SMART GLOBAL HOLDINGS INC (SGH) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:SGH • KYG8232Y1017

20.85 USD
+0.09 (+0.43%)
At close: Oct 14, 2024
21 USD
+0.15 (+0.72%)
After Hours: 10/14/2024, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SGH. SGH was compared to 113 industry peers in the Semiconductors & Semiconductor Equipment industry. SGH may be in some trouble as it scores bad on both profitability and health. SGH is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

  • In the past year SGH was profitable.
  • SGH had a positive operating cash flow in the past year.
  • 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.
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 has a worse Return On Assets (-10.91%) than 73.39% of its industry peers.
  • SGH has a worse Return On Equity (-39.85%) than 78.90% of its industry peers.
  • The Return On Invested Capital of SGH (1.48%) 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

  • 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 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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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so SGH 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.
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.
  • 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.
  • SGH has a Debt to FCF ratio of 6.03. This is comparable to the rest of the industry: SGH outperforms 53.21% of its industry peers.
  • SGH has a Debt/Equity ratio of 1.58. This is a high value indicating a heavy dependency on external financing.
  • SGH has a worse Debt to Equity ratio (1.58) than 88.07% of its industry peers.
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

  • A Current Ratio of 2.68 indicates that SGH has no problem at all paying its short term obligations.
  • SGH has a Current ratio (2.68) which is in line with its industry peers.
  • 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.
  • SGH has a Quick ratio of 2.18. This is comparable to the rest of the industry: SGH outperforms 51.38% of its industry peers.
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. Growth

3.1 Past

  • The earnings per share for SGH have decreased strongly by -51.17% in the last year.
  • 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

  • The Earnings Per Share is expected to grow by 57.50% on average over the next years. This is a very strong growth
  • 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.
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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Find the best growth stocksShow best growing peers

8

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.
  • SGH's Price/Earnings ratio is rather cheap when compared to the industry. SGH is cheaper than 87.16% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.06, SGH is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 10.74 indicates a reasonable valuation of SGH.
  • Based on the Price/Forward Earnings ratio, SGH is valued cheaply inside the industry as 93.58% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.86. SGH is valued rather cheaply when compared to this.
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

  • Based on the Enterprise Value to EBITDA ratio, SGH is valued a bit cheaper than the industry average as 77.06% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of SGH indicates a rather cheap valuation: SGH is cheaper than 96.33% of the companies listed 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

  • 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

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

0

5. Dividend

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

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-29.27%
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 NumberN/A
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 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.


How profitable is SMART GLOBAL HOLDINGS INC (SGH) stock?

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


Can you provide the financial health for SGH stock?

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