Stericycle a disposal services company.

www.stericycle.com

Stericycle is a compliance company that specializes in collecting and disposing regulated substances, such as medical waste and sharps, pharmaceuticals, hazardous waste, and providing services for recalled and expired goods. 

It meets all the criteria of the Better Investing method of stock picking. 


1. It has 15% growth in sales over the last five years and is a Mid Cap company (one between 1 and 10 million in sales). It had 2 million in sales last year.

2. Pre-tax profit on these sales is just under 20% and compares to the industry at just under 10%.

3. Earned on equity is just above 16% compared to the industry five year average of just above 5%.

4. Historic earnings per share was 13.5% over the past five years.

5. It is a growth company and does not pay a dividend.

6. It is 14 to 1 upside/downside ratio.

7. It is in the BUY zone which is  $73 - $94.

Some cautions:

1. It had a disappointing year in 2015 however 2016 is on target and they have predicted strong growth in 2017.

2. It went from 1 million in debt in 2014 to 3 million in 2015. This is due to acquisitions.

3. "Evolving environmental rules and regulations remain another headwind that alter its current method of doing business and ultimately increase costs and compress margins further. The recent spate of acquisitions is leading to higher overheads and integration-related expenses, which are weighing on margins.” Zacks evaluation of this company as of December 16, 2016.

We will buy 100 shares today at $77.12 so we will have $7,712 shares and paid $7,719. 

STRC cost basis $7,719 value is $7,938.00 = +$219.00 (01/08/2017)
LULU cost basis $6,855.00 value is $6,827.00 = -$28.00
GNTX cost $1,856.00 current $2,052.00 .... +196.00
BNS paid $5,408.00 value $5,788.00 = +$380.00
TSCO paid $6,667 value $7,516.00. = + $849.00
KMX paid $5,444 value $6,540.00 = + $1096.00
LCI paid $3,238 value $2,225 = - $1,013.00
JLL paid $9,699 value $10,673.00 = + $974.00