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 88 industry peers in the IT Services industry. While STCN has a great health rating, its profitability is only average at the moment. STCN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year STCN was profitable.
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 has a Return On Assets of 4.23%. This is in the better half of the industry: STCN outperforms 61.25% of its industry peers.
STCN has a better Return On Equity (5.24%) than 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 29.60%.
| 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
STCN has a Profit Margin of 11.79%. This is amongst the best in the industry. STCN outperforms 86.25% of its industry peers.
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.
With a Gross Margin value of 27.85%, STCN is not doing good in the industry: 67.50% of the companies in the same industry are doing better.
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.
Compared to 1 year ago, STCN has an improved debt to assets ratio.
2.2 Solvency
STCN has an Altman-Z score of 1.72. This is a bad value and indicates that STCN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.72, STCN is doing worse than 63.75% of the companies in the same industry.
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.
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.
The Debt to Equity ratio of STCN (0.03) is better than 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.
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%.
STCN shows a decrease in Revenue. In the last year, the revenue decreased by -7.92%.
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
The Price/Earnings ratio is 17.15, which indicates a rather expensive current valuation of STCN.
Compared to the rest of the industry, the Price/Earnings ratio of STCN indicates a somewhat cheap valuation: STCN is cheaper than 73.75% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.59. STCN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.15 | ||
| Fwd PE | N/A |
4.2 Price Multiples
96.25% of the companies in the same industry are more expensive than STCN, based on the Price/Free Cash Flow ratio.
| 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
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.
Can you provide the valuation status for STEEL CONNECT INC?
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.
What is the financial health of STEEL CONNECT INC (STCN) stock?
The financial health rating of STEEL CONNECT INC (STCN) is 7 / 10.