Is Steel Connect Stock a Good Investment?
Steel Connect Investment Advice | STCN |
- Examine Steel Connect's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Steel Connect's leadership team and their track record. Good management can help Steel Connect navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Data Processing & Outsourced Services space and any emerging trends that could impact Steel Connect's business and its evolving consumer preferences.
- Compare Steel Connect's performance and market position to its competitors. Analyze how Steel Connect is positioned in terms of product offerings, innovation, and market share.
- Check if Steel Connect pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Steel Connect's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Steel Connect stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Steel Connect is a good investment.
Sell | Buy |
Sell
Market Performance | Very Weak | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Poor | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Steel Connect Stock
Researching Steel Connect's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 67.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.41. 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.
To determine if Steel Connect is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Steel Connect's research are outlined below:
| Steel Connect generated a negative expected return over the last 90 days | |
| Steel Connect has high historical volatility and very poor performance | |
| Steel Connect is unlikely to experience financial distress in the next 2 years | |
| Steel Connect has a poor financial position based on the latest SEC disclosures | |
| About 67.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Steel Connect Inc Q4 Earnings Net Revenue Rises 12.4 percent to 45.9M, Net Income Falls 19. ... |
Steel Connect Quarterly Liabilities And Stockholders Equity |
|
Steel Connect uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Steel Connect. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Steel Connect's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 20th of March 2024 Upcoming Quarterly Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View |
Know Steel Connect's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Steel Connect is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Steel Connect backward and forwards among themselves. Steel Connect's institutional investor refers to the entity that pools money to purchase Steel Connect's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Blackrock Inc | 2024-06-30 | 9.7 K | Compagnie Lombard, Odier Sca | 2024-09-30 | 84.0 | Bank Of America Corp | 2024-06-30 | 83.0 | Royal Bank Of Canada | 2024-06-30 | 72.0 | Jpmorgan Chase & Co | 2024-06-30 | 8.0 | Crédit Agricole S.a. | 2024-06-30 | 3.0 | Ubs Group Ag | 2024-06-30 | 1.0 | Sontag Advisory Llc | 2024-06-30 | 0.0 | Summit Trail Advisors, Llc | 2024-06-30 | 0.0 | Steel Partners Holdings Lp | 2024-09-30 | 3.5 M | Gabelli Funds Llc | 2024-09-30 | 238.5 K |
Steel Connect's market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 63.55 M.Market Cap |
|
Steel Connect's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.20 | 0.21 | |
| Return On Capital Employed | 0.02 | 0.02 | |
| Return On Assets | 0.18 | 0.19 | |
| Return On Equity | 0.56 | 0.58 |
Determining Steel Connect's profitability involves analyzing its financial statements and using various financial metrics to determine if Steel Connect is a good buy. For example, gross profit margin measures Steel Connect's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Steel Connect's profitability and make more informed investment decisions.
Steel Connect's Earnings Breakdown by Geography
Evaluate Steel Connect's management efficiency
Steel Connect has return on total asset (ROA) of 0.0104 % which means that it generated a profit of $0.0104 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.252 %, meaning that it created $0.252 on every $100 dollars invested by stockholders. Steel Connect's management efficiency ratios could be used to measure how well Steel Connect manages its routine affairs as well as how well it operates its assets and liabilities. As of the 25th of November 2024, Return On Tangible Assets is likely to grow to 0.21. Also, Return On Capital Employed is likely to grow to 0.02. At this time, Steel Connect's Return On Assets are very stable compared to the past year.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 63.03 | 59.88 | |
| Tangible Book Value Per Share | 54.87 | 84.54 | |
| Enterprise Value Over EBITDA | (18.03) | (17.13) | |
| Price Book Value Ratio | 0.52 | 0.49 | |
| Enterprise Value Multiple | (18.03) | (17.13) | |
| Price Fair Value | 0.52 | 0.49 | |
| Enterprise Value | -23.7 M | -22.6 M |
Steel Connect showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta 0.201 |
Basic technical analysis of Steel Stock
As of the 25th of November, Steel Connect has the Variance of 9.36, risk adjusted performance of (0.04), and Coefficient Of Variation of (1,477). In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Steel Connect, as well as the relationship between them.Steel Connect's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Steel Connect insiders, such as employees or executives, is commonly permitted as long as it does not rely on Steel Connect's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Steel Connect insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Steel Connect's Outstanding Corporate Bonds
Steel Connect issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Steel Connect uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Steel bonds can be classified according to their maturity, which is the date when Steel Connect has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Volcan Compania Minera Corp BondUSP98047AC08 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MPLX LP 4875 Corp BondUS55336VAG59 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| International Game Technology Corp BondUS460599AD57 | View |
Understand Steel Connect's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Steel Connect's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (2.11) | |||
| Mean Deviation | 2.22 | |||
| Coefficient Of Variation | (1,477) | |||
| Standard Deviation | 3.06 | |||
| Variance | 9.36 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.70) | |||
| Treynor Ratio | (2.12) | |||
| Maximum Drawdown | 16.18 | |||
| Value At Risk | (5.29) | |||
| Potential Upside | 4.41 | |||
| Skewness | (0.29) | |||
| Kurtosis | 1.01 |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (2.11) | |||
| Mean Deviation | 2.22 | |||
| Coefficient Of Variation | (1,477) | |||
| Standard Deviation | 3.06 | |||
| Variance | 9.36 | |||
| Information Ratio | (0.11) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.70) | |||
| Treynor Ratio | (2.12) | |||
| Maximum Drawdown | 16.18 | |||
| Value At Risk | (5.29) | |||
| Potential Upside | 4.41 | |||
| Skewness | (0.29) | |||
| Kurtosis | 1.01 |
Consider Steel Connect's intraday indicators
Steel Connect intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Steel Connect stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Steel Connect Corporate Filings
| 13th of November 2024 Other Reports | ViewVerify | |
10K | 6th of November 2024 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 29th of October 2024 Other Reports | ViewVerify | |
F4 | 2nd of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Steel Stock media impact
Far too much social signal, news, headlines, and media speculation about Steel Connect that are available to investors today. That information is available publicly through Steel media outlets and privately through word of mouth or via Steel internal channels. However, regardless of the origin, that massive amount of Steel data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Steel Connect news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Steel Connect relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Steel Connect's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Steel Connect alpha.
Steel Connect Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Steel Connect can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Steel Connect Corporate Management
| Michael Macmanus | General VP | Profile | |
| Glenn Brower | Vice Sales | Profile | |
| Joseph Sherk | Advisor | Profile | |
| Jason Wong | Chief Officer | Profile | |
| Tim Barclay | Chief Officer | Profile |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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.
In summary, please note that there is a difference between Steel Connect's value and its price, as these two are different measures arrived at by various 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.