SWITCH INC - A (SWCH) Stock Fundamental Analysis

NYSE:SWCH • US87105L1044

34.25 USD
+0.02 (+0.06%)
At close: Dec 5, 2022
34.26 USD
+0.01 (+0.03%)
After Hours: 12/5/2022, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Taking everything into account, SWCH scores 3 out of 10 in our fundamental rating. SWCH was compared to 87 industry peers in the IT Services industry. While SWCH is still in line with the averages on profitability rating, there are concerns on its financial health. SWCH is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

4

1. Profitability

1.1 Basic Checks

  • In the past year SWCH was profitable.
  • In the past year SWCH had a positive cash flow from operations.
SWCH Yearly Net Income VS EBIT VS OCF VS FCFSWCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 100M -100M 200M -200M

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.
  • With an excellent Return On Equity value of 49.24%, SWCH belongs to the best of the industry, outperforming 97.12% of the companies in the same industry.
  • SWCH has a Return On Invested Capital (2.70%) which is comparable to the rest of the industry.
  • SWCH had an Average Return On Invested Capital over the past 3 years of 4.04%. This is significantly below the industry average of 10.62%.
Industry RankSector 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
SWCH Yearly ROA, ROE, ROICSWCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 5 -5 10 -10

1.3 Margins

  • Looking at the Profit Margin, with a value of 56.70%, SWCH belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
  • SWCH's Profit Margin has declined in the last couple of years.
  • With a decent Operating Margin value of 14.07%, SWCH is doing good in the industry, outperforming 74.82% of the companies in the same industry.
  • In the last couple of years the Operating Margin of SWCH has grown nicely.
Industry RankSector 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
SWCH Yearly Profit, Operating, Gross MarginsSWCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

0

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWCH is destroying value.
  • The number of shares outstanding for SWCH has been increased compared to 1 year ago.
  • SWCH has a worse debt/assets ratio than last year.
SWCH Yearly Shares OutstandingSWCH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M
SWCH Yearly Total Debt VS Total AssetsSWCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

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's Altman-Z score of 1.66 is in line compared to the rest of the industry. SWCH outperforms 48.92% of its industry peers.
  • A Debt/Equity ratio of 2.53 is on the high side and indicates that SWCH has dependencies on debt financing.
  • SWCH has a worse Debt to Equity ratio (2.53) than 91.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.53
Debt/FCF N/A
Altman-Z 1.66
ROIC/WACC0.28
WACC9.5%
SWCH Yearly LT Debt VS Equity VS FCFSWCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.37, SWCH is doing worse than 92.09% of the companies in the same industry.
  • A Quick Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
  • The Quick ratio of SWCH (0.37) is worse than 92.09% of its industry peers.
Industry RankSector Rank
Current Ratio 0.37
Quick Ratio 0.37
SWCH Yearly Current Assets VS Current LiabilitesSWCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 100.00% over the past year.
  • The earnings per share for SWCH have been decreasing by -47.76% on average. This is quite bad
  • Looking at the last year, SWCH shows a quite strong growth in Revenue. The Revenue has grown by 19.74% in the last year.
  • SWCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.21% yearly.
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

  • Based on estimates for the next years, SWCH will show a very negative growth in Earnings Per Share. The EPS will decrease by -30.59% on average per year.
  • Based on estimates for the next years, SWCH will show a quite strong growth in Revenue. The Revenue will grow by 9.07% on average per year.
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.
SWCH Yearly Revenue VS EstimatesSWCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
SWCH Yearly EPS VS EstimatesSWCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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Find the best growth stocksShow best growing peers

2

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 27.09.
  • Based on the Price/Forward Earnings ratio of 60.18, the valuation of SWCH can be described as expensive.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SWCH is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.98, SWCH is valued quite expensively.
Industry RankSector Rank
PE 122.32
Fwd PE 60.18
SWCH Price Earnings VS Forward Price EarningsSWCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWCH.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.64
SWCH Per share dataSWCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

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.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y47.96%
EPS Next 3Y0.66%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.61%, SWCH is not a good candidate for dividend investing.
  • SWCH's Dividend Yield is a higher than the industry average which is at 0.54.
  • With a Dividend Yield of 0.61, SWCH pays less dividend than the S&P500 average, which is at 1.85.
Industry RankSector 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
SWCH Yearly Dividends per shareSWCH Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 0.05 0.1 0.15

5.3 Sustainability

  • 8.33% of the earnings are spent on dividend by SWCH. This is a low number and sustainable payout ratio.
DP8.33%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
SWCH Yearly Income VS Free CF VS DividendSWCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 -50M -100M -150M -200M -250M
SWCH Dividend Payout.SWCH Dividend Payout, showing the Payout Ratio.SWCH Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

SWITCH INC - A

NYSE:SWCH (12/5/2022, 8:04:00 PM)

After market: 34.26 +0.01 (+0.03%)

34.25

+0.02 (+0.06%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-09
Earnings (Next)02-22
Inst Owners0.59%
Inst Owner Change0%
Ins Owners26.17%
Ins Owner Change0%
Market Cap5.41B
Revenue(TTM)668.65M
Net Income(TTM)379.15M
Analysts70.53
Price Target33.79 (-1.34%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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
Graham NumberN/A
Profitability
Industry RankSector 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
ROICexgc growth 3Y0.27%
ROICexgc 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 RankSector 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%

SWITCH INC - A / SWCH FAQ

Can you provide the ChartMill fundamental rating for SWITCH INC - A?

ChartMill assigns a fundamental rating of 4 / 10 to SWCH.


Can you provide the valuation status for SWITCH INC - A?

ChartMill assigns a valuation rating of 3 / 10 to SWITCH INC - A (SWCH). This can be considered as Overvalued.


How profitable is SWITCH INC - A (SWCH) stock?

SWITCH INC - A (SWCH) has a profitability rating of 8 / 10.


What is the financial health of SWITCH INC - A (SWCH) stock?

The financial health rating of SWITCH INC - A (SWCH) is 2 / 10.


Can you provide the dividend sustainability for SWCH stock?

The dividend rating of SWITCH INC - A (SWCH) is 4 / 10 and the dividend payout ratio is 8.33%.