SWITCH INC - A (SWCH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWCH - US87105L1044 - Common Stock
34.25 USD
+0.02 (+0.06%)
34.26 USD
+0.01 (+0.03%)
SWCH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 85 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.
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.
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 in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWCH is significantly below the industry average of 29.59%.
| 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
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.
SWCH has a better Operating Margin (14.07%) than 74.82% of its industry peers.
SWCH's Operating Margin has improved in the last couple of years.
| 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
SWCH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SWCH has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, SWCH has a worse debt to assets ratio.
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 of 1.66. This is comparable 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.28
WACC9.5%
2.3 Liquidity
SWCH has a Current Ratio of 0.37. This is a bad value and indicates that SWCH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of SWCH (0.37) is worse 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.
SWCH has a worse Quick ratio (0.37) than 92.09% of its industry peers.
| 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.
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.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 122.32, the valuation of SWCH can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as SWCH.
SWCH is valuated expensively when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 60.18, which means the current valuation is very expensive for SWCH.
SWCH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, SWCH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.32 | ||
| Fwd PE | 60.18 |
4.2 Price Multiples
SWCH's Enterprise Value to EBITDA is on the same level as 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.
Compared to an average industry Dividend Yield of 1.95, SWCH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, SWCH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of SWCH grows each year by 51.63%, which is quite nice.
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
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 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
Graham NumberN/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
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 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%
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.
What is the valuation status for SWCH stock?
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%.