Sharps Compliance Corp.
Sharps Compliance Corp (NYSE: SMED) is a national leader in health waste management focusing on regulated waste streams, medicines, and hazardous waste. It offers a full range of medical waste management, hazardous waste management, and unused drug disposal services.
Why Should Investors Make An Exit?
Technical Price Chart (as of April 08, 2022, at 10:54 AM PDT). Source: REFINITIV, Analysis by Kalkine Group
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's FY1 trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
SMED's share price has declined 46.70% in the past nine months and is currently leaning towards the lower band of the 52-week range of USD 4.81 to USD 18.67. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 4.66.
Considering the company's long cash conversion cycle, current valuation and associated risks. we recommend a "Sell" rating on the stock at the current price of USD 5.255, up 1.06% as of April 08, 2022, at 08:31 AM PDT.
Three-Year Technical Price Chart (as of April 08, 2022, at 08:31 AM PDT). Source: REFINITIV, Analysis by Kalkine Group
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.