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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 or Stephanie Link.

Trade-Ideas LLC identified

Stericycle

(

SRCL

) 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 $39.5 million.
  • SRCL has traded 903 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 32.0. Currently there are 10 analysts that rate Stericycle a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Recommends

The average volume for Stericycle has been 337,400 shares per day over the past 30 days. Stericycle has a market cap of $10.0 billion and is part of the industrial goods sector and materials & construction industry. The stock has a beta of 0.36 and a short float of 2.6% with 6.86 days to cover. Shares are up 1.7% year-to-date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Stericycle as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 21.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 $3.56 versus $3.08 in the prior year. This year, the market expects an improvement in earnings ($4.24 versus $3.56).
  • Net operating cash flow has increased to $93.87 million or 19.86% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 1.76%.
  • The debt-to-equity ratio is somewhat low, currently at 0.94, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.98 is somewhat weak and could be cause for future problems.
  • 45.32% is the gross profit margin for STERICYCLE INC which we consider to be strong. Regardless of SRCL's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SRCL's net profit margin of 12.78% compares favorably to the industry average.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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