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Stericycle Inc SRCL Stock Quote

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NASDAQ:SRCL

Morningstar‘s Stock Analysis SRCL

Valuation
Currency in USD
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Stericycle’s Pricing and Operational Improvements Materialize Into a Strong Third Quarter

Analyst Note

| Brian Bernard, CFA, CPA |

Stericycle’s stock rallied over 6% on Nov. 3 after the narrow-moat-rated firm posted strong third-quarter results. Revenue of $690 million and adjusted EPS of $0.65 outpaced FactSet consensus by 2% and 12%, respectively. Management raised its full-year organic revenue guidance to 5%-7% (4%-6% previously) while reaffirming its adjusted EPS ($2.00-$2.15) and free cash flow ($80 million-$100 million) targets. Strong pricing gains and continued operational efficiencies were apparent during the quarter. We believe Stericycle’s operational initiatives are materializing into improved financial performance, and we remain encouraged by the firm’s progress. We raised our fair value estimate 3% to $61 primarily due to the time value of money as our long-term outlook remains intact.

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Key Statistics SRCL

Company Profile SRCL

Business Description

Stericycle is the largest provider of medical waste disposal and data destruction (primarily paper shredding) services in the United States. Its next closest national competitor in the medical waste disposal space is Sharps Compliance, which generated $76 million of sales in fiscal 2021 (about 4% of Stericycle's global regulated waste and compliance revenue). Stericycle's data destruction business (Shred-It) is about twice the size of its closest competitor (Iron Mountain's information destruction segment). Stericycle has a global presence, with about 20% of its revenue earned outside North America.

Contact
2355 Waukegan Road
Bannockburn, IL, 60015
T +1 847 367-5910
Industry Waste Management
Most Recent Earnings Sep 30, 2022
Fiscal Year End Dec 31, 2022
Employees 15,000

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