SCWX Fundamental Analysis - SECUREWORKS CORP - A

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to SCWX. SCWX was compared to 283 industry peers in the Software industry. While SCWX seems to be doing ok healthwise, there are quite some concerns on its profitability. SCWX does not seem to be growing, but still is valued expensively.

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1. Profitability

1.1 Basic Checks

SCWX had positive earnings in the past year.

In the past year SCWX had a positive cash flow from operations.

SCWX had negative earnings in each of the past 5 years.

In multiple years SCWX reported negative operating cash flow during the last 5 years.

1.2 Ratios

The Return On Assets of SCWX (-13.02%) is worse than 64.39% of its industry peers.

SCWX has a Return On Equity of -19.49%. This is comparable to the rest of the industry: SCWX outperforms 43.53% of its industry peers.

		Industry Rank	Sector 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

1.3 Margins

SCWX's Gross Margin of 66.84% is in line compared to the rest of the industry. SCWX outperforms 49.28% of its industry peers.

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 Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

SCWX does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, SCWX has more shares outstanding

SCWX has more shares outstanding than it did 5 years ago.

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.

2.2 Solvency

Based on the Altman-Z score of 1.03, we must say that SCWX is in the distress zone and has some risk of bankruptcy.

With a Altman-Z score value of 1.03, SCWX is not doing good in the industry: 65.11% of the companies in the same industry are doing better.

SCWX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	1.03

ROIC/WACCN/A

WACC11.03%

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.

SCWX has a Current ratio of 0.62. This is amonst the worse of the industry: SCWX underperforms 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 has a worse Quick ratio (0.62) than 89.57% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.62

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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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.

The Revenue for SCWX has decreased by -13.35% in the past year. This is quite bad

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

The Earnings Per Share is expected to grow by 43.80% on average over the next years. This is a very strong growth

The Revenue is expected to decrease by -0.69% on average over the next years.

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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 65.46, which means the current valuation is very expensive for SCWX.

The rest of the industry has a similar Price/Earnings ratio as SCWX.

When comparing the Price/Earnings ratio of SCWX to the average of the S&P500 Index (26.76), we can say SCWX is valued expensively.

Based on the Price/Forward Earnings ratio of 75.85, the valuation of SCWX can be described as expensive.

The rest of the industry has a similar Price/Forward Earnings ratio as SCWX.

The average S&P500 Price/Forward Earnings ratio is at 34.91. SCWX is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	65.46
Fwd PE	75.85

4.2 Price Multiples

SCWX's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	108.39
EV/EBITDA	N/A

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%

More info and screens

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5. Dividend

5.1 Amount

No dividends for SCWX!.

		Industry Rank	Sector 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-28.12%

Ins Owners16.07%

Ins Owner Change0%

Market Cap756.45M

Analysts45.71

Price Target9.62 (13.04%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector 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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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

SECUREWORKS CORP - A (SCWX) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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