Steel Connect, Inc. (STCN) Bundle
A Brief History of Steel Connect, Inc. (STCN)
Foundation and Early Years
Foundation and Early Years
Steel Connect, Inc., previously known as ModusLink Global Solutions, was founded in 1988. Initially, it focused on providing supply chain and logistics solutions tailored for technology and consumer product companies.
Transition to Steel Connect and Name Change
In 2017, the company rebranded itself to Steel Connect, Inc. This name change reflected its evolution toward newer digital and supply chain technology services.
Acquisitions and Growth
Steel Connect has pursued various strategic acquisitions to enhance its capabilities. Notable acquisitions include:
- Acquisition of ModusLink Global Solutions in 2016.
- Purchase of the logistics firm, Steel Services in 2018.
Financial Performance
For the fiscal year ending January 31, 2023, Steel Connect reported total revenue of approximately $125.7 million. The company's net loss for the same period was about $8.9 million.
| Fiscal Year | Total Revenue ($ Million) | Net Income/Loss ($ Million) | Assets ($ Million) | Liabilities ($ Million) |
|---|---|---|---|---|
| 2023 | 125.7 | (8.9) | 88.0 | 66.3 |
| 2022 | 132.4 | (9.1) | 86.1 | 68.2 |
| 2021 | 138.7 | (12.3) | 83.5 | 65.1 |
Stock Market Presence
Steel Connect, Inc. trades on NASDAQ under the ticker symbol STCN. As of October 2023, the stock had a market capitalization of approximately $59 million.
Recent Developments
In September 2023, Steel Connect announced plans to invest in new technology platforms to optimize its supply chain solutions, aiming to enhance operational efficiency.
Market Position
Steel Connect, Inc. operates primarily within the supply chain management sector, competing with other logistics and fulfillment companies. Key competitors include:
- FedEx Supply Chain
- XPO Logistics
- Ryder Supply Chain Solutions
Future Outlook
Analysts project modest growth for Steel Connect, with estimates suggesting a revenue increase of approximately 3-5% over the next fiscal year, driven by advancements in logistics technology and increasing demand for integrated supply chain solutions.
A Who Owns Steel Connect, Inc. (STCN)
Company Overview
Steel Connect, Inc. (STCN) operates as a holding company with subsidiaries involved in logistics and supply chain management solutions. The company primarily focuses on providing services to clients across various industries. The latest market capitalization for Steel Connect, Inc. is approximately $60 million.
Shareholder Composition
The ownership of Steel Connect, Inc. is divided among institutional investors, retail investors, and company insiders. As of the latest filings, the following entities own significant shares:
| Shareholder Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 42% | 4,200,000 |
| Retail Investors | 35% | 3,500,000 |
| Company Insiders | 23% | 2,300,000 |
Major Institutional Holders
Several institutional investors hold considerable stakes in Steel Connect, Inc. Here are the top institutional shareholders:
| Institution | Shares Held | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 12% |
| Dimensional Fund Advisors | 800,000 | 8% |
| Nantahala Capital Management, LLC | 600,000 | 6% |
| Vanguard Group, Inc. | 500,000 | 5% |
| Winton Group, LLC | 400,000 | 4% |
Executive Team and Insider Ownership
Key executives of Steel Connect, Inc. have significant ownership in the company. The following table outlines the executive team and their respective ownership stakes:
| Executive Name | Title | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Elie Khoury | CEO | 600,000 | 6% |
| Daniel M. Berman | CFO | 300,000 | 3% |
| Janet R. Smith | COO | 200,000 | 2% |
Recent Stock Performance
As of the latest market data, Steel Connect, Inc. (STCN) has shown a stock price fluctuation. The following details illustrate its recent stock performance:
| Date | Open Price | Close Price | Volume |
|---|---|---|---|
| October 20, 2023 | $2.00 | $2.10 | 150,000 |
| October 19, 2023 | $1.95 | $2.00 | 120,000 |
| October 18, 2023 | $2.05 | $1.95 | 180,000 |
Conclusion of Ownership Structure
The analysis of ownership of Steel Connect, Inc. indicates that institutional investors are the primary shareholders, followed closely by retail investors and insiders. The executive team maintains a respectable level of ownership, aligning their interests with those of the shareholders. Recent stock performance has shown positive movement, contributing to the company's operational outlook.
Steel Connect, Inc. (STCN) Mission Statement
Corporate Overview
Steel Connect, Inc. (STCN) is a diversified holding company that focuses on providing supply chain services and technology solutions. The company operates through its subsidiaries and strives to enhance the value delivered to customers and stakeholders through innovative and sustainable practices.
Mission Statement
The mission of Steel Connect, Inc. is to empower customers with innovative solutions that enhance their operational efficiency and drive sustainable growth. The company aims to leverage technology and strategic partnerships to deliver unparalleled value across its service offerings.
Core Values
- Customer Focus: Prioritizing customer needs in all operations.
- Innovation: Embracing change and fostering innovation.
- Integrity: Conducting business with the highest ethical standards.
- Collaboration: Working together towards common goals.
- Sustainability: Committing to environmentally responsible practices.
Financial Overview
As of the fiscal year ended July 31, 2023, Steel Connect, Inc. reported the following financial highlights:
| Financial Metric | Amount (in USD) |
|---|---|
| Total Revenue | $84.6 million |
| Net Income | $3.2 million |
| Operating Income | $5.1 million |
| Total Assets | $112.4 million |
| Total Liabilities | $56.8 million |
| Shareholders' Equity | $55.6 million |
Strategic Goals
- To increase revenue by 10% year-over-year through expansion of service offerings.
- To achieve a customer satisfaction score of over 90%.
- To enhance operational efficiencies by reducing costs by 5% by the end of 2024.
- To invest in technology solutions that improve supply chain transparency.
Market Position
Steel Connect, Inc. operates in a competitive landscape, with a strong emphasis on customer service and innovative technology. The company holds a significant market share in the supply chain sector, contributing to its robust reputation and financial stability.
Employee Engagement
As of 2023, Steel Connect, Inc. employs approximately 500 individuals across various departments. The company focuses on fostering a collaborative and inclusive working environment to enhance employee satisfaction and retention.
Future Outlook
Steel Connect, Inc. aims to drive growth by exploring strategic partnerships and expanding its footprint in emerging markets. The company is committed to remaining agile and responsive to market demands and customer needs.
How Steel Connect, Inc. (STCN) Works
Business Overview
Business Overview
Steel Connect, Inc. is a holding company that operates through its subsidiaries, primarily in the logistics and supply chain services industry. The company’s segments include Steel Connect, a provider of a broad range of supply chain management services; and the Direct Commerce segment, which focuses on digital marketing and e-commerce solutions.
Financial Performance
As of fiscal year 2023, Steel Connect, Inc. reported the following financial figures:
| Financial Metric | 2023 Amount (USD) | 2022 Amount (USD) |
|---|---|---|
| Total Revenue | $215 million | $180 million |
| Net Income | $10 million | $5 million |
| Earnings Per Share (EPS) | $0.45 | $0.25 |
| Total Assets | $300 million | $280 million |
| Total Liabilities | $150 million | $140 million |
| Shareholder Equity | $150 million | $140 million |
Operational Strategy
Steel Connect operates with a focus on efficiency and technological integration, utilizing advanced analytics for supply chain optimization. The operational strategy includes:
- Investment in automation technologies to streamline logistics
- Development of strategic partnerships with carriers and suppliers
- Implementation of data analytics to improve inventory management
- Diversification of service offerings to include e-commerce solutions
Market Presence
Steel Connect, Inc. primarily serves North America but has increasingly set its sights on international markets. As of 2023, the company had:
| Market Metric | Value |
|---|---|
| Number of Active Clients | 1,200 |
| Countries Operated In | 10 |
| Annual Growth Rate (CAGR) (2021-2023) | 10% |
Key Competitors
Steel Connect operates in a competitive landscape. Some primary competitors include:
- Ryder Supply Chain Solutions
- XPO Logistics
- CEVA Logistics
- Expeditors International
- DHL Supply Chain
Recent Developments
In 2023, Steel Connect, Inc. made significant advancements, including:
| Development | Date | Description |
|---|---|---|
| Acquisition of Supply Chain Technology Firm | March 2023 | Enhanced logistics capabilities and software solutions |
| Launch of New E-commerce Platform | July 2023 | Improved digital marketing services and online sales capabilities |
| Partnership with Major Retailer | September 2023 | Expanded distribution network and supply chain efficiency |
Conclusion of Operations
Steel Connect, Inc. continues to evolve its business model, leveraging technology and strategic partnerships to enhance its market position and operational performance.
How Steel Connect, Inc. (STCN) Makes Money
Business Model Overview
Steel Connect, Inc. operates through its subsidiaries, primarily engaged in the logistics and supply chain services sector. The company primarily earns revenue through:
- Digital marketing services
- Logistics and supply chain management
- Technology-enabled solutions
Revenue Streams
The main revenue streams for Steel Connect include:
- Logistics Revenue: Roughly $41 million reported for the fiscal year ending July 2023.
- Marketing Services Revenue: Approximately $15 million generated from marketing and advertising services in 2023.
- Technology Solutions Revenue: Estimated at $10 million from technology-enabled services and solutions.
Key Financial Data
The financial performance of Steel Connect has shown variations over the past few fiscal years. Below is a summary of key financial metrics:
| Fiscal Year | Revenue (in millions) | Gross Profit (in millions) | Operating Income (in millions) | Net Income (in millions) |
|---|---|---|---|---|
| 2023 | $66 | $22 | ($5) | ($10) |
| 2022 | $72 | $25 | ($4) | ($8) |
| 2021 | $78 | $30 | $1 | $0 |
Cost Structure
The cost structure of Steel Connect primarily involves:
- Cost of Goods Sold (COGS): Accounted for around 67% of total revenue in 2023.
- Operating Expenses: Approximately $27 million for the year ending July 2023.
- Marketing Expenses: Estimated at $5 million annually.
Market Position and Competitive Advantage
Steel Connect leverages its technology and existing customer relationships to enhance its offerings. Key market statistics include:
- Market Cap: Approximately $90 million as of October 2023.
- Customer Base: Over 400 active clients.
- Employee Count: Roughly 250 employees dedicated to service delivery.
Future Growth Strategies
The company aims to implement several strategies to increase revenue:
- Expanding digital marketing services.
- Enhancing logistics technology for operational efficiency.
- Exploring mergers and acquisitions to penetrate new markets.
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