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Steel Connect

Nasdaq:STCN
Snowflake Description

Imperfect balance sheet and overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
STCN
Nasdaq
$42M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Steel Connect, Inc., through its subsidiaries, provides supply chain and direct marketing services to the consumer electronics, communications, computing, medical devices, software, storage, retail, and other industries. The last earnings update was 28 days ago. More info.


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  • Steel Connect has significant price volatility in the past 3 months.
STCN Share Price and Events
7 Day Returns
-8.6%
NasdaqGS:STCN
4.3%
US IT
2.4%
US Market
1 Year Returns
-66.3%
NasdaqGS:STCN
-1.2%
US IT
-10%
US Market
STCN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Steel Connect (STCN) -8.6% -52.1% -55.2% -66.3% -55.8% -82.5%
US IT 4.3% -10% -15.6% -1.2% 59.3% 77.7%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • STCN underperformed the IT industry which returned -1.2% over the past year.
  • STCN underperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
STCN
Industry
5yr Volatility vs Market

STCN Value

 Is Steel Connect undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Steel Connect to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Steel Connect.

NasdaqGS:STCN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 12.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:STCN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
IT Unlevered Beta Simply Wall St/ S&P Global 0.93
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.934 (1 + (1- 21%) (1058.67%))
6.187
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (2 * 5.44%)
12.62%

Discounted Cash Flow Calculation for NasdaqGS:STCN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Steel Connect is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:STCN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.62%)
2020 1.96 Est @ -18.21% 1.74
2021 1.72 Est @ -12.23% 1.36
2022 1.59 Est @ -8.04% 1.11
2023 1.51 Est @ -5.1% 0.94
2024 1.46 Est @ -3.05% 0.81
2025 1.44 Est @ -1.61% 0.70
2026 1.43 Est @ -0.61% 0.62
2027 1.43 Est @ 0.1% 0.55
2028 1.44 Est @ 0.59% 0.49
2029 1.45 Est @ 0.93% 0.44
Present value of next 10 years cash flows $8.00
NasdaqGS:STCN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1.45 × (1 + 1.74%) ÷ (12.62% – 1.74%)
$13.56
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $13.56 ÷ (1 + 12.62%)10
$4.13
NasdaqGS:STCN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $8.00 + $4.13
$12.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12.13 / 61.41
$0.2
NasdaqGS:STCN Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.20
Current discount Discount to share price of $0.69
= -1 x ($0.69 - $0.20) / $0.20
-249.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Steel Connect is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Steel Connect's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Steel Connect's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:STCN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2020-01-31) in USD $-0.79
NasdaqGS:STCN Share Price ** NasdaqGS (2020-04-07) in USD $0.69
United States of America IT Industry PE Ratio Median Figure of 71 Publicly-Listed IT Companies 24.84x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Steel Connect.

NasdaqGS:STCN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:STCN Share Price ÷ EPS (both in USD)

= 0.69 ÷ -0.79

-0.87x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Steel Connect is loss making, we can't compare its value to the US IT industry average.
  • Steel Connect is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Steel Connect's expected growth come at a high price?
Raw Data
NasdaqGS:STCN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -0.87x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America IT Industry PEG Ratio Median Figure of 60 Publicly-Listed IT Companies 1.89x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Steel Connect, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Steel Connect's assets?
Raw Data
NasdaqGS:STCN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2020-01-31) in USD $0.87
NasdaqGS:STCN Share Price * NasdaqGS (2020-04-07) in USD $0.69
United States of America IT Industry PB Ratio Median Figure of 116 Publicly-Listed IT Companies 2.88x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
NasdaqGS:STCN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:STCN Share Price ÷ Book Value per Share (both in USD)

= 0.69 ÷ 0.87

0.79x

* Primary Listing of Steel Connect.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Steel Connect is good value based on assets compared to the US IT industry average.
X
Value checks
We assess Steel Connect's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Steel Connect has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

STCN Future Performance

 How is Steel Connect expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Steel Connect has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
16.4%
Expected IT industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Steel Connect expected to grow at an attractive rate?
  • Unable to compare Steel Connect's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Steel Connect's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Steel Connect's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:STCN Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.4%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:STCN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:STCN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2020-01-31 839 20 -48
2019-10-31 830 41 -57
2019-07-31 820 21 -69
2019-04-30 810 3 -38
2019-01-31 810 20 -39
2018-10-31 758 20 33
2018-07-31 645 10 35
2018-04-30 550 0 34
2018-01-31 454 -2 40
2017-10-31 418 -2 -23
2017-07-31 437 -24 -26
2017-04-30 438 -19 -36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Steel Connect is high growth as no earnings estimate data is available.
  • Unable to determine if Steel Connect is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:STCN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Steel Connect Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STCN Past Financials Data
Date (Data in USD Millions) EPS *
2020-01-31 -0.79
2019-10-31 -0.92
2019-07-31 -1.13
2019-04-30 -0.63
2019-01-31 -0.64
2018-10-31 0.54
2018-07-31 0.60
2018-04-30 0.59
2018-01-31 0.71
2017-10-31 -0.41
2017-07-31 -0.47
2017-04-30 -0.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Steel Connect will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Take a look at our analysis of STCN’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  2. Steel Connect's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Software companies here
  3. Steel Connect's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
X
Future performance checks
We assess Steel Connect's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Steel Connect has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

STCN Past Performance

  How has Steel Connect performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Steel Connect's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Steel Connect does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Steel Connect's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Steel Connect's 1-year growth to the US IT industry average as it is not currently profitable.
Earnings and Revenue History
Steel Connect's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Steel Connect Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:STCN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2020-01-31 839.08 -48.50 143.28
2019-10-31 829.85 -56.70 139.74
2019-07-31 819.83 -68.86 144.08
2019-04-30 810.44 -38.41 109.41
2019-01-31 810.35 -39.12 111.65
2018-10-31 757.87 32.72 114.13
2018-07-31 645.26 35.38 100.47
2018-04-30 549.96 34.14 87.27
2018-01-31 453.99 39.93 71.65
2017-10-31 417.82 -22.52 53.46
2017-07-31 436.62 -25.83 54.16
2017-04-30 438.35 -36.23 54.89
2017-01-31 436.86 -44.01 55.34
2016-10-31 439.26 -55.05 58.19
2016-07-31 459.02 -61.28 57.60
2016-04-30 477.20 -46.56 55.74
2016-01-31 486.97 -45.82 55.69
2015-10-31 515.32 -33.42 55.56
2015-07-31 561.67 -18.43 59.67
2015-04-30 606.69 -21.93 61.83
2015-01-31 673.73 -19.30 64.49
2014-10-31 719.43 -16.68 69.43
2014-07-31 723.40 -16.36 72.02
2014-04-30 739.70 -16.71 74.61
2014-01-31 739.44 -15.48 76.80
2013-10-31 748.87 -28.96 80.95
2013-07-31 754.50 -39.33 86.97
2013-04-30 746.63 -45.39 93.04

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Steel Connect has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Steel Connect has efficiently used its assets last year compared to the US IT industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Steel Connect improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Steel Connect's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Steel Connect has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

STCN Health

 How is Steel Connect's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Steel Connect's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Steel Connect's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Steel Connect's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Steel Connect's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Steel Connect Company Filings, last reported 2 months ago.

NasdaqGS:STCN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2020-01-31 89.00 385.63 30.20
2019-10-31 92.32 382.66 41.21
2019-07-31 87.88 387.67 32.55
2019-04-30 127.58 392.69 20.36
2019-01-31 129.74 449.43 92.90
2018-10-31 140.63 449.49 83.37
2018-07-31 142.82 453.37 92.14
2018-04-30 153.83 459.54 99.72
2018-01-31 169.23 459.76 106.43
2017-10-31 58.31 60.89 119.77
2017-07-31 62.97 59.76 122.57
2017-04-30 68.93 58.66 123.32
2017-01-31 73.50 57.60 125.36
2016-10-31 76.73 63.17 120.23
2016-07-31 85.94 57.17 147.56
2016-04-30 103.90 81.23 166.57
2016-01-31 114.86 80.34 169.42
2015-10-31 129.45 79.08 186.54
2015-07-31 144.60 77.86 198.15
2015-04-30 152.05 76.70 226.26
2015-01-31 163.19 75.56 194.48
2014-10-31 169.26 95.71 176.41
2014-07-31 171.62 77.84 206.31
2014-04-30 178.80 72.32 170.55
2014-01-31 160.04 0.00 75.27
2013-10-31 160.20 0.00 67.55
2013-07-31 156.91 0.00 77.92
2013-04-30 167.13 0.00 71.23
  • Steel Connect's level of debt (433.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (36.7% vs 433.3% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Steel Connect has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Steel Connect has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 5.5% per year.
X
Financial health checks
We assess Steel Connect's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Steel Connect has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

STCN Dividends

 What is Steel Connect's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Steel Connect dividends.
If you bought $2,000 of Steel Connect shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Steel Connect's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Steel Connect's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:STCN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 34 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Steel Connect has not reported any payouts.
  • Unable to verify if Steel Connect's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Steel Connect's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Steel Connect has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Steel Connect's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Steel Connect afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Steel Connect has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

STCN Management

 What is the CEO of Steel Connect's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Warren Lichtenstein
COMPENSATION $221,499
AGE 54
TENURE AS CEO 1.3 years
CEO Bio

Mr. Warren G. Lichtenstein has been an Executive Chairman at Steel Connect, Inc. (formerly known as ModusLink Global Solutions, Inc.) since March 12, 2013 and serves as its Interim Chief Executive Officer since December 04, 2018. Mr. Lichtenstein served as the Chairman of the Board and Interim Chief Executive Officer of Steel Connect, Inc. from March 28, 2016 to June 17, 2016. He has been an Executive Chairman at Aerojet Rocketdyne Holdings, Inc. since June 24, 2016 and served as its Chairman since March 2013 until June, 2016. He has been its Director at Aerojet Rocketdyne Holdings, Inc. since March 5, 2008. He serves as Chairman and Chief Executive Officer of SP General Services LLC. He has been the Founder, Principal and Chairman at Steel Partners LLC since January 24, 2002 and serves as its Chief Executive Officer. He served as the Chief Executive Officer at Steel Partners Holdings Gp Inc., the General Partner of Steel Partners Holdings L.P., since July 15, 2009 until February 26, 2013. He served as the Chief Executive Officer at SL Industries Inc. from January 2002 to May 2008. He served as the Chairman, Chief Executive Officer and President at SP Acquisition Holdings, Inc. from February 2007 to October 2009. He served as Chief Executive Officer at SLI from February 2002 to August 2005. He served as the Chief Executive Officer and Chairman of Viggle Inc. since 1994 and 1995 respectively. Mr. Lichtenstein served as the President and Chief Executive Officer since June 23, 1999, Secretary and Treasurer since May 3, 2001 and Chairman of CPX Corporation. He served as the Chairman and Chief Executive Officer of WebFinancial Corporation from December 1997 to June 2005 and its President from December 1997 to December 2003. He served as an Acquisition and Risk Arbitrage Analyst at Ballantrae Partners, LP from 1988 to 1990. Mr. Lichtenstein has been the Executive Chairman of Steel Partners Holdings Gp Inc., since February 26, 2013 and also serves as its Chief Executive Officer. He has been the Chairman of Caribbean Fertilizer Group Ltd since June 2000. He has been Chairman of the Board at SL Industries Inc. since June 1, 2016. He has been the Chairman of the Board at Steel Excel Inc. since May 25, 2011. He served as Non-Executive Chairman at Steel Connect, Inc from March 12, 2013 to September 18, 2015. He has served as the Chairman of the Board of the general Partner of Steel Partners Holdings L.P. since July 15, 2009. He has been a Director at Steel Excel Inc., since October 14, 2010 and Steel Connect, Inc. since March 12, 2013. He has been a Director at Aerojet Rocketdyne Holdings, Inc. (formerly known as GenCorp Inc.) since March 5, 2008 and serves as its Chairman. He has been a Director of Tech-Sym Corporation since 1999. He served as the Chairman of Aydin Corporation. Mr. Lichtenstein has served as a Director of SLI since March 2010. He has been a Director of SL Industries Inc. since March 30, 2010 and Cubic Simulation Systems, Inc. since 1999. He serves as a Director at Steel Partners Ltd. He has been a Director of PLM International, Inc. since December 1998. He has been a Director of Tab Products Co. LLC since September 10, 2001. He has been a Director of Saratoga Beverage Group, Inc. since June 1994. He previously served as a Director (formerly Chairman of the Board) of SLI from January 2002 to May 2008. He served as the Chairman of United Industrial Corporation from October 10, 2003 to November 2007. He served as the Chairman of Steel Partners Holdings L.P. from July 15, 2009 to February 26, 2013. He served as Chairman at SL Industries Inc. from February 4, 2002 to August 2005. He has been the Chairman of the Board at Handy & Harman Ltd since July 2005. Mr. Lichtenstein served as a Director of Steel Partners Holdings L.P. He served as a Director of US Diagnostic, Inc. since January 2002. He served as a Director of SL Industries Inc since 2002. He served as a Director at United Industrial Corporation from 2001 to November 2007. He served as a Director of Argan, Inc. since September 16, 1999 and Viggle Inc. since 1994. He served as a Director of PLM Equipment Growth Fund and Tandycrafts Inc. He served as a Director of Layne Christensen Company since January 19, 2004 until October 2006. He served as a Director of Alpha Technologies, Inc. He served as a Director of WebFinancial Corporation from 1996 to June 2005. He served as a Director of BKF Capital Group Inc. until June 2006. He served as a Director of KT&G Corporation from March 2006 to March 2008. Mr. Lichtenstein holds a BA in Economics from The University of Pennsylvania.

CEO Compensation
  • Warren's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Warren's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Steel Connect management team in years:

3.6
Average Tenure
54
Average Age
  • The tenure for the Steel Connect management team is about average.
Management Team

Warren Lichtenstein

TITLE
Executive Chairman & Interim CEO
COMPENSATION
$221K
AGE
54
TENURE
1.3 yrs

Jim Andersen

TITLE
Chief Executive Officer of IWCO Direct Holdings
COMPENSATION
$1M
AGE
61
TENURE
21 yrs

John Whitenack

TITLE
Chief Executive Officer of ModusLink Corporation
COMPENSATION
$500K
AGE
54
TENURE
1.5 yrs

Doug Woodworth

TITLE
Chief Financial Officer
AGE
46
TENURE
0.4 yrs

Tim Barclay

TITLE
Chief Operating Officer
TENURE
3.6 yrs

Joseph Sherk

TITLE
Senior VP & Chief Accounting Officer
AGE
71
TENURE
0.4 yrs

Neil Hampshire

TITLE
Chief Information Officer & Senior VP
TENURE
4.7 yrs

Glenn Brower

TITLE
Vice President of Sales
TENURE
8 yrs

Hans Veenendaal

TITLE
Chief Commercial Officer
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the Steel Connect board of directors in years:

5.9
Average Tenure
57
Average Age
  • The tenure for the Steel Connect board of directors is about average.
Board of Directors

Glen Kassan

TITLE
Vice Chairman
COMPENSATION
$155K
AGE
76
TENURE
5.9 yrs

Warren Lichtenstein

TITLE
Executive Chairman & Interim CEO
COMPENSATION
$221K
AGE
54
TENURE
7.1 yrs

Jeff Fenton

TITLE
Independent Director
COMPENSATION
$172K
AGE
62
TENURE
9.4 yrs

Jeff Wald

TITLE
Independent Director
COMPENSATION
$173K
AGE
45
TENURE
8.2 yrs

Jack Howard

TITLE
Director
COMPENSATION
$157K
AGE
57
TENURE
2.3 yrs

Bill Fejes

TITLE
Director
COMPENSATION
$157K
AGE
63
TENURE
2.3 yrs

Maria Molland

TITLE
Independent Director
AGE
45
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Steel Connect's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Steel Connect has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

STCN News

Simply Wall St News

Is Steel Connect Inc's (NASDAQ:STCN) ROE Of 26.87% Sustainable?

and want to better understand how you can grow your money by investing in Steel Connect Inc (NASDAQ:STCN). … If STCN borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

With An ROE Of 26.87%, Has Steel Connect Inc's (NASDAQ:STCN) Management Done Well?

View our latest analysis for Steel Connect Peeling the layers of ROE – trisecting a company’s profitability Return on Equity (ROE) is a measure of Steel Connect’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Steel Connect’s equity capital deployed. … This means Steel Connect returns enough to cover its own cost of equity, with a buffer of 9.82%.

Simply Wall St -

Interested In ModusLink Global Solutions Inc (NASDAQ:STCN)? Here's What Its Recent Performance Looks Like

After reading ModusLink Global Solutions Inc's (NASDAQ:STCN) most recent earnings announcement (31 October 2017), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … NasdaqGS:STCN Income Statement Mar 2nd 18 We can further evaluate ModusLink Global Solutions's loss by looking at what the industry has been experiencing over the past few years. … Each year, for the past five years ModusLink Global Solutions has seen an annual decline in revenue of -11.12%, on average.

Simply Wall St -

STCN Company Info

Description

Steel Connect, Inc., through its subsidiaries, provides supply chain and direct marketing services to the consumer electronics, communications, computing, medical devices, software, storage, retail, and other industries. The company offers product configuration and packaging, kitting, and assembly of components and parts into finished goods; and value-added processes, such as product testing, radio frequency identification tagging, product or service activation, language settings, personalization and engraving, multi-channel packaging, and packaging design services. It also provides fulfillment services, including order management, pick, pack and ship, retail compliance, and demand planning services; and content protection and activation, and IP security services, as well as optimizes component and finished goods inventory levels. In addition, it offers operates a cloud-based e-commerce platform, an online buying experience so that products can be purchased, serviced, and delivered worldwide; and provides reverse logistics services that simplifies the returns process for retailers and manufacturers to improve service parts management and the value of returned assets. Further, the company offers direct marketing services comprising end-to-end services for paper-based direct marketing and omnichannel marketing campaign services. The company was formerly known as ModusLink Global Solutions, Inc. and changed its name to Steel Connect, Inc. in February 2018. Steel Connect, Inc. was incorporated in 1986 and is headquartered in Waltham, Massachusetts.

Details
Name: Steel Connect, Inc.
STCN
Exchange: NasdaqGS
Founded: 1986
$42,369,624
61,405,253
Website: http://www.moduslink.com
Address: Steel Connect, Inc.
1601 Trapelo Road,
Suite 170,
Waltham,
Massachusetts, 02451,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS STCN Common Stock Nasdaq Global Select US USD 25. Jan 1994
DB CGOB Common Stock Deutsche Boerse AG DE EUR 25. Jan 1994
Number of employees
Current staff
Staff numbers
3,760
Steel Connect employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 04:55
End of day share price update: 2020/04/07 00:00
Last earnings filing: 2020/03/11
Last earnings reported: 2020/01/31
Last annual earnings reported: 2019/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.