SMITH MICRO SOFTWARE INC (SMSI)
US8321544053 - Common Stock
We assign a fundamental rating of 4 out of 10 to SMSI. SMSI was compared to 277 industry peers in the Software industry. While SMSI has a great health rating, there are worries on its profitability. SMSI is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SMSI had negative earnings in the past year.
SMSI had a negative operating cash flow in the past year.
In multiple years SMSI reported negative net income over the last 5 years.
In multiple years SMSI reported negative operating cash flow during the last 5 years.
1.2 Ratios
SMSI has a Return On Assets of -28.51%. This is in the lower half of the industry: SMSI underperforms 73.72% of its industry peers.
SMSI has a Return On Equity of -32.37%. This is comparable to the rest of the industry: SMSI outperforms 42.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.51% | ||
| ROE | -32.37% | ||
| ROIC | N/A |
ROA(3y)-27.95%
ROA(5y)-12.16%
ROE(3y)-33.84%
ROE(5y)-14.52%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Gross Margin of SMSI (74.16%) is better than 67.15% of its industry peers.
SMSI's Gross Margin has declined in the last couple of years.
SMSI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.16% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.2%
GM growth 5Y-2.38%
2. Health
2.1 Basic Checks
SMSI does not have a ROIC to compare to the WACC, probably because it is not profitable.
SMSI has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SMSI has less shares outstanding
SMSI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
SMSI has an Altman-Z score of -3.65. This is a bad value and indicates that SMSI is not financially healthy and even has some risk of bankruptcy.
SMSI has a Altman-Z score of -3.65. This is amonst the worse of the industry: SMSI underperforms 82.12% of its industry peers.
There is no outstanding debt for SMSI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -3.65 |
ROIC/WACCN/A
WACC9.77%
2.3 Liquidity
A Current Ratio of 2.21 indicates that SMSI has no problem at all paying its short term obligations.
SMSI has a Current ratio of 2.21. This is in the better half of the industry: SMSI outperforms 64.23% of its industry peers.
SMSI has a Quick Ratio of 2.21. This indicates that SMSI is financially healthy and has no problem in meeting its short term obligations.
SMSI's Quick ratio of 2.21 is fine compared to the rest of the industry. SMSI outperforms 64.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
SMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.29%, which is quite impressive.
Looking at the last year, SMSI shows a very negative growth in Revenue. The Revenue has decreased by -15.78% in the last year.
SMSI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.21% yearly.
EPS 1Y (TTM)35.29%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q-100%
Revenue 1Y (TTM)-15.78%
Revenue growth 3Y-7.3%
Revenue growth 5Y9.21%
Revenue growth Q2Q-24.69%
3.2 Future
Based on estimates for the next years, SMSI will show a very strong growth in Earnings Per Share. The EPS will grow by 64.18% on average per year.
Based on estimates for the next years, SMSI will show a quite strong growth in Revenue. The Revenue will grow by 17.61% on average per year.
EPS Next Y44.83%
EPS Next 2Y64.18%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-26.35%
Revenue Next 2Y11.36%
Revenue Next 3Y18.02%
Revenue Next 5Y17.61%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for SMSI. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SMSI. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as SMSI's earnings are expected to grow with 64.18% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.18%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SMSI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SMITH MICRO SOFTWARE INC
NASDAQ:SMSI (5/6/2024, 8:29:55 PM)
After market: 2.51 -0.05 (-1.95%)2.56
+0.22 (+9.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap24.58M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -28.51% | ||
| ROE | -32.37% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 74.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)35.29%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y44.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-15.78%
Revenue growth 3Y-7.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y