SWITCH INC - A (SWCH) Stock Fundamental Analysis
USA - 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 84 industry peers in the IT Services industry. While SWCH is still in line with the averages on profitability rating, there are concerns on its financial health. 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
Looking at the Return On Assets, with a value of 11.48%, SWCH belongs to the top of the industry, outperforming 88.49% of the companies in the same industry.
SWCH has a better Return On Equity (49.24%) than 97.12% of its industry peers.
SWCH's Return On Invested Capital of 2.70% is in line compared to the rest of the industry. SWCH outperforms 56.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SWCH is significantly below the industry average of 28.66%.
| 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
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 better Operating Margin (14.07%) than 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SWCH is destroying value.
SWCH has more shares outstanding than it did 1 year ago.
SWCH has a worse debt/assets ratio than last year.
2.2 Solvency
SWCH has an Altman-Z score of 1.66. This is a bad value and indicates that SWCH is not financially healthy and even 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.
SWCH has a Debt to Equity ratio of 2.53. This is amonst the worse of the industry: SWCH underperforms 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.
A Quick Ratio of 0.37 indicates that SWCH may have some problems paying its short term obligations.
SWCH has a worse Quick ratio (0.37) 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.
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.
SWCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.21% yearly.
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.
SWCH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.07% yearly.
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
SWCH is valuated quite expensively with a Price/Earnings ratio of 122.32.
Compared to the rest of the industry, the Price/Earnings ratio of SWCH is on the same level as its industry peers.
SWCH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.35.
SWCH is valuated quite expensively with a Price/Forward Earnings ratio of 60.18.
The rest of the industry has a similar Price/Forward Earnings ratio as SWCH.
SWCH is valuated expensively when we compare the Price/Forward Earnings ratio to 33.72, which is the current average of the S&P500 Index.
| 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
SWCH has a yearly dividend return of 0.61%, which is pretty low.
SWCH's Dividend Yield is a higher than the industry average which is at 2.02.
Compared to an average S&P500 Dividend Yield of 2.36, SWCH's dividend is way lower than the S&P500 average.
| 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
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%.