DB:K2R

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Executive Summary

StarTek, Inc. operates as a business process outsourcing company that provides omnichannel customer interactions, technology, and back-office support solutions.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has StarTek's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: K2R's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

K2R

6.8%

DE IT

4.3%

DE Market


1 Year Return

-48.6%

K2R

-12.1%

DE IT

0.3%

DE Market

Return vs Industry: K2R underperformed the German IT industry which returned -15.8% over the past year.

Return vs Market: K2R underperformed the German Market which returned -2.6% over the past year.


Shareholder returns

K2RIndustryMarket
7 Day3.8%6.8%4.3%
30 Day15.2%6.5%7.4%
90 Day-38.0%-0.1%-0.2%
1 Year-48.6%-48.6%-11.7%-12.1%2.0%0.3%
3 Yearn/a70.5%66.1%-5.0%-12.3%
5 Yearn/a208.4%194.7%4.2%-9.2%

Price Volatility Vs. Market

How volatile is StarTek's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is StarTek undervalued compared to its fair value and its price relative to the market?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: K2R (€3.78) is trading below our estimate of fair value (€4.98)

Significantly Below Fair Value: K2R is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: K2R is unprofitable, so we can't compare its PE Ratio to the IT industry average.

PE vs Market: K2R is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate K2R's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: K2R is good value based on its PB Ratio (0.7x) compared to the DE IT industry average (3.8x).


Next Steps

Future Growth

How is StarTek forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

127.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: K2R is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.2%).

Earnings vs Market: K2R is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: K2R's is expected to become profitable in the next 3 years.

Revenue vs Market: K2R's revenue (2.8% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: K2R's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if K2R's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has StarTek performed over the past 5 years?

-68.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: K2R is currently unprofitable.

Growing Profit Margin: K2R is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: K2R is unprofitable, and losses have increased over the past 5 years at a rate of -68.7% per year.

Accelerating Growth: Unable to compare K2R's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: K2R is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (4.8%).


Return on Equity

High ROE: K2R has a negative Return on Equity (-4.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is StarTek's financial position?


Financial Position Analysis

Short Term Liabilities: K2R's short term assets ($194.6M) exceed its short term liabilities ($172.4M).

Long Term Liabilities: K2R's short term assets ($194.6M) do not cover its long term liabilities ($213.9M).


Debt to Equity History and Analysis

Debt Level: K2R's debt to equity ratio (63.8%) is considered high.

Reducing Debt: Insufficient data to determine if K2R's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: Whilst unprofitable K2R has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: K2R is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 42.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate K2R's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate K2R's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if K2R's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if K2R's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of K2R's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.2yrs

Average management tenure


CEO

Aparup Sengupta (55yo)

0.33

Tenure

US$90,000

Compensation

Mr. Aparup Sengupta, B.E., serves as Executive Chairman & Global CEO at StarTek, Inc. since January 15, 2020. Mr. Sengupta was the President at StarTek, Inc. until March 25, 2020. He serves as Operating Pa ...


Leadership Team

NamePositionTenureCompensationOwnership
Aparup Sengupta
Executive Chairman & Global CEO0.33yrUS$90.00kno data
Surender Gupta
Global Chief People Officerno dataUS$355.65kno data
Rajiv Ahuja
President0.17yrno datano data
Ramesh Kamath
Chief Financial Officer1.75yrsno datano data
Mario Baddour
Global Chief Operating Officer0.083yrno datano data
Doug Tackett
Global Chief Legal & Compliance Officer and Secretary1.33yrsno datano data
Mansour Ali Aldalaan
Chief Executive Officer at Contact Centre Company0.17yrno datano data
Sanjeev Sinha
Global CIO & Chief Digital Officer0.17yrno datano data

0.2yrs

Average Tenure

55yo

Average Age

Experienced Management: K2R's management team is not considered experienced ( 0.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Aparup Sengupta
Executive Chairman & Global CEO0.33yrUS$90.00kno data
Albert Aboody
Independent Director1.17yrsUS$67.50kno data
Sanjay Chakrabarty
Director1.83yrsUS$90.00kno data
Julie Schoenfeld
Independent Director1.33yrsUS$90.00k0.057% $85.7k
Mukesh Sharda
Director1.83yrsUS$90.00kno data
Bharat Rao
Director1.83yrsUS$90.00kno data
Jerry Schafer
Independent Director1.17yrsUS$67.50kno data

1.8yrs

Average Tenure

55yo

Average Age

Experienced Board: K2R's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

StarTek, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: StarTek, Inc.
  • Ticker: K2R
  • Exchange: DB
  • Founded: 1987
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$166.443m
  • Listing Market Cap: US$151.563m
  • Shares outstanding: 38.53m
  • Website: https://www.startek.com

Number of Employees


Location

  • StarTek, Inc.
  • Carrara Place
  • 4th Floor Suite 485
  • Greenwood Village
  • Colorado
  • 80111
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRTNYSE (New York Stock Exchange)YesNew Common SharesUSUSDJul 2018
K2RDB (Deutsche Boerse AG)YesNew Common SharesDEEURJul 2018

Biography

StarTek, Inc. operates as a business process outsourcing company that provides omnichannel customer interactions, technology, and back-office support solutions. It primarily offers customer engagement consulting, omnichannel engagement, social media, customer intelligence analytics, back office, and receivables management services under the Startek and Aegis brands. The company serves telecom, media and cable, e-commerce and consumer, financial and business services and healthcare and education sectors. It operates in India, Sri Lanka, the Middle East, Malaysia, Argentina, Peru, the United States, and internationally. The company was founded in 1987 and is based in Greenwood Village, Colorado. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 01:15
End of Day Share Price2020/05/28 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.