STARTEK INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. STARTEK INC has weak liquidity. Currently, the Quick Ratio is 0.98 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 13.53% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||63.46||61.25|
|Net Income ($mil)||-5.07||-3.28|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||6.39||6.04|
|Total Assets ($mil)||120.42||86.9|
|Total Debt ($mil)||36.77||1.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||13.49||13.56|
|Return on Assets||-8.24||-7.58|
|Return on Equity||-20.34||-11.67|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||15.57||15.4|
|Div / share||0.0||0.0|
|Book value / share||3.13||3.66|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||17025.0||10704.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 1.07 indicates a significant discount versus the S&P 500 average of 2.58 and a significant discount versus the industry average of 7.84. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, STARTEK INC proves to trade at a discount to investment alternatives within the industry.
|SRT NM||Peers 27.70||SRT 17.92||Peers 19.08|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
SRT's P/E is negative making this valuation measure meaningless.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
SRT is trading at a valuation on par to its peers.
|SRT NM||Peers 20.61||SRT NA||Peers 3.72|
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.
SRT's ratio is negative making this valuation measure meaningless.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|SRT 1.07||Peers 7.84||SRT -51.16||Peers 15.81|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
SRT is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, SRT is expected to significantly trail its peers on the basis of its earnings growth rate.
|SRT 0.21||Peers 5.30||SRT 2.59||Peers 6.26|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
SRT is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
SRT significantly trails its peers on the basis of sales growth
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