Stericycle Inc. [NASDAQ: SRCL] gained 11.61% or 7.75 points to close at $74.49 with a heavy trading volume of 1228093 shares. The company report on November 5, 2020 that Stericycle, Inc. Reports Results For the Third Quarter 2020.
Stericycle, Inc. (Nasdaq: SRCL) reported results for the third quarter ended September 30, 2020.
Revenues for the quarter were $636.4 million, a decrease of 23.6% compared to $833.1 million in the third quarter of last year due to the impact of multiple divestitures and the COVID-19 pandemic. Organic revenues declined 4.3% when excluding the impact of divestitures, foreign exchange rates, and changes in sorted office paper (SOP) pricing, primarily reflecting the impact of the pandemic. Loss from operations was $55.8 million, compared to a loss from operations of $34.5 million in the third quarter of last year. Net loss was $81.2 million, or $0.89 diluted loss per share, compared to a net loss of $59.2 million, or $0.65 diluted loss per share, in the third quarter of last year. The year-over-year difference was related to a higher loss from operations of $21.3 million, primarily related to divestitures, and higher tax expense of $15.1 million, which were partially offset by lower interest expense of $12.2 million. Adjusted income from operations was $101.0 million, compared to $118.8 million in the third quarter of last year. Adjusted diluted earnings per share was $0.68, compared to $0.80 in the 2019 comparable period. Cash flow from operations for the nine months ended September 30, 2020 was $365.2 million, compared to $201.2 million in the same period in 2019. Free cash flow for the nine months ended September 30, 2020 was $270.5 million, compared to $40.0 million in the same period in 2019.
It opened the trading session at $68.60, the shares rose to $75.7684 and dropped to $68.60, the range by which the price of stock traded the whole day. The daily chart for SRCL points out that the company has recorded 42.27% gains over the past six months. However, it is still -93.73% lower than its most recent low trading price.
If we look at the average trading volume of 365.79K shares, SRCL reached to a volume of 1228093 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Stericycle Inc. [SRCL]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SRCL shares is $68.86 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SRCL stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Berenberg have made an estimate for Stericycle Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on October 15, 2020. The new note on the price target was released on May 15, 2020, representing the official price target for Stericycle Inc. stock.
The Average True Range (ATR) for Stericycle Inc. is set at 2.56, with the Price to Sales ratio for SRCL stock in the period of the last 12 months amounting to 2.31. The Price to Book ratio for the last quarter was 2.97, with the Price to Cash per share for the same quarter was set at 0.45. Price to Free Cash Flow for SRCL in the course of the last twelve months was 31.16 with Quick ratio for the last quarter at 0.90.
Trading performance analysis for SRCL stock
Stericycle Inc. [SRCL] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 16.90. With this latest performance, SRCL shares gained by 17.31% in over the last four-week period, additionally plugging by 42.27% over the last 6 months – not to mention a rise of 19.82% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SRCL stock in for the last two-week period is set at 72.59, with the RSI for the last a single of trading hit 77.73, and the three-weeks RSI is set at 68.85 for Stericycle Inc. [SRCL]. The present Moving Average for the last 50 days of trading for this stock 64.19, while it was recorded at 66.88 for the last single week of trading, and 58.15 for the last 200 days.
Stericycle Inc. [SRCL]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Stericycle Inc. [SRCL] shares currently have an operating margin of +9.63 and a Gross Margin at +31.90. Stericycle Inc.’s Net Margin is presently recorded at -10.48.
Return on Total Capital for SRCL is now 5.88, given the latest momentum, and Return on Invested Capital for the company is -6.61. Return on Equity for this stock declined to -14.10, with Return on Assets sitting at -5.38. When it comes to the capital structure of this company, Stericycle Inc. [SRCL] has a Total Debt to Total Equity ratio set at 133.65. Additionally, SRCL Total Debt to Total Capital is recorded at 57.20, with Total Debt to Total Assets ending up at 48.40. Long-Term Debt to Equity for the company is recorded at 125.08, with the Long-Term Debt to Total Capital now at 53.53.
Reflecting on the efficiency of the workforce at the company, Stericycle Inc. [SRCL] managed to generate an average of -$17,785 per employee. Receivables Turnover for the company is 5.79 with a Total Asset Turnover recorded at a value of 0.51.Stericycle Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.
Stericycle Inc. [SRCL]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Stericycle Inc. posted 0.8/share EPS, while the average EPS was predicted by analysts to be reported at 0.68/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 17.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SRCL. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Stericycle Inc. go to 11.00%.
An analysis of insider ownership at Stericycle Inc. [SRCL]
There are presently around $7,266 million, in the hands of institutional investors. The top three institutional holders of SRCL stocks are: ALLIANCEBERNSTEIN L.P. with ownership of 8,873,914, which is approximately 9.772% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 8,340,810 shares of the stock with an approximate value of $621.31 million in SRCL stocks shares; and BLACKROCK INC., currently with $575.07 million in SRCL stock with ownership of nearly -0.476% of the company’s market capitalization.
Positions in Stericycle Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 147 institutional holders increased their position in Stericycle Inc. [NASDAQ:SRCL] by around 8,021,363 shares. Additionally, 173 investors decreased positions by around 6,858,538 shares, while 77 investors held positions by with 82,667,471 shares. The mentioned changes placed institutional holdings at 97,547,372 shares, according to the latest SEC report filing. SRCL stock had 43 new institutional investments in for a total of 4,418,999 shares, while 38 institutional investors sold positions of 2,007,795 shares during the same period.