SANTECH HOLDINGS LIMITED (STEC)
US44951X1046 - ADR
We assign a fundamental rating of 6 out of 10 to STEC. STEC was compared to 220 industry peers in the Capital Markets industry. STEC gets an excellent profitability rating and is at the same time showing great financial health properties. STEC may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make STEC a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
STEC had positive earnings in the past year.
In the past year STEC had a positive cash flow from operations.
STEC had positive earnings in each of the past 5 years.
In the past 5 years STEC always reported a positive cash flow from operatings.
1.2 Ratios
STEC has a better Return On Assets (5.47%) than 72.35% of its industry peers.
STEC has a Return On Equity of 11.68%. This is in the better half of the industry: STEC outperforms 65.44% of its industry peers.
With an excellent Return On Invested Capital value of 11.66%, STEC belongs to the best of the industry, outperforming 86.18% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for STEC is significantly above the industry average of 7.00%.
The 3 year average ROIC (19.88%) for STEC is well above the current ROIC(11.66%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 11.68% | ||
| ROIC | 11.67% |
ROA(3y)10.76%
ROA(5y)10%
ROE(3y)21.62%
ROE(5y)20.36%
ROIC(3y)19.88%
ROIC(5y)19.31%
1.3 Margins
Looking at the Profit Margin, with a value of 6.21%, STEC is doing worse than 67.74% of the companies in the same industry.
In the last couple of years the Profit Margin of STEC has grown nicely.
Looking at the Operating Margin, with a value of 11.23%, STEC is doing worse than 70.51% of the companies in the same industry.
STEC's Operating Margin has improved in the last couple of years.
The Gross Margin of STEC (96.44%) is better than 94.93% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.23% | ||
| PM (TTM) | 6.21% | ||
| GM | 96.44% |
OM growth 3Y-3.17%
OM growth 5Y6.87%
PM growth 3Y-9.09%
PM growth 5Y11.17%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, STEC has about the same amount of shares outstanding.
The number of shares outstanding for STEC has been reduced compared to 5 years ago.
There is no outstanding debt for STEC. 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
STEC has an Altman-Z score of 1.92. This is not the best score and indicates that STEC is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, STEC is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
There is no outstanding debt for STEC. 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 | 1.92 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
STEC has a Current Ratio of 1.46. This is a normal value and indicates that STEC is financially healthy and should not expect problems in meeting its short term obligations.
STEC has a Current ratio of 1.46. This is in the better half of the industry: STEC outperforms 62.21% of its industry peers.
STEC has a Quick Ratio of 1.46. This is a normal value and indicates that STEC is financially healthy and should not expect problems in meeting its short term obligations.
STEC has a better Quick ratio (1.46) than 62.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The earnings per share for STEC have decreased strongly by -44.96% in the last year.
Measured over the past years, STEC shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.14% on average per year.
The Revenue has been growing slightly by 7.71% in the past year.
The Revenue has been growing by 12.68% on average over the past years. This is quite good.
EPS 1Y (TTM)-44.96%
EPS 3Y6.78%
EPS 5Y25.14%
EPS Q2Q%-62.93%
Revenue 1Y (TTM)7.71%
Revenue growth 3Y17.64%
Revenue growth 5Y12.68%
Sales Q2Q%-0.48%
3.2 Future
Based on estimates for the next years, STEC will show a very negative growth in Earnings Per Share. The EPS will decrease by -13.03% on average per year.
STEC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.13% yearly.
EPS Next Y-45.01%
EPS Next 2Y-13.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.44%
Revenue Next 2Y14.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 2.29, the valuation of STEC can be described as very cheap.
97.23% of the companies in the same industry are more expensive than STEC, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, STEC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 1.04, the valuation of STEC can be described as very cheap.
Based on the Price/Forward Earnings ratio, STEC is valued cheaply inside the industry as 98.16% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of STEC to the average of the S&P500 Index (22.83), we can say STEC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.29 | ||
| Fwd PE | 1.04 |
4.2 Price Multiples
99.54% of the companies in the same industry are more expensive than STEC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.58 | ||
| EV/EBITDA | -2.1 |
4.3 Compensation for Growth
The decent profitability rating of STEC may justify a higher PE ratio.
A cheap valuation may be justified as STEC's earnings are expected to decrease with -13.03% in the coming years.
PEG (NY)N/A
PEG (5Y)0.09
EPS Next 2Y-13.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
STEC does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SANTECH HOLDINGS LIMITED
NASDAQ:STEC (12/20/2024, 8:00:00 PM)
After market: 0.6522 -0.06 (-8.04%)0.7092
+0.07 (+10.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst OwnersN/A
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner Change0%
Market Cap39.72M
Analysts82.86
Price TargetN/A
Short Float %0.54%
Short Ratio0.05
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)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)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 2.29 | ||
| Fwd PE | 1.04 | ||
| P/S | 0.14 | ||
| P/FCF | 0.58 | ||
| P/OCF | 0.55 | ||
| P/B | 0.26 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | -2.1 |
EPS(TTM)0.31
EY43.71%
EPS(NY)0.68
Fwd EY96.56%
FCF(TTM)1.23
FCFY173.81%
OCF(TTM)1.29
OCFY181.23%
SpS5.12
BVpS2.72
TBVpS1.85
PEG (NY)N/A
PEG (5Y)0.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.47% | ||
| ROE | 11.68% | ||
| ROCE | 17.23% | ||
| ROIC | 11.67% | ||
| ROICexc | 34.12% | ||
| ROICexgc | 144.45% | ||
| OM | 11.23% | ||
| PM (TTM) | 6.21% | ||
| GM | 96.44% | ||
| FCFM | 24.08% |
ROA(3y)10.76%
ROA(5y)10%
ROE(3y)21.62%
ROE(5y)20.36%
ROIC(3y)19.88%
ROIC(5y)19.31%
ROICexc(3y)48.25%
ROICexc(5y)37.54%
ROICexgc(3y)91.43%
ROICexgc(5y)64.03%
ROCE(3y)29.37%
ROCE(5y)28.6%
ROICexcg growth 3Y72.8%
ROICexcg growth 5Y63.82%
ROICexc growth 3Y9.47%
ROICexc growth 5Y23.46%
OM growth 3Y-3.17%
OM growth 5Y6.87%
PM growth 3Y-9.09%
PM growth 5Y11.17%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.88
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 39.59% | ||
| Cap/Sales | 1.03% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 181.58% | ||
| Profit Quality | 387.84% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 1.92 |
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)46.73%
Cap/Depr(5y)58.61%
Cap/Sales(3y)0.82%
Cap/Sales(5y)1.2%
Profit Quality(3y)212.54%
Profit Quality(5y)185.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-44.96%
EPS 3Y6.78%
EPS 5Y25.14%
EPS Q2Q%-62.93%
EPS Next Y-45.01%
EPS Next 2Y-13.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.71%
Revenue growth 3Y17.64%
Revenue growth 5Y12.68%
Sales Q2Q%-0.48%
Revenue Next Year12.44%
Revenue Next 2Y14.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-28.07%
EBIT growth 3Y13.91%
EBIT growth 5Y20.42%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y122.13%
FCF growth 3Y61.32%
FCF growth 5Y22.64%
OCF growth 1Y119.98%
OCF growth 3Y57.99%
OCF growth 5Y20.01%