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%)
Overall SWCH gets a fundamental rating of 3 out of 10. We evaluated SWCH against 88 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
With an excellent Return On Assets value of 11.48%, SWCH belongs to the best of the industry, outperforming 88.49% of the companies in the same industry.
SWCH has a Return On Equity of 49.24%. This is amongst the best in the industry. SWCH outperforms 97.12% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.70%, SWCH is in line with its industry, outperforming 56.12% of the companies in the same industry.
SWCH had an Average Return On Invested Capital over the past 3 years of 4.04%. This is significantly below the industry average of 29.60%.
| 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
Looking at the Profit Margin, with a value of 56.70%, SWCH belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
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.
In the last couple of years the Operating Margin of SWCH has grown nicely.
| 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
SWCH has a worse debt/assets ratio than last year.
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.
Looking at the Altman-Z score, with a value of 1.66, SWCH is in line with its industry, outperforming 48.92% of the companies in the same industry.
A Debt/Equity ratio of 2.53 is on the high side and indicates that SWCH has dependencies on debt financing.
The Debt to Equity ratio of SWCH (2.53) is worse than 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
A Current Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
With a Current ratio value of 0.37, SWCH is not doing good in the industry: 92.09% of the companies in the same industry are doing better.
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.
SWCH has a Quick ratio of 0.37. This is amonst the worse of the industry: SWCH underperforms 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.
Measured over the past years, SWCH shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -47.76% on average per year.
The Revenue has grown by 19.74% in the past year. This is quite good.
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
Based on estimates for the next years, SWCH will show a very negative growth in Earnings Per Share. The EPS will decrease by -30.59% on average per year.
Based on estimates for the next years, SWCH will show a quite strong growth in Revenue. The Revenue will grow by 9.07% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 122.32, which means the current valuation is very expensive for SWCH.
Compared to the rest of the industry, the Price/Earnings ratio of SWCH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.59. SWCH is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 60.18, SWCH can be considered very expensive at the moment.
SWCH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, SWCH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 122.32 | ||
| Fwd PE | 60.18 |
4.2 Price Multiples
SWCH's Enterprise Value to EBITDA is on the same level as the industry average.
| 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
With a yearly dividend of 0.61%, SWCH is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.43, SWCH pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.61, SWCH pays less dividend than the S&P500 average, which is at 1.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of SWCH is nicely growing with an annual growth rate of 51.63%!
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
SWCH pays out 8.33% of its income as dividend. This is a 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%.