Executive Summary
Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide.
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
+ 1 more risk
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Schmitt Industries's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: SI1A's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
15.1%
SI1A
1.6%
DE Electronic
-0.6%
DE Market
1 Year Return
19.6%
SI1A
-28.3%
DE Electronic
-20.9%
DE Market
Return vs Industry: SI1A exceeded the German Electronic industry which returned -28.9% over the past year.
Return vs Market: SI1A exceeded the German Market which returned -20.6% over the past year.
Shareholder returns
| SI1A | Industry | Market | |
|---|---|---|---|
| 7 Day | 15.1% | 1.6% | -0.6% |
| 30 Day | -14.7% | -19.3% | -20.0% |
| 90 Day | -29.1% | -23.2% | -26.3% |
| 1 Year | 19.6%19.6% | -26.8%-28.3% | -18.6%-20.9% |
| 3 Year | 68.3%68.3% | -4.0%-7.1% | -19.0%-25.8% |
| 5 Year | 0.7%0.7% | 53.5%42.4% | -21.1%-31.8% |
Price Volatility Vs. Market
How volatile is Schmitt Industries's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Schmitt Industries undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: SI1A (€2.44) is trading below our estimate of fair value (€7.93)
Significantly Below Fair Value: SI1A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: SI1A is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.
PE vs Market: SI1A is unprofitable, so we can't compare its PE Ratio to the German market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate SI1A's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: SI1A is good value based on its PB Ratio (0.8x) compared to the DE Electronic industry average (1.2x).
Next Steps
Future Growth
How is Schmitt Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
16.2%
Forecasted Tech industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Schmitt Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine whether Schmitt Industries is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
- Schmitt Industries competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Tech industry.
Past Performance
How has Schmitt Industries performed over the past 5 years?
-8.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SI1A is currently unprofitable.
Growing Profit Margin: SI1A is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: SI1A is unprofitable, and losses have increased over the past 5 years at a rate of -8.6% per year.
Accelerating Growth: Unable to compare SI1A's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: SI1A is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-7.4%).
Return on Equity
High ROE: SI1A has a negative Return on Equity (-10.07%), as it is currently unprofitable.
Next Steps
Financial Health
How is Schmitt Industries's financial position?
Financial Position Analysis
Short Term Liabilities: SI1A's short term assets ($14.0M) exceed its short term liabilities ($1.2M).
Long Term Liabilities: SI1A has no long term liabilities.
Debt to Equity History and Analysis
Debt Level: SI1A is debt free.
Reducing Debt: SI1A had no debt 5 years ago.
Balance Sheet
Inventory Level: SI1A has a low level of unsold assets or inventory.
Debt Coverage by Assets: SI1A's debt is not covered by short term assets (assets are -136.7x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: Whilst unprofitable SI1A has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.
Forecast Cash Runway: SI1A is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -7.8% per year.
Next Steps
Dividend
What is Schmitt Industries's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SI1A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate SI1A's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SI1A's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SI1A's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SI1A's dividend in 3 years as they are not forecast to pay a notable one for the German market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.8yrs
Average management tenure
CEO
Mike Zapata (41yo)
0.75
Tenure
US$202,639
Compensation
Mr. Michael R. Zapata, also known as Mike, is an Executive Chairman and President of Schmitt Industries Inc since December 1, 2018 and also serves as its Chief Executive Officer since July 30, 2019. He has ...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD202.64K) is below average for companies of similar size in the German market ($USD431.53K).
Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.75yr | US$202.64k | 1.29% $127.5k | |
| CFO & Treasurer | 0.25yr | no data | 0.19% $18.4k | |
| President of SBS | 1.33yrs | no data | no data |
0.8yrs
Average Tenure
Experienced Management: SI1A's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 0.75yr | US$202.64k | 1.29% $127.5k | |
| Independent Director | 0.83yr | no data | 0.46% $45.2k | |
| Independent Director | 1.5yrs | US$2.00k | 4.01% $395.6k | |
| Independent Director | 3.92yrs | US$44.00k | 0.51% $49.8k |
1.4yrs
Average Tenure
58yo
Average Age
Experienced Board: SI1A's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.
Top Shareholders
Company Information
Schmitt Industries, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Schmitt Industries, Inc.
- Ticker: SI1A
- Exchange: DB
- Founded: 1984
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$10.724m
- Listing Market Cap: US$9.859m
- Shares outstanding: 4.16m
- Website: https://www.schmittindustries.com
Number of Employees
Location
- Schmitt Industries, Inc.
- 2765 NW Nicolai Street
- Portland
- Oregon
- 97210
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SMIT | NasdaqCM (Nasdaq Capital Market) | Yes | Common Stock | US | USD | Jan 1995 |
| SI1A | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1995 |
Biography
Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide. The company’s Balancer segment offers computer-controlled vibration detection, balancing, and process control systems. Its products comprise SB-5500, an optional acoustic emission monitoring system (AEMS) control card to monitor the AE signals generated on the grinding machine; process control cards to provide enhanced control of the grinding process; SB-2000, a compact manual balancing system; and AE-1000, an AE control platform, which reduces air machine grinding time under the Schmitt Dynamic Balance System brand name. This segment sells its products to end user operators, as well as manufacturers of grinding machines for automotive, industrial, aerospace, and medical industries through independent manufacturers’ representatives and distributors. Its Measurement segment provides laser and confocal chromatic white light sensors for distance, measurement, and dimensional sizing products under the Acuity brand name for various application, including manufacturing, lumber production, steel casting, glass and paper production, medical imaging, crane control and micron-level part, and surface inspection; and ultrasonic measurement products that measure the levels of liquid tanks and transmit that data through satellite to a secure Website for display, as well as remote tank monitoring products under the Xact brand name. Schmitt Industries, Inc. was founded in 1984 and is based in Portland, Oregon.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/03 22:11 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/11/30 |
| Annual Earnings | 2019/05/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.