StarTek Inc (SRT) Fundamental Analysis & Valuation

NYSE:SRT • US85569C1071

Current stock price

4.42 USD
+0.05 (+1.14%)
At close:
4.5223 USD
+0.1 (+2.31%)
After Hours:

This SRT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. SRT Profitability Analysis

1.1 Basic Checks

  • SRT had positive earnings in the past year.
  • In the past year SRT had a positive cash flow from operations.
SRT Yearly Net Income VS EBIT VS OCF VS FCFSRT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 0 20M -20M 40M 60M

1.2 Ratios

  • With a Return On Assets value of -5.82%, SRT perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
  • SRT has a Return On Equity (-12.62%) which is comparable to the rest of the industry.
  • SRT has a Return On Invested Capital (1.55%) which is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SRT is significantly below the industry average of 10.44%.
Industry RankSector 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%
SRT Yearly ROA, ROE, ROICSRT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 0 -5 -10 -15

1.3 Margins

  • SRT has a Operating Margin of 1.79%. This is comparable to the rest of the industry: SRT outperforms 47.62% of its industry peers.
  • SRT's Operating Margin has declined in the last couple of years.
  • SRT has a worse Gross Margin (15.62%) than 91.67% of its industry peers.
  • SRT's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
SRT Yearly Profit, Operating, Gross MarginsSRT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 0 5 -5 10 15

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. SRT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SRT is destroying value.
  • Compared to 1 year ago, SRT has less shares outstanding
  • SRT has a worse debt/assets ratio than last year.
SRT Yearly Shares OutstandingSRT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M 40M
SRT Yearly Total Debt VS Total AssetsSRT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

2.2 Solvency

  • Based on the Altman-Z score of 1.09, we must say that SRT is in the distress zone and has some risk of bankruptcy.
  • The Altman-Z score of SRT (1.09) is worse than 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.38 indicates that SRT is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.38, SRT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF N/A
Altman-Z 1.09
ROIC/WACC0.15
WACC10.25%
SRT Yearly LT Debt VS Equity VS FCFSRT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 0 50M 100M 150M 200M

2.3 Liquidity

  • A Current Ratio of 1.24 indicates that SRT should not have too much problems paying its short term obligations.
  • SRT has a Current ratio of 1.24. This is in the lower half of the industry: SRT underperforms 61.90% of its industry peers.
  • SRT has a Quick 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.
  • With a Quick ratio value of 1.24, SRT is not doing good in the industry: 61.90% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.24
Quick Ratio 1.24
SRT Yearly Current Assets VS Current LiabilitesSRT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. SRT Growth Analysis

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.
  • SRT shows a decrease in Revenue. In the last year, the revenue decreased by -1.34%.
  • Measured over the past years, SRT shows a small growth in Revenue. The Revenue has been growing by 5.65% on average per year.
EPS 1Y (TTM)27.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%154.55%
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-16.35%
Revenue growth 5Y5.65%
Sales 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

  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
SRT Yearly Revenue VS EstimatesSRT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M
SRT Yearly EPS VS EstimatesSRT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 0.5 -0.5 -1

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5

4. SRT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 6.41, the valuation of SRT can be described as very cheap.
  • SRT's Price/Earnings ratio is rather cheap when compared to the industry. SRT is cheaper than 96.43% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 27.18. SRT is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 8.26, the valuation of SRT can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SRT indicates a rather cheap valuation: SRT is cheaper than 94.05% of the companies listed in the same industry.
  • SRT is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.96, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.41
Fwd PE 8.26
SRT Price Earnings VS Forward Price EarningsSRT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, SRT is valued a bit cheaper than 76.19% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.37
SRT Per share dataSRT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

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

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SRT Dividend Analysis

5.1 Amount

  • SRT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

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SRT Fundamentals: All Metrics, Ratios and Statistics

StarTek Inc

NYSE:SRT (1/4/2024, 8:25:49 PM)

After market: 4.5223 +0.1 (+2.31%)

4.42

+0.05 (+1.14%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-09
Earnings (Next)03-25
Inst Owners0%
Inst Owner Change-99.99%
Ins Owners53.85%
Ins Owner Change0%
Market Cap178.35M
Revenue(TTM)301.60M
Net Income(TTM)-21.50M
Analysts80
Price Target5 (13.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)45.98%
Min EPS beat(2)-39.07%
Max EPS beat(2)131.02%
EPS beat(4)2
Avg EPS beat(4)59.78%
Min EPS beat(4)-39.07%
Max EPS beat(4)155.78%
EPS beat(8)4
Avg EPS beat(8)80.96%
EPS beat(12)5
Avg EPS beat(12)49.64%
EPS beat(16)6
Avg EPS beat(16)-4.09%
Revenue beat(2)1
Avg Revenue beat(2)0.45%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)2.88%
Revenue beat(4)2
Avg Revenue beat(4)-20.63%
Min Revenue beat(4)-85.59%
Max Revenue beat(4)2.88%
Revenue beat(8)2
Avg Revenue beat(8)-37.56%
Revenue beat(12)5
Avg Revenue beat(12)-23.3%
Revenue beat(16)8
Avg Revenue beat(16)-16.68%
PT rev (1m)0%
PT rev (3m)3.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)0%
EPS NY rev (3m)49.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
Industry RankSector Rank
PE 6.41
Fwd PE 8.26
P/S 0.59
P/FCF N/A
P/OCF 20.36
P/B 1.05
P/tB N/A
EV/EBITDA 9.37
EPS(TTM)0.69
EY15.61%
EPS(NY)0.54
Fwd EY12.11%
FCF(TTM)-0.07
FCFYN/A
OCF(TTM)0.22
OCFY4.91%
SpS7.47
BVpS4.23
TBVpS-0.06
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA -5.82%
ROE -12.62%
ROCE 2.05%
ROIC 1.55%
ROICexc 1.79%
ROICexgc 6.57%
OM 1.79%
PM (TTM) N/A
GM 15.62%
FCFM N/A
ROA(3y)-2.19%
ROA(5y)-2.58%
ROE(3y)-6.77%
ROE(5y)-7.5%
ROIC(3y)3.42%
ROIC(5y)2.81%
ROICexc(3y)3.71%
ROICexc(5y)3.01%
ROICexgc(3y)9.5%
ROICexgc(5y)8.24%
ROCE(3y)4.44%
ROCE(5y)3.67%
ROICexgc growth 3Y-16.41%
ROICexgc growth 5YN/A
ROICexc growth 3Y-11.34%
ROICexc growth 5YN/A
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%
F-Score6
Asset Turnover0.82
Health
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF N/A
Debt/EBITDA 2.94
Cap/Depr 69.47%
Cap/Sales 3.89%
Interest Coverage 0.46
Cash Conversion 39.34%
Profit Quality N/A
Current Ratio 1.24
Quick Ratio 1.24
Altman-Z 1.09
F-Score6
WACC10.25%
ROIC/WACC0.15
Cap/Depr(3y)52.36%
Cap/Depr(5y)49.4%
Cap/Sales(3y)2.65%
Cap/Sales(5y)2.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.78%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%154.55%
EPS Next Y-5.73%
EPS Next 2Y-5.55%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-1.34%
Revenue growth 3Y-16.35%
Revenue growth 5Y5.65%
Sales Q2Q%-42.61%
Revenue Next Year-43.56%
Revenue Next 2Y-22.85%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y575%
EBIT growth 3Y-22.43%
EBIT growth 5YN/A
EBIT Next Year80%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-180.43%
FCF growth 3Y5.24%
FCF growth 5Y8.98%
OCF growth 1Y-63.97%
OCF growth 3Y-2.19%
OCF growth 5Y9.86%

StarTek Inc / SRT Fundamental Analysis FAQ

What is the ChartMill fundamental rating of StarTek Inc (SRT) stock?

ChartMill assigns a fundamental rating of 3 / 10 to SRT.


What is the valuation status of StarTek Inc (SRT) stock?

ChartMill assigns a valuation rating of 5 / 10 to StarTek Inc (SRT). This can be considered as Fairly Valued.


What is the profitability of SRT stock?

StarTek Inc (SRT) has a profitability rating of 3 / 10.


What is the valuation of StarTek Inc based on its PE and PB ratios?

The Price/Earnings (PE) ratio for StarTek Inc (SRT) is 6.41 and the Price/Book (PB) ratio is 1.05.


Is the dividend of StarTek Inc sustainable?

The dividend rating of StarTek Inc (SRT) is 0 / 10 and the dividend payout ratio is 0%.