The The L.S. Starrett Company (SCX) shares are trading at lower $3.33.
To add more color to this target, the company’s high over the last year is $7.10 and the low is $3.01. Over the last 52 weeks, SCX is down -53.07% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SCX reported a profit of $14.84 million. The L.S. Starrett Company also saw revenues increase to $50.0 million. In addition, SCX has free cash flow of -$11.46 million as of 03-2020 The company’s EBITDA came in at $1.8 million which compares well with its peers.
SCX booked profit margins of 1.90%, its Return on Equity (ROE) is 5.10%, and its Return on Assets is 2.20%. All told, it is clear that, SCX needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. SCX has a short ratio of 0.19 and outstanding shares of 6.96M.
SCX has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 26790.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.59. The L.S. Starrett Company SCX also noted assets of $178.73 million at the end of the last quarter. Investors should also keep an eye on sector updates as SCX has historically followed its peers on positive news.
All told, The L.S. Starrett Company SCX has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SCX represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
The L.S. Starrett Company SCX is now commanding a market cap of 23.71M and a float of 5.99M. SCX is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of SCX stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in SCX, either long or short, and we have not been compensated for this article.