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%)
Taking everything into account, SGH scores 3 out of 10 in our fundamental rating. SGH was compared to 112 industry peers in the Semiconductors & Semiconductor Equipment industry. SGH has a bad profitability rating. Also its financial health evaluation is rather negative. SGH is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SGH had positive earnings in the past year.
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.
SGH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SGH has a worse Return On Assets (-10.91%) than 73.39% of its industry peers.
Looking at the Return On Equity, with a value of -39.85%, SGH is doing worse than 78.90% of the companies in the same industry.
The Return On Invested Capital of SGH (1.48%) is comparable to the rest of the 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
With a Operating Margin value of 2.19%, SGH perfoms like the industry average, outperforming 47.71% of the companies in the same industry.
SGH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 33.50%, SGH is doing worse than 66.06% of the companies in the same industry.
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
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.
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.
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.
The Debt to Equity ratio of SGH (1.58) is worse than 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 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.
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 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.
SGH shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -5.74% yearly.
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.
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.68, which 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.
When comparing the Price/Earnings ratio of SGH to the average of the S&P500 Index (27.20), we can say SGH is valued slightly cheaper.
The Price/Forward Earnings ratio is 10.74, which indicates a very decent valuation of SGH.
Based on the Price/Forward Earnings ratio, SGH is valued cheaper than 93.58% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. SGH is valued rather cheaply when compared to this.
| 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
The 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
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-14.12%
Ins Owners2.97%
Ins Owner Change0%
Market Cap1.10B
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
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
ROICexcg growth 3Y-21.97%
ROICexcg 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%