Stericycle provides regulated and compliance solutions to the healthcare and commercial businesses. The company collects and processes specialized waste for disposal services. The company was founded in 1989 and is based in Lake Forest, Illinois.
SRCL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Stericycle Inc. To summarize, we found that Stericycle Inc ranked in the 8th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. The most interesting components of our discounted cash flow analysis for Stericycle Inc ended up being:
The company's compound free cash flow growth rate over the past 5.5 years comes in at -0.16%; that's greater than just 12.08% of US stocks we're applying DCF forecasting to.
Stericycle Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -2.35. This coverage rate is greater than that of merely 16.21% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 11. This value is greater than 82.43% stocks in the Industrials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Industrials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SRCL, try MWA, PTSI, ROAD, AAWW, and GSH.
Medical waste was already a booming business before COVID-19, but the surge in coronavirus cases may accelerate the situation. Much of the personal protection equipment (PPE) that healthcare workers use has to be thrown away as medical waste. A Stratistics MRC report says that medical waste is expected to grow into an $18.9 billion market by 2024.
In a regulatory filing on Friday, Stericycle (SRCL) announces that Chief Information Officer ((CIO)) David Stahl will be departing the Company, effective June 27.Janet H. Zelenka, the Company’s Chief Financial Officer, will assume the duties of CIO.The financial terms of Mr. Stahl’s departure have not yet been finally determined....
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