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SMITH MICRO SOFTWARE INC (SMSI) Stock Fundamental Analysis

NASDAQ:SMSI - Nasdaq - US8321544053 - Common Stock - Currency: USD

0.8029  +0.02 (+2.94%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SMSI. SMSI was compared to 283 industry peers in the Software industry. SMSI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SMSI has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

In the past year SMSI has reported negative net income.
In the past year SMSI has reported a negative cash flow from operations.
In the past 5 years SMSI reported 4 times negative net income.
SMSI had negative operating cash flow in 4 of the past 5 years.
SMSI Yearly Net Income VS EBIT VS OCF VS FCFSMSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M -20M -30M -40M

1.2 Ratios

With a Return On Assets value of -101.35%, SMSI is not doing good in the industry: 90.11% of the companies in the same industry are doing better.
SMSI has a worse Return On Equity (-119.48%) than 77.74% of its industry peers.
Industry RankSector Rank
ROA -101.35%
ROE -119.48%
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
SMSI Yearly ROA, ROE, ROICSMSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200 -300 -400 -500

1.3 Margins

With a Gross Margin value of 70.19%, SMSI perfoms like the industry average, outperforming 55.83% of the companies in the same industry.
In the last couple of years the Gross Margin of SMSI has declined.
SMSI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 70.19%
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%
SMSI Yearly Profit, Operating, Gross MarginsSMSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -100 -200

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5

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
SMSI has more shares outstanding than it did 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.
SMSI Yearly Shares OutstandingSMSI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M
SMSI Yearly Total Debt VS Total AssetsSMSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

2.2 Solvency

Based on the Altman-Z score of -10.29, we must say that SMSI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -10.29, SMSI is not doing good in the industry: 90.11% of the companies in the same industry are doing better.
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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -10.29
ROIC/WACCN/A
WACC11.06%
SMSI Yearly LT Debt VS Equity VS FCFSMSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

SMSI has a Current Ratio of 1.77. This is a normal value and indicates that SMSI is financially healthy and should not expect problems in meeting its short term obligations.
SMSI has a Current ratio (1.77) which is comparable to the rest of the industry.
SMSI has a Quick Ratio of 1.77. This is a normal value and indicates that SMSI is financially healthy and should not expect problems in meeting its short term obligations.
SMSI has a Quick ratio (1.77) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.77
Quick Ratio 1.77
SMSI Yearly Current Assets VS Current LiabilitesSMSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M

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4

3. Growth

3.1 Past

SMSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -55.74%.
Looking at the last year, SMSI shows a very negative growth in Revenue. The Revenue has decreased by -49.70% in the last year.
SMSI shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -13.86% yearly.
EPS 1Y (TTM)-55.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%64.44%
Revenue 1Y (TTM)-49.7%
Revenue growth 3Y-29.4%
Revenue growth 5Y-13.86%
Sales Q2Q%-20.3%

3.2 Future

The Earnings Per Share is expected to grow by 47.12% on average over the next years. This is a very strong growth
SMSI is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 44.39% yearly.
EPS Next Y81.9%
EPS Next 2Y47.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year28.31%
Revenue Next 2Y36.13%
Revenue Next 3Y44.39%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
SMSI Yearly Revenue VS EstimatesSMSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M
SMSI Yearly EPS VS EstimatesSMSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 2 -2 -4

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4

4. Valuation

4.1 Price/Earnings Ratio

SMSI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 3.94 indicates a rather cheap valuation of SMSI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SMSI indicates a rather cheap valuation: SMSI is cheaper than 97.88% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.85. SMSI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 3.94
SMSI Price Earnings VS Forward Price EarningsSMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SMSI Per share dataSMSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as SMSI's earnings are expected to grow with 47.12% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y47.12%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

SMSI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SMITH MICRO SOFTWARE INC

NASDAQ:SMSI (5/22/2025, 6:00:33 PM)

0.8029

+0.02 (+2.94%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)07-30 2025-07-30/amc
Inst Owners12.98%
Inst Owner Change-23.06%
Ins Owners1.82%
Ins Owner Change15.35%
Market Cap15.62M
Analysts82.22
Price Target4.93 (514.02%)
Short Float %1.69%
Short Ratio1.22
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.54%
Min EPS beat(2)1.96%
Max EPS beat(2)5.12%
EPS beat(4)2
Avg EPS beat(4)-20.8%
Min EPS beat(4)-83.82%
Max EPS beat(4)5.12%
EPS beat(8)5
Avg EPS beat(8)20.72%
EPS beat(12)7
Avg EPS beat(12)14.21%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.82%
Min Revenue beat(2)-5.1%
Max Revenue beat(2)-4.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.87%
Min Revenue beat(4)-5.1%
Max Revenue beat(4)-0.91%
Revenue beat(8)0
Avg Revenue beat(8)-3.62%
Revenue beat(12)2
Avg Revenue beat(12)-2.61%
Revenue beat(16)4
Avg Revenue beat(16)-2.41%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-120%
EPS NY rev (1m)0%
EPS NY rev (3m)-633.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.17%
Revenue NY rev (1m)-3.4%
Revenue NY rev (3m)-16.38%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 3.94
P/S 0.76
P/FCF N/A
P/OCF N/A
P/B 0.38
P/tB 2.56
EV/EBITDA N/A
EPS(TTM)-0.95
EYN/A
EPS(NY)0.2
Fwd EY25.41%
FCF(TTM)-0.74
FCFYN/A
OCF(TTM)-0.73
OCFYN/A
SpS1.06
BVpS2.09
TBVpS0.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -101.35%
ROE -119.48%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 70.19%
FCFM 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-Score2
Asset Turnover0.43
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 0.32%
Cap/Sales 0.1%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.77
Quick Ratio 1.77
Altman-Z -10.29
F-Score2
WACC11.06%
ROIC/WACCN/A
Cap/Depr(3y)0.34%
Cap/Depr(5y)9.37%
Cap/Sales(3y)0.07%
Cap/Sales(5y)0.84%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-55.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%64.44%
EPS Next Y81.9%
EPS Next 2Y47.12%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-49.7%
Revenue growth 3Y-29.4%
Revenue growth 5Y-13.86%
Sales Q2Q%-20.3%
Revenue Next Year28.31%
Revenue Next 2Y36.13%
Revenue Next 3Y44.39%
Revenue Next 5YN/A
EBIT growth 1Y-40.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year90.72%
EBIT Next 3Y34.4%
EBIT Next 5YN/A
FCF growth 1Y-105.17%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-105%
OCF growth 3YN/A
OCF growth 5YN/A