SWITCH INC - A (SWCH) Fundamental Analysis & Valuation

NYSE:SWCH • US87105L1044

Current stock price

34.25 USD
+0.02 (+0.06%)
At close:
34.26 USD
+0.01 (+0.03%)
After Hours:

This SWCH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. SWCH Profitability Analysis

1.1 Basic Checks

  • SWCH had positive earnings in the past year.
  • In the past year SWCH had a positive cash flow from operations.
SWCH Yearly Net Income VS EBIT VS OCF VS FCFSWCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 100M -100M 200M -200M

1.2 Ratios

  • SWCH has a better Return On Assets (11.48%) than 88.49% of its industry peers.
  • SWCH has a better Return On Equity (49.24%) than 97.12% of its industry peers.
  • The Return On Invested Capital of SWCH (2.70%) is comparable to the rest of the industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for SWCH is significantly below the industry average of 11.07%.
Industry RankSector 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
SWCH Yearly ROA, ROE, ROICSWCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 5 -5 10 -10

1.3 Margins

  • SWCH has a better Profit Margin (56.70%) 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 RankSector 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
SWCH Yearly Profit, Operating, Gross MarginsSWCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 10 20 30 40

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0

2. SWCH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), SWCH is destroying value.
  • The number of shares outstanding for SWCH has been increased compared to 1 year ago.
  • The debt/assets ratio for SWCH is higher compared to a year ago.
SWCH Yearly Shares OutstandingSWCH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M
SWCH Yearly Total Debt VS Total AssetsSWCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 500M 1B 1.5B 2B 2.5B

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 has a Altman-Z score (1.66) which is in line with 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 has a worse Debt to Equity ratio (2.53) than 91.37% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.53
Debt/FCF N/A
Altman-Z 1.66
ROIC/WACC0.28
WACC9.5%
SWCH Yearly LT Debt VS Equity VS FCFSWCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
  • SWCH has a Current ratio of 0.37. This is amonst the worse of the industry: SWCH underperforms 92.09% of its industry peers.
  • A Quick Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
  • The Quick ratio of SWCH (0.37) is worse than 92.09% of its industry peers.
Industry RankSector Rank
Current Ratio 0.37
Quick Ratio 0.37
SWCH Yearly Current Assets VS Current LiabilitesSWCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 50M 100M 150M 200M 250M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. SWCH Growth Analysis

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.
  • Looking at the last year, SWCH shows a quite strong growth in Revenue. The Revenue has grown by 19.74% in the last year.
  • 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
  • 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.
SWCH Yearly Revenue VS EstimatesSWCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M 800M
SWCH Yearly EPS VS EstimatesSWCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

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2

4. SWCH Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 122.32, SWCH can be considered very expensive at the moment.
  • SWCH's Price/Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 25.60, SWCH is valued quite expensively.
  • The Price/Forward Earnings ratio is 60.18, which means the current valuation is very expensive for SWCH.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of SWCH is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.84, SWCH is valued quite expensively.
Industry RankSector Rank
PE 122.32
Fwd PE 60.18
SWCH Price Earnings VS Forward Price EarningsSWCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • The rest of the industry has a similar Enterprise Value to EBITDA ratio as SWCH.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 24.64
SWCH Per share dataSWCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

  • The 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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

4

5. SWCH Dividend Analysis

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 1.23, SWCH pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.90, SWCH's dividend is way lower than the S&P500 average.
Industry RankSector 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
SWCH Yearly Dividends per shareSWCH Yearly Dividends per shareYearly Dividends per share 2018 2019 2020 2021 2022 0.05 0.1 0.15

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%
SWCH Yearly Income VS Free CF VS DividendSWCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 0 -50M -100M -150M -200M -250M
SWCH Dividend Payout.SWCH Dividend Payout, showing the Payout Ratio.SWCH Dividend Payout.PayoutRetained Earnings

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SWCH Fundamentals: All Metrics, Ratios and Statistics

SWITCH INC - A

NYSE:SWCH (12/5/2022, 8:04:00 PM)

After market: 34.26 +0.01 (+0.03%)

34.25

+0.02 (+0.06%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)11-09
Earnings (Next)02-22
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for SWITCH INC - A?

ChartMill assigns a fundamental rating of 4 / 10 to SWCH.


Can you provide the valuation status for SWITCH INC - A?

ChartMill assigns a valuation rating of 3 / 10 to SWITCH INC - A (SWCH). This can be considered as Overvalued.


Can you provide the profitability details for SWITCH INC - A?

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.


What is the earnings growth outlook for SWITCH INC - A?

The Earnings per Share (EPS) of SWITCH INC - A (SWCH) is expected to grow by 549.92% in the next year.