STRATEGY INC - MSTR 10 1/2 PERP (STRC) Stock Fundamental Analysis
USA - NASDAQ:STRC - US5949728530
97.76 USD
-0.86 (-0.88%)
98 USD
+0.24 (+0.25%)
Taking everything into account, STRC scores 4 out of 10 in our fundamental rating. STRC was compared to 281 industry peers in the Software industry. There are concerns on the financial health of STRC while its profitability can be described as average. STRC is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year STRC was profitable.
STRC had a negative operating cash flow in the past year.
In the past 5 years STRC reported 4 times negative net income.
Of the past 5 years STRC 4 years had a positive operating cash flow.
1.2 Ratios
STRC has a Return On Assets of 10.48%. This is amongst the best in the industry. STRC outperforms 85.41% of its industry peers.
With a decent Return On Equity value of 13.28%, STRC is doing good in the industry, outperforming 78.29% of the companies in the same industry.
STRC has a better Return On Invested Capital (12.92%) than 88.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.48% | ||
| ROE | 13.28% | ||
| ROIC | 12.92% |
ROA(3y)-18.83%
ROA(5y)-14.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
STRC has a Profit Margin of 1625.05%. This is amongst the best in the industry. STRC outperforms 99.29% of its industry peers.
With an excellent Operating Margin value of 2524.74%, STRC belongs to the best of the industry, outperforming 99.29% of the companies in the same industry.
Looking at the Gross Margin, with a value of 70.12%, STRC is in line with its industry, outperforming 54.80% of the companies in the same industry.
STRC's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2524.74% | ||
| PM (TTM) | 1625.05% | ||
| GM | 70.12% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.22%
GM growth 5Y-1.93%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), STRC is creating some value.
The number of shares outstanding for STRC has been increased compared to 1 year ago.
The number of shares outstanding for STRC has been increased compared to 5 years ago.
The debt/assets ratio for STRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that STRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
STRC has a Altman-Z score of 1.99. This is comparable to the rest of the industry: STRC outperforms 50.18% of its industry peers.
STRC has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
STRC's Debt to Equity ratio of 0.14 is in line compared to the rest of the industry. STRC outperforms 50.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.99 |
ROIC/WACC1.24
WACC10.42%
2.3 Liquidity
STRC has a Current Ratio of 0.66. This is a bad value and indicates that STRC is not financially healthy enough and could expect problems in meeting its short term obligations.
STRC has a Current ratio of 0.66. This is amonst the worse of the industry: STRC underperforms 87.54% of its industry peers.
A Quick Ratio of 0.66 indicates that STRC may have some problems paying its short term obligations.
STRC has a worse Quick ratio (0.66) than 87.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 |
3. Growth
3.1 Past
STRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 1830.26%, which is quite impressive.
Looking at the last year, STRC shows a small growth in Revenue. The Revenue has grown by 1.65% in the last year.
Measured over the past years, STRC shows a decrease in Revenue. The Revenue has been decreasing by -0.96% on average per year.
EPS 1Y (TTM)1830.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%589.53%
Revenue 1Y (TTM)1.65%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%10.87%
3.2 Future
Based on estimates for the next years, STRC will show a very strong growth in Earnings Per Share. The EPS will grow by 109.01% on average per year.
Based on estimates for the next years, STRC will show a decrease in Revenue. The Revenue will decrease by -0.08% on average per year.
EPS Next Y760.71%
EPS Next 2Y157.73%
EPS Next 3Y109.01%
EPS Next 5YN/A
Revenue Next Year-1.2%
Revenue Next 2Y1.48%
Revenue Next 3Y-0.08%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 2.21 indicates a rather cheap valuation of STRC.
Based on the Price/Earnings ratio, STRC is valued cheaper than 97.15% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. STRC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 3.28, the valuation of STRC can be described as very cheap.
Based on the Price/Forward Earnings ratio, STRC is valued cheaply inside the industry as 97.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, STRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.21 | ||
| Fwd PE | 3.28 |
4.2 Price Multiples
STRC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. STRC is cheaper than 96.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.01 |
4.3 Compensation for Growth
STRC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
STRC's earnings are expected to grow with 109.01% in the coming years. This may justify a more expensive valuation.
PEG (NY)0
PEG (5Y)N/A
EPS Next 2Y157.73%
EPS Next 3Y109.01%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, STRC has a reasonable but not impressive dividend return.
STRC's Dividend Yield is rather good when compared to the industry average which is at 42.42. STRC pays more dividend than 96.44% of the companies in the same industry.
STRC's Dividend Yield is a higher than the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
5.2 History
STRC does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y157.73%
EPS Next 3Y109.01%
97.76
-0.86 (-0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.59%
Inst Owner Change48.59%
Ins Owners0.17%
Ins Owner Change0%
Market Cap28.07B
Revenue(TTM)474.94M
Net Income(TTM)7.72B
Analysts80.91
Price Target226.39 (131.58%)
Short Float %0.05%
Short Ratio0.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17468%
Min EPS beat(2)1.27%
Max EPS beat(2)34934.6%
EPS beat(4)3
Avg EPS beat(4)9162.77%
Min EPS beat(4)-4213.73%
Max EPS beat(4)34934.6%
EPS beat(8)4
Avg EPS beat(8)4191.29%
EPS beat(12)6
Avg EPS beat(12)-6038.3%
EPS beat(16)7
Avg EPS beat(16)-4698.76%
Revenue beat(2)1
Avg Revenue beat(2)2.95%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)6.53%
Revenue beat(4)1
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-6%
Max Revenue beat(4)6.53%
Revenue beat(8)1
Avg Revenue beat(8)-4.69%
Revenue beat(12)3
Avg Revenue beat(12)-3.57%
Revenue beat(16)3
Avg Revenue beat(16)-3.64%
PT rev (1m)28.34%
PT rev (3m)76.19%
EPS NQ rev (1m)-11.43%
EPS NQ rev (3m)2641.5%
EPS NY rev (1m)235.42%
EPS NY rev (3m)357.84%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.33%
Revenue NY rev (1m)0.64%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.21 | ||
| Fwd PE | 3.28 | ||
| P/S | 59.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.01 |
EPS(TTM)44.26
EY45.27%
EPS(NY)29.8
Fwd EY30.49%
FCF(TTM)-130.68
FCFYN/A
OCF(TTM)-0.22
OCFYN/A
SpS1.65
BVpS202.42
TBVpS-52.55
PEG (NY)0
PEG (5Y)N/A
Graham Number448.98
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.48% | ||
| ROE | 13.28% | ||
| ROCE | 16.36% | ||
| ROIC | 12.92% | ||
| ROICexc | 12.93% | ||
| ROICexgc | 27113.6% | ||
| OM | 2524.74% | ||
| PM (TTM) | 1625.05% | ||
| GM | 70.12% | ||
| FCFM | N/A |
ROA(3y)-18.83%
ROA(5y)-14.41%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-4.22%
GM growth 5Y-1.93%
F-Score4
Asset Turnover0.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 199348% | ||
| Cap/Sales | 7886.31% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.66 | ||
| Quick Ratio | 0.66 | ||
| Altman-Z | 1.99 |
F-Score4
WACC10.42%
ROIC/WACC1.24
Cap/Depr(3y)46583.7%
Cap/Depr(5y)34273.1%
Cap/Sales(3y)1735.12%
Cap/Sales(5y)1190.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)1830.26%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%589.53%
EPS Next Y760.71%
EPS Next 2Y157.73%
EPS Next 3Y109.01%
EPS Next 5YN/A
Revenue 1Y (TTM)1.65%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%10.87%
Revenue Next Year-1.2%
Revenue Next 2Y1.48%
Revenue Next 3Y-0.08%
Revenue Next 5YN/A
EBIT growth 1Y21399.3%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year580.57%
EBIT Next 3Y81.44%
EBIT Next 5Y18.52%
FCF growth 1Y-4873.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-843.57%
OCF growth 3YN/A
OCF growth 5YN/A
STRATEGY INC - MSTR 10 1/2 PERP / STRC FAQ
Can you provide the ChartMill fundamental rating for STRATEGY INC - MSTR 10 1/2 PERP?
ChartMill assigns a fundamental rating of 4 / 10 to STRC.
What is the valuation status for STRC stock?
ChartMill assigns a valuation rating of 8 / 10 to STRATEGY INC - MSTR 10 1/2 PERP (STRC). This can be considered as Undervalued.
What is the profitability of STRC stock?
STRATEGY INC - MSTR 10 1/2 PERP (STRC) has a profitability rating of 5 / 10.
What is the valuation of STRATEGY INC - MSTR 10 1/2 PERP based on its PE and PB ratios?
The Price/Earnings (PE) ratio for STRATEGY INC - MSTR 10 1/2 PERP (STRC) is 2.21 and the Price/Book (PB) ratio is 0.48.