STRATEGY INC - MSTR 10 PERP (STRD) Stock Fundamental Analysis
USA - NASDAQ:STRD - US5949728613
82.78 USD
+1.13 (+1.38%)
82.92 USD
+0.14 (+0.17%)
STRD gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. While STRD is still in line with the averages on profitability rating, there are concerns on its financial health. STRD scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
STRD had positive earnings in the past year.
In the past year STRD has reported a negative cash flow from operations.
STRD had negative earnings in 4 of the past 5 years.
STRD had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STRD has a Return On Assets of 7.31%. This is in the better half of the industry: STRD outperforms 79.72% of its industry peers.
The Return On Equity of STRD (9.40%) is better than 76.87% of its industry peers.
STRD has a better Return On Invested Capital (9.90%) than 85.05% 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
STRD has a Profit Margin of 1023.69%. This is amongst the best in the industry. STRD outperforms 99.64% of its industry peers.
STRD's Operating Margin of 1747.64% is amongst the best of the industry. STRD outperforms 100.00% of its industry peers.
Looking at the Gross Margin, with a value of 70.10%, STRD is in line with its industry, outperforming 54.45% of the companies in the same industry.
STRD's Gross Margin has declined in the last couple of years.
| 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
STRD has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for STRD has been increased compared to 1 year ago.
STRD has more shares outstanding than it did 5 years ago.
STRD has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.76, we must say that STRD is in the distress zone and has some risk of bankruptcy.
STRD's Altman-Z score of 1.76 is in line compared to the rest of the industry. STRD outperforms 42.35% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that STRD is not too dependend on debt financing.
STRD's Debt to Equity ratio of 0.16 is in line compared to the rest of the industry. STRD outperforms 50.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.76 |
ROIC/WACC0.94
WACC10.52%
2.3 Liquidity
STRD has a Current Ratio of 0.68. This is a bad value and indicates that STRD is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of STRD (0.68) is worse than 83.63% of its industry peers.
A Quick Ratio of 0.68 indicates that STRD may have some problems paying its short term obligations.
STRD has a worse Quick ratio (0.68) than 83.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.68 | ||
| Quick Ratio | 0.68 |
3. Growth
3.1 Past
STRD 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, STRD shows a decrease in Revenue. The Revenue has decreased by -3.81% in the last year.
STRD 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
STRD is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 104.44% yearly.
Based on estimates for the next years, STRD will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
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
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
With a Price/Earnings ratio of 2.43, the valuation of STRD can be described as very cheap.
Based on the Price/Earnings ratio, STRD is valued cheaply inside the industry as 98.22% of the companies are valued more expensively.
STRD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 7.82 indicates a rather cheap valuation of STRD.
Based on the Price/Forward Earnings ratio, STRD is valued cheaply inside the industry as 95.37% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 23.29. STRD is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.43 | ||
| Fwd PE | 7.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRD is valued cheaply inside the industry as 97.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 3.92 |
4.3 Compensation for Growth
STRD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as STRD's earnings are expected to grow with 104.44% in the coming years.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y91.04%
EPS Next 3Y104.44%
5. Dividend
5.1 Amount
STRD has a Yearly Dividend Yield of 3.89%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 39.95, STRD pays a better dividend. On top of this STRD pays more dividend than 97.86% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, STRD pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
5.2 History
STRD is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DPN/A
EPS Next 2Y91.04%
EPS Next 3Y104.44%
82.78
+1.13 (+1.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners54.59%
Inst Owner ChangeN/A
Ins Owners0.17%
Ins Owner ChangeN/A
Market Cap23.70B
Analysts80
Price Target134.82 (62.87%)
Short Float %0.09%
Short Ratio1.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.89% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
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)10.57%
PT rev (3m)N/A
EPS NQ rev (1m)8002.5%
EPS NQ rev (3m)N/A
EPS NY rev (1m)177.08%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)1.31%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.43 | ||
| Fwd PE | 7.82 | ||
| P/S | 51.26 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 3.92 |
EPS(TTM)34.12
EY41.22%
EPS(NY)10.59
Fwd EY12.79%
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 | 1.76 |
F-Score4
WACC10.52%
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 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 5YN/A
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