StarTek Inc(NYSE:SRT) stock Fundamental Analysis

Fundamental Rating

Overall SRT gets a fundamental rating of 3 out of 10. We evaluated SRT against 82 industry peers in the IT Services industry. SRT has a bad profitability rating. Also its financial health evaluation is rather negative. SRT has a valuation in line with the averages, but on the other hand it scores bad on growth.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year SRT was profitable.

SRT had a positive operating cash flow in the past year.

SRT had negative earnings in 4 of the past 5 years.

Each year in the past 5 years SRT had a positive operating cash flow.

1.2 Ratios

The Return On Assets of SRT (-5.82%) is comparable to the rest of the industry.

SRT has a Return On Equity (-12.62%) which is comparable to the rest of the industry.

The Return On Invested Capital of SRT (1.55%) is comparable to the rest of the industry.

SRT had an Average Return On Invested Capital over the past 3 years of 3.42%. This is significantly below the industry average of 22.22%.

		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.

SRT's Gross Margin of 15.62% is on the low side compared to the rest of the industry. SRT is outperformed by 91.67% of its industry peers.

In the last couple of years the Gross Margin of SRT has grown nicely.

		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%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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

Compared to 1 year ago, SRT has a worse debt to assets ratio.

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.

SRT has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.

SRT has a Debt to Equity ratio of 0.38. This is comparable to the rest of the industry: SRT outperforms 57.14% of its industry peers.

		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.

The Current ratio of SRT (1.24) is worse than 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.

SRT has a Quick ratio of 1.24. This is in the lower half of the industry: SRT underperforms 61.90% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.24
Quick Ratio	1.24

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 27.78% over the past year.

The Revenue has decreased by -1.34% in the past 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 Q2Q%154.55%

Revenue 1Y (TTM)-1.34%

Revenue growth 3Y-16.35%

Revenue growth 5Y5.65%

Sales Q2Q%-42.61%

3.2 Future

Based on estimates for the next years, SRT will show a decrease in Earnings Per Share. The EPS will decrease by -5.55% on average per year.

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 6.41, the valuation of SRT can be described as very cheap.

Based on the Price/Earnings ratio, SRT is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.

Compared to an average S&P500 Price/Earnings ratio of 25.05, SRT is valued rather cheaply.

With a Price/Forward Earnings ratio of 8.26, the valuation of SRT can be described as very 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.

The average S&P500 Price/Forward Earnings ratio is at 21.07. SRT is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	6.41
Fwd PE	8.26

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SRT is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.37

4.3 Compensation for Growth

A cheap valuation may be justified as SRT's earnings are expected to decrease with -5.55% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-5.55%

EPS Next 3YN/A

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

No dividends for SRT!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

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 SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustryIT Services

Earnings (Last)11-09 2023-11-09/amc

Earnings (Next)03-25 2024-03-25/amc

Inst Owners0%

Inst Owner Change-99.99%

Ins Owners53.85%

Ins Owner Change0%

Market Cap178.35M

Analysts80

Price Target5 (13.12%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector 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 Rank	Sector 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

Profitability

		Industry Rank	Sector 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%

ROICexcg growth 3Y-16.41%

ROICexcg 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 Rank	Sector 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) 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

More info and screens