STEEL CONNECT INC (STCN) Stock Fundamental Analysis
USA - NASDAQ:STCN - US8580982051 - Common Stock
12.18 USD
-0.29 (-2.33%)
12.26 USD
+0.08 (+0.66%)
STCN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 85 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 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.
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.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.23%, STCN is in the better half of the industry, outperforming 61.25% of the companies in the same industry.
The Return On Equity of STCN (5.24%) is better than 61.25% of its industry peers.
STCN's Return On Invested Capital of 1.39% is in line compared to the rest of the industry. STCN outperforms 51.25% of its industry peers.
STCN had an Average Return On Invested Capital over the past 3 years of 2.43%. This is significantly below the industry average of 21.77%.
| 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
STCN has a Profit Margin of 11.79%. This is amongst the best in the industry. STCN outperforms 86.25% of its industry peers.
Looking at the Operating Margin, with a value of 4.29%, STCN is in line with its industry, outperforming 56.25% of the companies in the same industry.
STCN's Operating Margin has improved in the last couple of years.
The Gross Margin of STCN (27.85%) is worse than 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
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 more shares outstanding
The number of shares outstanding for STCN has been reduced compared to 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 has a Altman-Z score of 1.72. This is in the lower half of the industry: STCN underperforms 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.
STCN has a better Debt to FCF ratio (0.72) than 81.25% of its industry peers.
A Debt/Equity ratio of 0.03 indicates that STCN is not too dependend on debt financing.
STCN has a Debt to Equity ratio of 0.03. This is in the better half 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.
STCN has a Current ratio of 3.94. This is amongst the best in 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.
With an excellent Quick ratio value of 3.85, STCN belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.94 | ||
| Quick Ratio | 3.85 |
3. Growth
3.1 Past
The earnings per share for STCN have decreased strongly by -24.47% in the last year.
STCN shows a decrease in Revenue. In the last year, the revenue decreased by -7.92%.
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
With a Price/Earnings ratio of 17.15, STCN is valued on the expensive side.
Based on the Price/Earnings ratio, STCN is valued a bit cheaper than 73.75% of the companies in the same industry.
When comparing the Price/Earnings ratio of STCN to the average of the S&P500 Index (27.30), we can say STCN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| 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 96.25% of the companies 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%