NYSE:SCX

Stock Analysis Report

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

SCXIndustryMarket
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

Valuation

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

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

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

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

BuyUS$66,57025 Sep 19
Douglas Starrett
EntityIndividual
Role
Chief Executive Officer
President
Shares10,500
Max PriceUS$6.34
BuyUS$85,59025 Sep 19
Francis O'Brien
EntityIndividual
Shares13,500
Max PriceUS$6.34
BuyUS$6,46025 Sep 19
Russell Carreker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,166
Max PriceUS$5.54
BuyUS$6,46025 Sep 19
Christopher Gahagan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,166
Max PriceUS$5.54
BuyUS$11,05825 Sep 19
Terry Piper
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,999
Max PriceUS$5.54
BuyUS$11,05825 Sep 19
Richard Kennedy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,999
Max PriceUS$5.54
BuyUS$11,05825 Sep 19
David Lemoine
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,999
Max PriceUS$5.54
BuyUS$4,14814 Dec 18
Thomas Riordan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares833
Max PriceUS$4.98
BuyUS$4,14814 Dec 18
Christopher Gahagan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares833
Max PriceUS$4.98
BuyUS$4,14814 Dec 18
Russell Carreker
EntityIndividual
Role
Member of the Board of Directors
Director
Shares833
Max PriceUS$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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCXNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJan 1968
SCXL.BOTCPK (Pink Sheets LLC)Class B Common StockUSUSDJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:45
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.