Steel Partners Reveal Second Quarter FY2023 Earnings Results on August 9 2023
August 13, 2023
🌥️Earnings Overview
On August 9 2023, STEEL PARTNERS ($NYSE:SPLP) reported their financial results for the second quarter of FY2023 ending June 30 2023. Revenue for the period was USD 500.9 million, a 13.5% increase from the same quarter in the prior year, however, net income decreased by 35.8% to USD 59.2 million.
Price History
The stock opened at $45.5 and closed at $46.0, up by 1.0% from the previous closing price of 45.5. STEEL PARTNERS achieved overall positive results for the quarter, which will be beneficial in helping the company grow and remain profitable in the current market environment. This news is welcomed by shareholders and analysts alike and should help bolster investor confidence in the company’s future prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Steel Partners. More…
| Total Revenues | Net Income | Net Margin |
| 1.79k | 193.32 | 8.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Steel Partners. More…
| Operations | Investing | Financing |
| -163.88 | -293.1 | 608.38 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Steel Partners. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.77k | 2.85k | 40.46 |
Key Ratios Snapshot
Some of the financial key ratios for Steel Partners are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.0% | 33.8% | 16.2% |
| FCF Margin | ROE | ROA |
| -12.1% | 21.5% | 4.8% |
Analysis
Our analysis of STEEL PARTNERS‘s fundamentals indicates that it is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. As such, there are certain types of investors who may be interested in such a company. More specifically, STEEL PARTNERS is strong in terms of growth, medium in terms of asset, profitability, and weak in terms of dividend. Furthermore, the company has an intermediate health score of 6/10 with regard to its cashflows and debt, which suggests that it might be able to sustain future operations in times of crisis. More…
Peers
It faces fierce competition from Nichias Corp, BayWa AG, and Iwatani Corp, all of which are well-established companies in their respective fields. The competition between Steel Partners Holdings LP and its competitors is intense, as each company strives to come out on top and gain the most market share.
– Nichias Corp ($TSE:5393)
Nichias Corp is a global company based in Japan that produces a variety of products ranging from construction materials to engineering services. As of 2023, the company has a market cap of 163.18B and a return on equity of 12.76%. This indicates that the company is performing well financially, and is able to generate a strong return on their investments. The large market cap also shows that the company is highly trusted and valued by investors. Nichias Corp is an established leader in its field and continues to be a major player in the global market.
– BayWa AG ($BER:BYW)
BayWa AG is a German-based multinational corporation that specializes in the trading and distribution of food, agricultural products, and building materials. The company has a market capitalization of 1.53 billion euros as of 2023 and boasts a robust return on equity of 26.16%. This is indicative of the company’s ability to generate profits from its operations and grow its shareholder value. The company’s fiscal performance reflects its ability to operate efficiently and capitalize on global trends in agriculture and construction.
– Iwatani Corp ($TSE:8088)
Iwatani Corporation is a Japanese energy and chemical company providing solutions for both commercial and residential customers around the world. As of 2023, the company has a market capitalization of 318.64 billion dollars, making it one of the largest companies in Japan. Iwatani Corporation has also achieved an impressive Return on Equity of 10.91%, which indicates that the company is efficiently utilizing its capital to generate returns. The company has a diverse portfolio of products and services including liquified petroleum gas, natural gas, electricity, chemicals, renewable energy, and other related services.
Summary
Investors should be aware of the results of STEEL PARTNERS‘ second quarter of FY2023. Total revenue for the quarter increased by 13.5% compared to the same period last year, however net income saw a significant decrease of 35.8%. While revenue growth is encouraging, investors should consider the implications of the decreased net income. Long-term investors should investigate further to determine if this is a temporary downturn in profitability or if there are persistent issues at the company.
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