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Stericycle Inc SRCL

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Stock XNAS Rating as of
$58.33 +0.28 (0.48%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Waste Management to Acquire Stericycle for $62 per Share

Brian Bernard

Since its founding in 1989, Stericycle had been extremely acquisitive, having purchased more than 500 companies. This strategy led to a lengthy period of impressive growth, and the firm built unmatched scale. However, acquisitions began to stray from Stericycle's core competencies, and poor integration efforts caused inefficiencies to build. After decades of strong growth and profitability, Stericycle's financial performance began to deteriorate in 2017.

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Price vs Fair Value

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SRCL is trading at a 657% premium.
Price
$58.09
Fair Value
$29.00
Uncertainty
Medium
1-Star Price
$95.60
5-Star Price
$46.30
Economic Moat
Zcntyv
Capital Allocation
Cyvjbls

Bulls Say, Bears Say

Bulls

If Stericycle's turnaround efforts are successful, they will materially improve profitability and free cash flow.

Bears

Stericycle's Shred-It is a no-moat business in secular decline. This ill-advised 2015 acquisition could haunt the current management team and prevent the firm from realizing its long-term financial goals.

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Trading Information

Previous Close Price
$58.05
Day Range
$58.11–58.48
52-Week Range
$37.82–59.45
Bid/Ask
$58.31 / $58.35
Market Cap
$5.41 Bil
Volume/Avg
859,955 / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
29.79
Price/Sales
2.03
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.12%

Company Profile

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 medical waste disposal is Sharps Compliance, which generated $76 million of sales in fiscal 2021 before its 2022 acquisition (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.
Sector
Industrials
Industry
Waste Management
Stock Style Box
Small Core
Total Number of Employees
13,500
Website
https://www.stericycle.com

Competitors

Valuation

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Metric
SRCL
WM
RSG
Price/Earnings (Normalized)
 29.7933.6835.36
Price/Book Value
 2.1412.655.98
Price/Sales
 2.034.384.26
Price/Cash Flow
 18.7817.4717.33
Price/Earnings
SRCL
WM
RSG

Financial Strength

Metric
SRCL
WM
RSG
Quick Ratio
 0.990.760.46
Current Ratio
 1.110.890.53
Interest Coverage
 1.067.265.34
Quick Ratio
SRCL
WM
RSG

Profitability

Metric
SRCL
WM
RSG
Return on Assets (Normalized)
 1.06%7.92%6.06%
Return on Equity (Normalized)
 2.26%36.61%17.75%
Return on Invested Capital (Normalized)
 2.61%12.95%9.80%
Return on Assets
SRCL
WM
RSG
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Waste Management Industry Comparables

Screen With Investor
1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
Waste Management Inc
WM
QsvtyzphNzcjw$89.6 Bil
 Republic Services Inc
RSG
GymkvbwmrBkxm$64.7 Bil
 Waste Connections Inc
WCN
XjphyqzxPlq$47.0 Bil
 Veolia Environnement SA
VEOEF
—Rmqnbc$22.3 Bil
 Veolia Environnement SA ADR
VEOEY
BxxhyxncfXyrwmj$22.3 Bil
 GFL Environmental Inc
GFL
—Bspxn$14.8 Bil
 Clean Harbors Inc
CLH
StcbtvbnPtpp$12.4 Bil
 Fomento de Construcciones y Contratas SA
FMOCF
—Zjh$6.4 Bil
 Casella Waste Systems Inc Class A
CWST
—Xjzrdd$6.2 Bil

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