STRATEGY INC - MSTR 10 PERP (STRC) Stock Fundamental Analysis
NASDAQ:STRC - US80359A2050
97.46 USD
-0.21 (-0.22%)
97.9 USD
+0.44 (+0.45%)
Taking everything into account, STRC scores 3 out of 10 in our fundamental rating. STRC was compared to 280 industry peers in the Software industry. While STRC is still in line with the averages on profitability rating, there are concerns on its financial health. STRC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year STRC was profitable.
In the past year STRC has reported a negative cash flow from operations.
STRC had negative earnings in 4 of the past 5 years.
STRC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 7.31%, STRC is doing good in the industry, outperforming 77.86% of the companies in the same industry.
With a decent Return On Equity value of 9.40%, STRC is doing good in the industry, outperforming 75.71% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 9.90%, STRC belongs to the top of the industry, outperforming 84.64% of the companies in the same industry.
| 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
STRC's Profit Margin of 1023.69% is amongst the best of the industry. STRC outperforms 98.93% of its industry peers.
STRC has a Operating Margin of 1747.64%. This is amongst the best in the industry. STRC outperforms 99.29% of its industry peers.
The Gross Margin of STRC (70.10%) is comparable to the rest of the 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STRC is destroying 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 1.93 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 1.93. This is comparable to the rest of the industry: STRC outperforms 47.86% of its industry peers.
STRC has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
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 | 1.93 |
ROIC/WACC0.94
WACC10.55%
2.3 Liquidity
STRC has a Current 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's Current ratio of 0.68 is on the low side compared to the rest of the industry. STRC is outperformed by 85.00% of its industry peers.
A Quick Ratio of 0.68 indicates that STRC may have some problems paying its short term obligations.
With a Quick ratio value of 0.68, STRC is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 2065.44% over the past year.
The Revenue has decreased by -3.81% in the past year.
The Revenue has been decreasing by -0.96% on average over the past years.
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 60.49% on average over the next years. This is a very strong growth
STRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
EPS Next Y-155.56%
EPS Next 2Y39.16%
EPS Next 3Y60.49%
EPS Next 5YN/A
Revenue Next Year-1.73%
Revenue Next 2Y0.6%
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
A Price/Earnings ratio of 2.86 indicates a rather cheap valuation of STRC.
STRC's Price/Earnings ratio is rather cheap when compared to the industry. STRC is cheaper than 96.79% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. STRC is valued rather cheaply when compared to this.
The Forward Price/Earnings Ratio is negative for STRC. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.86 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRC is valued cheaper than 97.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.42 |
4.3 Compensation for Growth
STRC's earnings are expected to grow with 60.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.16%
EPS Next 3Y60.49%
5. Dividend
5.1 Amount
STRC has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 59.44, STRC pays a better dividend. On top of this STRC pays more dividend than 91.79% of the companies listed in the same industry.
With a Dividend Yield of 0.82, STRC pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
STRC is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y39.16%
EPS Next 3Y60.49%
97.46
-0.21 (-0.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners49.35%
Inst Owner Change77.66%
Ins Owners0.18%
Ins Owner Change0%
Market Cap27.72B
Analysts80
Price Target144.42 (48.18%)
Short Float %0.02%
Short Ratio0.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)14058.9%
PT rev (3m)14058.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2792.99%
EPS NY rev (3m)-2792.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1022.6%
Revenue NY rev (3m)1022.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.86 | ||
| Fwd PE | N/A | ||
| P/S | 59.96 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.42 |
EPS(TTM)34.12
EY35.01%
EPS(NY)-0.41
Fwd EYN/A
FCF(TTM)-120.14
FCFYN/A
OCF(TTM)-0.34
OCFYN/A
SpS1.63
BVpS177.09
TBVpS-49.19
PEG (NY)N/A
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 | 1.93 |
F-Score4
WACC10.55%
ROIC/WACC0.94
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 Y-155.56%
EPS Next 2Y39.16%
EPS Next 3Y60.49%
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-1.73%
Revenue Next 2Y0.6%
Revenue Next 3Y0.21%
Revenue Next 5YN/A
EBIT growth 1Y29493.6%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year103.67%
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