Sterling Check Corp
NASDAQ:STER

Watchlist Manager
Sterling Check Corp Logo
Sterling Check Corp
NASDAQ:STER
Watchlist
Price: 16.74 USD -0.24% Market Closed
Market Cap: 1.6B USD
Have any thoughts about
Sterling Check Corp?
Write Note

Intrinsic Value

The intrinsic value of one STER stock under the Base Case scenario is 23.44 USD. Compared to the current market price of 16.74 USD, Sterling Check Corp is Undervalued by 29%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

STER Intrinsic Value
23.44 USD
Undervaluation 29%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Sterling Check Corp

Backtest Intrinsic Value
Dive into the past to invest in the future

Uncover deeper insights with the Valuation Backtest. Learn how current stock valuations stack up against historical averages to gauge true investment potential.

Start backtest now and learn if your stock is truly undervalued or overvalued!

Run Backtest
Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
Register to View Results
Register to View Results

To access the results of this valuation backtest, please register an account with us. Registration is quick and gives you instant access to insights on 3 stocks per week for free.

Backtest Unavailable

The backtest for STER cannot be conducted due to limitations such as insufficient data or other constraints. Please select a different stock or adjust your settings.

Backtest In Progress...
Backtest In Progress...
How do you feel about STER?
Bearish
Neutral
Bullish

Fundamental Analysis

Company Quality
No Indicators Selected
Select Indicators

Select up to 3 indicators:

Insider Trading
0-3
Months
0-6
Months
0-12
Months
0-36
Months
No Periods Selected
Select Periods

Select up to 2 periods:

Investment Journal
AI Assistant
AI Assistant
Ask me anything about Sterling Check Corp

Provide an overview of the primary business activities
of Sterling Check Corp.

What unique competitive advantages
does Sterling Check Corp hold over its rivals?

What risks and challenges
does Sterling Check Corp face in the near future?

Has there been any significant insider trading activity
in Sterling Check Corp recently?

Summarize the latest earnings call
of Sterling Check Corp.

Is it considered overvalued or undervalued
based on the latest financial data?

Show all valuation multiples
for Sterling Check Corp.

Provide P/S
for Sterling Check Corp.

Provide P/E
for Sterling Check Corp.

Provide P/OCF
for Sterling Check Corp.

Provide P/FCFE
for Sterling Check Corp.

Provide P/B
for Sterling Check Corp.

Provide EV/S
for Sterling Check Corp.

Provide EV/GP
for Sterling Check Corp.

Provide EV/EBITDA
for Sterling Check Corp.

Provide EV/EBIT
for Sterling Check Corp.

Provide EV/OCF
for Sterling Check Corp.

Provide EV/FCFF
for Sterling Check Corp.

Provide EV/IC
for Sterling Check Corp.

Show me price targets
for Sterling Check Corp made by professional analysts.

What are the Revenue projections
for Sterling Check Corp?

How accurate were the past Revenue estimates
for Sterling Check Corp?

What are the Net Income projections
for Sterling Check Corp?

How accurate were the past Net Income estimates
for Sterling Check Corp?

What are the EPS projections
for Sterling Check Corp?

How accurate were the past EPS estimates
for Sterling Check Corp?

What are the EBIT projections
for Sterling Check Corp?

How accurate were the past EBIT estimates
for Sterling Check Corp?

Compare the revenue forecasts
for Sterling Check Corp with those of its competitors based on recent analyst estimates.

Compare the intrinsic valuations
of Sterling Check Corp and its key competitors using the latest financial data.

Compare historical revenue growth rates
of Sterling Check Corp against its competitors.

Analyze the profit margins
(gross, operating, and net) of Sterling Check Corp compared to its peers.

Compare the P/E ratios
of Sterling Check Corp against its peers.

Discuss the investment returns and shareholder value creation
comparing Sterling Check Corp with its peers.

Analyze the financial leverage
of Sterling Check Corp compared to its main competitors.

Show all profitability ratios
for Sterling Check Corp.

Provide ROE
for Sterling Check Corp.

Provide ROA
for Sterling Check Corp.

Provide ROIC
for Sterling Check Corp.

Provide ROCE
for Sterling Check Corp.

Provide Gross Margin
for Sterling Check Corp.

Provide Operating Margin
for Sterling Check Corp.

Provide Net Margin
for Sterling Check Corp.

Provide FCF Margin
for Sterling Check Corp.

Show all solvency ratios
for Sterling Check Corp.

Provide D/E Ratio
for Sterling Check Corp.

Provide D/A Ratio
for Sterling Check Corp.

Provide Interest Coverage Ratio
for Sterling Check Corp.

Provide Altman Z-Score Ratio
for Sterling Check Corp.

Provide Quick Ratio
for Sterling Check Corp.

Provide Current Ratio
for Sterling Check Corp.

Provide Cash Ratio
for Sterling Check Corp.

What is the historical Revenue growth
over the last 5 years for Sterling Check Corp?

What is the historical Net Income growth
over the last 5 years for Sterling Check Corp?

What is the current Free Cash Flow
of Sterling Check Corp?

Discuss the annual earnings per share (EPS)
trend over the past five years for Sterling Check Corp.

Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Sterling Check Corp

Current Assets 279.3m
Cash & Short-Term Investments 74.2m
Receivables 174.9m
Other Current Assets 30.2m
Non-Current Assets 1.2B
PP&E 12.2m
Intangibles 1.2B
Other Non-Current Assets 14.2m
Current Liabilities 172.3m
Accounts Payable 52.9m
Accrued Liabilities 82.6m
Other Current Liabilities 36.8m
Non-Current Liabilities 556.8m
Long-Term Debt 537.7m
Other Non-Current Liabilities 19.1m
Efficiency

Earnings Waterfall
Sterling Check Corp

Revenue
736.5m USD
Cost of Revenue
-402.8m USD
Gross Profit
333.8m USD
Operating Expenses
-300.2m USD
Operating Income
33.6m USD
Other Expenses
-48.8m USD
Net Income
-15.2m USD

Free Cash Flow Analysis
Sterling Check Corp

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q3 2023, the company reported revenues of $181 million, a 9.4% drop from the previous year. Expected revenues for the year are $720 to $730 million, signaling further declines of 4.5% to 6%. Adjusted EBITDA is projected at $186 to $191 million, with a 4% to 6% decrease, while adjusted net income is anticipated to be $95 to $99 million, down 7% to 11%. Despite these setbacks, the company remains optimistic about achieving a 7% to 8% increase in new client revenue by year-end. They are reaffirming their long-term goals for a 9% to 11% organic revenue increase, margin expansion to 29% to 32%+, and an adjusted net income growth of 15% to 20% annually.

What is Earnings Call?
Fundamental Scores

STER Profitability Score
Profitability Due Diligence

Sterling Check Corp's profitability score is 48/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Positive Free Cash Flow
Positive Revenue Growth Forecast
Negative 1-Year Revenue Growth
48/100
Profitability
Score

Sterling Check Corp's profitability score is 48/100. The higher the profitability score, the more profitable the company is.

STER Solvency Score
Solvency Due Diligence

Sterling Check Corp's solvency score is 35/100. The higher the solvency score, the more solvent the company is.

Long-Term Solvency
Low D/E
Short-Term Solvency
Low Altman Z-Score
35/100
Solvency
Score

Sterling Check Corp's solvency score is 35/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

STER Price Targets Summary
Sterling Check Corp

Wall Street analysts forecast STER stock price to rise over the next 12 months.

According to Wall Street analysts, the average 1-year price target for STER is 16.83 USD with a low forecast of 16.16 USD and a high forecast of 18.38 USD.

Lowest
Price Target
16.16 USD
3% Downside
Average
Price Target
16.83 USD
1% Upside
Highest
Price Target
18.38 USD
10% Upside
View Analyst Estimates
View Analyst Estimates
Want to learn more about Wall St estimates for STER?

Click here to dive deeper.

Dividends

Sterling Check Corp
does not pay dividends
Shareholder Yield

Current shareholder yield for STER is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
No dividends
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Ownership

STER Insider Trading
Buy and sell transactions by insiders

Cumulative Transactions Amount
Period Sold Bought Net
3 Months
6 Months
9 Months
12 Months
Why is insider trading important?

Profile

Sterling Check Corp Logo
Sterling Check Corp

Country

United States of America

Industry

Professional Services

Market Cap

1.6B USD

Dividend Yield

0%

Description

Sterling Check Corp. provides technology-enabled background and identity verification services. The company is headquartered in New York City, New York and currently employs 6,000 full-time employees. The company went IPO on 2021-09-23. The firm offers a comprehensive hiring and risk management solution that begins with identity verification, followed by criminal background screening, credential verification, drug and health screening, processing of employee documentation required for onboarding and ongoing risk monitoring. The firm's services are delivered through its purpose-built, cloud-based technology platform that enables organizations with real-time and data-driven insights to conduct and manage employment screening programs. The firm serves a range of industries, such as healthcare, gig economy, financial and business services, industrials, retail, contingent, technology, media and entertainment, transportation and logistics, hospitality, education and government.

Contact

NEW YORK
New York City
1 State Street Plaza, 24th Floor
+18008992272.0
www.sterlingcheck.com

IPO

2021-09-23

Employees

6 000

Officers

CEO & Director
Mr. Joshua L. Peirez
President & COO
Mr. Lou Paglia
Executive VP, Secretary and Chief Legal & Risk Officer
Mr. Steven L. Barnett
Executive VP, Interim CFO & Interim Chief Accounting Officer
Mr. Richard Steven Dziadzio
Executive VP & Chief Technology Officer
Ms. Ivneet Kaur
Executive VP, Chief Administrative Officer & Chief People Officer
Ms. Robyn H. Price Stonehill
Show More
Vice President of Investor Relations
Mr. Judah Efram Sokel C.F.A., CPA
Interim Chief Marketing Officer
Mr. Oded Menkes
Chief Accounting Officer (Leave of Absence)
Ms. Theresa Neri Strong
Chief Strategy Officer
Mr. Peter Lehmann
Show Less

See Also

Discover More
What is the Intrinsic Value of one STER stock?

The intrinsic value of one STER stock under the Base Case scenario is 23.44 USD.

Is STER stock undervalued or overvalued?

Compared to the current market price of 16.74 USD, Sterling Check Corp is Undervalued by 29%.

Back to Top