SECUREWORKS CORP - A (SCWX)
US81374A1051 - Common Stock
We assign a fundamental rating of 2 out of 10 to SCWX. SCWX was compared to 276 industry peers in the Software industry. While SCWX seems to be doing ok healthwise, there are quite some concerns on its profitability. SCWX is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SCWX had negative earnings in the past year.
SCWX had a negative operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of -11.88%, SCWX is in line with its industry, outperforming 43.43% of the companies in the same industry.
Looking at the Return On Equity, with a value of -17.18%, SCWX is in line with its industry, outperforming 51.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.88% | ||
| ROE | -17.18% | ||
| 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 has a Gross Margin (59.51%) which is in line with its industry peers.
SCWX's Gross Margin has improved in the last couple of years.
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 | 59.51% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.54%
GM growth 5Y2.52%
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.
The number of shares outstanding for SCWX has been increased compared to 5 years ago.
SCWX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SCWX has an Altman-Z score of 0.50. This is a bad value and indicates that SCWX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.50, SCWX is not doing good in the industry: 67.15% 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 | N/A | ||
| Altman-Z | 0.5 |
ROIC/WACCN/A
WACC9.95%
2.3 Liquidity
A Current Ratio of 0.68 indicates that SCWX may have some problems paying its short term obligations.
SCWX has a worse Current ratio (0.68) than 89.42% of its industry peers.
SCWX has a Quick Ratio of 0.68. 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's Quick ratio of 0.68 is on the low side compared to the rest of the industry. SCWX is outperformed by 88.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 60.00% over the past year.
Looking at the last year, SCWX shows a very negative growth in Revenue. The Revenue has decreased by -21.04% in the last year.
Measured over the past years, SCWX shows a decrease in Revenue. The Revenue has been decreasing by -6.74% on average per year.
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q147.06%
Revenue 1Y (TTM)-21.04%
Revenue growth 3Y-13.28%
Revenue growth 5Y-6.74%
Revenue growth Q2Q-22.68%
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.
The Revenue is expected to decrease by -0.69% on average over the next years.
EPS Next Y113.21%
EPS Next 2Y57.74%
EPS Next 3Y43.8%
EPS Next 5YN/A
Revenue Next Year-9.3%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.69%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SCWX. In the last year negative earnings were reported.
Based on the Price/Forward Earnings ratio of 209.15, the valuation of SCWX can be described as expensive.
SCWX's Price/Forward Earnings is on the same level as the industry average.
SCWX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 209.15 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive 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)N/A
PEG (5Y)N/A
EPS Next 2Y57.74%
EPS Next 3Y43.8%
5. Dividend
5.1 Amount
SCWX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SECUREWORKS CORP - A
NASDAQ:SCWX (5/1/2024, 3:30:02 PM)
After market: 6.08 0 (0%)6.08
-0.01 (-0.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap536.80M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 209.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -11.88% | ||
| ROE | -17.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 59.51% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.5
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)60%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y113.21%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-21.04%
Revenue growth 3Y-13.28%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y