L.S. Starrett
Market Cap
US$37.4m
Last Updated
2019/10/23 23:45 UTC
Data Sources
Company Financials
Executive Summary
The L.S. Starrett Company, together with its subsidiaries, manufactures and sells industrial, professional, and consumer measuring and cutting tools, and related products primarily in North America, Brazil, China, the United Kingdom, Australia, and New Zealand.
Snowflake
Fundamentals
Undervalued with excellent balance sheet.
Similar Companies
Share Price & News
How has L.S. Starrett's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
-0.8%
SCX
3.9%
US Machinery
0.4%
US Market
1 Year Return
-4.0%
SCX
18.9%
US Machinery
11.4%
US Market
Return vs Industry: SCX underperformed the US Machinery industry which returned 18.9% over the past year.
Return vs Market: SCX underperformed the US Market which returned 11.4% over the past year.
Shareholder returns
| SCX | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.8% | 3.9% | 0.4% |
| 30 Day | -3.1% | 4.0% | 0.3% |
| 90 Day | -12.1% | 0.5% | -1.2% |
| 1 Year | -4.0%-4.0% | 21.4%18.9% | 13.9%11.4% |
| 3 Year | -40.6%-43.8% | 55.6%45.6% | 47.2%37.6% |
| 5 Year | -59.9%-64.4% | 57.9%38.7% | 62.4%44.6% |
Price Volatility Vs. Market
How volatile is L.S. Starrett's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
How Should Investors Feel About The L.S. Starrett Company's (NYSE:SCX) CEO Pay?1 month ago | Simply Wall St
Some L.S. Starrett (NYSE:SCX) Shareholders Have Copped A Big 63% Share Price Drop1 month ago | Simply Wall St
The L.S. Starrett Company’s (NYSE:SCX) Investment Returns Are Lagging Its IndustryValuation
Is L.S. Starrett undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SCX ($5.28) is trading below our estimate of fair value ($17.53)
Significantly Below Fair Value: SCX is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SCX is good value based on its PE Ratio (6x) compared to the Machinery industry average (20.8x).
PE vs Market: SCX is good value based on its PE Ratio (6x) compared to the US market (17.7x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SCX's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SCX is good value based on its PB Ratio (0.4x) compared to the US Machinery industry average (2.3x).
Next Steps
Future Growth
How is L.S. Starrett forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
9.7%
Forecasted Capital Goods industry annual growth in earnings
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 L.S. Starrett 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 SimplyWall St do have past financial data.
Next Steps
- Examine whether L.S. Starrett is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- L.S. Starrett competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Capital Goods industry.
Past Performance
How has L.S. Starrett performed over the past 5 years?
-19.5%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: SCX's earnings have declined by -19.5% per year over the past 5 years.
Accelerating Growth: SCX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: SCX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (18.3%).
Return on Equity
High ROE: SCX's Return on Equity (7.3%) is considered low.
Return on Assets
ROA vs Industry: SCX's Return on Assets is below or equal to the Machinery industry average last year.
Return on Capital Employed
ROCE Improving: SCX's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is L.S. Starrett's financial position?
Financial Position Analysis
Short Term Liabilities: SCX's short term assets ($120.0M) exceeds its short term liabilities ($32.7M)
Long Term Liabilities: SCX's short term assets (120.0M) exceeds its long term liabilities (74.0M)
Debt to Equity History and Analysis
Debt Level: SCX's debt to equity ratio (25.9%) is considered satisfactory
Reducing Debt: SCX's debt to equity ratio has increased from 15.5% to 25.9% over the past 5 years.
Debt Coverage: SCX's debt is well covered by operating cash flow (38.9%).
Interest Coverage: SCX's interest payments on its debt are well covered by EBIT (11.4x coverage).
Balance Sheet
Inventory Level: SCX has a high level of physical assets or inventory.
Debt Coverage by Assets: SCX's debt is covered by short term assets (assets are 5.6x debt).
Next Steps
Dividend
What is L.S. Starrett's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate SCX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate SCX's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stable Dividend: Insufficient data to determine if SCX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SCX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: SCX is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SCX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
What is the CEO of L.S. Starrett's salary, the management and board of directors tenure and is there insider trading?
9.1yrs
Average board tenure
CEO
Douglas Starrett (67yo)
18.1yrs
Tenure
US$1,450,786
Compensation
Mr. Douglas A. Starrett has been the Chief Executive Officer at The L.S. Starrett Company since September 9, 2001 and has been its President since 1995. Mr. Starrett served as Chairman of The L.S. Starret ...
CEO Compensation Analysis
Compensation vs. Market: Douglas's total compensation ($USD1.45M) is about average for companies of similar size in the US market ($USD505.79K).
Compensation vs Earnings: Douglas's compensation has been consistent with company performance over the past year.
Board Age and Tenure
9.1yrs
Average Tenure
67yo
Average Age
Experienced Board: SCX's board of directors are considered experienced (9.1 years average tenure).
Insider Trading
Insider Buying: SCX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Executive Officer President |
| Shares | 10,500 |
| Max Price | US$6.34 |
| Entity | Individual |
| Shares | 13,500 |
| Max Price | US$6.34 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 1,166 |
| Max Price | US$5.54 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,166 |
| Max Price | US$5.54 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,999 |
| Max Price | US$5.54 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,999 |
| Max Price | US$5.54 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,999 |
| Max Price | US$5.54 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 833 |
| Max Price | US$4.98 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 833 |
| Max Price | US$4.98 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 833 |
| Max Price | US$4.98 |
Ownership Breakdown
Management Team
Douglas Starrett (67yo)
President
- Tenure: 18.1yrs
- Compensation: US$1.45m
Board Members
Tom Riordan (62yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$59.19k
Douglas Starrett (67yo)
President
- Tenure: 18.1yrs
- Compensation: US$1.45m
Richard Kennedy (76yo)
Independent Director
- Tenure: 23.8yrs
- Compensation: US$62.19k
Chris Gahagan (55yo)
Independent Director
- Tenure: 1.8yrs
- Compensation: US$59.19k
Terry Piper (74yo)
Independent Director
- Tenure: 15.8yrs
- Compensation: US$61.19k
David Lemoine (71yo)
Independent Director
- Tenure: 9.1yrs
- Compensation: US$64.19k
Russell Carreker (55yo)
Director
- Tenure: 1.8yrs
- Compensation: US$59.19k
Company Information
The L.S. Starrett Company's company bio, employee growth, exchange listings and data sources
Key Information
- Name: The L.S. Starrett Company
- Ticker: SCX
- Exchange: NYSE
- Founded: 1880
- Industry: Industrial Machinery
- Sector: Capital Goods
- Market Cap: US$37.361m
- Shares outstanding: 6.90m
- Website: https://www.starrett.com
Number of Employees
Location
- The L.S. Starrett Company
- 121 Crescent Street
- Athol
- Massachusetts
- 1331
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SCX | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Jan 1968 |
| SCXL.B | OTCPK (Pink Sheets LLC) | Class B Common Stock | US | USD | Jun 2003 |
Biography
The L.S. Starrett Company, together with its subsidiaries, manufactures and sells industrial, professional, and consumer measuring and cutting tools, and related products primarily in North America, Brazil ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:45 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2019/06/30 |
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.