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Smart Metering Systems

AIM:SMS
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMS
AIM
£585M
Market Cap
  1. Home
  2. GB
  3. Tech
Company description

Smart Metering Systems plc, through its subsidiaries, connects, owns, operates, and maintains metering systems and databases on behalf of energy companies in the United Kingdom. The last earnings update was 90 days ago. More info.


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SMS Share Price and Events
7 Day Returns
1.8%
AIM:SMS
-0.5%
GB Electronic
-0%
GB Market
1 Year Returns
-18.2%
AIM:SMS
-2.3%
GB Electronic
-1.7%
GB Market
SMS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Smart Metering Systems (SMS) 1.8% 0.4% 5.2% -18.2% 20.9% 27.9%
GB Electronic -0.5% -1.8% -0.5% -2.3% 65.1% 96.9%
GB Market -0% 1.4% -0.4% -1.7% 11.3% 6.7%
1 Year Return vs Industry and Market
  • SMS underperformed the Electronic industry which returned -2.3% over the past year.
  • SMS underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -1.7% over the past year.
Price Volatility
SMS
Industry
5yr Volatility vs Market

SMS Value

 Is Smart Metering Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Smart Metering Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Smart Metering Systems.

AIM:SMS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for AIM:SMS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.135 (1 + (1- 19%) (29.43%))
1.272
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.27
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.272 * 6.65%)
9.68%

Discounted Cash Flow Calculation for AIM:SMS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Smart Metering Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

AIM:SMS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 9.68%)
2020 -89.03 Analyst x3 -81.17
2021 -72.60 Analyst x3 -60.35
2022 -30.80 Analyst x1 -23.34
2023 99.50 Analyst x2 68.75
2024 157.87 Est @ 58.66% 99.45
2025 223.28 Est @ 41.43% 128.23
2026 288.86 Est @ 29.37% 151.25
2027 349.31 Est @ 20.93% 166.75
2028 401.77 Est @ 15.02% 174.86
2029 445.49 Est @ 10.88% 176.77
Present value of next 10 years cash flows £801.18
AIM:SMS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= £445.49 × (1 + 1.23%) ÷ (9.68% – 1.23%)
£5,332.27
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £5,332.27 ÷ (1 + 9.68%)10
£2,115.82
AIM:SMS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £801.18 + £2,115.82
£2,917.00
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,917.00 / 112.53
£25.92
AIM:SMS Discount to Share Price
Calculation Result
Value per share (GBP) From above. £25.92
Current discount Discount to share price of £5.19
= -1 x (£5.19 - £25.92) / £25.92
80%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Smart Metering Systems is available for.
Intrinsic value
>50%
Share price is £5.19 vs Future cash flow value of £25.92
Current Discount Checks
For Smart Metering Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Smart Metering Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Smart Metering Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Smart Metering Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Smart Metering Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
AIM:SMS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.04
AIM:SMS Share Price ** AIM (2019-07-23) in GBP £5.19
United Kingdom of Great Britain and Northern Ireland Electronic Industry PE Ratio Median Figure of 21 Publicly-Listed Electronic Companies 19.52x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 792 Publicly-Listed Companies 16.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Smart Metering Systems.

AIM:SMS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= AIM:SMS Share Price ÷ EPS (both in GBP)

= 5.19 ÷ 0.04

130.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smart Metering Systems is overvalued based on earnings compared to the GB Electronic industry average.
  • Smart Metering Systems is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Smart Metering Systems's expected growth come at a high price?
Raw Data
AIM:SMS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 130.57x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
31.6%per year
United Kingdom of Great Britain and Northern Ireland Electronic Industry PEG Ratio Median Figure of 12 Publicly-Listed Electronic Companies 2.31x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 571 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

AIM:SMS PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 130.57x ÷ 31.6%

4.14x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smart Metering Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Smart Metering Systems's assets?
Raw Data
AIM:SMS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £2.01
AIM:SMS Share Price * AIM (2019-07-23) in GBP £5.19
United Kingdom of Great Britain and Northern Ireland Electronic Industry PB Ratio Median Figure of 34 Publicly-Listed Electronic Companies 1.98x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,377 Publicly-Listed Companies 1.51x
AIM:SMS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= AIM:SMS Share Price ÷ Book Value per Share (both in GBP)

= 5.19 ÷ 2.01

2.58x

* Primary Listing of Smart Metering Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Smart Metering Systems is overvalued based on assets compared to the GB Electronic industry average.
X
Value checks
We assess Smart Metering Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Smart Metering Systems has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SMS Future Performance

 How is Smart Metering Systems expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Smart Metering Systems expected to grow at an attractive rate?
  • Smart Metering Systems's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Smart Metering Systems's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Smart Metering Systems's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
AIM:SMS Future Growth Rates Data Sources
Data Point Source Value (per year)
AIM:SMS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 31.6%
AIM:SMS Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 10.9%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Earnings Growth Rate Market Cap Weighted Average 10.5%
United Kingdom of Great Britain and Northern Ireland Electronic Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
AIM:SMS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
AIM:SMS Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 142
2022-12-31 151 98 24 1
2021-12-31 137 81 23 6
2020-12-31 119 66 17 7
2019-12-31 107 55 14 7
AIM:SMS Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 98 40 4
2018-09-30 94 40 10
2018-06-30 89 40 15
2018-03-31 85 40 15
2017-12-31 80 41 15
2017-09-30 76 15
2017-06-30 72 38 16
2017-03-31 69 35 15
2016-12-31 67 31 15
2016-09-30 64 16
2016-06-30 60 28 16
2016-03-31 57 26 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Smart Metering Systems's earnings are expected to grow significantly at over 20% yearly.
  • Smart Metering Systems's revenue is expected to grow by 10.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
AIM:SMS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Smart Metering Systems Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SMS Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 0.21 0.21 0.21 1.00
2021-12-31 0.20 0.25 0.15 2.00
2020-12-31 0.15 0.17 0.13 2.00
2019-12-31 0.13 0.15 0.09 3.00
AIM:SMS Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.04
2018-09-30 0.09
2018-06-30 0.15
2018-03-31 0.16
2017-12-31 0.16
2017-09-30 0.17
2017-06-30 0.17
2017-03-31 0.17
2016-12-31 0.17
2016-09-30 0.18
2016-06-30 0.19
2016-03-31 0.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Smart Metering Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Smart Metering Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Smart Metering Systems has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SMS Past Performance

  How has Smart Metering Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Smart Metering Systems's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Smart Metering Systems's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Smart Metering Systems's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Smart Metering Systems's 1-year earnings growth is negative, it can't be compared to the GB Electronic industry average.
Earnings and Revenue History
Smart Metering Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Smart Metering Systems Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

AIM:SMS Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 98.49 4.46 13.68 0.31
2018-09-30 93.99 9.91 14.86 0.15
2018-06-30 89.49 15.36 17.52
2018-03-31 84.54 15.01 16.90
2017-12-31 79.59 14.66 14.80
2017-09-30 75.66 15.12 13.36
2017-06-30 71.72 15.58 11.92
2017-03-31 69.45 15.41 11.47
2016-12-31 67.19 15.25 11.01
2016-09-30 63.83 15.83 9.18
2016-06-30 60.47 16.41 7.36
2016-03-31 57.21 15.71 7.30
2015-12-31 53.95 15.00 7.25
2015-09-30 51.59 13.20 8.45
2015-06-30 49.24 11.40 9.65
2015-03-31 45.81 10.14 8.23
2014-12-31 42.39 8.88 6.80
2014-09-30 38.02 9.02 9.09
2014-06-30 33.66 7.24 11.38
2014-03-31 30.79 6.91 10.37
2013-12-31 27.92 6.58 9.36
2013-09-30 26.43 5.72 8.40
2013-06-30 24.95 4.87 7.44
2013-03-31 22.99 4.59 6.77
2012-12-31 21.03 4.31 6.09
2012-09-30 19.44 3.74 5.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Smart Metering Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Smart Metering Systems used its assets less efficiently than the GB Electronic industry average last year based on Return on Assets.
  • Smart Metering Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Smart Metering Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Smart Metering Systems has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SMS Health

 How is Smart Metering Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Smart Metering Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Smart Metering Systems's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Smart Metering Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Smart Metering Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Smart Metering Systems Company Filings, last reported 6 months ago.

AIM:SMS Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 226.13 172.02 30.03
2018-09-30 226.13 172.02 30.03
2018-06-30 232.34 150.18 46.84
2018-03-31 232.34 150.18 46.84
2017-12-31 227.62 187.08 150.60
2017-09-30 227.62 187.08 150.60
2017-06-30 74.10 129.82 7.82
2017-03-31 74.10 129.82 7.82
2016-12-31 66.42 102.18 8.00
2016-09-30 66.42 102.18 8.00
2016-06-30 58.09 89.84 9.28
2016-03-31 58.09 89.84 9.28
2015-12-31 47.39 84.76 5.71
2015-09-30 47.39 84.76 5.71
2015-06-30 40.74 72.60 2.67
2015-03-31 40.74 72.60 2.67
2014-12-31 34.41 61.62 4.29
2014-09-30 35.95 61.62 4.29
2014-06-30 30.81 53.25 4.91
2014-03-31 30.81 53.25 4.91
2013-12-31 22.59 35.41 2.28
2013-09-30 22.59 35.41 2.28
2013-06-30 19.21 26.05 6.54
2013-03-31 19.21 26.05 6.54
2012-12-31 16.60 20.62 6.46
2012-09-30 16.60 20.62 6.46
  • Smart Metering Systems's level of debt (76.1%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (157% vs 76.1% today).
  • Debt is well covered by operating cash flow (23.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 6.1x coverage).
X
Financial health checks
We assess Smart Metering Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Smart Metering Systems has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SMS Dividends

 What is Smart Metering Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.15%
Current annual income from Smart Metering Systems dividends. Estimated to be 1.6% next year.
If you bought £2,000 of Smart Metering Systems shares you are expected to receive £23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Smart Metering Systems's pays a lower dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Smart Metering Systems's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
AIM:SMS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Electronic Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 1.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

AIM:SMS Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.16 1.00
2022-12-31 0.10 2.00
2021-12-31 0.09 6.00
2020-12-31 0.07 7.00
2019-12-31 0.07 6.00
AIM:SMS Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-04-12 0.060 1.181
2018-04-17 0.052 0.826
2018-03-12 0.052 0.724
2017-05-02 0.041 0.619
2017-03-21 0.041 0.709
2016-03-21 0.033 0.669
2015-03-16 0.028 0.820
2014-03-24 0.023 0.626
2013-03-21 0.023 0.741
2012-09-05 0.010 0.434
2012-04-16 0.000 0.000
2012-02-29 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Smart Metering Systems has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Smart Metering Systems only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Smart Metering Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
X
Income/ dividend checks
We assess Smart Metering Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Smart Metering Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Smart Metering Systems has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SMS Management

 What is the CEO of Smart Metering Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Alan Foy
COMPENSATION £663,381
AGE 52
TENURE AS CEO 12.5 years
CEO Bio

Mr. Alan Henry Foy has been the Chief Executive Officer at Smart Metering Systems Plc since 2007 and served as its Group Managing Director. Mr. Foy has responsibility for business distribution, client management and business operations. His responsibility includes identifying and facilitating sales through volume distribution channels, managing key clients, business operations and the full gamut of activities required of a utility asset owning business. On gaining approval to establish Scottish Powers regulated gas transportation and metering business in 1997, he set up a business unit within the Scottish Power Group, SP Gas Limited and managed from inception to the third largest iGT in the UK until joining UK Smart metering in 2004. He gained considerable experience in the management of utility asset owning, supply and shipping business activities within very complex and regulated frameworks, requiring the full understanding of utility business activities from customer recruitment, licensing, regulation, safety, commercial, IT, investment and financial policies. Mr. Foy has been Director at Smart Metering Systems Plc since December 24, 2007. Mr. Foy served as a Director of an international energy consultancy practice specialising in energy utilisation and design. He is professionally qualified engineer. Mr. Foy places strong emphasis on safety, operational performance and financial accountability in all aspects of UK Smart Metering Group's activities in addition ongoing training and coaching of existing and new staff members aimed at developing them to be receptive and adaptable to current and future business demands and to deliver business operations to a high level of efficiency and customer satisfaction.

CEO Compensation
  • Alan's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Alan's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Smart Metering Systems management team in years:

7.5
Average Tenure
  • The average tenure for the Smart Metering Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Alan Foy

TITLE
CEO & Executive Director
COMPENSATION
£663K
AGE
52
TENURE
12.5 yrs

David Thompson

TITLE
CFO & Executive Director
COMPENSATION
£411K
AGE
42
TENURE
1.8 yrs

Dilip Kejriwal

TITLE
Head of Investor Relations & Corporate Finance

Andy Ritchie

TITLE
Head of Business Risk and Compliance

Craig McGinn

TITLE
General Counsel & Group Company Secretary

Stan Chaloner

TITLE
Group Sales Director
TENURE
7.5 yrs

Bill Turner

TITLE
Managing Director of UK Data Management

Claire Corrins

TITLE
Head of Gas Business

Rhys Wynne

TITLE
Head of Electricity Business

John Hall

TITLE
Managing Director of Asset Installation
Board of Directors Tenure

Average tenure and age of the Smart Metering Systems board of directors in years:

3.1
Average Tenure
55
Average Age
  • The tenure for the Smart Metering Systems board of directors is about average.
Board of Directors

Willie MacDiarmid

TITLE
Non-Executive Chairman
COMPENSATION
£90K
AGE
58
TENURE
3.2 yrs

Alan Foy

TITLE
CEO & Executive Director
COMPENSATION
£663K
AGE
52
TENURE
11.6 yrs

David Thompson

TITLE
CFO & Executive Director
COMPENSATION
£411K
AGE
42
TENURE
1.8 yrs

Miriam Greenwood

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£45K
AGE
64
TENURE
3.1 yrs

Graeme Bissett

TITLE
Independent Non-Executive Director
COMPENSATION
£45K
AGE
61
TENURE
3.1 yrs

Ruth Leak

TITLE
Independent Non-Executive Director
AGE
50
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Smart Metering Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Smart Metering Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SMS News

Simply Wall St News

Based On Its ROE, Is Smart Metering Systems plc (LON:SMS) A High Quality Stock?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Smart Metering Systems: 2.0% = UK£4.5m ÷ UK£226m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … How Does Debt Impact Return On Equity? … Combining Smart Metering Systems's Debt And Its 2.0% Return On Equity Smart Metering Systems has a debt to equity ratio of 0.76, which is far from excessive.

Simply Wall St -

Are Smart Metering Systems plc's (LON:SMS) Interest Costs Too High?

With this debt repayment, the current cash and short-term investment levels stands at UK£30m to keep the business going. … Additionally, SMS has produced cash from operations of UK£40m in the last twelve months, resulting in an operating cash to total debt ratio of 23%, meaning that SMS’s debt is appropriately covered by operating cash. … Next Steps: SMS’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Imagine Owning Smart Metering Systems (LON:SMS) And Wondering If The 35% Share Price Slide Is Justified

That downside risk was realized by Smart Metering Systems plc (LON:SMS) shareholders over the last year, as the share price declined 35%. … We'd be remiss not to mention the difference between Smart Metering Systems's total shareholder return (TSR) and its share price return. … Dividends have been really beneficial for Smart Metering Systems shareholders, and that cash payout explains why its total shareholder loss of 34%, over the last year, isn't as bad as the share price return.

Simply Wall St -

Does Smart Metering Systems plc's (LON:SMS) CEO Pay Reflect Performance?

How Does Alan Foy's Compensation Compare With Similar Sized Companies. … According to our data, Smart Metering Systems plc has a market capitalization of UK£544m, and pays its CEO total annual compensation worth UK£620k. … While we always look at total compensation first, we note that the salary component is less, at UK£340k

Simply Wall St -

Smart Metering Systems plc (LON:SMS) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Smart Metering Systems plc (LON:SMS). … The Last 12 Months Of Insider Transactions At Smart Metering Systems. … But insiders sold 1.80m shares worth UK£14m

Simply Wall St -

Why You Should Care About Smart Metering Systems plc’s (LON:SMS) Low Return On Capital

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Is Smart Metering Systems plc (LON:SMS) A Financially Sound Company?

Investors are always looking for growth in small-cap stocks like Smart Metering Systems plc (LON:SMS), with a market cap of UK£714m. … However, an important fact which most ignore is: how financially healthy is the business? … Evaluating financial health as part of your investment thesis is

Simply Wall St -

Should You Be Worried About Smart Metering Systems plc's (LON:SMS) 6.6% Return On Equity?

We'll use ROE to examine Smart Metering Systems plc (LON:SMS), by way of a worked example. … Check out our latest analysis for Smart Metering Systems? … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Smart Metering Systems plc (LON:SMS) Is Trading At A 36.25% Discount

I am going to run you through how I calculated the intrinsic value of Smart Metering Systems plc (LON:SMS). … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

What Do Analysts Think About The Future Of Smart Metering Systems plc's (LON:SMS)?

Looking at Smart Metering Systems plc's (LON:SMS) earnings update in June 2018,. … with earnings expected to grow by 50% in the upcoming year … the past 5-year average growth rate of 19%

Simply Wall St -

SMS Company Info

Description

Smart Metering Systems plc, through its subsidiaries, connects, owns, operates, and maintains metering systems and databases on behalf of energy companies in the United Kingdom. It operates through three segments: Asset Management, Asset Installation, and Energy Management. The company engages in the regulated management of gas meters, electric meters, and ADM devices. It also installs domestic, industrial, and commercial gas meters and electricity meters, as well as provides energy consultancy services. In addition, the company provides data management, meter installation, electricity and gas utility management, and electricity and gas meter rental services. The company was formerly known as UK Smart Metering Group Limited and changed its name to Smart Metering Systems plc in June 2011. Smart Metering Systems plc was founded in 1995 and is headquartered in Glasgow, the United Kingdom.

Details
Name: Smart Metering Systems plc
SMS
Exchange: AIM
Founded: 1995
£584,575,905
112,526,642
Website: http://www.sms-plc.com
Address: Smart Metering Systems plc
48 St. Vincent Street,
2nd Floor,
Glasgow,
Lanarkshire, G2 5TS,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
AIM SMS Ordinary Shares London Stock Exchange AIM Market GB GBP 08. Jul 2011
OTCPK STMT.F Ordinary Shares Pink Sheets LLC US USD 08. Jul 2011
DB SMC Ordinary Shares Deutsche Boerse AG DE EUR 08. Jul 2011
Number of employees
Current staff
Staff numbers
964
Smart Metering Systems employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/24 00:30
End of day share price update: 2019/07/23 00:00
Last estimates confirmation: 2019/07/22
Last earnings filing: 2019/04/25
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.