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%)
Overall SGH gets a fundamental rating of 3 out of 10. We evaluated SGH against 112 industry peers in the Semiconductors & Semiconductor Equipment industry. SGH may be in some trouble as it scores bad on both profitability and health. SGH has a bad growth rate and is valued cheaply.
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.
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 worse Return On Assets (-10.91%) than 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.
SGH's Return On Invested Capital of 1.48% is in line compared to the rest of the industry. SGH outperforms 50.46% of its industry peers.
| 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.
SGH's Gross Margin has improved in the last couple of years.
| 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.
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.
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.
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.
A Debt/Equity ratio of 1.58 is on the high side and indicates that SGH has dependencies on debt 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.
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.
Looking at the Quick ratio, with a value of 2.18, SGH is in line with its industry, outperforming 51.38% of the companies in the same industry.
| 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.
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
SGH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 57.50% yearly.
Based on estimates for the next years, SGH will show a quite strong growth in Revenue. The Revenue will grow by 14.97% on average per year.
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
With a Price/Earnings ratio of 16.68, SGH is valued correctly.
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 25.67. SGH is valued slightly cheaper when compared to this.
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.
SGH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 31.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.68 | ||
| Fwd PE | 10.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGH is valued a bit cheaper than 77.06% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, SGH is valued cheaper than 96.33% of the companies in the same industry.
| 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
No dividends for SGH!.
| 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-1.94%
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.