SMITH MICRO SOFTWARE INC (SMSI)

US8321544053 - Common Stock

1.17  -0.06 (-4.88%)

Premarket: 1.29 +0.12 (+10.26%)

Fundamental Rating

3

Overall SMSI gets a fundamental rating of 3 out of 10. We evaluated SMSI against 284 industry peers in the Software industry. The financial health of SMSI is average, but there are quite some concerns on its profitability. SMSI is quite expensive at the moment. It does show a decent growth rate.



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1

1. Profitability

1.1 Basic Checks

SMSI had negative earnings in the past year.
SMSI had a negative operating cash flow in the past year.
In multiple years SMSI reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: SMSI reported negative operating cash flow in multiple years.

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 92.11% of its industry peers.
The Return On Equity of SMSI (-135.16%) is worse than 81.00% of its industry peers.
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

1.3 Margins

The Gross Margin of SMSI (70.74%) is comparable to the rest of the industry.
SMSI's Gross Margin has declined in the last couple of years.
SMSI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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%

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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.
Compared to 5 years ago, SMSI has more shares outstanding
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.

2.2 Solvency

SMSI has an Altman-Z score of -10.52. This is a bad value and indicates that SMSI is not financially healthy and even has some risk of bankruptcy.
SMSI has a worse Altman-Z score (-10.52) than 91.04% of its industry peers.
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 -10.52
ROIC/WACCN/A
WACC11.03%

2.3 Liquidity

A Current Ratio of 1.00 indicates that SMSI should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, SMSI is doing worse than 77.42% of the companies in the same industry.
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: 77.06% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1
Quick Ratio 1

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4

3. Growth

3.1 Past

SMSI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -15.18%.
The Revenue for SMSI has decreased by -44.64% in the past year. This is quite bad
SMSI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.23% yearly.
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.
Based on estimates for the next years, SMSI will show a quite strong growth in Revenue. The Revenue will grow by 10.94% on average per year.
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

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

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1

4. Valuation

4.1 Price/Earnings Ratio

SMSI reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year SMSI is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A

4.3 Compensation for Growth

A more expensive valuation may be justified as SMSI's earnings are expected to grow with 32.66% in the coming years.
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 (1/14/2025, 8:05:57 PM)

Premarket: 1.29 +0.12 (+10.26%)

1.17

-0.06 (-4.88%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-13 2024-11-13/amc
Earnings (Next)02-20 2025-02-20/amc
Inst Owners12.03%
Inst Owner Change0%
Ins Owners1.93%
Ins Owner Change-0.82%
Market Cap20.76M
Analysts82.22
Price Target6.63 (466.67%)
Short Float %2.97%
Short Ratio1.01
Dividend
Industry RankSector Rank
Dividend Yield N/A
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)0%
PT rev (3m)-20.41%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.38%
EPS NY rev (1m)0%
EPS NY rev (3m)7.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-38.01%
Revenue NY rev (1m)-3.09%
Revenue NY rev (3m)-3.99%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 0.86
P/FCF N/A
P/OCF N/A
P/B 0.55
P/tB 11.77
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 -10.52
F-Score3
WACC11.03%
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