SMART GLOBAL HOLDINGS INC (SGH)
KYG8232Y1017 - Common Stock
SGH gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 107 industry peers in the Semiconductors & Semiconductor Equipment industry. SGH has a bad profitability rating. Also its financial health evaluation is rather negative. SGH has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
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.
SGH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
SGH's Return On Assets of -13.10% is on the low side compared to the rest of the industry. SGH is outperformed by 77.57% of its industry peers.
The Return On Equity of SGH (-49.09%) is worse than 78.50% of its industry peers.
SGH has a Return On Invested Capital (0.07%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.1% | ||
| ROE | -49.09% | ||
| ROIC | 0.07% |
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
SGH's Operating Margin of 0.10% is in line compared to the rest of the industry. SGH outperforms 42.99% of its industry peers.
SGH's Operating Margin has declined in the last couple of years.
SGH has a Gross Margin of 31.83%. This is in the lower half of the industry: SGH underperforms 70.09% of its industry peers.
In the last couple of years the Gross Margin of SGH has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.1% | ||
| PM (TTM) | N/A | ||
| GM | 31.83% |
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.
The number of shares outstanding for SGH has been increased compared to 1 year ago.
Compared to 5 years ago, SGH has more shares outstanding
Compared to 1 year ago, SGH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.83 indicates that SGH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.83, SGH is doing worse than 66.36% of the companies in the same industry.
The Debt to FCF ratio of SGH is 11.87, which is on the high side as it means it would take SGH, 11.87 years of fcf income to pay off all of its debts.
SGH has a Debt to FCF ratio of 11.87. This is comparable to the rest of the industry: SGH outperforms 46.73% of its industry peers.
SGH has a Debt/Equity ratio of 1.83. This is a high value indicating a heavy dependency on external financing.
SGH has a worse Debt to Equity ratio (1.83) than 87.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | 11.87 | ||
| Altman-Z | 1.83 |
ROIC/WACC0.01
WACC11.54%
2.3 Liquidity
SGH has a Current Ratio of 3.30. This indicates that SGH is financially healthy and has no problem in meeting its short term obligations.
SGH has a Current ratio of 3.30. This is comparable to the rest of the industry: SGH outperforms 52.34% of its industry peers.
A Quick Ratio of 2.66 indicates that SGH has no problem at all paying its short term obligations.
SGH has a Quick ratio (2.66) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The earnings per share for SGH have decreased strongly by -52.80% in the last year.
The Earnings Per Share has been decreasing by -4.18% on average over the past years.
Looking at the last year, SGH shows a very negative growth in Revenue. The Revenue has decreased by -19.38% in the last year.
The Revenue has been growing slightly by 2.26% on average over the past years.
EPS 1Y (TTM)-52.8%
EPS 3Y25.5%
EPS 5Y-4.18%
EPS growth Q2Q-64.47%
Revenue 1Y (TTM)-19.38%
Revenue growth 3Y8.69%
Revenue growth 5Y2.26%
Revenue growth Q2Q-33.64%
3.2 Future
Based on estimates for the next years, SGH will show a decrease in Earnings Per Share. The EPS will decrease by -8.98% on average per year.
SGH is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -5.54% yearly.
EPS Next Y-54.79%
EPS Next 2Y-8.98%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-27.31%
Revenue Next 2Y-5.54%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.32, which indicates a correct valuation of SGH.
Compared to the rest of the industry, the Price/Earnings ratio of SGH indicates a rather cheap valuation: SGH is cheaper than 90.65% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SGH to the average of the S&P500 Index (28.60), we can say SGH is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.54, the valuation of SGH can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SGH indicates a rather cheap valuation: SGH is cheaper than 94.39% of the companies listed in the same industry.
SGH is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 9.54 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, SGH is valued a bit cheaper than 74.77% of the companies in the same industry.
89.72% 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 | 16.96 | ||
| EV/EBITDA | 19.33 |
4.3 Compensation for Growth
A cheap valuation may be justified as SGH's earnings are expected to decrease with -8.98% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.98%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for SGH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SMART GLOBAL HOLDINGS INC
NASDAQ:SGH (5/17/2024, 7:26:00 PM)
After market: 20.24 0 (0%)20.24
+0.39 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSemiconductors & Semiconductor Equipment
GICS IndustrySemiconductors & Semiconductor Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 9.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.1% | ||
| ROE | -49.09% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.1% | ||
| PM (TTM) | N/A | ||
| GM | 31.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.83 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-52.8%
EPS 3Y25.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y-54.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-19.38%
Revenue growth 3Y8.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y