DB:XM91

Stock Analysis Report

Executive Summary

SMTC Corporation provides electronics manufacturing services worldwide.


Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has SMTC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: XM91's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

XM91

-1.9%

DE Electronic

-0.9%

DE Market


1 Year Return

-24.7%

XM91

8.5%

DE Electronic

12.8%

DE Market

Return vs Industry: XM91 underperformed the German Electronic industry which returned 8.5% over the past year.

Return vs Market: XM91 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

XM91IndustryMarket
7 Day3.8%-1.9%-0.9%
30 Day-13.3%8.2%-0.4%
90 Day17.3%8.8%2.3%
1 Year-24.7%-24.7%10.9%8.5%16.3%12.8%
3 Year139.4%139.4%49.7%44.8%15.8%5.7%
5 Year144.9%144.9%114.5%99.2%19.7%3.3%

Price Volatility Vs. Market

How volatile is SMTC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SMTC 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: XM91 (€3.26) is trading below our estimate of fair value (€37.84)

Significantly Below Fair Value: XM91 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: XM91 is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: XM91 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 XM91's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: XM91 is overvalued based on its PB Ratio (2.4x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

How is SMTC forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

171.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: XM91 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: XM91 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: XM91's is expected to become profitable in the next 3 years.

Revenue vs Market: XM91's revenue (6.8% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: XM91's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if XM91's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SMTC performed over the past 5 years?

2.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: XM91 is currently unprofitable.

Growing Profit Margin: XM91 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: XM91 is unprofitable, but has reduced losses over the past 5 years at a rate of 2.1% per year.

Accelerating Growth: Unable to compare XM91's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: XM91 is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: XM91 has a negative Return on Equity (-20.61%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SMTC's financial position?


Financial Position Analysis

Short Term Liabilities: XM91's short term assets ($145.2M) exceed its short term liabilities ($123.3M).

Long Term Liabilities: XM91's short term assets ($145.2M) exceed its long term liabilities ($46.1M).


Debt to Equity History and Analysis

Debt Level: XM91's debt to equity ratio (176.2%) is considered high.

Reducing Debt: XM91's debt to equity ratio has increased from 73.6% to 176.2% over the past 5 years.


Balance Sheet

Inventory Level: XM91 has a high level of physical assets or inventory.

Debt Coverage by Assets: XM91's debt is covered by short term assets (assets are 2.1x 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: XM91 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if XM91 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is SMTC's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate XM91's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate XM91'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 XM91's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if XM91'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 XM91'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?

2.4yrs

Average management tenure


CEO

Eddie, Ed Smith (57yo)

3yrs

Tenure

US$511,030

Compensation

Mr. Edward J. Smith, also known as Eddie, Ed, has been the Chief Executive Officer and President of SMTC Corporation since May 16, 2017. Mr. Smith served as Interim Chief Executive Officer and Interim Pres ...


CEO Compensation Analysis

Compensation vs Market: Eddie, Ed's total compensation ($USD511.03K) is about average for companies of similar size in the German market ($USD413.13K).

Compensation vs Earnings: Insufficient data to compare Eddie, Ed's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Smith
President3yrsUS$511.03k1.29% $1.2m
Steven Waszak
CFO and Senior VP of Mergers & Acquisitions1.9yrsUS$510.89k0.12% $105.8k
Richard Fitzgerald
Chief Operating Officer2.7yrsUS$350.19k0.32% $288.7k
Josh Chien
Senior Vice President of Global Sales3.9yrsno datano data
Phil Wehrli
Senior Vice President of Global Planning & Supply Chain2.1yrsno datano data
Terry Wegman
Senior Vice President of Sales & Marketing1.3yrsno datano data
Blair McInnis
VP of Finance & Corporate Controller0yrsno datano data

2.4yrs

Average Tenure

57yo

Average Age

Experienced Management: XM91's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Smith
President3yrsUS$511.03k1.29% $1.2m
John Waterfield
Independent Director7.8yrsUS$60.00k3.63% $3.2m
Clarke Bailey
Independent Chairman of the Board0yrsUS$137.00k1.53% $1.4m
David Sandberg
Independent Director10.8yrsUS$63.00k3.78% $3.4m
Frederick Wasserman
Independent Director6.5yrsUS$70.00k0.22% $193.5k

7.2yrs

Average Tenure

57yo

Average Age

Experienced Board: XM91's board of directors are considered experienced (7.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: XM91 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 39.1%.


Top Shareholders

Company Information

SMTC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SMTC Corporation
  • Ticker: XM91
  • Exchange: DB
  • Founded: 1985
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$97.221m
  • Listing Market Cap: US$89.501m
  • Shares outstanding: 28.10m
  • Website: https://www.smtc.com

Number of Employees


Location

  • SMTC Corporation
  • 7050 Woodbine Avenue
  • Suite 300
  • Markham
  • Ontario
  • L3R 4G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTXNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJul 2000
XM91DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2000

Biography

SMTC Corporation provides electronics manufacturing services worldwide. The company offers end-to-end electronics manufacturing services, including product design and engineering; printed circuit board assembly; production, enclosure, cable assembly, and precision metal fabrication; systems integration and testing; and configuration to order, build to order, and direct order fulfillment services. It provides integrated contract manufacturing services to original equipment manufacturers and technology companies primarily in the test and measurement, retail and payment systems, telecom, networking and communications, medical, industrial, power and clean technology, semiconductor, and defense and aerospace market sectors. SMTC Corporation was founded in 1985 and is headquartered in Markham, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 20:31
End of Day Share Price2020/02/21 00:00
Earnings2019/09/29
Annual Earnings2018/12/30


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.