NYSE:SCX

Stock Analysis Report

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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

Does not have a meaningful market cap ($21M)



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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

SCX

0.8%

US Machinery

-0.4%

US Market


1 Year Return

-44.9%

SCX

13.6%

US Machinery

18.3%

US Market

Return vs Industry: SCX underperformed the US Machinery industry which returned 13.6% over the past year.

Return vs Market: SCX underperformed the US Market which returned 18.3% over the past year.


Shareholder returns

SCXIndustryMarket
7 Day-0.08%0.8%-0.4%
30 Day-1.7%10.7%6.6%
90 Day-10.1%14.8%8.6%
1 Year-44.9%-44.9%16.6%13.6%21.0%18.3%
3 Year-64.3%-64.7%25.5%16.4%42.1%32.7%
5 Year-72.9%-75.3%108.4%84.9%85.6%64.7%

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?

0.45x

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 (0.4x) compared to the US Machinery industry average (2.4x).


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?

21.3%

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?

7.8%

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, but has reduced losses over the past 5 years at a rate of 7.8% 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 (-12.4%).


Return on Equity

High ROE: SCX has a negative Return on Equity (-47.49%), 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 ($104.1M) exceed its short term liabilities ($27.8M).

Long Term Liabilities: SCX's short term assets ($104.1M) exceed its long term liabilities ($98.9M).


Debt to Equity History and Analysis

Debt Level: SCX's debt to equity ratio (67.1%) is considered high.

Reducing Debt: SCX's debt to equity ratio has increased from 17.2% to 67.1% 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?

1.2yrs

Average management tenure


CEO

Douglas Starrett (68 yo)

19.08yrs

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 ($USD551.44K) is about average for companies of similar size in the US market ($USD579.76K).

Compensation vs Earnings: Douglas's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Starrett
Chairman of the Board19.08yrsUS$551.44k2.09%
$ 444.1k
John Tripp
CFO & Treasurer0.92yrUS$245.19k0.14%
$ 30.5k
Emerson Leme
Vice President of Industrial Products - North America1.25yrsUS$307.80k0.024%
$ 5.1k
John Kober
Principal Accounting Officer1.08yrsno datano data

1.2yrs

Average Tenure

58.5yo

Average Age

Experienced Management: SCX's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Starrett
Chairman of the Board19.08yrsUS$551.44k2.09%
$ 444.1k
Thomas Riordan
Lead Independent Director0.58yrUS$69.83k0.55%
$ 116.8k
Richard Kennedy
Independent Director24.75yrsUS$62.08k0.059%
$ 12.5k
Christopher Gahagan
Independent Director3.75yrsUS$57.89k0.041%
$ 8.6k
Deborah Gordon
Independent Directorno datano datano data
Russell Carreker
Independent Director3.75yrsUS$62.08k0.11%
$ 23.4k
Scott Sproule
Independent Director0.33yrno datano data

3.8yrs

Average Tenure

59.5yo

Average Age

Experienced Board: SCX's board of directors are considered experienced (3.8 years average tenure).


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.


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$21.286m
  • Shares outstanding: 6.99m
  • 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 in the United States, Canada, Mexi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:26
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.