L.S. Starrett
Market Cap
US$24.5m
Last Updated
2020/03/31 01:55 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.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate 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
Stable Share Price: SCX's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
1.9%
SCX
9.2%
US Machinery
7.2%
US Market
1 Year Return
-56.6%
SCX
-22.1%
US Machinery
-10.4%
US Market
Return vs Industry: SCX underperformed the US Machinery industry which returned -24.4% over the past year.
Return vs Market: SCX underperformed the US Market which returned -12.7% over the past year.
Shareholder returns
| SCX | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.9% | 9.2% | 7.2% |
| 30 Day | -28.1% | -19.4% | -12.6% |
| 90 Day | -42.7% | -29.0% | -19.4% |
| 1 Year | -56.6%-56.6% | -19.8%-22.1% | -8.5%-10.4% |
| 3 Year | -66.2%-67.4% | 0.6%-6.7% | 15.8%8.3% |
| 5 Year | -81.3%-83.2% | 22.3%6.8% | 35.8%21.0% |
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
A Sliding Share Price Has Us Looking At The L.S. Starrett Company's (NYSE:SCX) P/E Ratio2 weeks ago | Simply Wall St
How Much Of The L.S. Starrett Company (NYSE:SCX) Do Institutions Own?1 month ago | Simply Wall St
Do You Know What The L.S. Starrett Company's (NYSE:SCX) P/E Ratio Means?Valuation
Is L.S. Starrett undervalued compared to its fair value and its price relative to the market?
4.04x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: Insufficient data to calculate SCX's fair value to establish if it is undervalued.
Significantly Below Fair Value: Insufficient data to calculate SCX's fair value to establish if it is undervalued.
Price To Earnings Ratio
PE vs Industry: SCX is good value based on its PE Ratio (4.1x) compared to the Machinery industry average (15x).
PE vs Market: SCX is good value based on its PE Ratio (4.1x) compared to the US market (13x).
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 (0.3x) compared to the US Machinery industry average (1.5x).
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?
6.6%
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?
4.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCX has high quality earnings.
Growing Profit Margin: SCX's current net profit margins (2.5%) are higher than last year (2.3%).
Past Earnings Growth Analysis
Earnings Trend: SCX's earnings have grown by 4.9% per year over the past 5 years.
Accelerating Growth: SCX's earnings growth over the past year (12.8%) exceeds its 5-year average (4.9% per year).
Earnings vs Industry: SCX earnings growth over the past year (12.8%) exceeded the Machinery industry -2%.
Return on Equity
High ROE: SCX's Return on Equity (6.6%) is considered low.
Next Steps
Financial Health
How is L.S. Starrett's financial position?
Financial Position Analysis
Short Term Liabilities: SCX's short term assets ($114.9M) exceed its short term liabilities ($30.6M).
Long Term Liabilities: SCX's short term assets ($114.9M) exceed its long term liabilities ($76.2M).
Debt to Equity History and Analysis
Debt Level: SCX's debt to equity ratio (26.9%) is considered satisfactory.
Reducing Debt: SCX's debt to equity ratio has increased from 16.8% to 26.9% over the past 5 years.
Debt Coverage: SCX's debt is not well covered by operating cash flow (14.6%).
Interest Coverage: SCX's interest payments on its debt are well covered by EBIT (11.5x 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 5x debt).
Next Steps
Dividend
What is L.S. Starrett's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
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.
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
0.4yrs
Average management tenure
CEO
Douglas Starrett (67yo)
18.42s
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 above average for companies of similar size in the US market ($USD605.16K).
Compensation vs Earnings: Douglas's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 18.42yrs | US$1.45m | 1.95% $477.6k | |
| Chief Financial Officer | 0.25yr | no data | no data | |
| CFO & Principal Accounting Officer | 0.42yr | no data | no data |
0.4yrs
Average Tenure
57yo
Average Age
Experienced Management: SCX's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 18.42yrs | US$1.45m | 1.95% $477.6k | |
| Independent Director | 2.17yrs | US$59.19k | 0.55% $135.1k | |
| Independent Director | 24.17yrs | US$62.19k | 0.059% $14.4k | |
| Independent Director | 2.17yrs | US$59.19k | 0.041% $10.0k | |
| Independent Director | 16.25yrs | US$61.19k | 0.10% $24.4k | |
| Independent Director | 9.42yrs | US$64.19k | 0.11% $26.2k | |
| Director | 2.17yrs | US$59.19k | 0.18% $44.2k |
9.4yrs
Average Tenure
67yo
Average Age
Experienced Board: SCX's board of directors are considered experienced (9.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SCX insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$24.535m
- Shares outstanding: 6.96m
- 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, China, the United Kingdom, Australia, and New Zealand. The company’s products include precision tools, electronic gages, gage blocks, optical vision and laser measuring equipment, custom engineered granite solutions, squares, band saw blades, hole saws, hacksaw blades, jig saw blades, and reciprocating saw blades, as well as M1 lubricant and precision ground flat stock products. It also provides measuring tools, such as micrometers, vernier calipers, height gages, depth gages, dial indicators, steel rules, and combination squares, as well as custom, non-contact, and in-process gaging products; and force measurement and material test equipment. In addition, the company offers material test systems comprising hardware and software; manual and automated field of view measurement systems; and hand tools for measuring, marking, and layout that include tapes, levels, chalk lines, and other products for building trades, and construction and retail trades. Further, it provides carbide tipped products for cutting ferrous materials, and non-ferrous metals and castings. The company primarily distributes its precision hand tools, and saw and construction products through distributors or resellers. It serves the metalworking, aerospace, medical, and automotive markets; marine and farm equipment shops, and do-it-yourselfers; and tradesmen, which comprise builders, carpenters, plumbers, and electricians. The L.S. Starrett Company was founded in 1880 and is headquartered in Athol, Massachusetts.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 01:55 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2019/12/31 |
| 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.