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SMITH MICRO SOFTWARE INC (SMSI) Stock Fundamental Analysis

NASDAQ:SMSI - Nasdaq - US8321544053 - Common Stock - Currency: USD

1.36  -0.03 (-2.16%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to SMSI. SMSI was compared to 283 industry peers in the Software industry. While SMSI seems to be doing ok healthwise, there are quite some concerns on its profitability. SMSI is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year SMSI has reported negative net income.
SMSI had a negative operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: SMSI reported negative net income in multiple years.
In multiple years SMSI reported negative operating cash flow during the last 5 years.
SMSI Yearly Net Income VS EBIT VS OCF VS FCFSMSI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M -20M -30M

1.2 Ratios

SMSI's Return On Assets of -110.48% is on the low side compared to the rest of the industry. SMSI is outperformed by 92.00% of its industry peers.
With a Return On Equity value of -135.16%, SMSI is not doing good in the industry: 80.73% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -110.48%
ROE -135.16%
ROIC N/A
ROA(3y)-27.96%
ROA(5y)-12.17%
ROE(3y)-33.85%
ROE(5y)-14.54%
ROIC(3y)N/A
ROIC(5y)N/A
SMSI Yearly ROA, ROE, ROICSMSI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400 -500

1.3 Margins

SMSI's Gross Margin of 70.74% is in line compared to the rest of the industry. SMSI outperforms 56.00% of its industry peers.
In the last couple of years the Gross Margin of SMSI has declined.
The Profit Margin and Operating Margin are not available for SMSI so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 70.74%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.21%
GM growth 5Y-2.35%
SMSI Yearly Profit, Operating, Gross MarginsSMSI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50

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5

2. Health

2.1 Basic Checks

SMSI does not have a ROIC to compare to the WACC, probably because it is not profitable.
SMSI has more shares outstanding than it did 1 year ago.
The number of shares outstanding for SMSI has been increased compared to 5 years ago.
SMSI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
SMSI Yearly Shares OutstandingSMSI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M
SMSI Yearly Total Debt VS Total AssetsSMSI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

SMSI has an Altman-Z score of -10.24. This is a bad value and indicates that SMSI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -10.24, SMSI is doing worse than 90.18% of the companies in the same industry.
There is no outstanding debt for SMSI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -10.24
ROIC/WACCN/A
WACC13.6%
SMSI Yearly LT Debt VS Equity VS FCFSMSI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M 60M 80M 100M

2.3 Liquidity

SMSI has a Current Ratio of 1.00. This is a normal value and indicates that SMSI is financially healthy and should not expect problems in meeting its short term obligations.
SMSI has a Current ratio of 1.00. This is in the lower half of the industry: SMSI underperforms 75.27% of its industry peers.
SMSI has a Quick Ratio of 1.00. This is a normal value and indicates that SMSI is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.00, SMSI is not doing good in the industry: 74.91% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1
SMSI Yearly Current Assets VS Current LiabilitesSMSI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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4

3. Growth

3.1 Past

The earnings per share for SMSI have decreased strongly by -15.18% in the last year.
SMSI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -44.64%.
Measured over the past years, SMSI shows a quite strong growth in Revenue. The Revenue has been growing by 9.23% on average per year.
EPS 1Y (TTM)-15.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-475%
Revenue 1Y (TTM)-44.64%
Revenue growth 3Y-7.3%
Revenue growth 5Y9.23%
Sales Q2Q%-57.75%

3.2 Future

SMSI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.66% yearly.
The Revenue is expected to grow by 10.94% on average over the next years. This is quite good.
EPS Next Y-97.62%
EPS Next 2Y39.72%
EPS Next 3Y32.66%
EPS Next 5YN/A
Revenue Next Year-49.68%
Revenue Next 2Y-12.13%
Revenue Next 3Y3.24%
Revenue Next 5Y10.94%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
SMSI Yearly Revenue VS EstimatesSMSI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 20M 40M 60M
SMSI Yearly EPS VS EstimatesSMSI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 2 -2 -4

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1

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for SMSI. In the last year negative earnings were reported.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SMSI. No positive earnings are expected for the next year.
Industry RankSector Rank
PE N/A
Fwd PE N/A
SMSI Price Earnings VS Forward Price EarningsSMSI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 40 -40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SMSI Per share dataSMSI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 -1 2

4.3 Compensation for Growth

SMSI's earnings are expected to grow with 32.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y39.72%
EPS Next 3Y32.66%

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0

5. Dividend

5.1 Amount

SMSI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SMITH MICRO SOFTWARE INC

NASDAQ:SMSI (2/24/2025, 4:30:02 PM)

1.36

-0.03 (-2.16%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-06 2025-05-06/amc
Inst Owners12.98%
Inst Owner Change-37.94%
Ins Owners1.82%
Ins Owner Change3.04%
Market Cap24.13M
Analysts82.22
Price Target4.93 (262.5%)
Short Float %3.24%
Short Ratio1.04
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0.03
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.66%
Min EPS beat(2)-6.44%
Max EPS beat(2)5.12%
EPS beat(4)1
Avg EPS beat(4)-21.64%
Min EPS beat(4)-83.82%
Max EPS beat(4)5.12%
EPS beat(8)5
Avg EPS beat(8)21.44%
EPS beat(12)6
Avg EPS beat(12)12.57%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-4.74%
Min Revenue beat(2)-4.94%
Max Revenue beat(2)-4.54%
Revenue beat(4)0
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-4.94%
Max Revenue beat(4)-0.91%
Revenue beat(8)0
Avg Revenue beat(8)-3.34%
Revenue beat(12)2
Avg Revenue beat(12)-2.65%
Revenue beat(16)5
Avg Revenue beat(16)-2.04%
PT rev (1m)-25.64%
PT rev (3m)-25.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)-9.99%
Revenue NQ rev (3m)-9.99%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.99%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 1
P/FCF N/A
P/OCF N/A
P/B 0.64
P/tB 13.68
EV/EBITDA N/A
EPS(TTM)-1.29
EYN/A
EPS(NY)-0.03
Fwd EYN/A
FCF(TTM)-0.59
FCFYN/A
OCF(TTM)-0.59
OCFYN/A
SpS1.36
BVpS2.13
TBVpS0.1
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -110.48%
ROE -135.16%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 70.74%
FCFM N/A
ROA(3y)-27.96%
ROA(5y)-12.17%
ROE(3y)-33.85%
ROE(5y)-14.54%
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 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.21%
GM growth 5Y-2.35%
F-Score3
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 0.22%
Cap/Sales 0.07%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1
Quick Ratio 1
Altman-Z -10.24
F-Score3
WACC13.6%
ROIC/WACCN/A
Cap/Depr(3y)3.2%
Cap/Depr(5y)34.05%
Cap/Sales(3y)0.51%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-15.18%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-475%
EPS Next Y-97.62%
EPS Next 2Y39.72%
EPS Next 3Y32.66%
EPS Next 5YN/A
Revenue 1Y (TTM)-44.64%
Revenue growth 3Y-7.3%
Revenue growth 5Y9.23%
Sales Q2Q%-57.75%
Revenue Next Year-49.68%
Revenue Next 2Y-12.13%
Revenue Next 3Y3.24%
Revenue Next 5Y10.94%
EBIT growth 1Y-36.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year9.71%
EBIT Next 3Y38.31%
EBIT Next 5Y34.45%
FCF growth 1Y65.13%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y64.98%
OCF growth 3YN/A
OCF growth 5YN/A