STRATEGY INC - MSTR 10 PERP (STRC) Stock Fundamental Analysis
USA - NASDAQ:STRC - US5949728530
98.97 USD
+0.99 (+1.01%)
99.18 USD
+0.21 (+0.21%)
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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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 7.31%. This is in the better half of the industry: STRC outperforms 79.00% of its industry peers.
STRC has a Return On Equity of 9.40%. This is in the better half of the industry: STRC outperforms 76.16% of its industry peers.
STRC has a Return On Invested Capital of 9.90%. This is amongst the best in the industry. STRC outperforms 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 9.4% | ||
| ROIC | 9.9% |
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
With an excellent Profit Margin value of 1023.69%, STRC belongs to the best of the industry, outperforming 98.93% of the companies in the same industry.
The Operating Margin of STRC (1747.64%) is better than 99.29% of its industry peers.
With a Gross Margin value of 70.10%, STRC perfoms like the industry average, outperforming 53.74% of the companies in the same industry.
In the last couple of years the Gross Margin of STRC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1747.64% | ||
| PM (TTM) | 1023.69% | ||
| GM | 70.1% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so STRC is destroying value.
Compared to 1 year ago, STRC has more shares outstanding
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 1.95 indicates that STRC is not a great score, but indicates only limited risk for bankruptcy at the moment.
STRC's Altman-Z score of 1.95 is in line compared to the rest of the industry. STRC outperforms 47.33% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that STRC is not too dependend on debt financing.
The Debt to Equity ratio of STRC (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.95 |
ROIC/WACC0.93
WACC10.64%
2.3 Liquidity
A Current Ratio of 0.68 indicates that STRC may have some problems paying its short term obligations.
With a Current ratio value of 0.68, STRC is not doing good in the industry: 84.34% of the companies in the same industry are doing better.
STRC has a Quick Ratio of 0.68. 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 worse Quick ratio (0.68) than 84.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
STRC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 2065.44%, which is quite impressive.
Looking at the last year, STRC shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
STRC shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.96% yearly.
EPS 1Y (TTM)2065.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5779.44%
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%2.73%
3.2 Future
The Earnings Per Share is expected to grow by 104.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 0.21% on average over the next years.
EPS Next Y296.98%
EPS Next 2Y91.04%
EPS Next 3Y104.44%
EPS Next 5YN/A
Revenue Next Year-1.65%
Revenue Next 2Y1.32%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
STRC is valuated cheaply with a Price/Earnings ratio of 2.90.
Compared to the rest of the industry, the Price/Earnings ratio of STRC indicates a rather cheap valuation: STRC is cheaper than 96.80% of the companies listed in the same industry.
STRC is valuated cheaply when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 9.34, which indicates a very decent valuation of STRC.
Based on the Price/Forward Earnings ratio, STRC is valued cheaper than 91.81% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.29. STRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.9 | ||
| Fwd PE | 9.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of STRC indicates a rather cheap valuation: STRC is cheaper than 97.15% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.49 |
4.3 Compensation for Growth
The 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 104.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y91.04%
EPS Next 3Y104.44%
5. Dividend
5.1 Amount
STRC has a Yearly Dividend Yield of 1.68%. Purely for dividend investing, there may be better candidates out there.
STRC's Dividend Yield is rather good when compared to the industry average which is at 39.95. STRC pays more dividend than 94.31% of the companies in the same industry.
STRC's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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 2Y91.04%
EPS Next 3Y104.44%
98.97
+0.99 (+1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.59%
Inst Owner Change77.66%
Ins Owners0.17%
Ins Owner Change0%
Market Cap28.33B
Analysts80
Price Target160.67 (62.34%)
Short Float %0.08%
Short Ratio0.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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)20431.8%
Min EPS beat(2)5928.88%
Max EPS beat(2)34934.6%
EPS beat(4)2
Avg EPS beat(4)8888.46%
Min EPS beat(4)-4213.73%
Max EPS beat(4)34934.6%
EPS beat(8)3
Avg EPS beat(8)4019.14%
EPS beat(12)5
Avg EPS beat(12)-6119.95%
EPS beat(16)7
Avg EPS beat(16)-4695.93%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-6%
Max Revenue beat(2)-0.64%
Revenue beat(4)0
Avg Revenue beat(4)-4.46%
Min Revenue beat(4)-7.22%
Max Revenue beat(4)-0.64%
Revenue beat(8)1
Avg Revenue beat(8)-5.46%
Revenue beat(12)2
Avg Revenue beat(12)-4.4%
Revenue beat(16)2
Avg Revenue beat(16)-4.15%
PT rev (1m)11.25%
PT rev (3m)15652.3%
EPS NQ rev (1m)8002.5%
EPS NQ rev (3m)N/A
EPS NY rev (1m)177.08%
EPS NY rev (3m)2329.86%
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)1023.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.9 | ||
| Fwd PE | 9.34 | ||
| P/S | 61.28 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.49 |
EPS(TTM)34.12
EY34.48%
EPS(NY)10.59
Fwd EY10.7%
FCF(TTM)-119.37
FCFYN/A
OCF(TTM)-0.33
OCFYN/A
SpS1.62
BVpS175.96
TBVpS-48.88
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.31% | ||
| ROE | 9.4% | ||
| ROCE | 12.53% | ||
| ROIC | 9.9% | ||
| ROICexc | 9.91% | ||
| ROICexgc | 13891.1% | ||
| OM | 1747.64% | ||
| PM (TTM) | 1023.69% | ||
| GM | 70.1% | ||
| 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
ROICexcg growth 3YN/A
ROICexcg 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 | 0.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 85616% | ||
| Cap/Sales | 7370.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 | ||
| Altman-Z | 1.95 |
F-Score4
WACC10.64%
ROIC/WACC0.93
Cap/Depr(3y)33259.4%
Cap/Depr(5y)26278.5%
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)2065.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%5779.44%
EPS Next Y296.98%
EPS Next 2Y91.04%
EPS Next 3Y104.44%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.81%
Revenue growth 3Y-3.19%
Revenue growth 5Y-0.96%
Sales Q2Q%2.73%
Revenue Next Year-1.65%
Revenue Next 2Y1.32%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y29493.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year580.57%
EBIT Next 3Y81.44%
EBIT Next 5Y18.52%
FCF growth 1Y-5676.81%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-13048.8%
OCF growth 3YN/A
OCF growth 5YN/A