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SMILEDIRECTCLUB INC (SDC) Stock Fundamental Analysis

NASDAQ:SDC - Nasdaq - US83192H1068 - Common Stock - Currency: USD

0.075  -0.09 (-53.45%)

After market: 0.065 -0.01 (-13.33%)

Fundamental Rating

1

Taking everything into account, SDC scores 1 out of 10 in our fundamental rating. SDC was compared to 189 industry peers in the Health Care Equipment & Supplies industry. SDC has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, SDC is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year SDC has reported negative net income.
In the past year SDC has reported a negative cash flow from operations.
In the past 5 years SDC always reported negative net income.
In the past 5 years SDC always reported negative operating cash flow.
SDC Yearly Net Income VS EBIT VS OCF VS FCFSDC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2017 2018 2019 2020 2021 2022 -100M -200M -300M -400M

1.2 Ratios

With a Return On Assets value of -16.58%, SDC perfoms like the industry average, outperforming 55.94% of the companies in the same industry.
With a Return On Equity value of -95.61%, SDC is not doing good in the industry: 69.80% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -16.58%
ROE -95.61%
ROIC N/A
ROA(3y)-12.07%
ROA(5y)-12.52%
ROE(3y)-54.24%
ROE(5y)-44.43%
ROIC(3y)N/A
ROIC(5y)N/A
SDC Yearly ROA, ROE, ROICSDC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2017 2018 2019 2020 2021 2022 0 -200 -400 -600 -800 -1K

1.3 Margins

Looking at the Gross Margin, with a value of 69.27%, SDC is in the better half of the industry, outperforming 79.70% of the companies in the same industry.
In the last couple of years the Gross Margin of SDC has grown nicely.
The Profit Margin and Operating Margin are not available for SDC so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 69.27%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-2.96%
GM growth 5Y4.43%
SDC Yearly Profit, Operating, Gross MarginsSDC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2017 2018 2019 2020 2021 2022 0 50 -50

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1

2. Health

2.1 Basic Checks

SDC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SDC has been increased compared to 1 year ago.
The debt/assets ratio for SDC is higher compared to a year ago.
SDC Yearly Shares OutstandingSDC Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 100M 200M 300M
SDC Yearly Total Debt VS Total AssetsSDC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

2.2 Solvency

Based on the Altman-Z score of -1.45, we must say that SDC is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -1.45, SDC is doing worse than 60.40% of the companies in the same industry.
A Debt/Equity ratio of 9.98 is on the high side and indicates that SDC has dependencies on debt financing.
SDC has a Debt to Equity ratio of 9.98. This is amonst the worse of the industry: SDC underperforms 89.11% of its industry peers.
Industry RankSector Rank
Debt/Equity 9.98
Debt/FCF N/A
Altman-Z -1.45
ROIC/WACCN/A
WACC1.9%
SDC Yearly LT Debt VS Equity VS FCFSDC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2017 2018 2019 2020 2021 2022 0 200M -200M 400M -400M 600M 800M

2.3 Liquidity

SDC has a Current Ratio of 1.90. This is a normal value and indicates that SDC is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.90, SDC is doing worse than 74.75% of the companies in the same industry.
SDC has a Quick Ratio of 1.58. This is a normal value and indicates that SDC is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.58, SDC is not doing good in the industry: 65.35% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.9
Quick Ratio 1.58
SDC Yearly Current Assets VS Current LiabilitesSDC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 100M 200M 300M 400M 500M

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4

3. Growth

3.1 Past

SDC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.62%, which is quite impressive.
Looking at the last year, SDC shows a very negative growth in Revenue. The Revenue has decreased by -23.37% in the last year.
SDC shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 26.38% yearly.
EPS 1Y (TTM)22.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%23.53%
Revenue 1Y (TTM)-23.37%
Revenue growth 3Y-14.4%
Revenue growth 5Y26.38%
Sales Q2Q%-19.08%

3.2 Future

The Earnings Per Share is expected to grow by 13.80% on average over the next years. This is quite good.
Based on estimates for the next years, SDC will show a small growth in Revenue. The Revenue will grow by 5.71% on average per year.
EPS Next Y39.2%
EPS Next 2Y22.38%
EPS Next 3Y17.81%
EPS Next 5Y13.8%
Revenue Next Year-7.02%
Revenue Next 2Y0.75%
Revenue Next 3Y7.54%
Revenue Next 5Y5.71%

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 decreasing.
SDC Yearly Revenue VS EstimatesSDC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 200M 400M 600M
SDC Yearly EPS VS EstimatesSDC Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 -0.2 -0.4 -0.6 -0.8 -1

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0

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SDC. In the last year negative earnings were reported.
Also next year SDC is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SDC Price Earnings VS Forward Price EarningsSDC 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
SDC Per share dataSDC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.5 -0.5 1

4.3 Compensation for Growth

A more expensive valuation may be justified as SDC's earnings are expected to grow with 17.81% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y22.38%
EPS Next 3Y17.81%

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0

5. Dividend

5.1 Amount

No dividends for SDC!.
Industry RankSector Rank
Dividend Yield N/A

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SMILEDIRECTCLUB INC

NASDAQ:SDC (10/3/2023, 8:22:02 PM)

After market: 0.065 -0.01 (-13.33%)

0.075

-0.09 (-53.45%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)08-08 2023-08-08/amc
Earnings (Next)11-06 2023-11-06/amc
Inst Owners0.01%
Inst Owner Change-0.99%
Ins Owners3.88%
Ins Owner Change0%
Market Cap30.20M
Analysts48.57
Price Target0.79 (953.33%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-11.44%
Min EPS beat(2)-15.93%
Max EPS beat(2)-6.96%
EPS beat(4)2
Avg EPS beat(4)2.74%
Min EPS beat(4)-15.93%
Max EPS beat(4)18.08%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)2.72%
Min Revenue beat(2)-3.01%
Max Revenue beat(2)8.45%
Revenue beat(4)2
Avg Revenue beat(4)0.83%
Min Revenue beat(4)-7.33%
Max Revenue beat(4)8.45%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)10.71%
PT rev (3m)13.97%
EPS NQ rev (1m)16.02%
EPS NQ rev (3m)10.77%
EPS NY rev (1m)-1.98%
EPS NY rev (3m)-8.35%
Revenue NQ rev (1m)5.73%
Revenue NQ rev (3m)5.26%
Revenue NY rev (1m)1.98%
Revenue NY rev (3m)4.95%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.07
P/FCF N/A
P/OCF N/A
P/B 0.35
P/tB 0.4
EV/EBITDA N/A
EPS(TTM)-0.65
EYN/A
EPS(NY)-0.36
Fwd EYN/A
FCF(TTM)-0.41
FCFYN/A
OCF(TTM)-0.32
OCFYN/A
SpS1.03
BVpS0.21
TBVpS0.19
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -16.58%
ROE -95.61%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 69.27%
FCFM N/A
ROA(3y)-12.07%
ROA(5y)-12.52%
ROE(3y)-54.24%
ROE(5y)-44.43%
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-2.96%
GM growth 5Y4.43%
F-Score1
Asset Turnover0.83
Health
Industry RankSector Rank
Debt/Equity 9.98
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 55.61%
Cap/Sales 9.02%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.9
Quick Ratio 1.58
Altman-Z -1.45
F-Score1
WACC1.9%
ROIC/WACCN/A
Cap/Depr(3y)131.39%
Cap/Depr(5y)251.09%
Cap/Sales(3y)14.18%
Cap/Sales(5y)13.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.62%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%23.53%
EPS Next Y39.2%
EPS Next 2Y22.38%
EPS Next 3Y17.81%
EPS Next 5Y13.8%
Revenue 1Y (TTM)-23.37%
Revenue growth 3Y-14.4%
Revenue growth 5Y26.38%
Sales Q2Q%-19.08%
Revenue Next Year-7.02%
Revenue Next 2Y0.75%
Revenue Next 3Y7.54%
Revenue Next 5Y5.71%
EBIT growth 1Y23.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year84.22%
EBIT Next 3Y24.02%
EBIT Next 5Y19.52%
FCF growth 1Y-10.06%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-126.86%
OCF growth 3YN/A
OCF growth 5YN/A