SMART GLOBAL HOLDINGS INC (SGH) Fundamental Analysis & Valuation

NASDAQ:SGH • KYG8232Y1017

Current stock price

20.85 USD
+0.09 (+0.43%)
At close:
21 USD
+0.15 (+0.72%)
After Hours:

This SGH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

2

1. SGH Profitability Analysis

1.1 Basic Checks

  • In the past year SGH was profitable.
  • In the past year SGH had a positive cash flow from operations.
  • The reported net income has been mixed in the past 5 years: SGH reported negative net income in multiple years.
  • SGH had a positive operating cash flow in 4 of the past 5 years.
SGH Yearly Net Income VS EBIT VS OCF VS FCFSGH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M

1.2 Ratios

  • SGH's Return On Assets of -10.91% is on the low side compared to the rest of the industry. SGH is outperformed by 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.
  • SGH has a Return On Invested Capital (1.48%) which is comparable to the rest of the industry.
Industry RankSector 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
SGH Yearly ROA, ROE, ROICSGH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 500 1K 1.5K

1.3 Margins

  • SGH has a Operating Margin (2.19%) which is comparable to the rest of the industry.
  • In the last couple of years the Operating Margin of SGH has declined.
  • SGH has a Gross Margin of 33.50%. This is in the lower half of the industry: SGH underperforms 66.06% of its industry peers.
  • SGH's Gross Margin has improved in the last couple of years.
Industry RankSector 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%
SGH Yearly Profit, Operating, Gross MarginsSGH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20

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3

2. SGH Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SGH is destroying value.
  • There is no outstanding debt for SGH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
SGH Yearly Shares OutstandingSGH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M 40M 50M
SGH Yearly Total Debt VS Total AssetsSGH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

  • SGH has an Altman-Z score of 1.81. This is a bad value and indicates that SGH is not financially healthy and even 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.
  • SGH has a debt to FCF ratio of 6.03. This is a slightly negative value and a sign of low solvency as SGH would need 6.03 years to pay back of all of its debts.
  • SGH has a Debt to FCF ratio (6.03) which is in line with its industry peers.
  • SGH has a Debt/Equity ratio of 1.58. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 1.58, SGH is doing worse than 88.07% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 1.58
Debt/FCF 6.03
Altman-Z 1.81
ROIC/WACC0.13
WACC11.52%
SGH Yearly LT Debt VS Equity VS FCFSGH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

  • SGH has a Current Ratio of 2.68. This indicates that SGH is financially healthy and has no problem in meeting its short term obligations.
  • SGH has a Current ratio (2.68) which is in line with its industry peers.
  • A Quick Ratio of 2.18 indicates that SGH has no problem at all paying its short term obligations.
  • With a Quick ratio value of 2.18, SGH perfoms like the industry average, outperforming 51.38% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.68
Quick Ratio 2.18
SGH Yearly Current Assets VS Current LiabilitesSGH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. SGH Growth Analysis

3.1 Past

  • SGH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -51.17%.
  • The Earnings Per Share has been decreasing by -5.74% on average over the past years.
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.
  • SGH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.97% yearly.
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

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
SGH Yearly Revenue VS EstimatesSGH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
SGH Yearly EPS VS EstimatesSGH Yearly EPS VS EstimatesYearly EPS VS Estimates 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

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8

4. SGH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 16.68, which indicates a correct valuation of SGH.
  • Compared to the rest of the industry, the Price/Earnings ratio of SGH indicates a rather cheap valuation: SGH is cheaper than 87.16% of the companies listed in the same industry.
  • SGH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.87.
  • With a Price/Forward Earnings ratio of 10.74, the valuation of SGH can be described as very reasonable.
  • 93.58% of the companies in the same industry are more expensive than SGH, based on the Price/Forward Earnings ratio.
  • SGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 16.68
Fwd PE 10.74
SGH Price Earnings VS Forward Price EarningsSGH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

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.
  • SGH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. SGH is cheaper than 96.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.97
EV/EBITDA 15.46
SGH Per share dataSGH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • SGH's 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 SGH's earnings are expected to grow with 57.50% in the coming years.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y57.5%
EPS Next 3YN/A

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SGH Dividend Analysis

5.1 Amount

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

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SGH Fundamentals: All Metrics, Ratios and Statistics

SMART GLOBAL HOLDINGS INC

NASDAQ:SGH (10/14/2024, 8:00:02 PM)

After market: 21 +0.15 (+0.72%)

20.85

+0.09 (+0.43%)

Chartmill FA Rating
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)10-15
Earnings (Next)01-07
Inst Owners106.85%
Inst Owner Change-29.81%
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 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)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 RankSector 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 Number0 (-100%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis FAQ

What is the ChartMill fundamental rating of SMART GLOBAL HOLDINGS INC (SGH) stock?

ChartMill assigns a fundamental rating of 3 / 10 to SGH.


What is the valuation status for SGH stock?

ChartMill assigns a valuation rating of 6 / 10 to SMART GLOBAL HOLDINGS INC (SGH). This can be considered as Fairly Valued.


Can you provide the profitability details for SMART GLOBAL HOLDINGS INC?

SMART GLOBAL HOLDINGS INC (SGH) has a profitability rating of 3 / 10.


What is the financial health of SMART GLOBAL HOLDINGS INC (SGH) stock?

The financial health rating of SMART GLOBAL HOLDINGS INC (SGH) is 3 / 10.


Can you provide the expected EPS growth for SGH stock?

The Earnings per Share (EPS) of SMART GLOBAL HOLDINGS INC (SGH) is expected to grow by 55.36% in the next year.