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.

Risks

  • L.S. Starrett has significant price volatility in the past 3 months.
  • L.S. Starrett is not covered by any analysts.

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

-1.3%

NYSE:SCX

0.6%

US Machinery

0.8%

US Market


1 Year Return

-10.6%

NYSE:SCX

-4.3%

US Machinery

1.9%

US Market

SCX underperformed the Machinery industry which returned -3.4% over the past year.

SCX underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

SCXIndustryMarket
7 Day-1.3%0.6%0.8%
30 Day-4.4%8.3%3.4%
90 Day-23.2%0.8%2.1%
1 Year-10.6%-10.6%-2.3%-4.3%4.2%1.9%
3 Year-42.6%-45.7%51.7%41.8%46.7%37.2%
5 Year-58.2%-62.9%56.1%36.8%62.3%44.5%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

L.S. Starrett's share price is below the future cash flow value, and at a moderate discount (> 20%).

L.S. Starrett's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

L.S. Starrett is good value based on earnings compared to the US Machinery industry average.

L.S. Starrett is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for L.S. Starrett, we can't assess if its growth is good value.


Price Based on Value of Assets

L.S. Starrett is good value based on assets compared to the US Machinery industry average.


Next Steps

Future Growth

How is L.S. Starrett expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

10.3%

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?

-19.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

L.S. Starrett's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

L.S. Starrett has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.

L.S. Starrett has become profitable in the last year making it difficult to compare the US Machinery industry average.


Return on Equity

L.S. Starrett has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

L.S. Starrett used its assets less efficiently than the US Machinery industry average last year based on Return on Assets.


Return on Capital Employed

L.S. Starrett has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).


Next Steps

Financial Health

How is L.S. Starrett's financial position?


Financial Position Analysis

L.S. Starrett is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

L.S. Starrett's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

L.S. Starrett's level of debt (25.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (15.5% vs 25.9% today).

Debt is well covered by operating cash flow (38.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11.4x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate L.S. Starrett's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate L.S. Starrett's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as L.S. Starrett has not reported any payouts.

Unable to verify if L.S. Starrett's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as L.S. Starrett has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

9.0yrs

Average board tenure


CEO

Douglas Starrett (67yo)

18yrs

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

Douglas's remuneration is higher than average for companies of similar size in United States of America.

Douglas's compensation has increased in line with L.S. Starrett recently becoming profitable.


Board Age and Tenure

9.0yrs

Average Tenure

67yo

Average Age

The tenure for the L.S. Starrett board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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: 18yrs
    • Compensation: US$1.45m
  • Francis O'Brien (71yo)

    CFO & Treasurer

    • Tenure: 9.8yrs
    • Compensation: US$527.97k

Board Members

  • Tom Riordan (62yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$59.19k
  • Douglas Starrett (67yo)

    President

    • Tenure: 18yrs
    • Compensation: US$1.45m
  • Richard Kennedy (76yo)

    Independent Director

    • Tenure: 23.7yrs
    • Compensation: US$62.19k
  • Chris Gahagan (55yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$59.19k
  • Terry Piper (74yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$61.19k
  • David Lemoine (71yo)

    Independent Director

    • Tenure: 9yrs
    • Compensation: US$64.19k
  • Russell Carreker (55yo)

    Director

    • Tenure: 1.7yrs
    • 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$38.169m
  • 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 Analysis2019/09/17 23:42
End of Day Share Price2019/09/17 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.