NASDAQ:SRCL
$54.93
(3/15 8:10PM)
+0.8%
| Open | $54.59 |
Mkt Cap | $4.7 Billion |
| High | $55.04 |
52Wk High | $58.34 |
| Low | $54.16 |
52Wk Low | $45.96 |
| Volume | 373,640 |
Avg Vol 10D | 449,600 |
Ockham's Rating/Recommendation Summary
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SRCL Revenue
For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at SRCL through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 5.59x and 3.83x respectively.
Utilizing this range we can see that SRCL’s current Price to Sales per share ratio of 3.92x is significantly below its average levels historically. In fact, with a current price of $54.49, SRCL is a full 17% below its average Price to Sales ratio at comparable sales levels. This is a rare occurrence and, when taken in context of the other areas of our analysis, can be a strong positive for our outlook for SRCL.
SRCL Cash Earnings
Looking at SRCL specifically in their Cash Earnings capabilities, Ockham views SRCL as significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for SRCL, the current level of Cash Earnings compared to its historical levels helps identify where SRCL is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 33.33 and a historical low Cash Earnings per share ratio of 22.70, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for SRCL? From the Ockham perspective, we are looking specifically at SRCL to see if the market is recognizing the huge disparity between SRCL's past stock price to Cash Earnings ratio to today's levels. At a difference of 24% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at SRCL. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
SRCL Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely. SRCL may pay a dividend at this time; however, there is an insufficient amount of history to incorporate it into our analysis. Therefore, we are not utilizing the dividends or lack thereof in our study. As SRCL more consistent dividend history is made available, we will begin to factor this into the Ockham approach.
A Discussion of SRCL's CEO Occurred on Squawk On The Street
Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about SRCL management on Squawk On The Street.
Based on our methodology, Stericycle, Incorporated should hold some appeal to value investors as we view it as Undervalued. While bearish sentiment on a stock is not always a bad thing, it is something you need to be aware of. The Motley Fool survey of crowd sentiment shows that many investors believe this stock will underperform. We noticed recently that in comparison to all other stocks we analyze in the news; SRCL has received less coverage from the financial media in business television and blogs.
“… the winner is mark miller of STERICYCLE the medical waste this is a company that has a very strong competitive position as we say here at morningstar, a wide economic mode, and ... …”
Stericycle, Incorporated (SRCL) Discussed on CNBC's Squawk Box
Stericycle, Incorporated is in the news. Find out how this impacts SRCL trading on Ockham Research.
That can grow and lower our gdp. So companies that have a great market share that have defensive markets. You see that in the downturn prospect these are companies that are really good product >> like what? >> companies like STERICYCLE, with ecolab. You're going to get double digit groes groekt and sales growth top line. >> so overall, is this market away highway of itself and has a huge air pocket and it's ready to pull back? I wouldn't be surprised if the whole market pulls back. >> 5% or 10%. >> when? If it's 5% or 10% from here >> what you do is i'm not waiting for it to happen. Early september, we had the 3% what we're doing is investing in companies that we want to own for three to five years and if the opportunity comes now, I can nibble at it and i'll add more if the market comes down, but i'm not saying i'll wait for a 10% correction because if i'm wrong and i'm a long-term investor, that's not the way to do it. >> with a lot of ser rat's picks, he had assuming a low gdp
“… e going to get double digit groes groekt and sales growth top line. >> so overall, is this market away highway of itself and has a huge air pocket and it's ready to pull back? I wouldn't be surprised if the whole market pulls back. >> 5% or 10%. >> when? If it's 5% or 10% from here >> what you do is i'm not waiting for it to happen. Early september, we had the 3% what we're doing is investing in companies that we want to own for three to five years and if the opportunity comes now, I can nibble at it and i'll add more if the market comes down, but i'm not saying i'll wait for a 10% correction because if i'm wrong and i'm a long-term investor, that's not the way to do it. >> with a lot of ser rat's picks, he had assuming a low gdp …”
Stericycle, Incorporated (SRCL) Discussed on CNBC's Closing Bell
Stericycle, Incorporated is in the news. Find out how this impacts SRCL trading on Ockham Research.
Position, doing a little small, but a notable cash acquisition overnight. The company paying $185 million in cash to acquire med serve out of houston. They deal in just what STERICYCLE does, the collection and disposal of medical waste. STERICYCLE, hot right now in a kind of squishy market. >> thanks very much, matt. >>> take on the markets. Cnbc investor network on, webcam
“… ght now in a kind of squishy market. >> thanks very much, matt. >>> take on the markets. Cnbc investor network on, webcam …”
Stericycle, Incorporated (SRCL) Discussed on CNBC's Closing Bell
Stericycle, Incorporated is in the news. Find out how this impacts SRCL trading on Ockham Research.
>>> hi, folks, matt nesto with a closing bell realtime flash. I want to draw your attention, again, to STERICYCLE. I called it -- named it in my contrarian up 4% today, 11% this week.
“… >>> hi, folks, matt nesto with a closing bell realtime flash. I want to draw your attention, again, to STERICYCLE. I called it -- named it in my contrarian up 4% today, 11% this week. …”
Stericycle, Incorporated (SRCL) Discussed on CNBC's Closing Bell
Stericycle, Incorporated is in the news. Find out how this impacts SRCL trading on Ockham Research.
Sectors all doing very, very well, today, that were weak in the bear session that are now strong in the rally and participating in both. So no vel lus, ca, STERICYCLE and tyson. >>> matt nesto, dave is mentioning the retailers. We're seeing retailers fall off the cliff here.
“… off the cliff here. …”