StarTek Inc (SRT) Stock Fundamental Analysis
USA - NYSE:SRT - US85569C1071 - Common Stock
4.42 USD
+0.05 (+1.14%)
4.5223 USD
+0.1 (+2.31%)
We assign a fundamental rating of 3 out of 10 to SRT. SRT was compared to 85 industry peers in the IT Services industry. Both the profitability and financial health of SRT have multiple concerns. SRT is valued correctly, but it does not seem to be growing.
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.
In the past 5 years SRT always reported a positive cash flow from operatings.
1.2 Ratios
SRT's Return On Assets of -5.82% is in line compared to the rest of the industry. SRT outperforms 42.86% of its industry peers.
SRT's Return On Equity of -12.62% is in line compared to the rest of the industry. SRT outperforms 47.62% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.55%, SRT is in line with its industry, outperforming 50.00% of the companies in the same 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 27.96%.
| 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
Looking at the Operating Margin, with a value of 1.79%, SRT is in line with its industry, outperforming 47.62% of the companies in the same 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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRT is destroying value.
SRT has less shares outstanding than it did 1 year ago.
SRT has a worse debt/assets ratio than last year.
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.
SRT has a worse Altman-Z score (1.09) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that SRT is not too dependend on debt financing.
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
A Current Ratio of 1.24 indicates that SRT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.24, SRT is doing worse than 61.90% of the companies in the same industry.
A Quick Ratio of 1.24 indicates that SRT should not have too much problems paying 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 |
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
The Earnings Per Share is expected to decrease by -5.55% on average over the next years.
SRT is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -22.85% yearly.
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
SRT is valuated cheaply with a Price/Earnings ratio of 6.41.
Based on the Price/Earnings ratio, SRT is valued cheaply inside the industry as 96.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.03. SRT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.26 indicates a reasonable valuation of SRT.
94.05% of the companies in the same industry are more expensive than SRT, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, SRT is valued rather cheaply.
| 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 76.19% of the companies in the same industry.
| 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
5. Dividend
5.1 Amount
SRT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.42
+0.05 (+1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners0%
Inst Owner Change-99.99%
Ins Owners53.85%
Ins Owner Change0%
Market Cap178.35M
Revenue(TTM)301.60M
Net Income(TTM)-21500000
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
Graham NumberN/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%
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 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 FAQ
What is the ChartMill fundamental rating of StarTek Inc (SRT) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SRT.
Can you provide the valuation status for StarTek Inc?
ChartMill assigns a valuation rating of 5 / 10 to StarTek Inc (SRT). This can be considered as Fairly Valued.
Can you provide the profitability details for StarTek Inc?
StarTek Inc (SRT) has a profitability rating of 3 / 10.
What is the expected EPS growth for StarTek Inc (SRT) stock?
The Earnings per Share (EPS) of StarTek Inc (SRT) is expected to decline by -5.73% in the next year.
Can you provide the dividend sustainability for SRT stock?
The dividend rating of StarTek Inc (SRT) is 0 / 10 and the dividend payout ratio is 0%.