STEEL CONNECT INC (STCN)
US8580982051 - Common Stock
Overall STCN gets a fundamental rating of 4 out of 10. We evaluated STCN against 86 industry peers in the IT Services industry. STCN has an excellent financial health rating, but there are some minor concerns on its profitability. STCN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
STCN had positive earnings in the past year.
In the past year STCN had a positive cash flow from operations.
In the past 5 years STCN reported 4 times negative net income.
In multiple years STCN reported negative operating cash flow during the last 5 years.
1.2 Ratios
STCN's Return On Assets of 5.50% is fine compared to the rest of the industry. STCN outperforms 68.67% of its industry peers.
Looking at the Return On Equity, with a value of 6.91%, STCN is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
The Return On Invested Capital of STCN (1.55%) is comparable to the rest of the industry.
STCN had an Average Return On Invested Capital over the past 3 years of 1.97%. This is significantly below the industry average of 14.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 6.91% | ||
| ROIC | 1.55% |
ROA(3y)-4.37%
ROA(5y)-4.7%
ROE(3y)-52.8%
ROE(5y)-49.12%
ROIC(3y)1.97%
ROIC(5y)N/A
1.3 Margins
STCN's Profit Margin of 15.79% is amongst the best of the industry. STCN outperforms 92.77% of its industry peers.
In the last couple of years the Profit Margin of STCN has grown nicely.
With a Operating Margin value of 4.84%, STCN perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
STCN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 27.78%, STCN is doing worse than 68.67% of the companies in the same industry.
In the last couple of years the Gross Margin of STCN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.84% | ||
| PM (TTM) | 15.79% | ||
| GM | 27.78% |
OM growth 3Y3.02%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5Y5.39%
GM growth 3Y9.35%
GM growth 5Y11.64%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STCN is destroying value.
Compared to 1 year ago, STCN has less shares outstanding
The number of shares outstanding for STCN has been reduced compared to 5 years ago.
Compared to 1 year ago, STCN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.65, we must say that STCN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.65, STCN is in line with its industry, outperforming 43.37% of the companies in the same industry.
The Debt to FCF ratio of STCN is 0.75, which is an excellent value as it means it would take STCN, only 0.75 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.75, STCN is doing good in the industry, outperforming 79.52% 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.
With an excellent Debt to Equity ratio value of 0.03, STCN belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.75 | ||
| Altman-Z | 1.65 |
ROIC/WACC0.17
WACC8.86%
2.3 Liquidity
A Current Ratio of 3.95 indicates that STCN has no problem at all paying its short term obligations.
The Current ratio of STCN (3.95) is better than 86.75% 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 86.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
STCN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.38%, which is quite impressive.
STCN shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.79% yearly.
The Revenue for STCN has decreased by -16.04% in the past year. This is quite bad
The Revenue for STCN have been decreasing by -21.77% on average. This is quite bad
EPS 1Y (TTM)23.38%
EPS 3YN/A
EPS 5Y-28.79%
EPS Q2Q%103.45%
Revenue 1Y (TTM)-16.04%
Revenue growth 3Y-37.72%
Revenue growth 5Y-21.77%
Sales Q2Q%-4.95%
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
With a Price/Earnings ratio of 11.36, the valuation of STCN can be described as very reasonable.
90.36% of the companies in the same industry are more expensive than STCN, based on the Price/Earnings ratio.
STCN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 30.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | N/A |
4.2 Price Multiples
STCN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. STCN is cheaper than 95.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.98 | ||
| EV/EBITDA | -14.8 |
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
STCN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
STEEL CONNECT INC
NASDAQ:STCN (9/20/2024, 8:22:37 PM)
After market: 10.79 0 (0%)10.79
-0.14 (-1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap67.98M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(16)
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PT rev (1m)
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EPS NQ rev (3m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.36 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 6.91% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.84% | ||
| PM (TTM) | 15.79% | ||
| GM | 27.78% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.95 | ||
| Quick Ratio | 3.85 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)23.38%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-16.04%
Revenue growth 3Y-37.72%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y