Smith-Midland Corporation Fundamental Analysis
Smith-Midland Corporation (SMID) shows moderate financial fundamentals with a PE ratio of 15.82, profit margin of 11.39%, and ROE of 19.91%. The company generates $0.1B in annual revenue with strong year-over-year growth of 19.03%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.1/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SMID's fundamental strength across five key dimensions:
Efficiency Score
WeakSMID struggles to generate sufficient returns from assets.
Valuation Score
ModerateSMID shows balanced valuation metrics.
Growth Score
ExcellentSMID delivers strong and consistent growth momentum.
Financial Health Score
ModerateSMID shows balanced financial health with some risks.
Profitability Score
ModerateSMID maintains healthy but balanced margins.
Key Financial Metrics
Is SMID Expensive or Cheap?
P/E Ratio
SMID trades at 15.82 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SMID's PEG of 2.25 indicates potential overvaluation.
Price to Book
The market values Smith-Midland Corporation at 2.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.84 times EBITDA. This signals the market has high growth expectations.
How Well Does SMID Make Money?
Net Profit Margin
For every $100 in sales, Smith-Midland Corporation keeps $11.39 as profit after all expenses.
Operating Margin
Core operations generate 15.53 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.91 in profit for every $100 of shareholder equity.
ROA
Smith-Midland Corporation generates $0.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Smith-Midland Corporation produces operating cash flow of $15.21M, showing steady but balanced cash generation.
Free Cash Flow
Smith-Midland Corporation produces free cash flow of $4.84M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.91 in free cash annually.
FCF Yield
SMID converts 2.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
15.82
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.25
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.00
vs 25 benchmark
ROCE
Return on capital employed
-0.86
vs 25 benchmark
How SMID Stacks Against Its Sector Peers
| Metric | SMID Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 15.82 | 25.27 | Better (Cheaper) |
| ROE | 19.91% | 1030.00% | Weak |
| Net Margin | 11.39% | -16616.00% (disorted) | Strong |
| Debt/Equity | 0.08 | 0.50 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 7.10 | Weak Liquidity |
| ROA | 0.00% | -5145.00% (disorted) | Weak |
SMID outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Smith-Midland Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
108.23%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
358.65%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
86.69%
Industry Style: Cyclical, Commodity, Value
High Growth