the market expects an improvement in earnings ($4.66 versus $3.78).
- Net operating cash flow has significantly increased by 51.83% to $103.53 million when compared to the same quarter last year. In addition, STERICYCLE INC has also vastly surpassed the industry average cash flow growth rate of -1.47%.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full Stericycle Ratings Report.
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