Steel Connect Valuation
| STCN Stock | USD 12.56 0.10 0.80% |
At this time, the company appears to be undervalued. Steel Connect has a current Real Value of $16.17 per share. The regular price of the company is $12.56. Our model measures the value of Steel Connect from inspecting the company fundamentals such as Operating Margin of 0.02 %, return on equity of 0.25, and Shares Outstanding of 6.34 M as well as reviewing its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Steel Connect's valuation include:
Price Book 0.512 | Enterprise Value 102 M | Enterprise Value Ebitda 3.7328 | Price Sales 0.4534 | Trailing PE 4.0064 |
Undervalued
Today
Please note that Steel Connect's price fluctuation is not too volatile at this time. Calculation of the real value of Steel Connect is based on 3 months time horizon. Increasing Steel Connect's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Since Steel Connect is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Steel Stock. However, Steel Connect's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 12.56 | Real 16.17 | Target 22.5 | Hype 12.46 | Naive 12.64 |
The intrinsic value of Steel Connect's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Steel Connect's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Steel Connect helps investors to forecast how Steel stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Steel Connect more accurately as focusing exclusively on Steel Connect's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Steel Connect's intrinsic value based on its ongoing forecasts of Steel Connect's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Steel Connect's closest peers.
Steel Connect Cash |
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Steel Valuation Trend
Knowing Steel Connect's actual value is paramount for traders when making sound investment determinations. Using both Steel Connect's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Steel Revenue by Product
Steel Connect Total Value Analysis
Steel Connect is at this time forecasted to have valuation of 102.03 M with market capitalization of 78.94 M, debt of 33.96 M, and cash on hands of 49.91 M. Please note that valuation may be misleading and is a subject to auditing or accounting errors. We encourage investors to vigilantly validate all of the Steel Connect fundamentals before making equity appraisal based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
102.03 M | 78.94 M | 33.96 M | 49.91 M |
Steel Connect Investor Information
About 67.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.51. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Steel Connect last dividend was issued on the 15th of March 2011. The entity had 375:3500 split on the 22nd of June 2023. Based on the key indicators related to Steel Connect's liquidity, profitability, solvency, and operating efficiencyBased on the analysis of, Steel Connect is performing exceptionally good at this time. It has a great probability to report excellent financial results in January.Steel Connect Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Steel Connect has an asset utilization ratio of 35.85 percent. This suggests that the Company is making $0.36 for each dollar of assets. An increasing asset utilization means that Steel Connect is more efficient with each dollar of assets it utilizes for everyday operations.Steel Connect Ownership Allocation
The market capitalization of Steel Connect is $78.94 Million. Over half of Steel Connect's outstanding shares are owned by institutional holders. These institutional holders are typically referred to as corporate investors that take positions in a given instrument to benefit from reduced trade commissions. Note, that even with substantial debt, if the true value of the company is larger than the current market value, you may still be able to generate positive returns on investment in this company at some point.Steel Connect Profitability Analysis
The company reported the previous year's revenue of 174.11 M. Net Income was 87.98 M with profit before overhead, payroll, taxes, and interest of 42.74 M.About Steel Connect Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Steel Connect. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Steel Connect based exclusively on its fundamental and basic technical indicators. By analyzing Steel Connect's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Steel Connect's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Steel Connect. We calculate exposure to Steel Connect's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Steel Connect's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 48.5 M | 86.7 M | |
| Pretax Profit Margin | 0.12 | 0.13 | |
| Operating Profit Margin | 0.04 | 0.05 | |
| Net Profit Margin | 0.49 | 0.52 | |
| Gross Profit Margin | 0.28 | 0.20 |
Steel Connect Growth Indicators
Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines.
| Common Stock Shares Outstanding | 28.6 M | |
| Quarterly Earnings Growth Y O Y | -0.202 |
Steel Connect Current Valuation Indicators
Steel Connect's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Steel Connect's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Steel Connect, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Steel Connect's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Steel Connect's worth.When determining whether Steel Connect offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Steel Connect's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Steel Connect Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Steel Connect Stock: Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Steel Connect. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. To learn how to invest in Steel Stock, please use our How to Invest in Steel Connect guide.You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Is Data Processing & Outsourced Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Steel Connect. If investors know Steel will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Steel Connect listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.20) | Earnings Share 3.11 | Revenue Per Share 28.001 | Quarterly Revenue Growth 0.124 | Return On Assets 0.0104 |
The market value of Steel Connect is measured differently than its book value, which is the value of Steel that is recorded on the company's balance sheet. Investors also form their own opinion of Steel Connect's value that differs from its market value or its book value, called intrinsic value, which is Steel Connect's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Steel Connect's market value can be influenced by many factors that don't directly affect Steel Connect's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Steel Connect's value and its price as these two are different measures arrived at by different means. Investors typically determine if Steel Connect is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Steel Connect's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.