SMTC Corporation provides electronics manufacturing services worldwide.
Reasonable growth potential and slightly overvalued.
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.
7 Day Return
1 Year Return
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.
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
Is SMTC undervalued compared to its fair value and its price relative to the market?
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).
How is SMTC forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
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
How has SMTC performed over the past 5 years?
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
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.
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.
What is SMTC's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
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.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eddie, Ed Smith (57yo)
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.
|CFO and Senior VP of Mergers & Acquisitions||1.9yrs||US$510.89k||0.12% $105.8k|
|Chief Operating Officer||2.7yrs||US$350.19k||0.32% $288.7k|
|Senior Vice President of Global Sales||3.9yrs||no data||no data|
|Senior Vice President of Global Planning & Supply Chain||2.1yrs||no data||no data|
|Senior Vice President of Sales & Marketing||1.3yrs||no data||no data|
|VP of Finance & Corporate Controller||0yrs||no data||no data|
Experienced Management: XM91's management team is considered experienced (2.4 years average tenure).
|Independent Director||7.8yrs||US$60.00k||3.63% $3.2m|
|Independent Chairman of the Board||0yrs||US$137.00k||1.53% $1.4m|
|Independent Director||10.8yrs||US$63.00k||3.78% $3.4m|
|Independent Director||6.5yrs||US$70.00k||0.22% $193.5k|
Experienced Board: XM91's board of directors are considered experienced (7.2 years average tenure).
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
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 39.1%.
SMTC Corporation's company bio, employee growth, exchange listings and data sources
- 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
- SMTC Corporation
- 7050 Woodbine Avenue
- Suite 300
- L3R 4G8
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SMTX||NasdaqGM (Nasdaq Global Market)||Yes||Common Shares||US||USD||Jul 2000|
|XM91||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jul 2000|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 20:31|
|End of Day Share Price||2020/02/21 00:00|
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.