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

Fundamental Rating

SCWX gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 284 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.

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1. Profitability

1.1 Basic Checks

SCWX had positive earnings in the past year.

SCWX had a positive operating cash flow in the past year.

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

The reported operating cash flow has been mixed in the past 5 years: SCWX reported negative operating cash flow in multiple years.

1.2 Ratios

SCWX's Return On Assets of -13.02% is on the low side compared to the rest of the industry. SCWX is outperformed by 64.39% of its industry peers.

The Return On Equity of SCWX (-19.49%) 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

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

SCWX has more shares outstanding than it did 1 year ago.

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

SCWX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

Based on the Altman-Z score of 1.03, we must say that SCWX is in the distress zone and has some risk of bankruptcy.

Looking at the Altman-Z score, with a value of 1.03, SCWX is doing worse than 65.11% of the companies in the same industry.

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	1.03

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.

SCWX's Current ratio of 0.62 is on the low side compared to the rest of the industry. SCWX is outperformed by 89.93% 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 89.57% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	0.62
Quick Ratio	0.62

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

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

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

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.

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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 65.46, which means the current valuation is very expensive for SCWX.

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

SCWX is valuated expensively when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.

Based on the Price/Forward Earnings ratio of 75.85, the valuation of SCWX can be described as expensive.

SCWX's Price/Forward Earnings is on the same level as the industry average.

SCWX's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.

		Industry Rank	Sector Rank
PE	65.46
Fwd PE	75.85

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	108.39
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)0.54

PEG (5Y)N/A

EPS Next 2Y58.43%

EPS Next 3Y43.8%

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5. Dividend

5.1 Amount

SCWX does not give a dividend.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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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 Change15.54%

Ins Owners16.07%

Ins Owner Change-160.82%

Market Cap756.45M

Analysts45.71

Price Target9.62 (13.04%)

Short Float %0.97%

Short Ratio0.43

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

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