L.S. Starrett
Market Cap
US$47.3m
Last Updated
2021/03/04 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 in the United States, Canada, Mexico, Brazil, China, the United Kingdom, Australia, and New Zealand. More Details
Risk Analysis
Snowflake Analysis
Imperfect balance sheet and overvalued.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: SCX's weekly volatility (9%) has been stable over the past year.
Market Performance
7 Day Return
-2.3%
SCX
-1.3%
US Machinery
-2.4%
US Market
1 Year Return
43.5%
SCX
50.7%
US Machinery
31.2%
US Market
Return vs Industry: SCX underperformed the US Machinery industry which returned 50.8% over the past year.
Return vs Market: SCX exceeded the US Market which returned 36.6% over the past year.
Shareholder returns
| SCX | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.3% | -1.3% | -2.4% |
| 30 Day | 28.0% | 4.9% | -3.0% |
| 90 Day | 48.2% | 10.8% | 3.2% |
| 1 Year | 43.5%43.5% | 54.4%50.7% | 34.1%31.2% |
| 3 Year | -26.7%-26.7% | 44.7%34.4% | 48.1%38.6% |
| 5 Year | -34.5%-39.8% | 154.9%128.8% | 116.5%92.3% |
Long-Term 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
Health Check: How Prudently Does L.S. Starrett (NYSE:SCX) Use Debt?2 months ago | Simply Wall St
Thomas Riordan Is The Lead Independent Director of The L.S. Starrett Company (NYSE:SCX) And They Just Picked Up 45% More Shares3 months ago | Simply Wall St
Is L.S. Starrett (NYSE:SCX) A Risky Investment?Valuation
Is L.S. Starrett undervalued compared to its fair value and its price relative to the market?
0.77x
Price to Book (PB) 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 unprofitable, so we can't compare its PE Ratio to the US Machinery industry average.
PE vs Market: SCX is unprofitable, so we can't compare its PE Ratio to the US market.
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 (0.8x) compared to the US Machinery industry average (3.1x).
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?
18.4%
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
- Take a look at our analysis of SCX’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- 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?
-1.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SCX is currently unprofitable.
Growing Profit Margin: SCX is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SCX is unprofitable, and losses have increased over the past 5 years at a rate of 1.4% per year.
Accelerating Growth: Unable to compare SCX's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SCX is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-12.1%).
Return on Equity
High ROE: SCX has a negative Return on Equity (-27.38%), as it is currently unprofitable.
Next Steps
Financial Health
How is L.S. Starrett's financial position?
Financial Position Analysis
Short Term Liabilities: SCX's short term assets ($109.4M) exceed its short term liabilities ($30.7M).
Long Term Liabilities: SCX's short term assets ($109.4M) exceed its long term liabilities ($91.2M).
Debt to Equity History and Analysis
Debt Level: SCX's debt to equity ratio (47.3%) is considered high.
Reducing Debt: SCX's debt to equity ratio has increased from 17.9% to 47.3% 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: Insufficient data to determine if SCX has enough cash runway based on its current free cash flow.
Forecast Cash Runway: Insufficient data to determine if SCX has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.
Next Steps
Dividend
What is L.S. Starrett 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 recent payouts.
High Dividend: Unable to evaluate SCX'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 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?
1.6yrs
Average management tenure
CEO
Douglas Starrett (68 yo)
19.5yrs
Tenure
US$551,444
Compensation
Mr. Douglas A. Starrett has been the Chief Executive Officer at The L.S. Starrett Company since September 9, 2001, President since 1995 and serves as its Chairman of the board. Mr. Starrett has been a Dire...
CEO Compensation Analysis
Compensation vs Market: Douglas's total compensation ($USD551.44K) is about average for companies of similar size in the US market ($USD506.59K).
Compensation vs Earnings: Douglas's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 19.5yrs | US$551.44k | 2.05% $ 971.3k | |
| CFO & Treasurer | 1.33yrs | US$245.19k | 0.14% $ 66.6k | |
| Vice President of Industrial Products - North America | 1.67yrs | US$307.80k | 0.023% $ 11.1k | |
| Principal Accounting Officer | 1.5yrs | no data | no data |
1.6yrs
Average Tenure
58.5yo
Average Age
Experienced Management: SCX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman of the Board | 19.5yrs | US$551.44k | 2.05% $ 971.3k | |
| Lead Independent Director | 1yr | US$69.83k | 0.82% $ 387.4k | |
| Independent Director | 25.17yrs | US$62.08k | 0.058% $ 27.3k | |
| Independent Director | 4.17yrs | US$57.89k | 0.040% $ 18.9k | |
| Independent Director | 0.42yr | no data | no data | |
| Independent Director | 4.17yrs | US$62.08k | 0.11% $ 51.2k | |
| Independent Director | 0.75yr | no data | no data |
2.6yrs
Average Tenure
59.5yo
Average Age
Experienced Board: SCX's board of directors are not considered experienced ( 2.6 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: 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 been diluted in the past year, with total shares outstanding growing by 2.1%.
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$47.342m
- Shares outstanding: 7.10m
- 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 in the United States, Canada, Mexi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/04 23:45 |
| End of Day Share Price | 2021/03/04 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/06/30 |
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.