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 7th 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. As for the metrics that stood out in our discounted cash flow analysis of Stericycle Inc, consider:
Its compound free cash flow growth rate, as measured over the past 5.75 years, is -0.18% -- higher than only 11.06% of stocks in our DCF forecasting set.
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 just 13.72% of stocks we're observing for the purpose of forecasting via discounted cash flows.
The weighted average cost of capital for the company is 12. This value is greater than 84.65% 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 CPRT, FLR, NES, PTSI, and ROAD.
Harsco's (HSC) buyout of Stericycle's Environmental Solutions business is likely to boost its environmental solutions and services business. The acquired assets will complement Harsco's Clean Earth business.