20.85 USD
+0.09 (+0.43%)
21 USD
+0.15 (+0.72%)
SGH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 113 industry peers in the Semiconductors & Semiconductor Equipment industry. Both the profitability and financial health of SGH have multiple concerns. SGH has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year SGH was profitable.
SGH had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SGH reported negative net income in multiple years.
Of the past 5 years SGH 4 years had a positive operating cash flow.
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.
SGH's Return On Equity of -39.85% is on the low side compared to the rest of the industry. SGH is outperformed by 78.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 1.48%, SGH is in line with its industry, 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.
In the last couple of years the Operating Margin of SGH has declined.
With a Gross Margin value of 33.50%, SGH is not doing good in the industry: 66.06% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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's Altman-Z score of 1.81 is in line compared 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.
SGH's Debt to Equity ratio of 1.58 is on the low side compared to the rest of the industry. SGH is outperformed by 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
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's Current ratio of 2.68 is in line compared to the rest of the industry. SGH outperforms 46.79% of 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 (2.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.18 |
3. Growth
3.1 Past
The earnings per share for SGH have decreased strongly by -51.17% in the last year.
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
SGH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.50% yearly.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.68 indicates a correct valuation of SGH.
87.16% of the companies in the same industry are more expensive than SGH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.19. SGH is valued slightly cheaper when compared to this.
SGH is valuated reasonably with a Price/Forward Earnings ratio of 10.74.
Based on the Price/Forward Earnings ratio, SGH is valued cheaply inside the industry as 93.58% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.88, SGH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 10.74 |
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.
96.33% of the companies in the same industry are more expensive than SGH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 15.46 |
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.
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 Change0%
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.
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.