STRATEGY INC - MSTR 10 PERP (STRF) Stock Fundamental Analysis
USA - NASDAQ:STRF - US5949728795
110.16 USD
+0.08 (+0.07%)
110.04 USD
-0.12 (-0.11%)
STRF gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 285 industry peers in the Software industry. While STRF is still in line with the averages on profitability rating, there are concerns on its financial health. STRF is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
STRF had positive earnings in the past year.
In the past year STRF has reported a negative cash flow from operations.
In the past 5 years STRF reported 4 times negative net income.
STRF had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
STRF's Return On Assets of 7.31% is fine compared to the rest of the industry. STRF outperforms 78.60% of its industry peers.
With a decent Return On Equity value of 9.40%, STRF is doing good in the industry, outperforming 75.79% of the companies in the same industry.
The Return On Invested Capital of STRF (9.90%) is better than 84.56% 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%, STRF belongs to the best of the industry, outperforming 98.60% of the companies in the same industry.
Looking at the Operating Margin, with a value of 1747.64%, STRF belongs to the top of the industry, outperforming 98.95% of the companies in the same industry.
STRF has a Gross Margin of 70.10%. This is comparable to the rest of the industry: STRF outperforms 54.04% of its industry peers.
In the last couple of years the Gross Margin of STRF 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
STRF 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 STRF has been increased compared to 1 year ago.
The number of shares outstanding for STRF has been increased compared to 5 years ago.
STRF has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.09 indicates that STRF is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.09, STRF perfoms like the industry average, outperforming 48.42% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that STRF is not too dependend on debt financing.
STRF has a Debt to Equity ratio of 0.16. This is comparable to the rest of the industry: STRF outperforms 49.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.09 |
ROIC/WACC0.95
WACC10.37%
2.3 Liquidity
STRF has a Current Ratio of 0.68. This is a bad value and indicates that STRF is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.68, STRF is doing worse than 85.96% of the companies in the same industry.
STRF has a Quick Ratio of 0.68. This is a bad value and indicates that STRF is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of STRF (0.68) is worse than 85.96% of its industry peers.
| 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.
STRF shows a decrease in Revenue. In the last year, the revenue decreased by -3.81%.
Measured over the past years, STRF shows a decrease in Revenue. The Revenue has been decreasing by -0.96% on average per year.
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
STRF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.78% yearly.
EPS Next Y296.98%
EPS Next 2Y91.04%
EPS Next 3Y104.44%
EPS Next 5YN/A
Revenue Next Year-1.83%
Revenue Next 2Y1.19%
Revenue Next 3Y-1.78%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
STRF is valuated cheaply with a Price/Earnings ratio of 3.23.
Based on the Price/Earnings ratio, STRF is valued cheaper than 96.49% of the companies in the same industry.
STRF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.83.
A Price/Forward Earnings ratio of 10.40 indicates a reasonable valuation of STRF.
Based on the Price/Forward Earnings ratio, STRF is valued cheaply inside the industry as 89.47% of the companies are valued more expensively.
STRF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.23 | ||
| Fwd PE | 10.4 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, STRF is valued cheaply inside the industry as 96.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 4.89 |
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.
STRF'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
With a Yearly Dividend Yield of 2.28%, STRF has a reasonable but not impressive dividend return.
STRF's Dividend Yield is rather good when compared to the industry average which is at 36.72. STRF pays more dividend than 95.79% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, STRF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
5.2 History
STRF 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 2Y91.04%
EPS Next 3Y104.44%
110.16
+0.08 (+0.07%)
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 Cap31.63B
Revenue(TTM)462.32M
Net Income(TTM)4.73B
Analysts80
Price Target199.86 (81.43%)
Short Float %0.37%
Short Ratio5.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.28% |
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)7.51%
PT rev (3m)45.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7513.23%
EPS NY rev (1m)0%
EPS NY rev (3m)176.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.67%
Revenue NY rev (1m)-0.18%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.23 | ||
| Fwd PE | 10.4 | ||
| P/S | 68.41 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.63 | ||
| P/tB | N/A | ||
| EV/EBITDA | 4.89 |
EPS(TTM)34.12
EY30.97%
EPS(NY)10.59
Fwd EY9.61%
FCF(TTM)-119.02
FCFYN/A
OCF(TTM)-0.33
OCFYN/A
SpS1.61
BVpS175.44
TBVpS-48.73
PEG (NY)0.01
PEG (5Y)N/A
Graham Number367
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
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 | 0.16 | ||
| 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 | 2.09 |
F-Score4
WACC10.37%
ROIC/WACC0.95
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-1.83%
Revenue Next 2Y1.19%
Revenue Next 3Y-1.78%
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
STRATEGY INC - MSTR 10 PERP / STRF FAQ
What is the ChartMill fundamental rating of STRATEGY INC - MSTR 10 PERP (STRF) stock?
ChartMill assigns a fundamental rating of 3 / 10 to STRF.
What is the valuation status for STRF stock?
ChartMill assigns a valuation rating of 7 / 10 to STRATEGY INC - MSTR 10 PERP (STRF). This can be considered as Undervalued.
How profitable is STRATEGY INC - MSTR 10 PERP (STRF) stock?
STRATEGY INC - MSTR 10 PERP (STRF) has a profitability rating of 4 / 10.
What is the earnings growth outlook for STRATEGY INC - MSTR 10 PERP?
The Earnings per Share (EPS) of STRATEGY INC - MSTR 10 PERP (STRF) is expected to grow by 296.98% in the next year.