SECUREWORKS CORP - A (SCWX)
US81374A1051 - Common Stock
Taking everything into account, SCWX scores 3 out of 10 in our fundamental rating. SCWX was compared to 280 industry peers in the Software industry. While SCWX seems to be doing ok healthwise, there are quite some concerns on its profitability. SCWX has a expensive valuation and it also scores bad on growth.
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
SCWX has a worse Return On Assets (-13.02%) than 64.47% of its industry peers.
SCWX has a Return On Equity (-19.49%) which is comparable to the rest of the 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 (66.84%) which is comparable to the rest of the industry.
SCWX's Gross Margin has improved in the last couple of years.
SCWX does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| 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%
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
Based on the Altman-Z score of 1.01, we must say that SCWX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.01, SCWX is not doing good in the industry: 65.93% of the companies in the same industry are doing better.
SCWX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 1.01 |
ROIC/WACCN/A
WACC11.53%
2.3 Liquidity
A Current Ratio of 0.62 indicates that SCWX may have some problems paying its short term obligations.
The Current ratio of SCWX (0.62) is worse than 90.48% of its industry peers.
A Quick Ratio of 0.62 indicates that SCWX may have some problems paying its short term obligations.
SCWX has a Quick ratio of 0.62. This is amonst the worse of the industry: SCWX underperforms 90.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.62 | ||
| Quick Ratio | 0.62 |
3. Growth
3.1 Past
SCWX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.66%, which is quite impressive.
The Revenue for SCWX has decreased by -13.35% in the past year. This is quite bad
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
SCWX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 43.80% yearly.
SCWX is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.69% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 64.92, the valuation of SCWX can be described as expensive.
SCWX's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.40. SCWX is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 75.22, which means the current valuation is very expensive for SCWX.
SCWX's Price/Forward Earnings ratio is in line with the industry average.
SCWX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.92 | ||
| Fwd PE | 75.22 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as SCWX.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 107.5 | ||
| EV/EBITDA | N/A |
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.
SCWX's earnings are expected to grow with 43.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y58.43%
EPS Next 3Y43.8%
5. Dividend
5.1 Amount
No dividends for SCWX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SECUREWORKS CORP - A
NASDAQ:SCWX (1/6/2025, 7:04:09 PM)
After market: 8.4495 +0.01 (+0.11%)8.44
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners52.98%
Inst Owner Change0%
Ins Owners16.07%
Ins Owner Change-0.78%
Market Cap750.23M
Analysts45.71
Price Target9.62 (13.98%)
Short Float %0.54%
Short Ratio0.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-0.35%
Max Revenue beat(2)-0.24%
Revenue beat(4)1
Avg Revenue beat(4)-0.15%
Min Revenue beat(4)-0.35%
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)31.61%
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)-37.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.92 | ||
| Fwd PE | 75.22 | ||
| P/S | 2.21 | ||
| P/FCF | 107.5 | ||
| P/OCF | 50.41 | ||
| P/B | 1.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | N/A |
EPS(TTM)0.13
EY1.54%
EPS(NY)0.11
Fwd EY1.33%
FCF(TTM)0.08
FCFY0.93%
OCF(TTM)0.17
OCFY1.98%
SpS3.82
BVpS5
TBVpS-0.61
PEG (NY)0.53
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 | 1.01 |
F-Score5
WACC11.53%
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