SWITCH INC - A (SWCH) Stock Fundamental Analysis
USA - NYSE:SWCH - US87105L1044 - Common Stock
34.25 USD
+0.02 (+0.06%)
34.26 USD
+0.01 (+0.03%)
Taking everything into account, SWCH scores 3 out of 10 in our fundamental rating. SWCH was compared to 86 industry peers in the IT Services industry. There are concerns on the financial health of SWCH while its profitability can be described as average. SWCH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year SWCH was profitable.
SWCH had a positive operating cash flow in the past year.
1.2 Ratios
SWCH has a Return On Assets of 11.48%. This is amongst the best in the industry. SWCH outperforms 88.49% of its industry peers.
SWCH's Return On Equity of 49.24% is amongst the best of the industry. SWCH outperforms 97.12% of its industry peers.
SWCH has a Return On Invested Capital (2.70%) which is in line with its industry peers.
The Average Return On Invested Capital over the past 3 years for SWCH is significantly below the industry average of 21.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.48% | ||
| ROE | 49.24% | ||
| ROIC | 2.7% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.04%
ROIC(5y)N/A
1.3 Margins
SWCH's Profit Margin of 56.70% is amongst the best of the industry. SWCH outperforms 99.28% of its industry peers.
In the last couple of years the Profit Margin of SWCH has declined.
SWCH's Operating Margin of 14.07% is fine compared to the rest of the industry. SWCH outperforms 74.82% of its industry peers.
In the last couple of years the Operating Margin of SWCH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.07% | ||
| PM (TTM) | 56.7% | ||
| GM | N/A |
OM growth 3Y9.41%
OM growth 5Y1.92%
PM growth 3Y-3.27%
PM growth 5Y-37.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWCH is destroying value.
Compared to 1 year ago, SWCH has more shares outstanding
SWCH has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that SWCH is in the distress zone and has some risk of bankruptcy.
SWCH has a Altman-Z score (1.66) which is comparable to the rest of the industry.
SWCH has a Debt/Equity ratio of 2.53. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of SWCH (2.53) is worse than 91.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.28
WACC9.5%
2.3 Liquidity
A Current Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
SWCH has a worse Current ratio (0.37) than 92.09% of its industry peers.
A Quick Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
With a Quick ratio value of 0.37, SWCH is not doing good in the industry: 92.09% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
SWCH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 100.00%, which is quite impressive.
SWCH shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -47.76% yearly.
Looking at the last year, SWCH shows a quite strong growth in Revenue. The Revenue has grown by 19.74% in the last year.
Measured over the past years, SWCH shows a quite strong growth in Revenue. The Revenue has been growing by 13.21% on average per year.
EPS 1Y (TTM)100%
EPS 3Y22.92%
EPS 5Y-47.76%
EPS Q2Q%38.67%
Revenue 1Y (TTM)19.74%
Revenue growth 3Y13.41%
Revenue growth 5Y13.21%
Sales Q2Q%10.35%
3.2 Future
The Earnings Per Share is expected to decrease by -30.59% on average over the next years. This is quite bad
The Revenue is expected to grow by 9.07% on average over the next years. This is quite good.
EPS Next Y549.92%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
EPS Next 5Y-30.59%
Revenue Next Year13.62%
Revenue Next 2Y12.42%
Revenue Next 3Y12.77%
Revenue Next 5Y9.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 122.32, SWCH can be considered very expensive at the moment.
SWCH's Price/Earnings is on the same level as the industry average.
SWCH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.38.
Based on the Price/Forward Earnings ratio of 60.18, the valuation of SWCH can be described as expensive.
SWCH's Price/Forward Earnings is on the same level as the industry average.
SWCH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.32 | ||
| Fwd PE | 60.18 |
4.2 Price Multiples
SWCH's Enterprise Value to EBITDA ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.64 |
4.3 Compensation for Growth
SWCH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y47.96%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
SWCH has a yearly dividend return of 0.61%, which is pretty low.
SWCH's Dividend Yield is a higher than the industry average which is at 2.38.
With a Dividend Yield of 0.61, SWCH pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of SWCH is nicely growing with an annual growth rate of 51.63%!
SWCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)51.63%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
SWCH pays out 8.33% of its income as dividend. This is a sustainable payout ratio.
DP8.33%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
34.25
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners0.59%
Inst Owner Change0%
Ins Owners26.17%
Ins Owner Change0%
Market Cap5.41B
Analysts70.53
Price Target33.79 (-1.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.21
Dividend Growth(5Y)51.63%
DP8.33%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-80.5%
Min EPS beat(2)-127.13%
Max EPS beat(2)-33.86%
EPS beat(4)2
Avg EPS beat(4)45.11%
Min EPS beat(4)-127.13%
Max EPS beat(4)286.79%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)0.61%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)N/A
EPS NQ rev (1m)-45.11%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)2.42%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.32 | ||
| Fwd PE | 60.18 | ||
| P/S | 8.09 | ||
| P/FCF | N/A | ||
| P/OCF | 19.78 | ||
| P/B | 7.03 | ||
| P/tB | 15.49 | ||
| EV/EBITDA | 24.64 |
EPS(TTM)0.28
EY0.82%
EPS(NY)0.57
Fwd EY1.66%
FCF(TTM)-1.84
FCFYN/A
OCF(TTM)1.73
OCFY5.06%
SpS4.23
BVpS4.88
TBVpS2.21
PEG (NY)0.22
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.48% | ||
| ROE | 49.24% | ||
| ROCE | N/A | ||
| ROIC | 2.7% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.96% | ||
| OM | 14.07% | ||
| PM (TTM) | 56.7% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.04%
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 3Y0.27%
ROICexcg growth 5Y-9.03%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y9.41%
OM growth 5Y1.92%
PM growth 3Y-3.27%
PM growth 5Y-37.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.57 | ||
| Cap/Depr | 278.24% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.66 |
F-Score4
WACC9.5%
ROIC/WACC0.28
Cap/Depr(3y)252.05%
Cap/Depr(5y)292.39%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3Y22.92%
EPS 5Y-47.76%
EPS Q2Q%38.67%
EPS Next Y549.92%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
EPS Next 5Y-30.59%
Revenue 1Y (TTM)19.74%
Revenue growth 3Y13.41%
Revenue growth 5Y13.21%
Sales Q2Q%10.35%
Revenue Next Year13.62%
Revenue Next 2Y12.42%
Revenue Next 3Y12.77%
Revenue Next 5Y9.07%
EBIT growth 1Y-7.97%
EBIT growth 3Y24.08%
EBIT growth 5Y15.38%
EBIT Next Year259.7%
EBIT Next 3Y66.9%
EBIT Next 5Y38.27%
FCF growth 1Y-160.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.28%
OCF growth 3Y13.51%
OCF growth 5Y9.44%