Stericycle Inc.
Find Ratings ReportsSTERICYCLE INC's gross profit margin for the fourth quarter of its fiscal year 2023 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. STERICYCLE INC has weak liquidity. Currently, the Quick Ratio is 0.82 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.22% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 652.0 | 670.3 |
EBITDA ($mil) | 91.5 | 104.0 |
EBIT ($mil) | 37.9 | 47.7 |
Net Income ($mil) | 14.9 | 31.8 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 35.3 | 56.0 |
Total Assets ($mil) | 5352.6 | 5334.1 |
Total Debt ($mil) | 1782.7 | 1929.4 |
Equity ($mil) | 2522.5 | 2420.2 |
Profitability | Q4 FY23 | Q4 FY22 |
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Gross Profit Margin | 43.34 | 42.0 |
EBITDA Margin | 14.03 | 15.51 |
Operating Margin | 5.81 | 7.12 |
Sales Turnover | 0.5 | 0.51 |
Return on Assets | -0.39 | 1.04 |
Return on Equity | -0.85 | 2.31 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 0.94 | 0.9 |
Debt/Capital | 0.41 | 0.44 |
Interest Expense | 17.0 | 20.9 |
Interest Coverage | 2.23 | 2.28 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 92.6 | 92.2 |
Div / share | 0.0 | 0.0 |
EPS | 0.16 | 0.35 |
Book value / share | 27.24 | 26.25 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 454458.0 | 561634.0 |
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.91 indicates a significant discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 7.80. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, STERICYCLE INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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SRCL NM | Peers 44.67 | SRCL 19.79 | Peers 17.97 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. SRCL's P/E is negative making this valuation measure meaningless. |
Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. SRCL is trading at a premium to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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SRCL 18.25 | Peers 28.98 | SRCL NA | Peers 2.20 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. SRCL is trading at a discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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SRCL 1.91 | Peers 7.80 | SRCL -139.34 | Peers 4.21 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. SRCL is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, SRCL is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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SRCL 1.81 | Peers 4.47 | SRCL -1.68 | Peers 7.77 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. SRCL is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. SRCL significantly trails its peers on the basis of sales growth. |
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