SECUREWORKS CORP - A(NASDAQ:SCWX) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, SCWX scores 3 out of 10 in our fundamental rating. SCWX was compared to 285 industry peers in the Software industry. The financial health of SCWX is average, but there are quite some concerns on its profitability. SCWX has a expensive valuation and it also scores bad on growth.

Quickly go to:

1. Profitability

1.1 Basic Checks

SCWX had positive earnings in the past year.

In the past year SCWX had a positive cash flow from operations.

In the past 5 years SCWX always reported negative net income.

In multiple years SCWX reported negative operating cash flow during the last 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of -13.02%, SCWX is doing worse than 64.39% of the companies in the same industry.

With a Return On Equity value of -19.49%, SCWX perfoms like the industry average, outperforming 43.53% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	-13.02%
ROE	-19.49%
ROIC	N/A

ROA(3y)-9.84%

ROA(5y)-6.93%

ROE(3y)-14.61%

ROE(5y)-10.37%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SCWX has a Gross Margin of 66.84%. This is comparable to the rest of the industry: SCWX outperforms 49.28% of its industry peers.

In the last couple of years the Gross Margin of SCWX has grown nicely.

The Profit Margin and Operating Margin are not available for SCWX so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	66.84%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y1.54%

GM growth 5Y2.52%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

SCWX does not have a ROIC to compare to the WACC, probably because it is not profitable.

Compared to 1 year ago, SCWX has more shares outstanding

The number of shares outstanding for SCWX has been increased compared to 5 years ago.

There is no outstanding debt for SCWX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

SCWX has an Altman-Z score of 1.03. This is a bad value and indicates that SCWX is not financially healthy and even has some risk of bankruptcy.

SCWX has a Altman-Z score of 1.03. This is in the lower half of the industry: SCWX underperforms 65.11% of its industry peers.

There is no outstanding debt for SCWX. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	1.03

ROIC/WACCN/A

WACC11.03%

2.3 Liquidity

SCWX has a Current Ratio of 0.62. This is a bad value and indicates that SCWX is not financially healthy enough and could expect problems in meeting its short term obligations.

With a Current ratio value of 0.62, SCWX is not doing good in the industry: 89.93% of the companies in the same industry are doing better.

A Quick Ratio of 0.62 indicates that SCWX may have some problems paying its short term obligations.

SCWX has a worse Quick ratio (0.62) than 89.57% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.62

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 127.66% over the past year.

SCWX shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -13.35%.

The Revenue has been decreasing by -6.74% on average over the past years.

EPS 1Y (TTM)127.66%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-85.18%

Revenue 1Y (TTM)-13.35%

Revenue growth 3Y-13.28%

Revenue growth 5Y-6.74%

Sales Q2Q%-7.42%

3.2 Future

The Earnings Per Share is expected to grow by 43.80% on average over the next years. This is a very strong growth

Based on estimates for the next years, SCWX will show a decrease in Revenue. The Revenue will decrease by -0.69% on average per year.

EPS Next Y121.56%

EPS Next 2Y58.43%

EPS Next 3Y43.8%

EPS Next 5YN/A

Revenue Next Year-9.39%

Revenue Next 2Y-2.8%

Revenue Next 3Y-0.69%

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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

SCWX is valuated quite expensively with a Price/Earnings ratio of 65.46.

Compared to the rest of the industry, the Price/Earnings ratio of SCWX is on the same level as its industry peers.

The average S&P500 Price/Earnings ratio is at 28.92. SCWX is valued rather expensively when compared to this.

The Price/Forward Earnings ratio is 75.85, which means the current valuation is very expensive for SCWX.

The rest of the industry has a similar Price/Forward Earnings ratio as SCWX.

SCWX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.65.

		Industry Rank	Sector Rank
PE	65.46
Fwd PE	75.85

4.2 Price Multiples

SCWX's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	108.39
EV/EBITDA	N/A

4.3 Compensation for Growth

SCWX'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 SCWX's earnings are expected to grow with 43.80% in the coming years.

PEG (NY)0.54

PEG (5Y)N/A

EPS Next 2Y58.43%

EPS Next 3Y43.8%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

SCWX does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

More info and screens

Find the best dividend stocks

Show peers with best dividend

SECUREWORKS CORP - A

NASDAQ:SCWX (1/31/2025, 8:00:02 PM)

After market: 8.5002 -0.01 (-0.12%)

8.51

+0.02 (+0.24%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustrySoftware

Earnings (Last)12-04 2024-12-04/bmo

Earnings (Next)N/A N/A

Inst Owners52.98%

Inst Owner Change-0.09%

Ins Owners16.07%

Ins Owner Change-160.82%

Market Cap756.45M

Analysts45.71

Price Target9.62 (13.04%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)0%

Min EPS beat(2)-100%

Max EPS beat(2)100%

EPS beat(4)3

Avg EPS beat(4)318.75%

Min EPS beat(4)-100%

Max EPS beat(4)952.52%

EPS beat(8)6

Avg EPS beat(8)177.53%

EPS beat(12)10

Avg EPS beat(12)136.88%

EPS beat(16)13

Avg EPS beat(16)131.74%

Revenue beat(2)0

Avg Revenue beat(2)-0.29%

Min Revenue beat(2)-0.34%

Max Revenue beat(2)-0.24%

Revenue beat(4)1

Avg Revenue beat(4)-0.15%

Min Revenue beat(4)-0.34%

Max Revenue beat(4)0.26%

Revenue beat(8)2

Avg Revenue beat(8)-0.53%

Revenue beat(12)2

Avg Revenue beat(12)-1.16%

Revenue beat(16)3

Avg Revenue beat(16)-1.04%

PT rev (1m)0%

PT rev (3m)32.63%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)-100%

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.23%

Revenue NY rev (1m)0%

Revenue NY rev (3m)0%

Valuation

		Industry Rank	Sector Rank
PE	65.46
Fwd PE	75.85
P/S	2.23
P/FCF	108.39
P/OCF	50.83
P/B	1.7
P/tB	N/A
EV/EBITDA	N/A

EPS(TTM)0.13

EY1.53%

EPS(NY)0.11

Fwd EY1.32%

FCF(TTM)0.08

FCFY0.92%

OCF(TTM)0.17

OCFY1.97%

SpS3.82

BVpS5

TBVpS-0.61

PEG (NY)0.54

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-13.02%
ROE	-19.49%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	66.84%
FCFM	2.05%

ROA(3y)-9.84%

ROA(5y)-6.93%

ROE(3y)-14.61%

ROE(5y)-10.37%

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 3Y1.54%

GM growth 5Y2.52%

F-Score5

Asset Turnover0.51

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Debt/EBITDA	N/A
Cap/Depr	34.47%
Cap/Sales	2.33%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	0.62
Quick Ratio	0.62
Altman-Z	1.03

F-Score5

WACC11.03%

ROIC/WACCN/A

Cap/Depr(3y)18.44%

Cap/Depr(5y)18.38%

Cap/Sales(3y)1.49%

Cap/Sales(5y)1.46%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)127.66%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-85.18%

EPS Next Y121.56%

EPS Next 2Y58.43%

EPS Next 3Y43.8%

EPS Next 5YN/A

Revenue 1Y (TTM)-13.35%

Revenue growth 3Y-13.28%

Revenue growth 5Y-6.74%

Sales Q2Q%-7.42%

Revenue Next Year-9.39%

Revenue Next 2Y-2.8%

Revenue Next 3Y-0.69%

Revenue Next 5YN/A

EBIT growth 1Y58.29%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year130.2%

EBIT Next 3Y45.02%

EBIT Next 5YN/A

FCF growth 1Y112.28%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y129.96%

OCF growth 3YN/A

OCF growth 5YN/A

SECUREWORKS CORP - A (SCWX) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

More info and screens