0.57 USD
0 (-0.26%)
Taking everything into account, SMSI scores 2 out of 10 in our fundamental rating. SMSI was compared to 278 industry peers in the Software industry. SMSI may be in some trouble as it scores bad on both profitability and health. SMSI is quite expensive at the moment. 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 the past 5 years SMSI reported 4 times negative net income.
- In the past 5 years SMSI reported 4 times negative operating cash flow.
1.2 Ratios
- SMSI's Return On Assets of -109.85% is on the low side compared to the rest of the industry. SMSI is outperformed by 93.88% of its industry peers.
- SMSI has a Return On Equity of -149.82%. This is amonst the worse of the industry: SMSI underperforms 80.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -109.85% | ||
| ROE | -149.82% | ||
| ROIC | N/A |
ROA(3y)-52.71%
ROA(5y)-35.91%
ROE(3y)-63.39%
ROE(5y)-42.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- SMSI's Gross Margin of 73.98% is fine compared to the rest of the industry. SMSI outperforms 61.51% of its industry peers.
- SMSI's Gross Margin has declined in the last couple of years.
- The Profit Margin and Operating Margin are not available for SMSI so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 73.98% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.56%
GM growth 5Y-5.05%
2. Health
2.1 Basic Checks
- SMSI does not have a ROIC to compare to the WACC, probably because it is not profitable.
- Compared to 1 year ago, SMSI has more shares outstanding
- The number of shares outstanding for SMSI has been increased compared to 5 years ago.
- 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.
2.2 Solvency
- A Debt/Equity ratio of 0.04 indicates that SMSI is not too dependend on debt financing.
- SMSI's Debt to Equity ratio of 0.04 is in line compared to the rest of the industry. SMSI outperforms 59.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.1%
2.3 Liquidity
- SMSI has a Current Ratio of 0.78. This is a bad value and indicates that SMSI is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.78, SMSI is doing worse than 84.89% of the companies in the same industry.
- A Quick Ratio of 0.78 indicates that SMSI may have some problems paying its short term obligations.
- SMSI has a Quick ratio of 0.78. This is amonst the worse of the industry: SMSI underperforms 84.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.78 | ||
| Quick Ratio | 0.78 |
3. Growth
3.1 Past
- SMSI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.76%, which is quite impressive.
- The Revenue for SMSI has decreased by -24.07% in the past year. This is quite bad
- Measured over the past years, SMSI shows a very negative growth in Revenue. The Revenue has been decreasing by -13.86% on average per year.
EPS 1Y (TTM)38.76%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%16.67%
Revenue 1Y (TTM)-24.07%
Revenue growth 3Y-29.4%
Revenue growth 5Y-13.86%
Sales Q2Q%-6.48%
3.2 Future
- SMSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 27.78% yearly.
- The Revenue is expected to grow by 28.29% on average over the next years. This is a very strong growth
EPS Next Y-20.92%
EPS Next 2Y27.83%
EPS Next 3Y27.78%
EPS Next 5YN/A
Revenue Next Year-8.92%
Revenue Next 2Y15.38%
Revenue Next 3Y28.29%
Revenue Next 5YN/A
3.3 Evolution
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- SMSI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
- Also next year SMSI is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| 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 27.78% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y27.83%
EPS Next 3Y27.78%
5. Dividend
5.1 Amount
- No dividends for SMSI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
SMITH MICRO SOFTWARE INC / SMSI FAQ
What is the ChartMill fundamental rating of SMITH MICRO SOFTWARE INC (SMSI) stock?
ChartMill assigns a fundamental rating of 2 / 10 to SMSI.
Can you provide the valuation status for SMITH MICRO SOFTWARE INC?
ChartMill assigns a valuation rating of 1 / 10 to SMITH MICRO SOFTWARE INC (SMSI). This can be considered as Overvalued.
How profitable is SMITH MICRO SOFTWARE INC (SMSI) stock?
SMITH MICRO SOFTWARE INC (SMSI) has a profitability rating of 1 / 10.
What is the earnings growth outlook for SMITH MICRO SOFTWARE INC?
The Earnings per Share (EPS) of SMITH MICRO SOFTWARE INC (SMSI) is expected to decline by -20.92% in the next year.