STEEL CONNECT INC (STCN) Stock Fundamental Analysis
NASDAQ:STCN - Nasdaq - US8580982051 - Common Stock - Currency: USD
STCN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. STCN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. STCN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
STCN had positive earnings in the past year.
STCN had a positive operating cash flow in the past year.
In multiple years STCN reported negative net income over the last 5 years.
In multiple years STCN reported negative operating cash flow during the last 5 years.
1.2 Ratios
STCN's Return On Assets of 4.23% is fine compared to the rest of the industry. STCN outperforms 61.25% of its industry peers.
Looking at the Return On Equity, with a value of 5.24%, STCN is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 1.39%, STCN is in line with its industry, outperforming 51.25% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for STCN is significantly below the industry average of 21.60%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 5.24% | ||
| ROIC | 1.39% |
ROA(3y)-0.67%
ROA(5y)-1.97%
ROE(3y)-13.6%
ROE(5y)-32.4%
ROIC(3y)2.43%
ROIC(5y)2.47%
1.3 Margins
Looking at the Profit Margin, with a value of 11.79%, STCN belongs to the top of the industry, outperforming 86.25% of the companies in the same industry.
STCN has a Operating Margin of 4.29%. This is comparable to the rest of the industry: STCN outperforms 56.25% of its industry peers.
In the last couple of years the Operating Margin of STCN has grown nicely.
STCN's Gross Margin of 27.85% is on the low side compared to the rest of the industry. STCN is outperformed by 67.50% of its industry peers.
In the last couple of years the Gross Margin of STCN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.29% | ||
| PM (TTM) | 11.79% | ||
| GM | 27.85% |
OM growth 3Y274.23%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.05%
GM growth 5Y8.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STCN is destroying value.
The number of shares outstanding for STCN has been increased compared to 1 year ago.
STCN has less shares outstanding than it did 5 years ago.
STCN has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.72, we must say that STCN is in the distress zone and has some risk of bankruptcy.
STCN's Altman-Z score of 1.72 is on the low side compared to the rest of the industry. STCN is outperformed by 63.75% of its industry peers.
STCN has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.72, STCN belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
STCN has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
STCN's Debt to Equity ratio of 0.03 is fine compared to the rest of the industry. STCN outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.12
WACC11.24%
2.3 Liquidity
A Current Ratio of 3.94 indicates that STCN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.94, STCN belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
STCN has a Quick Ratio of 3.85. This indicates that STCN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of STCN (3.85) is better than 88.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
STCN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.47%.
The Revenue has decreased by -7.92% in the past year.
STCN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -26.65% yearly.
EPS 1Y (TTM)-24.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-82.76%
Revenue 1Y (TTM)-7.92%
Revenue growth 3Y-8.36%
Revenue growth 5Y-26.65%
Sales Q2Q%12.42%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 17.15, the valuation of STCN can be described as rather expensive.
73.75% of the companies in the same industry are more expensive than STCN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.18. STCN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of STCN indicates a rather cheap valuation: STCN is cheaper than 96.25% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.32 | ||
| EV/EBITDA | -13.35 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for STCN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
12.18
-0.29 (-2.33%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners67.08%
Inst Owner Change0%
Ins Owners9.08%
Ins Owner Change0%
Market Cap77.22M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0.34
Dividend Growth(5Y)0.91%
DP10.4%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | N/A | ||
| P/S | 0.44 | ||
| P/FCF | 4.32 | ||
| P/OCF | 3.53 | ||
| P/B | 0.2 | ||
| P/tB | 0.23 | ||
| EV/EBITDA | -13.35 |
EPS(TTM)0.71
EY5.83%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)2.82
FCFY23.16%
OCF(TTM)3.45
OCFY28.29%
SpS27.46
BVpS61.82
TBVpS53.81
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.23% | ||
| ROE | 5.24% | ||
| ROCE | 1.82% | ||
| ROIC | 1.39% | ||
| ROICexc | 3.37% | ||
| ROICexgc | 4.75% | ||
| OM | 4.29% | ||
| PM (TTM) | 11.79% | ||
| GM | 27.85% | ||
| FCFM | 10.27% |
ROA(3y)-0.67%
ROA(5y)-1.97%
ROE(3y)-13.6%
ROE(5y)-32.4%
ROIC(3y)2.43%
ROIC(5y)2.47%
ROICexc(3y)89.46%
ROICexc(5y)54.87%
ROICexgc(3y)90.27%
ROICexgc(5y)66.87%
ROCE(3y)3.09%
ROCE(5y)3.14%
ROICexcg growth 3Y69.48%
ROICexcg growth 5YN/A
ROICexc growth 3Y336.85%
ROICexc growth 5YN/A
OM growth 3Y274.23%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y9.05%
GM growth 5Y8.37%
F-Score6
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.72 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 73.7% | ||
| Cap/Sales | 2.28% | ||
| Interest Coverage | 7.39 | ||
| Cash Conversion | 170.14% | ||
| Profit Quality | 87.09% | ||
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z | 1.72 |
F-Score6
WACC11.24%
ROIC/WACC0.12
Cap/Depr(3y)72.13%
Cap/Depr(5y)55.23%
Cap/Sales(3y)1.38%
Cap/Sales(5y)1.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-24.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-82.76%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-7.92%
Revenue growth 3Y-8.36%
Revenue growth 5Y-26.65%
Sales Q2Q%12.42%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-12.91%
EBIT growth 3Y242.93%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y16.09%
FCF growth 3YN/A
FCF growth 5Y23.16%
OCF growth 1Y24.68%
OCF growth 3YN/A
OCF growth 5Y0.94%