SWITCH INC - A (SWCH) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SWCH - US87105L1044 - Common Stock
34.25 USD
+0.02 (+0.06%)
34.26 USD
+0.01 (+0.03%)
Taking everything into account, SWCH scores 3 out of 10 in our fundamental rating. SWCH was compared to 85 industry peers in the IT Services industry. SWCH has a medium profitability rating, but doesn't score so well on its financial health evaluation. SWCH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SWCH had positive earnings in the past year.
In the past year SWCH had a positive cash flow from operations.
1.2 Ratios
SWCH has a better Return On Assets (11.48%) than 88.49% of its industry peers.
Looking at the Return On Equity, with a value of 49.24%, SWCH belongs to the top of the industry, outperforming 97.12% of the companies in the same industry.
The Return On Invested Capital of SWCH (2.70%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for SWCH is significantly below the industry average of 29.59%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.48% | ||
| ROE | 49.24% | ||
| ROIC | 2.7% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.04%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SWCH (56.70%) is better than 99.28% of its industry peers.
In the last couple of years the Profit Margin of SWCH has declined.
SWCH has a Operating Margin of 14.07%. This is in the better half of the industry: SWCH outperforms 74.82% of its industry peers.
SWCH's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.07% | ||
| PM (TTM) | 56.7% | ||
| GM | N/A |
OM growth 3Y9.41%
OM growth 5Y1.92%
PM growth 3Y-3.27%
PM growth 5Y-37.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWCH is destroying value.
Compared to 1 year ago, SWCH has more shares outstanding
The debt/assets ratio for SWCH is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.66, we must say that SWCH is in the distress zone and has some risk of bankruptcy.
SWCH's Altman-Z score of 1.66 is in line compared to the rest of the industry. SWCH outperforms 48.92% of its industry peers.
A Debt/Equity ratio of 2.53 is on the high side and indicates that SWCH has dependencies on debt financing.
SWCH's Debt to Equity ratio of 2.53 is on the low side compared to the rest of the industry. SWCH is outperformed by 91.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.66 |
ROIC/WACC0.28
WACC9.5%
2.3 Liquidity
SWCH has a Current Ratio of 0.37. This is a bad value and indicates that SWCH is not financially healthy enough and could expect problems in meeting its short term obligations.
SWCH has a worse Current ratio (0.37) than 92.09% of its industry peers.
SWCH has a Quick Ratio of 0.37. This is a bad value and indicates that SWCH is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of SWCH (0.37) is worse than 92.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 100.00% over the past year.
The earnings per share for SWCH have been decreasing by -47.76% on average. This is quite bad
SWCH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.74%.
The Revenue has been growing by 13.21% on average over the past years. This is quite good.
EPS 1Y (TTM)100%
EPS 3Y22.92%
EPS 5Y-47.76%
EPS Q2Q%38.67%
Revenue 1Y (TTM)19.74%
Revenue growth 3Y13.41%
Revenue growth 5Y13.21%
Sales Q2Q%10.35%
3.2 Future
The Earnings Per Share is expected to decrease by -30.59% on average over the next years. This is quite bad
The Revenue is expected to grow by 9.07% on average over the next years. This is quite good.
EPS Next Y549.92%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
EPS Next 5Y-30.59%
Revenue Next Year13.62%
Revenue Next 2Y12.42%
Revenue Next 3Y12.77%
Revenue Next 5Y9.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 122.32 indicates a quite expensive valuation of SWCH.
SWCH's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.55, SWCH is valued quite expensively.
A Price/Forward Earnings ratio of 60.18 indicates a quite expensive valuation of SWCH.
SWCH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of SWCH to the average of the S&P500 Index (23.78), we can say SWCH is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.32 | ||
| Fwd PE | 60.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of SWCH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 24.64 |
4.3 Compensation for Growth
SWCH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.22
PEG (5Y)N/A
EPS Next 2Y47.96%
EPS Next 3Y0.66%
5. Dividend
5.1 Amount
SWCH has a yearly dividend return of 0.61%, which is pretty low.
Compared to an average industry Dividend Yield of 0.45, SWCH pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, SWCH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of SWCH grows each year by 51.63%, which is quite nice.
SWCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)51.63%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
8.33% of the earnings are spent on dividend by SWCH. This is a low number and sustainable payout ratio.
DP8.33%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
34.25
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners0.59%
Inst Owner Change0%
Ins Owners26.17%
Ins Owner Change0%
Market Cap5.41B
Revenue(TTM)668.65M
Net Income(TTM)379.15M
Analysts70.53
Price Target33.79 (-1.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend0.21
Dividend Growth(5Y)51.63%
DP8.33%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-80.5%
Min EPS beat(2)-127.13%
Max EPS beat(2)-33.86%
EPS beat(4)2
Avg EPS beat(4)45.11%
Min EPS beat(4)-127.13%
Max EPS beat(4)286.79%
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)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.98%
Max Revenue beat(2)0.61%
Revenue beat(4)1
Avg Revenue beat(4)-1.08%
Min Revenue beat(4)-2.56%
Max Revenue beat(4)0.61%
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)0%
PT rev (3m)N/A
EPS NQ rev (1m)-45.11%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)2.42%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.32 | ||
| Fwd PE | 60.18 | ||
| P/S | 8.09 | ||
| P/FCF | N/A | ||
| P/OCF | 19.78 | ||
| P/B | 7.03 | ||
| P/tB | 15.49 | ||
| EV/EBITDA | 24.64 |
EPS(TTM)0.28
EY0.82%
EPS(NY)0.57
Fwd EY1.66%
FCF(TTM)-1.84
FCFYN/A
OCF(TTM)1.73
OCFY5.06%
SpS4.23
BVpS4.88
TBVpS2.21
PEG (NY)0.22
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.48% | ||
| ROE | 49.24% | ||
| ROCE | N/A | ||
| ROIC | 2.7% | ||
| ROICexc | 2.73% | ||
| ROICexgc | 2.96% | ||
| OM | 14.07% | ||
| PM (TTM) | 56.7% | ||
| GM | N/A | ||
| FCFM | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)4.04%
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
ROICexgc growth 3Y0.27%
ROICexgc growth 5Y-9.03%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y9.41%
OM growth 5Y1.92%
PM growth 3Y-3.27%
PM growth 5Y-37.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.2
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.53 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 6.57 | ||
| Cap/Depr | 278.24% | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.37 | ||
| Altman-Z | 1.66 |
F-Score4
WACC9.5%
ROIC/WACC0.28
Cap/Depr(3y)252.05%
Cap/Depr(5y)292.39%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)100%
EPS 3Y22.92%
EPS 5Y-47.76%
EPS Q2Q%38.67%
EPS Next Y549.92%
EPS Next 2Y47.96%
EPS Next 3Y0.66%
EPS Next 5Y-30.59%
Revenue 1Y (TTM)19.74%
Revenue growth 3Y13.41%
Revenue growth 5Y13.21%
Sales Q2Q%10.35%
Revenue Next Year13.62%
Revenue Next 2Y12.42%
Revenue Next 3Y12.77%
Revenue Next 5Y9.07%
EBIT growth 1Y-7.97%
EBIT growth 3Y24.08%
EBIT growth 5Y15.38%
EBIT Next Year259.7%
EBIT Next 3Y66.9%
EBIT Next 5Y38.27%
FCF growth 1Y-160.15%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.28%
OCF growth 3Y13.51%
OCF growth 5Y9.44%
SWITCH INC - A / SWCH FAQ
Can you provide the ChartMill fundamental rating for SWITCH INC - A?
ChartMill assigns a fundamental rating of 4 / 10 to SWCH.
What is the valuation status for SWCH stock?
ChartMill assigns a valuation rating of 3 / 10 to SWITCH INC - A (SWCH). This can be considered as Overvalued.
How profitable is SWITCH INC - A (SWCH) stock?
SWITCH INC - A (SWCH) has a profitability rating of 8 / 10.
What is the financial health of SWITCH INC - A (SWCH) stock?
The financial health rating of SWITCH INC - A (SWCH) is 2 / 10.
Can you provide the dividend sustainability for SWCH stock?
The dividend rating of SWITCH INC - A (SWCH) is 4 / 10 and the dividend payout ratio is 8.33%.