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
STCN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the IT Services industry. While STCN has a great health rating, its profitability is only average at the moment. STCN is valued expensive and it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year STCN was profitable.
- 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
- 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.
- 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.
- STCN has a Return On Invested Capital (1.39%) which is comparable to the rest of the industry.
- STCN had an Average Return On Invested Capital over the past 3 years of 2.43%. This is significantly below the industry average of 10.61%.
| 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.
- With a Operating Margin value of 4.29%, STCN perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
- STCN's Operating Margin has improved in the last couple of years.
- STCN has a worse Gross Margin (27.85%) 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.
- STCN has more shares outstanding than it did 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.
- 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's Debt to FCF ratio of 0.72 is amongst the best of the industry. STCN outperforms 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.
- 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
- 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.
- With an excellent Current ratio value of 3.94, STCN belongs to the best 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.
- STCN has a better Quick ratio (3.85) 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.
- Measured over the past years, STCN shows a very negative growth in Revenue. The Revenue has been decreasing by -26.65% on average per year.
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
- STCN is valuated rather expensively with a Price/Earnings ratio of 17.15.
- 73.75% of the companies in the same industry are more expensive than STCN, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of STCN to the average of the S&P500 Index (28.03), 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)12-12 2024-12-12/bmo
Earnings (Next)03-13 2025-03-13
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 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
Graham NumberN/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%
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 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%
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%.