The L.S. Starrett Company

Informe acción NYSE:SCX

Capitalización de mercado: US$118.7m

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

L.S. Starrett Resultados de beneficios anteriores

Pasado controles de criterios 2/6

L.S. Starrett ha aumentado sus beneficios a una tasa media anual de 36.5%, mientras que los beneficios de la industria de Machinery han experimentado un crecimiento de 8% anual. Los ingresos han ido creciendo a una tasa media de 4.2% al año. La rentabilidad financiera de L.S. Starrett es de 9.7%, y sus márgenes netos son de 5%.

Información clave

36.50%

Tasa de crecimiento de los beneficios

35.53%

Tasa de crecimiento del BPA

Crecimiento de la industria Machinery 8.77%
Tasa de crecimiento de los ingresos4.25%
Rentabilidad financiera9.68%
Margen neto5.02%
Última actualización de beneficios31 Mar 2024

Actualizaciones de resultados anteriores recientes

Recent updates

Artículo de análisis • Jan 27

Is L.S. Starrett (NYSE:SCX) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...
Artículo de análisis • Sep 16

L.S. Starrett (NYSE:SCX) Has A Pretty Healthy Balance Sheet

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Artículo de análisis • May 27

The Return Trends At L.S. Starrett (NYSE:SCX) Look Promising

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? One common approach...
Seeking Alpha • May 25

L.S. Starrett Company: Cheap But Declining Order Rate Is A Concern

Summary Order rate has been declining over the last few quarters, which should impact top-line growth in the coming quarters. Volume deleverage should impact margins. Despite cheap valuations, I have a neutral rating on the stock. Read the full article on Seeking Alpha
Seeking Alpha • Feb 03

L.S. Starrett: Lean Business, Pension Plan Issues Seem Resolved

Summary The company weathered the effects of the COVID-19 pandemic well and is currently trading at just 4.5x price /TTM earnings and 0.63x price/BV. In addition, rising interest rates have significantly diminished its pension plan funding issues. I think that the valuation of L.S. Starrett could improve to about 0.8 price/BV over the coming months and I rate the stock as a speculative buy. Introduction I like to write about companies that lack coverage on SA and today I'm taking a look at The L.S. Starrett Company (SCX). It's a precision tools maker that has been around for over a century and I think it looks undervalued at the moment as FY23 is off to a good start and TTM net income stands at $13.7 million. The gross margin improved by 70 basis points year on year to 33.4% in Q1 FY23 as it seems the company is successfully passing on increased costs to customers. In addition, the lingering pension plan funding issues seem much smaller than they used to be. Let’s review. Overview of the business and financials The L.S. Starrett Company was founded 1880 in a small town in Massachusetts named Athol by Laroy Starrett, who invented and patented the first combination square two years before that. The company was set up to manufacture this product and today it has a portfolio of over 5,000 precision tools, cutting equipment, and metrology systems products for the metalworking, automotive, aviation, marine, and farm industries and the do-it-yourselfers (DIY) sector. It’s also the largest manufacturer of saw blades in the world. L.S. Starrett is still based in Athol and it has a total of 9 manufacturing facilities across the USA, Brazil, China, and Scotland. The largest of those is in Athol and about half of the company’s sales come from outside the USA. L.S. Starrett Looking at the financial results for the past decade, L.S. Starrett started struggling with sales growth and low margins in the middle of the past decade due to recessions and stagnation across some of its main markets such as Brazil and the EU. The company responded by reducing its headcount and implementing saw plant consolidation and these measures helped it return to growth in FY18. In my view, this restructuring of the business positioned the company well to weather the effects of the COVID-19 pandemic as FY22 sales were the second highest in its history, just shy of the $260.1 million achieved in FY12. Yet, the cost structure was much better this time around thanks to optimized SG&A costs and net income came in at $14.9 million compared to just $0.9 million in FY12. Seeking Alpha The company has been implementing price increases over the past several months to counter pressure from inflation and supply chain disruptions and this allowed it to boost its gross margin to 33.4% in Q1 FY23. Net sales and net income were negatively impacted by foreign exchange losses as the U.S. dollar strengthened against the currencies of Brazil, the UK, and New Zealand, but the effects should be reversed in Q4 2022. I expect net income for the last quarter of the calendar year to be above $3 million once again. L.S. Starrett L.S. Starrett However, I find it concerning that L.S. Starrett complained about softened order intake in its foreign markets, particularly in Europe as a result of recession fears and the effects from the war in Ukraine. In my view, the impact should be limited considering that the major market of the company outside the USA is Brazil. L.S. Starrett On that note, it’s still unclear what direction the Brazilian economy will take with the election of Lula as president. During his previous stint ahead of the country, average annual GDP growth was 4.5% but there were headwinds for the economy from strong global demand commodities. I’d be surprised if GDP growth in 2023 surpasses 1% and it’s possible that some of his policies are already negatively affecting the sales of L.S. Starrett in the country. For example, Lula’s plans to reverse Amazon deforestation could be already putting pressure on local saw blade demand. Turning our attention to the cash flow picture, I don’t like the lack of free cash flow, but the situation should improve in the coming quarters. In Q1 FY23, L.S. Starrett increased inventories by $5 million due to global supply chain issues. They should decline over the coming months. L.S. Starrett In my view, the balance sheet looks strong as net debt stood at just $17.5 million as of September 2022. In addition, L.S. Starrett is trading at only 0.63 price/BV as of the time of writing. This is close to the levels from 2012 when profitability was an issue. L.S. Starrett In April 2022, fellow SA contributor Tomas Andrade Campanini pointed out that the company had underfunded pension obligations which require about $8 million in yearly funding. However, the situation looks better today thanks to rising interest rates around the world and L.S. Starrett revealed in its Q1 FY23 financial report that its two pension plans are expected to require contributions of just $2.2 million in FY23 (see page 13 here). Overall, I think that L.S. Starrett is in good shape from a financial standpoint and that its FY23 financial results should benefit from rising interest rates and a weakening US dollar. In my view, the company should be trading at somewhere around 0.8 P/BV to reflect the improved financial performance and diminished pension plan funding issues.
Artículo de análisis • Nov 05

Here's Why L.S. Starrett (NYSE:SCX) Can Manage Its Debt Responsibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Artículo de análisis • May 11

These 4 Measures Indicate That L.S. Starrett (NYSE:SCX) Is Using Debt Extensively

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...
Seeking Alpha • Apr 12

The Starrett Company Is Selling At A Discount Because Of Its Underfunded Pension Plan

SCX manufactures a gigantic array of tools that are sold to several industries and to consumers. The company does not suffer from ultra low margins but does not have a tremendous moat either. Although the company has suffered from volatile revenues, it has consistently increased gross margins and decreased operating expenses. With conservative financing, the company does not seem risky in terms of leverage. However, its underfunded pension obligations require an unaccounted cash expenditure of $8 million per year.
Artículo de análisis • Jan 18

Is L.S. Starrett (NYSE:SCX) Using Too Much Debt?

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Artículo de análisis • Nov 02

There's Been No Shortage Of Growth Recently For L.S. Starrett's (NYSE:SCX) Returns On Capital

If we want to find a potential multi-bagger, often there are underlying trends that can provide clues. Firstly, we'd...
Artículo de análisis • Oct 07

Why We Think The L.S. Starrett Company's (NYSE:SCX) CEO Compensation Is Not Excessive At All

The L.S. Starrett Company ( NYSE:SCX ) has exhibited strong share price growth in the past few years. However, its...
Seeking Alpha • Sep 08

L.S. Starrett Doubled As Predicted And May Double Again

L.S. Starrett is a microcap tool manufacturer that has rallied on strong and accelerating earnings over the past four quarters. Yet it still trades at a PE ratio of about 6. Earnings growth is being driven by a large permanent cost reduction, a much lower pension obligation, and revenue growth. Despite being solidly profitable and with an improved balance sheet, the stock trades at tangible book value and for 36% of revenues.
Artículo de análisis • Sep 03

Is L.S. Starrett (NYSE:SCX) Using Debt Sensibly?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...
Artículo de análisis • Feb 18

Health Check: How Prudently Does L.S. Starrett (NYSE:SCX) Use Debt?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Artículo de análisis • Dec 10

Thomas Riordan Is The Lead Independent Director of The L.S. Starrett Company (NYSE:SCX) And They Just Picked Up 45% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the The L.S. Starrett Company ( NYSE:SCX ) Lead...
Artículo de análisis • Nov 20

Is L.S. Starrett (NYSE:SCX) A Risky Investment?

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' It's only natural to consider a company's...

Desglose de ingresos y gastos

Cómo gana y gasta dinero L.S. Starrett. Basado en los últimos beneficios reportados, en base a los últimos doce meses (LTM).

Historial de beneficios e ingresos

NYSE:SCX Ingresos, gastos y beneficios (USD Millions)
FechaIngresosBeneficiosGastos G+AGastos de I+D
31 Mar 2425113524
31 Dec 2325219514
30 Sep 2325623514
30 Jun 2325623504
31 Mar 2325917604
31 Dec 2225814594
30 Sep 2225314584
30 Jun 2225415574
31 Mar 2224515563
31 Dec 2123913553
30 Sep 2123215553
30 Jun 2122016533
31 Mar 21201-13664
31 Dec 20196-16684
30 Sep 20199-19694
30 Jun 20201-22724
31 Mar 202204614
31 Dec 192296624
30 Sep 192286614
30 Jun 192286614
31 Mar 192245614
31 Dec 182215614
30 Sep 18216-3614
30 Jun 18216-4614
31 Mar 18213-5604
31 Dec 17209-7604
30 Sep 172101594
30 Jun 172071594
31 Mar 17207-14632
31 Dec 16207-13612
30 Sep 16208-13612
30 Jun 16210-14603
31 Mar 162160592
31 Dec 152222602
30 Sep 152324642
30 Jun 152425662
31 Mar 152509691
31 Dec 142528691
30 Sep 142507691
30 Jun 142477681
31 Mar 142455691
31 Dec 132462701
30 Sep 132440701
30 Jun 132440721

Ingresos de calidad: SCX tiene ganancias de alta calidad.

Margen de beneficios creciente: Los actuales márgenes de beneficio(5%) de SCX son inferiores a los del año pasado (6.7%).

Análisis del flujo de caja libre vs. Beneficios

Análisis del crecimiento de los beneficios en el pasado

Tendencia de beneficios: En los últimos 5 años, los beneficios de lSCX han crecido significativamente en un 36.5% al año.

Acelerando crecimiento: SCX ha tenido un crecimiento negativo de los beneficios en el último año, por lo que no puede compararse con su media de 5 años.

Beneficios vs. Industria: SCX tuvo un crecimiento negativo de los beneficios (-28%) durante el año pasado, lo que dificulta la comparación con la media de la industria Machinery (1.6%).

Rentabilidad financiera

Alta ROE: La rentabilidad financiera de SCX (9.7%) se considera baja.

Rentabilidad económica

Rendimiento del capital invertido

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Análisis de la empresa y estado de los datos financieros

DatosÚltima actualización (huso horario UTC)
Análisis de la empresa2024/05/23 16:22
Precio de las acciones al final del día2024/05/23 00:00
Beneficios2024/03/31
Ingresos anuales2023/06/30

Fuentes de datos

Los datos utilizados en nuestro análisis de empresas proceden de S&P Global Market Intelligence LLC. Los siguientes datos se utilizan en nuestro modelo de análisis para generar este informe. Los datos están normalizados, lo que puede introducir un retraso desde que la fuente está disponible.

PaqueteDatosMarco temporalEjemplo Fuente EE.UU. *
Finanzas de la empresa10 años
  • Cuenta de resultados
  • Estado de tesorería
  • Balance
Estimaciones del consenso de analistas+3 años
  • Previsiones financieras
  • Objetivos de precios de los analistas
Precios de mercado30 años
  • Precios de las acciones
  • Dividendos, escisiones y acciones
Propiedad10 años
  • Accionistas principales
  • Información privilegiada
Gestión10 años
  • Equipo directivo
  • Consejo de Administración
Principales avances10 años
  • Anuncios de empresas

* Ejemplo para valores de EE.UU., para no EE.UU. se utilizan formularios y fuentes normativas equivalentes.

A menos que se especifique lo contrario, todos los datos financieros se basan en un periodo anual, pero se actualizan trimestralmente. Esto se conoce como datos de los últimos doce meses (TTM) o de los últimos doce meses (LTM). Más información.

Modelo de análisis y copo de nieve

Los detalles del modelo de análisis utilizado para generar este informe están disponibles en nuestra página de Github, también tenemos guías sobre cómo utilizar nuestros informes y tutoriales en Youtube.

Conozca al equipo de talla mundial que diseñó y construyó el modelo de análisis Simply Wall St.

Métricas industriales y sectoriales

Simply Wall St calcula cada 6 horas nuestras métricas sectoriales y de sección. Los detalles de nuestro proceso están disponibles en Github.

Fuentes analistas

The L.S. Starrett Company está cubierta por 0 analistas. 0 de esos analistas presentaron las estimaciones de ingresos o ganancias utilizadas como datos para nuestro informe. Las estimaciones de los analistas se actualizan a lo largo del día.