Structural Monitoring Systems Valuation

Q: What is the Fair Price of SMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SMN (A$0.47) is trading below our estimate of [[fair value]] (A$1.15)

Is SMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of SMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMN (A$0.47) is trading below our estimate of fair value (A$1.15)

Significantly Below Fair Value: SMN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMN?

Key metric: As SMN is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SMN. This is calculated by dividing SMN's market cap by their current revenue.
What is SMN's PS Ratio?
PS Ratio	2.5x
Sales	AU$27.95m
Market Cap	AU$70.55m

SMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	81.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SMN's PS Ratio compare to its peers?

The above table shows the PS ratio for SMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	14.1x
ELS Elsight	19.1x	n/a	AU$61.4m
AVA AVA Risk Group	1.3x	25.5%	AU$37.7m
RWL Rubicon Water	1.5x	16.0%	AU$86.7m
NVX NOVONIX	34.6x	110.3%	AU$380.2m
SMN Structural Monitoring Systems	2.5x	12.0%	AU$70.5m

Price-To-Sales vs Peers: SMN is good value based on its Price-To-Sales Ratio (2.5x) compared to the peer average (14.1x).

Price to Sales Ratio vs Industry

How does SMN's PS Ratio compare vs other companies in the AU Electronic Industry?

7 Companies	Price / Sales	Estimated Growth	Market Cap
DDR Dicker Data	0.7x	15.0%	US$1.01b
AMO Ambertech	0.2x	n/a	US$9.93m
HIL Hills	0.3x	n/a	US$7.88m
CLT Cellnet Group	0.09x	n/a	US$4.07m

7 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Sales vs Industry: SMN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the Global Electronic industry average (1.6x).

Price to Sales Ratio vs Fair Ratio

What is SMN's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMN PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	2.5x
Fair PS Ratio	1.6x

Price-To-Sales vs Fair Ratio: SMN is expensive based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (1.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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