STEEL CONNECT INC(NASDAQ:STCN) stock Fundamental Analysis

Fundamental Rating

Overall STCN gets a fundamental rating of 4 out of 10. We evaluated STCN against 82 industry peers in the IT Services industry. While STCN has a great health rating, its profitability is only average at the moment. STCN is valued expensive and it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year STCN was profitable.

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

In multiple years STCN reported negative net income over the last 5 years.

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

1.2 Ratios

Looking at the Return On Assets, with a value of 4.23%, STCN is in the better half of the industry, outperforming 61.25% of the companies in the same industry.

With a decent Return On Equity value of 5.24%, STCN is doing good in the industry, outperforming 61.25% of the companies in the same industry.

STCN has a Return On Invested Capital (1.39%) which is in line with its industry peers.

Measured over the past 3 years, the Average Return On Invested Capital for STCN is significantly below the industry average of 10.13%.

		Industry Rank	Sector Rank
ROA	4.23%
ROE	5.24%
ROIC	1.39%

ROA(3y)-0.67%

ROA(5y)-1.97%

ROE(3y)-13.6%

ROE(5y)-32.4%

ROIC(3y)2.43%

ROIC(5y)2.47%

1.3 Margins

STCN has a Profit Margin of 11.79%. This is amongst the best in the industry. STCN outperforms 86.25% of its industry peers.

STCN has a Operating Margin of 4.29%. This is comparable to the rest of the industry: STCN outperforms 56.25% of its industry peers.

STCN's Operating Margin has improved in the last couple of years.

STCN has a Gross Margin of 27.85%. This is in the lower half of the industry: STCN underperforms 67.50% of its industry peers.

STCN's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	4.29%
PM (TTM)	11.79%
GM	27.85%

OM growth 3Y274.23%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y9.05%

GM growth 5Y8.37%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), STCN is destroying value.

Compared to 1 year ago, STCN has more shares outstanding

The number of shares outstanding for STCN has been reduced compared to 5 years ago.

The debt/assets ratio for STCN has been reduced compared to a year ago.

2.2 Solvency

STCN has an Altman-Z score of 1.72. This is a bad value and indicates that STCN is not financially healthy and even has some risk of bankruptcy.

With a Altman-Z score value of 1.72, STCN is not doing good in the industry: 63.75% of the companies in the same industry are doing better.

STCN has a debt to FCF ratio of 0.72. This is a very positive value and a sign of high solvency as it would only need 0.72 years to pay back of all of its debts.

The Debt to FCF ratio of STCN (0.72) is better than 81.25% of its industry peers.

STCN has a Debt/Equity ratio of 0.03. This is a healthy value indicating a solid balance between debt and equity.

STCN has a better Debt to Equity ratio (0.03) than 80.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.03
Debt/FCF	0.72
Altman-Z	1.72

ROIC/WACC0.12

WACC11.24%

2.3 Liquidity

A Current Ratio of 3.94 indicates that STCN has no problem at all paying its short term obligations.

The Current ratio of STCN (3.94) is better than 88.75% of its industry peers.

A Quick Ratio of 3.85 indicates that STCN has no problem at all paying its short term obligations.

With an excellent Quick ratio value of 3.85, STCN belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	3.94
Quick Ratio	3.85

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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

STCN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.47%.

STCN shows a decrease in Revenue. In the last year, the revenue decreased by -7.92%.

STCN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -26.65% yearly.

EPS 1Y (TTM)-24.47%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-82.76%

Revenue 1Y (TTM)-7.92%

Revenue growth 3Y-8.36%

Revenue growth 5Y-26.65%

Sales Q2Q%12.42%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.

No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 17.15 indicates a rather expensive valuation of STCN.

Based on the Price/Earnings ratio, STCN is valued a bit cheaper than 73.75% of the companies in the same industry.

STCN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 29.63.

		Industry Rank	Sector Rank
PE	17.15
Fwd PE	N/A

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of STCN indicates a rather cheap valuation: STCN is cheaper than 96.25% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	4.32
EV/EBITDA	-13.35

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for STCN!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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STEEL CONNECT INC

NASDAQ:STCN (1/2/2025, 8:00:01 PM)

After market: 12.26 +0.08 (+0.66%)

12.18

-0.29 (-2.33%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupSoftware & Services

GICS IndustryIT Services

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

Earnings (Next)03-13 2025-03-13

Inst Owners67.08%

Inst Owner Change-98.78%

Ins Owners9.08%

Ins Owner Change0.12%

Market Cap77.22M

Analysts0

Price TargetN/A

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly Dividend0.34

Dividend Growth(5Y)0.91%

DP10.4%

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

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)N/A

Avg Revenue beat(2)N/A

Min Revenue beat(2)N/A

Max Revenue beat(2)N/A

Revenue beat(4)N/A

Avg Revenue beat(4)N/A

Min Revenue beat(4)N/A

Max Revenue beat(4)N/A

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)N/A

PT rev (3m)N/A

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)N/A

EPS NY rev (3m)N/A

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)N/A

Revenue NY rev (3m)N/A

Valuation

		Industry Rank	Sector Rank
PE	17.15
Fwd PE	N/A
P/S	0.44
P/FCF	4.32
P/OCF	3.53
P/B	0.2
P/tB	0.23
EV/EBITDA	-13.35

EPS(TTM)0.71

EY5.83%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)2.82

FCFY23.16%

OCF(TTM)3.45

OCFY28.29%

SpS27.46

BVpS61.82

TBVpS53.81

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	4.23%
ROE	5.24%
ROCE	1.82%
ROIC	1.39%
ROICexc	3.37%
ROICexgc	4.75%
OM	4.29%
PM (TTM)	11.79%
GM	27.85%
FCFM	10.27%

ROA(3y)-0.67%

ROA(5y)-1.97%

ROE(3y)-13.6%

ROE(5y)-32.4%

ROIC(3y)2.43%

ROIC(5y)2.47%

ROICexc(3y)89.46%

ROICexc(5y)54.87%

ROICexgc(3y)90.27%

ROICexgc(5y)66.87%

ROCE(3y)3.09%

ROCE(5y)3.14%

ROICexcg growth 3Y69.48%

ROICexcg growth 5YN/A

ROICexc growth 3Y336.85%

ROICexc growth 5YN/A

OM growth 3Y274.23%

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y9.05%

GM growth 5Y8.37%

F-Score6

Asset Turnover0.36

Health

		Industry Rank	Sector Rank
Debt/Equity	0.03
Debt/FCF	0.72
Debt/EBITDA	1
Cap/Depr	73.7%
Cap/Sales	2.28%
Interest Coverage	7.39
Cash Conversion	170.14%
Profit Quality	87.09%
Current Ratio	3.94
Quick Ratio	3.85
Altman-Z	1.72

F-Score6

WACC11.24%

ROIC/WACC0.12

Cap/Depr(3y)72.13%

Cap/Depr(5y)55.23%

Cap/Sales(3y)1.38%

Cap/Sales(5y)1.24%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-24.47%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-82.76%

EPS Next YN/A

EPS Next 2YN/A

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-7.92%

Revenue growth 3Y-8.36%

Revenue growth 5Y-26.65%

Sales Q2Q%12.42%

Revenue Next YearN/A

Revenue Next 2YN/A

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-12.91%

EBIT growth 3Y242.93%

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y16.09%

FCF growth 3YN/A

FCF growth 5Y23.16%

OCF growth 1Y24.68%

OCF growth 3YN/A

OCF growth 5Y0.94%

STEEL CONNECT INC (STCN) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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