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.
  • 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 Return On Assets of -10.91%. This is in the lower half of the industry: SGH underperforms 73.39% of its industry peers.
  • The Return On Equity of SGH (-39.85%) is worse than 78.90% of its industry peers.
  • SGH has a Return On Invested Capital of 1.48%. This is comparable to the rest of the industry: SGH outperforms 50.46% of its industry peers.
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.
  • SGH's Operating Margin has declined in the last couple of years.
  • SGH's Gross Margin of 33.50% is on the low side compared to the rest of the industry. SGH is outperformed by 66.06% of its industry peers.
  • In the last couple of years the Gross Margin of SGH has grown nicely.
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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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

  • 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.
  • Looking at the Altman-Z score, with a value of 1.81, SGH is in line with its industry, outperforming 40.37% of the companies in the same industry.
  • 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.
  • 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

  • A Current Ratio of 2.68 indicates that SGH has no problem at all paying its short term obligations.
  • The Current ratio of SGH (2.68) is comparable to the rest of the 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 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

  • 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

  • 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

  • A Price/Earnings ratio of 16.68 indicates a correct valuation of SGH.
  • Based on the Price/Earnings ratio, SGH is valued cheaply inside the industry as 87.16% of the companies are valued more expensively.
  • SGH's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.11.
  • SGH is valuated reasonably with a Price/Forward Earnings ratio of 10.74.
  • SGH's Price/Forward Earnings ratio is rather cheap when compared to the industry. SGH is cheaper than 93.58% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, SGH is valued rather cheaply.
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

  • 77.06% of the companies in the same industry are more expensive than SGH, based on the Enterprise Value to EBITDA ratio.
  • 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

  • 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

More info and screens

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

0

5. SGH Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

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 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 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.


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.