SMART GLOBAL HOLDINGS INC (SGH) Stock Fundamental Analysis
USA - NASDAQ:SGH - KYG8232Y1017 - Common Stock
20.85 USD
+0.09 (+0.43%)
21 USD
+0.15 (+0.72%)
We assign a fundamental rating of 3 out of 10 to SGH. SGH was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of SGH have multiple concerns. SGH is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SGH had positive earnings in the past year.
In the past year SGH had a positive cash flow from operations.
In multiple years SGH reported negative net income over the last 5 years.
Of the past 5 years SGH 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SGH (-10.91%) is worse than 73.39% of its industry peers.
With a Return On Equity value of -39.85%, SGH is not doing good in the industry: 78.90% of the companies in the same industry are doing better.
With a Return On Invested Capital value of 1.48%, SGH perfoms like the industry average, outperforming 50.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.91% | ||
| ROE | -39.85% | ||
| ROIC | 1.48% |
ROA(3y)-2.21%
ROA(5y)0.1%
ROE(3y)-19.83%
ROE(5y)-8.22%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Operating Margin of SGH (2.19%) is comparable to the rest of the industry.
SGH's Operating Margin has declined in the last couple of years.
SGH has a worse Gross Margin (33.50%) than 66.06% of its industry peers.
In the last couple of years the Gross Margin of SGH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.19% | ||
| PM (TTM) | N/A | ||
| GM | 33.5% |
OM growth 3Y-15.35%
OM growth 5Y-28.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.32%
GM growth 5Y4.95%
2. Health
2.1 Basic Checks
SGH has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
SGH 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
Based on the Altman-Z score of 1.81, we must say that SGH is in the distress zone and has some risk of bankruptcy.
SGH has a Altman-Z score of 1.81. This is comparable to the rest of the industry: SGH outperforms 40.37% of its industry peers.
The Debt to FCF ratio of SGH is 6.03, which is on the high side as it means it would take SGH, 6.03 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.03, SGH perfoms like the industry average, outperforming 53.21% of the companies in the same industry.
A Debt/Equity ratio of 1.58 is on the high side and indicates that SGH has dependencies on debt financing.
SGH has a worse Debt to Equity ratio (1.58) than 88.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | 6.03 | ||
| Altman-Z | 1.81 |
ROIC/WACC0.13
WACC11.52%
2.3 Liquidity
A Current Ratio of 2.68 indicates that SGH has no problem at all paying its short term obligations.
With a Current ratio value of 2.68, SGH perfoms like the industry average, outperforming 46.79% of the companies in the same industry.
SGH has a Quick Ratio of 2.18. This indicates that SGH is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of SGH (2.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
SGH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.17%.
Measured over the past years, SGH shows a decrease in Earnings Per Share. The EPS has been decreasing by -5.74% on average per year.
EPS 1Y (TTM)-51.17%
EPS 3Y-21.66%
EPS 5Y-5.74%
EPS Q2Q%5.71%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.74%
3.2 Future
Based on estimates for the next years, SGH will show a very strong growth in Earnings Per Share. The EPS will grow by 57.50% on average per year.
The Revenue is expected to grow by 14.97% on average over the next years. This is quite good.
EPS Next Y55.36%
EPS Next 2Y57.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year15.97%
Revenue Next 2Y14.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS 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
Based on the Price/Earnings ratio of 16.68, the valuation of SGH can be described as correct.
Based on the Price/Earnings ratio, SGH is valued cheaply inside the industry as 87.16% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.91, SGH is valued a bit cheaper.
SGH is valuated reasonably with a Price/Forward Earnings ratio of 10.74.
Based on the Price/Forward Earnings ratio, SGH is valued cheaper than 93.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.57. SGH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
SGH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. SGH is cheaper than 77.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SGH is valued cheaply inside the industry as 96.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 15.46 |
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.
SGH's earnings are expected to grow with 57.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y57.5%
EPS Next 3YN/A
5. Dividend
5.1 Amount
SGH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
20.85
+0.09 (+0.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners106.85%
Inst Owner Change-20.06%
Ins Owners2.97%
Ins Owner Change0%
Market Cap1.10B
Revenue(TTM)N/A
Net Income(TTM)-168.72M
Analysts82.5
Price Target25.76 (23.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)13.03%
Min EPS beat(2)5.25%
Max EPS beat(2)20.8%
EPS beat(4)3
Avg EPS beat(4)13.25%
Min EPS beat(4)-23.62%
Max EPS beat(4)50.56%
EPS beat(8)7
Avg EPS beat(8)25.01%
EPS beat(12)11
Avg EPS beat(12)22.84%
EPS beat(16)15
Avg EPS beat(16)20.03%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-0.8%
Max Revenue beat(2)-0.63%
Revenue beat(4)0
Avg Revenue beat(4)-4.77%
Min Revenue beat(4)-16.4%
Max Revenue beat(4)-0.63%
Revenue beat(8)2
Avg Revenue beat(8)-14.27%
Revenue beat(12)5
Avg Revenue beat(12)-17.13%
Revenue beat(16)7
Avg Revenue beat(16)-12.62%
PT rev (1m)-21.71%
PT rev (3m)-21.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 10.74 | ||
| P/S | 1.08 | ||
| P/FCF | 9.97 | ||
| P/OCF | 8.75 | ||
| P/B | 2.61 | ||
| P/tB | 8.48 | ||
| EV/EBITDA | 15.46 |
EPS(TTM)1.25
EY6%
EPS(NY)1.94
Fwd EY9.31%
FCF(TTM)2.09
FCFY10.03%
OCF(TTM)2.38
OCFY11.43%
SpS19.33
BVpS8
TBVpS2.46
PEG (NY)0.3
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.91% | ||
| ROE | -39.85% | ||
| ROCE | 1.88% | ||
| ROIC | 1.48% | ||
| ROICexc | 2.43% | ||
| ROICexgc | 4.08% | ||
| OM | 2.19% | ||
| PM (TTM) | N/A | ||
| GM | 33.5% | ||
| FCFM | 10.81% |
ROA(3y)-2.21%
ROA(5y)0.1%
ROE(3y)-19.83%
ROE(5y)-8.22%
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
ROICexgc growth 3Y-21.97%
ROICexgc growth 5Y-31.04%
ROICexc growth 3Y-26.35%
ROICexc growth 5Y-36.32%
OM growth 3Y-15.35%
OM growth 5Y-28.52%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.32%
GM growth 5Y4.95%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.58 | ||
| Debt/FCF | 6.03 | ||
| Debt/EBITDA | 8 | ||
| Cap/Depr | 25.48% | ||
| Cap/Sales | 1.52% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 151.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 1.81 |
F-Score5
WACC11.52%
ROIC/WACC0.13
Cap/Depr(3y)70.28%
Cap/Depr(5y)82.85%
Cap/Sales(3y)3.33%
Cap/Sales(5y)3.12%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-51.17%
EPS 3Y-21.66%
EPS 5Y-5.74%
EPS Q2Q%5.71%
EPS Next Y55.36%
EPS Next 2Y57.5%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-1.74%
Revenue Next Year15.97%
Revenue Next 2Y14.97%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y135.94%
EBIT growth 3Y-7.99%
EBIT growth 5Y-26.9%
EBIT Next Year-3.8%
EBIT Next 3Y13.3%
EBIT Next 5YN/A
FCF growth 1Y16.19%
FCF growth 3Y5.85%
FCF growth 5Y9.02%
OCF growth 1Y-4.51%
OCF growth 3Y6.18%
OCF growth 5Y8.98%
SMART GLOBAL HOLDINGS INC / SGH FAQ
What is the ChartMill fundamental rating of SMART GLOBAL HOLDINGS INC (SGH) stock?
ChartMill assigns a fundamental rating of 3 / 10 to SGH.
Can you provide the valuation status for SMART GLOBAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to SMART GLOBAL HOLDINGS INC (SGH). This can be considered as Fairly Valued.
How profitable is SMART GLOBAL HOLDINGS INC (SGH) stock?
SMART GLOBAL HOLDINGS INC (SGH) has a profitability rating of 3 / 10.
What is the expected EPS growth for SMART GLOBAL HOLDINGS INC (SGH) stock?
The Earnings per Share (EPS) of SMART GLOBAL HOLDINGS INC (SGH) is expected to grow by 55.36% in the next year.