StarTek Inc(NYSE:SRT) stock Fundamental Analysis

Fundamental Rating

SRT gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 82 industry peers in the IT Services industry. Both the profitability and financial health of SRT have multiple concerns. SRT is valued correctly, but it does not seem to be growing.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year SRT was profitable.

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

SRT had negative earnings in 4 of the past 5 years.

Each year in the past 5 years SRT had a positive operating cash flow.

1.2 Ratios

SRT's Return On Assets of -5.82% is in line compared to the rest of the industry. SRT outperforms 42.86% of its industry peers.

Looking at the Return On Equity, with a value of -12.62%, SRT is in line with its industry, outperforming 47.62% of the companies in the same industry.

SRT's Return On Invested Capital of 1.55% is in line compared to the rest of the industry. SRT outperforms 50.00% of its industry peers.

SRT had an Average Return On Invested Capital over the past 3 years of 3.42%. This is significantly below the industry average of 10.34%.

		Industry Rank	Sector Rank
ROA	-5.82%
ROE	-12.62%
ROIC	1.55%

ROA(3y)-2.19%

ROA(5y)-2.58%

ROE(3y)-6.77%

ROE(5y)-7.5%

ROIC(3y)3.42%

ROIC(5y)2.81%

1.3 Margins

SRT has a Operating Margin (1.79%) which is comparable to the rest of the industry.

In the last couple of years the Operating Margin of SRT has declined.

With a Gross Margin value of 15.62%, SRT is not doing good in the industry: 91.67% of the companies in the same industry are doing better.

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

		Industry Rank	Sector Rank
OM	1.79%
PM (TTM)	N/A
GM	15.62%

OM growth 3Y-7.27%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-3.8%

GM growth 5Y6.27%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SRT is destroying value.

SRT has less shares outstanding than it did 1 year ago.

Compared to 1 year ago, SRT has a worse debt to assets ratio.

2.2 Solvency

SRT has an Altman-Z score of 1.09. This is a bad value and indicates that SRT is not financially healthy and even has some risk of bankruptcy.

Looking at the Altman-Z score, with a value of 1.09, SRT is doing worse than 66.67% of the companies in the same industry.

SRT has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.

With a Debt to Equity ratio value of 0.38, SRT perfoms like the industry average, outperforming 57.14% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.38
Debt/FCF	N/A
Altman-Z	1.09

ROIC/WACC0.15

WACC10.25%

2.3 Liquidity

A Current Ratio of 1.24 indicates that SRT should not have too much problems paying its short term obligations.

The Current ratio of SRT (1.24) is worse than 61.90% of its industry peers.

A Quick Ratio of 1.24 indicates that SRT should not have too much problems paying its short term obligations.

Looking at the Quick ratio, with a value of 1.24, SRT is doing worse than 61.90% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.24
Quick Ratio	1.24

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

SRT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.78%, which is quite impressive.

SRT shows a decrease in Revenue. In the last year, the revenue decreased by -1.34%.

Measured over the past years, SRT shows a small growth in Revenue. The Revenue has been growing by 5.65% on average per year.

EPS 1Y (TTM)27.78%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%154.55%

Revenue 1Y (TTM)-1.34%

Revenue growth 3Y-16.35%

Revenue growth 5Y5.65%

Sales Q2Q%-42.61%

3.2 Future

The Earnings Per Share is expected to decrease by -5.55% on average over the next years.

SRT is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -22.85% yearly.

EPS Next Y-5.73%

EPS Next 2Y-5.55%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year-43.56%

Revenue Next 2Y-22.85%

Revenue Next 3YN/A

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 decreasing.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 6.41, which indicates a rather cheap valuation of SRT.

Based on the Price/Earnings ratio, SRT is valued cheaper than 96.43% of the companies in the same industry.

The average S&P500 Price/Earnings ratio is at 29.62. SRT is valued rather cheaply when compared to this.

A Price/Forward Earnings ratio of 8.26 indicates a reasonable valuation of SRT.

94.05% of the companies in the same industry are more expensive than SRT, based on the Price/Forward Earnings ratio.

When comparing the Price/Forward Earnings ratio of SRT to the average of the S&P500 Index (22.70), we can say SRT is valued rather cheaply.

		Industry Rank	Sector Rank
PE	6.41
Fwd PE	8.26

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, SRT is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.37

4.3 Compensation for Growth

A cheap valuation may be justified as SRT's earnings are expected to decrease with -5.55% in the coming years.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-5.55%

EPS Next 3YN/A

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

SRT 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

StarTek Inc

NYSE:SRT (1/4/2024, 8:25:49 PM)

After market: 4.5223 +0.1 (+2.31%)

4.42

+0.05 (+1.14%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustryIT Services

Earnings (Last)11-09 2023-11-09/amc

Earnings (Next)03-25 2024-03-25/amc

Inst Owners0%

Inst Owner Change-99.99%

Ins Owners53.85%

Ins Owner Change0%

Market Cap178.35M

Analysts80

Price Target5 (13.12%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly Dividend0

Dividend Growth(5Y)N/A

DP0%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)45.98%

Min EPS beat(2)-39.07%

Max EPS beat(2)131.02%

EPS beat(4)2

Avg EPS beat(4)59.78%

Min EPS beat(4)-39.07%

Max EPS beat(4)155.78%

EPS beat(8)4

Avg EPS beat(8)80.96%

EPS beat(12)5

Avg EPS beat(12)49.64%

EPS beat(16)6

Avg EPS beat(16)-4.09%

Revenue beat(2)1

Avg Revenue beat(2)0.45%

Min Revenue beat(2)-1.99%

Max Revenue beat(2)2.88%

Revenue beat(4)2

Avg Revenue beat(4)-20.63%

Min Revenue beat(4)-85.59%

Max Revenue beat(4)2.88%

Revenue beat(8)2

Avg Revenue beat(8)-37.56%

Revenue beat(12)5

Avg Revenue beat(12)-23.3%

Revenue beat(16)8

Avg Revenue beat(16)-16.68%

PT rev (1m)0%

PT rev (3m)3.16%

EPS NQ rev (1m)0%

EPS NQ rev (3m)2.86%

EPS NY rev (1m)0%

EPS NY rev (3m)49.33%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0.27%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.17%

Valuation

		Industry Rank	Sector Rank
PE	6.41
Fwd PE	8.26
P/S	0.59
P/FCF	N/A
P/OCF	20.36
P/B	1.05
P/tB	N/A
EV/EBITDA	9.37

EPS(TTM)0.69

EY15.61%

EPS(NY)0.54

Fwd EY12.11%

FCF(TTM)-0.07

FCFYN/A

OCF(TTM)0.22

OCFY4.91%

SpS7.47

BVpS4.23

TBVpS-0.06

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-5.82%
ROE	-12.62%
ROCE	2.05%
ROIC	1.55%
ROICexc	1.79%
ROICexgc	6.57%
OM	1.79%
PM (TTM)	N/A
GM	15.62%
FCFM	N/A

ROA(3y)-2.19%

ROA(5y)-2.58%

ROE(3y)-6.77%

ROE(5y)-7.5%

ROIC(3y)3.42%

ROIC(5y)2.81%

ROICexc(3y)3.71%

ROICexc(5y)3.01%

ROICexgc(3y)9.5%

ROICexgc(5y)8.24%

ROCE(3y)4.44%

ROCE(5y)3.67%

ROICexcg growth 3Y-16.41%

ROICexcg growth 5YN/A

ROICexc growth 3Y-11.34%

ROICexc growth 5YN/A

OM growth 3Y-7.27%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-3.8%

GM growth 5Y6.27%

F-Score6

Asset Turnover0.82

Health

		Industry Rank	Sector Rank
Debt/Equity	0.38
Debt/FCF	N/A
Debt/EBITDA	2.94
Cap/Depr	69.47%
Cap/Sales	3.89%
Interest Coverage	0.46
Cash Conversion	39.34%
Profit Quality	N/A
Current Ratio	1.24
Quick Ratio	1.24
Altman-Z	1.09

F-Score6

WACC10.25%

ROIC/WACC0.15

Cap/Depr(3y)52.36%

Cap/Depr(5y)49.4%

Cap/Sales(3y)2.65%

Cap/Sales(5y)2.43%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)27.78%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%154.55%

EPS Next Y-5.73%

EPS Next 2Y-5.55%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-1.34%

Revenue growth 3Y-16.35%

Revenue growth 5Y5.65%

Sales Q2Q%-42.61%

Revenue Next Year-43.56%

Revenue Next 2Y-22.85%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y575%

EBIT growth 3Y-22.43%

EBIT growth 5YN/A

EBIT Next Year80%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y-180.43%

FCF growth 3Y5.24%

FCF growth 5Y8.98%

OCF growth 1Y-63.97%

OCF growth 3Y-2.19%

OCF growth 5Y9.86%

StarTek Inc (SRT) 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