Steel Connect (Steel Connect) Intrinsic Value: Projected FCF : $13.99 (As of May. 02, 2024)

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What is Steel Connect Intrinsic Value: Projected FCF?

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.

As of today (2024-05-02), Steel Connect's Intrinsic Value: Projected FCF is $13.99. The stock price of Steel Connect is $12.26. Therefore, Steel Connect's Price-to-Intrinsic-Value-Projected-FCF of today is 0.9.

The historical rank and industry rank for Steel Connect's Intrinsic Value: Projected FCF or its related term are showing as below:

STCN' s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 0.3 Med: 2.05 Max: 197.87
Current: 0.89

During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Steel Connect was 197.87. The lowest was 0.30. And the median was 2.05.

STCN's Price-to-Projected-FCF is ranked worse than
50.41% of 607 companies
in the Media - Diversified industry
Industry Median: 0.88 vs STCN: 0.89

Steel Connect Intrinsic Value: Projected FCF Historical Data

The historical data trend for Steel Connect's Intrinsic Value: Projected FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Steel Connect Intrinsic Value: Projected FCF Chart

Steel Connect Annual Data

Trend

Jul14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Intrinsic Value: Projected FCF

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2.39

14.88

-4.70

6.71

11.76

Steel Connect Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Intrinsic Value: Projected FCF	Get a 7-Day Free Trial															16.69	10.73	11.76	13.29	13.99

Competitive Comparison of Steel Connect's Intrinsic Value: Projected FCF

For the Advertising Agencies subindustry, Steel Connect's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Steel Connect's Price-to-Projected-FCF Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Steel Connect's Price-to-Projected-FCF distribution charts can be found below:

* The bar in red indicates where Steel Connect's Price-to-Projected-FCF falls into.

Steel Connect Intrinsic Value: Projected FCF Calculation

Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.

The details of how we calculate the intrinsic value of stocks are described in detail here.

This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)

In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):

Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)

Add all the Free Cash Flow together and divide 6 will get Steel Connect's Free Cash Flow(6 year avg) = $11.84.

Steel Connect's Intrinsic Value: Projected FCF for today is calculated as

Intrinsic Value: Projected FCF	=	(Growth Multiple	*	Free Cash Flow (6 year avg)	+	Total Stockholders Equity (Jan24)	*	0.8)	/	Shares Outstanding (Diluted Average)
	=	(9.5203515959648	*	11.84016	+	315.096	*	0.8)	/	26.083
	=	13.99

Steel Connect (NAS:STCN) Intrinsic Value: Projected FCF Explanation

The growth multiple is capped between 8.35 and 17.74.

Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.

Steel Connect's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as

Price-to-Intrinsic-Value-Projected-FCF	=	Share Price	/	Intrinsic Value: Projected FCF
	=	12.26	/	13.98609386008
	=	0.88

Steel Connect Intrinsic Value: Projected FCF Related Terms

Thank you for viewing the detailed overview of Steel Connect's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.

Steel Connect (Steel Connect) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Steel Connect Inc (NAS:STCN) » Definitions » Intrinsic Value: Projected FCF

Comparable Companies

Traded in Other Exchanges

CGO:Germany

Address

590 Madison Avenue, New York, DE, USA, 10022

Website

https://www.steelconnectinc.com

Steel Connect Inc is a diversified holding company. The company's operating segment include Direct Marketing and Supply Chain. It generates maximum revenue from the Direct Marketing segment. Geographically, it derives a majority of revenue from the United States and also has a presence in China; Netherlands, and others. The company serves clients in various industries including consumer electronics, communications, computing, software, storage, and retail industries.

Executives

Steel Partners Holdings L.p.	other: See Explanation of Responses	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Joseph Richards Martin	director	C/O LOUISIANA-PACIFIC CORPORATION, 414 UNION STREET, SUITE 2000, NASHVILLE TN 37219
Ryan O'herrin	officer: Chief Financial Officer	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022-8547
Webfinancial Holding Corp	director, 10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Wf Asset Corp.	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Gary Tankard	officer: Chief Accounting Officer	C/O STEEL PARTNERS HOLDINGS LP, 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Jason Wong	officer: Chief Financial Officer	590 MADISON AVENUE, FLOOR 32, C/O STEEL PARTNERS HOLDINGS LP, NEW YORK NY 10022
Renata Simril	director	5055 WILSHIRE BOULEVARD, SUITE 500, LOS ANGELES CA 90036
Fawaz Khalil	officer: CEO, ModusLink Corporation	C/O STEEL CONNECT, INC., 1601 TRAPELO ROAD, SUITE 170, WALTHAM MA 02451
John Ashe	officer: CEO,IWCO Direct Holdings, Inc.	C/O STEEL CONNECT, INC., 1601 TRAPELO ROAD, SUITE 170, WALTHAM MA 02451
Maria Molland	director	1601 TRAPELO ROAD, SUITE 170, WALTHAM MA 02451
Joseph B Sherk	officer: Chief Accounting Officer	C/O UNITED RENTALS INC, FIVE GREENWICH OFFICE PARK, GREENWICH CT 06830
Douglas Woodworth	officer: Chief Financial Officer	STEEL PARTNERS HOLDINGS L.P., 590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Steel Excel Inc.	10 percent owner	590 MADISON AVENUE, 32ND FLOOR, NEW YORK NY 10022
Philip E. Lengyel	director	C/O MODUSLINK GLOBAL SOLUTIONS, INC., 1601 TRAPELO ROAD, SUITE 170, WALTHAM MA 02451