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SECUREWORKS CORP - A (SCWX) Stock Fundamental Analysis

NASDAQ:SCWX - Nasdaq - US81374A1051 - Common Stock - Currency: USD

8.51  +0.02 (+0.24%)

After market: 8.5002 -0.01 (-0.12%)

Fundamental Rating

3

Taking everything into account, SCWX scores 3 out of 10 in our fundamental rating. SCWX was compared to 284 industry peers in the Software industry. SCWX scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SCWX has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year SCWX was profitable.
In the past year SCWX had a positive cash flow from operations.
SCWX had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: SCWX reported negative operating cash flow in multiple years.
SCWX Yearly Net Income VS EBIT VS OCF VS FCFSCWX Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M -100M

1.2 Ratios

SCWX has a Return On Assets of -13.02%. This is in the lower half of the industry: SCWX underperforms 64.39% of its industry peers.
With a Return On Equity value of -19.49%, SCWX perfoms like the industry average, outperforming 43.53% of the companies in the same industry.
Industry RankSector Rank
ROA -13.02%
ROE -19.49%
ROIC N/A
ROA(3y)-9.84%
ROA(5y)-6.93%
ROE(3y)-14.61%
ROE(5y)-10.37%
ROIC(3y)N/A
ROIC(5y)N/A
SCWX Yearly ROA, ROE, ROICSCWX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 -5 -10 -15 -20

1.3 Margins

The Gross Margin of SCWX (66.84%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of SCWX has grown nicely.
SCWX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 66.84%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5Y2.52%
SCWX Yearly Profit, Operating, Gross MarginsSCWX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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4

2. Health

2.1 Basic Checks

SCWX does not have a ROIC to compare to the WACC, probably because it is not profitable.
SCWX has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, SCWX has more shares outstanding
SCWX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SCWX Yearly Shares OutstandingSCWX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
SCWX Yearly Total Debt VS Total AssetsSCWX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

SCWX has an Altman-Z score of 1.03. This is a bad value and indicates that SCWX is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of SCWX (1.03) is worse than 65.11% of its industry peers.
There is no outstanding debt for SCWX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 1.03
ROIC/WACCN/A
WACC11.03%
SCWX Yearly LT Debt VS Equity VS FCFSCWX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

SCWX has a Current Ratio of 0.62. This is a bad value and indicates that SCWX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SCWX (0.62) is worse than 89.93% of its industry peers.
A Quick Ratio of 0.62 indicates that SCWX may have some problems paying its short term obligations.
SCWX's Quick ratio of 0.62 is on the low side compared to the rest of the industry. SCWX is outperformed by 89.57% of its industry peers.
Industry RankSector Rank
Current Ratio 0.62
Quick Ratio 0.62
SCWX Yearly Current Assets VS Current LiabilitesSCWX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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3

3. Growth

3.1 Past

SCWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.66%, which is quite impressive.
Looking at the last year, SCWX shows a very negative growth in Revenue. The Revenue has decreased by -13.35% in the last year.
The Revenue has been decreasing by -6.74% on average over the past years.
EPS 1Y (TTM)127.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-85.18%
Revenue 1Y (TTM)-13.35%
Revenue growth 3Y-13.28%
Revenue growth 5Y-6.74%
Sales Q2Q%-7.42%

3.2 Future

SCWX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.80% yearly.
Based on estimates for the next years, SCWX will show a decrease in Revenue. The Revenue will decrease by -0.69% on average per year.
EPS Next Y121.56%
EPS Next 2Y58.43%
EPS Next 3Y43.8%
EPS Next 5YN/A
Revenue Next Year-9.39%
Revenue Next 2Y-2.8%
Revenue Next 3Y-0.69%
Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
SCWX Yearly Revenue VS EstimatesSCWX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 100M 200M 300M 400M 500M
SCWX Yearly EPS VS EstimatesSCWX Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 -0.2 -0.4 -0.6

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 65.46, the valuation of SCWX can be described as expensive.
SCWX's Price/Earnings ratio is in line with the industry average.
SCWX is valuated expensively when we compare the Price/Earnings ratio to 24.83, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 75.85 indicates a quite expensive valuation of SCWX.
SCWX's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.94, SCWX is valued quite expensively.
Industry RankSector Rank
PE 65.46
Fwd PE 75.85
SCWX Price Earnings VS Forward Price EarningsSCWX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

The rest of the industry has a similar Price/Free Cash Flow ratio as SCWX.
Industry RankSector Rank
P/FCF 108.39
EV/EBITDA N/A
SCWX Per share dataSCWX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3 4

4.3 Compensation for Growth

SCWX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SCWX's earnings are expected to grow with 43.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y58.43%
EPS Next 3Y43.8%

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0

5. Dividend

5.1 Amount

No dividends for SCWX!.
Industry RankSector Rank
Dividend Yield N/A

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SECUREWORKS CORP - A

NASDAQ:SCWX (1/31/2025, 8:00:02 PM)

After market: 8.5002 -0.01 (-0.12%)

8.51

+0.02 (+0.24%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)12-04 2024-12-04/bmo
Earnings (Next)N/A N/A
Inst Owners52.98%
Inst Owner Change-23.76%
Ins Owners16.07%
Ins Owner Change-160.82%
Market Cap756.45M
Analysts45.71
Price Target9.62 (13.04%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0%
Min EPS beat(2)-100%
Max EPS beat(2)100%
EPS beat(4)3
Avg EPS beat(4)318.75%
Min EPS beat(4)-100%
Max EPS beat(4)952.52%
EPS beat(8)6
Avg EPS beat(8)177.53%
EPS beat(12)10
Avg EPS beat(12)136.88%
EPS beat(16)13
Avg EPS beat(16)131.74%
Revenue beat(2)0
Avg Revenue beat(2)-0.29%
Min Revenue beat(2)-0.34%
Max Revenue beat(2)-0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.34%
Max Revenue beat(4)0.26%
Revenue beat(8)2
Avg Revenue beat(8)-0.53%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)3
Avg Revenue beat(16)-1.04%
PT rev (1m)0%
PT rev (3m)32.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)-100%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 65.46
Fwd PE 75.85
P/S 2.23
P/FCF 108.39
P/OCF 50.83
P/B 1.7
P/tB N/A
EV/EBITDA N/A
EPS(TTM)0.13
EY1.53%
EPS(NY)0.11
Fwd EY1.32%
FCF(TTM)0.08
FCFY0.92%
OCF(TTM)0.17
OCFY1.97%
SpS3.82
BVpS5
TBVpS-0.61
PEG (NY)0.54
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -13.02%
ROE -19.49%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 66.84%
FCFM 2.05%
ROA(3y)-9.84%
ROA(5y)-6.93%
ROE(3y)-14.61%
ROE(5y)-10.37%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5Y2.52%
F-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 34.47%
Cap/Sales 2.33%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.62
Quick Ratio 0.62
Altman-Z 1.03
F-Score5
WACC11.03%
ROIC/WACCN/A
Cap/Depr(3y)18.44%
Cap/Depr(5y)18.38%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)127.66%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-85.18%
EPS Next Y121.56%
EPS Next 2Y58.43%
EPS Next 3Y43.8%
EPS Next 5YN/A
Revenue 1Y (TTM)-13.35%
Revenue growth 3Y-13.28%
Revenue growth 5Y-6.74%
Sales Q2Q%-7.42%
Revenue Next Year-9.39%
Revenue Next 2Y-2.8%
Revenue Next 3Y-0.69%
Revenue Next 5YN/A
EBIT growth 1Y58.29%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year130.2%
EBIT Next 3Y45.02%
EBIT Next 5YN/A
FCF growth 1Y112.28%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y129.96%
OCF growth 3YN/A
OCF growth 5YN/A