StarTek Inc (SRT)
US85569C1071 - Common Stock
We assign a fundamental rating of 3 out of 10 to SRT. SRT was compared to 86 industry peers in the IT Services industry. SRT may be in some trouble as it scores bad on both profitability and health. SRT has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year SRT was profitable.
In the past year SRT had a positive cash flow from operations.
SRT had negative earnings in 4 of the past 5 years.
In the past 5 years SRT always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of -5.82%, SRT is in line with its industry, outperforming 42.86% of the companies in the same industry.
SRT has a Return On Equity of -12.62%. This is comparable to the rest of the industry: SRT outperforms 47.62% of its industry peers.
SRT's Return On Invested Capital of 1.55% is in line compared to the rest of the industry. SRT outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SRT is significantly below the industry average of 12.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.82% | ||
| ROE | -12.62% | ||
| ROIC | 1.55% |
ROA(3y)-2.19%
ROA(5y)-2.58%
ROE(3y)-6.77%
ROE(5y)-7.5%
ROIC(3y)3.42%
ROIC(5y)2.81%
1.3 Margins
The Operating Margin of SRT (1.79%) is comparable to the rest of the industry.
SRT's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 15.62%, SRT is not doing good in the industry: 91.67% of the companies in the same industry are doing better.
SRT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.79% | ||
| PM (TTM) | N/A | ||
| GM | 15.62% |
OM growth 3Y-7.27%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.8%
GM growth 5Y6.27%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRT is destroying value.
Compared to 1 year ago, SRT has less shares outstanding
The number of shares outstanding for SRT has been increased compared to 5 years ago.
SRT has a worse debt/assets ratio than last year.
2.2 Solvency
SRT has an Altman-Z score of 1.09. This is a bad value and indicates that SRT is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.09, SRT is doing worse than 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.38 indicates that SRT is not too dependend on debt financing.
The Debt to Equity ratio of SRT (0.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.09 |
ROIC/WACC0.15
WACC10.25%
2.3 Liquidity
SRT has a Current Ratio of 1.24. This is a normal value and indicates that SRT is financially healthy and should not expect problems in meeting its short term obligations.
SRT's Current ratio of 1.24 is on the low side compared to the rest of the industry. SRT is outperformed by 61.90% of its industry peers.
A Quick Ratio of 1.24 indicates that SRT should not have too much problems paying its short term obligations.
SRT's Quick ratio of 1.24 is on the low side compared to the rest of the industry. SRT is outperformed by 61.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
SRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.78%, which is quite impressive.
Looking at the last year, SRT shows a decrease in Revenue. The Revenue has decreased by -1.34% in the last year.
SRT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.65% yearly.
EPS 1Y (TTM)27.78%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q154.55%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-16.35%
Revenue growth 5Y5.65%
Revenue growth Q2Q-42.61%
3.2 Future
The Earnings Per Share is expected to decrease by -5.55% on average over the next years.
The Revenue is expected to decrease by -22.85% on average over the next years. This is quite bad
EPS Next Y-5.73%
EPS Next 2Y-5.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-43.56%
Revenue Next 2Y-22.85%
Revenue Next 3YN/A
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.41, which indicates a rather cheap valuation of SRT.
Compared to the rest of the industry, the Price/Earnings ratio of SRT indicates a rather cheap valuation: SRT is cheaper than 96.43% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. SRT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 8.26, the valuation of SRT can be described as very reasonable.
SRT's Price/Forward Earnings ratio is rather cheap when compared to the industry. SRT is cheaper than 94.05% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.63. SRT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.41 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
76.19% of the companies in the same industry are more expensive than SRT, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 9.37 |
4.3 Compensation for Growth
SRT's earnings are expected to decrease with -5.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-5.55%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SRT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
StarTek Inc
NYSE:SRT (1/4/2024, 7:25:49 PM)
After market: 4.5223 +0.1 (+2.31%)4.42
+0.05 (+1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap178.35M
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 | 6.41 | ||
| Fwd PE | 8.26 | ||
| 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 | -5.82% | ||
| ROE | -12.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.79% | ||
| PM (TTM) | N/A | ||
| GM | 15.62% | ||
| 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 Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| 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)27.78%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y-5.73%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-16.35%
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