STEEL CONNECT INC (STCN) Fundamental Analysis & Valuation

NASDAQ:STCN • US8580982051

12.18 USD
-0.29 (-2.33%)
At close: Jan 2, 2025
12.26 USD
+0.08 (+0.66%)
After Hours: 1/2/2025, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to STCN. STCN was compared to 87 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.


Dividend Valuation Growth Profitability Health

4

1. STCN Profitability Analysis

1.1 Basic Checks

  • STCN had positive earnings in the past year.
  • In the past year STCN had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: STCN reported negative net income in multiple years.
  • In multiple years STCN reported negative operating cash flow during the last 5 years.
STCN Yearly Net Income VS EBIT VS OCF VS FCFSTCN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M

1.2 Ratios

  • With a decent Return On Assets value of 4.23%, STCN is doing good in the industry, outperforming 61.25% of the companies in the same industry.
  • STCN's Return On Equity of 5.24% is fine compared to the rest of the industry. STCN outperforms 61.25% of its industry peers.
  • With a Return On Invested Capital value of 1.39%, STCN perfoms like the industry average, 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 10.73%.
Industry RankSector 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%
STCN Yearly ROA, ROE, ROICSTCN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40 -60 -80 -100

1.3 Margins

  • With an excellent Profit Margin value of 11.79%, STCN belongs to the best 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.
  • STCN's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 27.85%, STCN is doing worse than 67.50% of the companies in the same industry.
  • STCN's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
STCN Yearly Profit, Operating, Gross MarginsSTCN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 -20

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7

2. STCN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STCN is destroying value.
  • STCN has more shares outstanding than it did 1 year ago.
  • The number of shares outstanding for STCN has been reduced compared to 5 years ago.
  • The debt/assets ratio for STCN has been reduced compared to a year ago.
STCN Yearly Shares OutstandingSTCN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M
STCN Yearly Total Debt VS Total AssetsSTCN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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 has a worse Altman-Z score (1.72) than 63.75% of its industry peers.
  • The Debt to FCF ratio of STCN is 0.72, which is an excellent value as it means it would take STCN, only 0.72 years of fcf income to pay off all of its debts.
  • STCN has a better Debt to FCF ratio (0.72) than 81.25% of its industry peers.
  • STCN has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of STCN (0.03) is better than 80.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.03
Debt/FCF 0.72
Altman-Z 1.72
ROIC/WACC0.12
WACC11.24%
STCN Yearly LT Debt VS Equity VS FCFSTCN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

  • STCN has a Current Ratio of 3.94. This indicates that STCN is financially healthy and has no problem in meeting its short term obligations.
  • STCN's Current ratio of 3.94 is amongst the best of the industry. STCN outperforms 88.75% of its industry peers.
  • A Quick Ratio of 3.85 indicates that STCN has no problem at all paying its short term obligations.
  • The Quick ratio of STCN (3.85) is better than 88.75% of its industry peers.
Industry RankSector Rank
Current Ratio 3.94
Quick Ratio 3.85
STCN Yearly Current Assets VS Current LiabilitesSTCN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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

0

3. STCN Growth Analysis

3.1 Past

  • The earnings per share for STCN have decreased strongly by -24.47% in the last year.
  • 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.
STCN Yearly Revenue VS EstimatesSTCN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

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3

4. STCN Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.15 indicates a rather expensive valuation of STCN.
  • Based on the Price/Earnings ratio, STCN is valued a bit cheaper than the industry average as 73.75% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 25.71. STCN is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.15
Fwd PE N/A
STCN Price Earnings VS Forward Price EarningsSTCN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

  • Based on the Price/Free Cash Flow ratio, STCN is valued cheaply inside the industry as 96.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 4.32
EV/EBITDA -13.35
STCN Per share dataSTCN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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

0

5. STCN Dividend Analysis

5.1 Amount

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

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STCN Fundamentals: All Metrics, Ratios and Statistics

STEEL CONNECT INC

NASDAQ:STCN (1/2/2025, 8:00:01 PM)

After market: 12.26 +0.08 (+0.66%)

12.18

-0.29 (-2.33%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)12-12
Earnings (Next)03-13
Inst Owners67.08%
Inst Owner Change0%
Ins Owners9.08%
Ins Owner Change0%
Market Cap77.22M
Revenue(TTM)174.11M
Net Income(TTM)20.53M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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%
ROICexgc growth 3Y69.48%
ROICexgc 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 RankSector 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%

STEEL CONNECT INC / STCN FAQ

What is the ChartMill fundamental rating of STEEL CONNECT INC (STCN) stock?

ChartMill assigns a fundamental rating of 4 / 10 to STCN.


What is the valuation status of STEEL CONNECT INC (STCN) stock?

ChartMill assigns a valuation rating of 3 / 10 to STEEL CONNECT INC (STCN). This can be considered as Overvalued.


How profitable is STEEL CONNECT INC (STCN) stock?

STEEL CONNECT INC (STCN) has a profitability rating of 4 / 10.


Can you provide the dividend sustainability for STCN stock?

The dividend rating of STEEL CONNECT INC (STCN) is 0 / 10 and the dividend payout ratio is 10.4%.