SmartCraft (OB:SMCRT) - Share price, News & Analysis

SMCRT fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	4/6
Past Performance	5/6
Financial Health	5/6
Dividends	0/6

SMCRT Stock Overview

SmartCraft ASA provides software solutions to the construction industry in Norway, Sweden, and Finland.

Rewards

Trading at 33.6% below our estimate of its fair value

Earnings are forecast to grow 28.88% per year

Earnings grew by 57.5% over the past year

Risk Analysis

No risks detected for SMCRT from our risk checks.

SmartCraft Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SmartCraft
Historical stock prices
Current Share Price	kr17.38
52 Week High	kr27.72
52 Week Low	kr14.04
Beta	0
1 Month Change	9.31%
3 Month Change	-1.25%
1 Year Change	-17.24%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-22.50%

Recent News & Updates

May 03

We Like SmartCraft's (OB:SMCRT) Earnings For More Than Just Statutory Profit

SmartCraft ASA's ( OB:SMCRT ) solid earnings announcement recently didn't do much to the stock price. Our analysis...

Feb 27

Analyst Estimates: Here's What Brokers Think Of SmartCraft ASA (OB:SMCRT) After Its Full-Year Report

The annual results for SmartCraft ASA ( OB:SMCRT ) were released last week, making it a good time to revisit its...

Shareholder Returns

	SMCRT	NO Software	NO Market
7D	4.6%	-0.06%	-3.4%
1Y	-17.2%	-34.3%	3.2%

Return vs Industry: SMCRT exceeded the Norwegian Software industry which returned -34.9% over the past year.

Return vs Market: SMCRT underperformed the Norwegian Market which returned 3.4% over the past year.

Price Volatility

Is SMCRT's price volatile compared to industry and market?
SMCRT volatility
SMCRT Average Weekly Movement	7.1%
Software Industry Average Movement	9.4%
Market Average Movement	7.2%
10% most volatile stocks in NO Market	12.8%
10% least volatile stocks in NO Market	3.9%

Stable Share Price: SMCRT is not significantly more volatile than the rest of Norwegian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SMCRT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	182	Gustav Line	https://www.smartcraftready.com

SmartCraft ASA provides software solutions to the construction industry in Norway, Sweden, and Finland. The company offers Cordel, an ERP solution for craftsmen; Bygglet, a project management solution; EL-VIS software solutions and services for use in professional calculation and documentation for electricians; and Congrid solution for use in quality and safety assurance processes for construction companies. It also provides HomeRun.net, a customer communication solution for building and renovation companies; and Kvalitetskontroll, a complete quality solution to the construction industry.

SmartCraft Fundamentals Summary

How do SmartCraft's earnings and revenue compare to its market cap?
SMCRT fundamental statistics
Market Cap	kr2.98b
Earnings (TTM)	kr39.41m
Revenue (TTM)	kr290.52m

75.7x

P/E Ratio

10.3x

P/S Ratio

Is SMCRT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMCRT income statement (TTM)
Revenue	kr290.52m
Cost of Revenue	kr135.93m
Gross Profit	kr154.60m
Other Expenses	kr115.19m
Earnings	kr39.41m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)	0.23
Gross Margin	53.21%
Net Profit Margin	13.56%
Debt/Equity Ratio	7.5%

How did SMCRT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SMCRT. This is calculated by dividing SMCRT's market cap by their current preferred multiple.
What is SMCRT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	kr2.98b

SMCRT 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	9.8x
Enterprise Value/EBITDA	35.8x
PEG Ratio	2.6x

Price to Earnings Ratio vs Peers

How does SMCRT's PE Ratio compare to its peers?

SMCRT PE Ratio vs Peers

The above table shows the PE ratio for SMCRT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	71.1x

Forward PE

Price-To-Earnings vs Peers: SMCRT is expensive based on its Price-To-Earnings Ratio (75.7x) compared to the peer average (71.1x).

Price to Earnings Ratio vs Industry

How does SMCRT's PE Ratio compare vs other companies in the Software Industry?

Price-To-Earnings vs Industry: SMCRT is expensive based on its Price-To-Earnings Ratio (75.7x) compared to the European Software industry average (32.1x)

Price to Earnings Ratio vs Fair Ratio

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

SMCRT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	75.7x
Fair PE Ratio	29.7x

Price-To-Earnings vs Fair Ratio: SMCRT is expensive based on its Price-To-Earnings Ratio (75.7x) compared to the estimated Fair Price-To-Earnings Ratio (29.7x).

Share Price vs Fair Value

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

Below Fair Value: SMCRT (NOK17.38) is trading below our estimate of fair value (NOK26.18)

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

Price to Earnings Growth Ratio

PEG Ratio: SMCRT is poor value based on its PEG Ratio (2.6x)

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Future Growth

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

Future Growth Score

4/6

Future Growth Score 4/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

28.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMCRT's forecast earnings growth (28.9% per year) is above the savings rate (1.1%).

Earnings vs Market: SMCRT's earnings (28.9% per year) are forecast to grow faster than the Norwegian market (1.5% per year).

High Growth Earnings: SMCRT's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SMCRT's revenue (15.2% per year) is forecast to grow faster than the Norwegian market (0.2% per year).

High Growth Revenue: SMCRT's revenue (15.2% 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 SMCRT's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has SmartCraft performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

53.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMCRT has high quality earnings.

Growing Profit Margin: SMCRT's current net profit margins (13.6%) are higher than last year (11.9%).

Past Earnings Growth Analysis

Earnings Trend: SMCRT's earnings have grown significantly by 53.6% per year over the past 5 years.

Accelerating Growth: SMCRT's earnings growth over the past year (57.5%) exceeds its 5-year average (53.6% per year).

Earnings vs Industry: SMCRT earnings growth over the past year (57.5%) exceeded the Software industry 16.5%.

Return on Equity

High ROE: SMCRT's Return on Equity (6.1%) is considered low.

Discover strong past performing companies

Financial Health

How is SmartCraft's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SMCRT's short term assets (NOK232.4M) exceed its short term liabilities (NOK174.9M).

Long Term Liabilities: SMCRT's short term assets (NOK232.4M) exceed its long term liabilities (NOK43.6M).

Debt to Equity History and Analysis

Debt Level: SMCRT has more cash than its total debt.

Reducing Debt: Insufficient data to determine if SMCRT's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SMCRT's debt is well covered by operating cash flow (208.9%).

Interest Coverage: SMCRT's interest payments on its debt are well covered by EBIT (12.6x coverage).

Balance Sheet

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Dividend

What is SmartCraft current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate SMCRT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SMCRT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SMCRT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SMCRT has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure

CEO

Gustav Line (55 yo)

4.42yrs

Tenure

kr2,894,000

Compensation

Mr. Gustav Line is Chief Executive Officer of SmartCraft AS since 2018. Prior to joining SmartCraft, Mr. Line worked for ten years as the Chief Executive Officer of Compello AS. Mr. Line served as the mana...

CEO Compensation Analysis

Compensation vs Market: Gustav's total compensation ($USD293.26K) is below average for companies of similar size in the Norwegian market ($USD591.72K).

Compensation vs Earnings: Gustav's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: SMCRT's management team is considered experienced (2.7 years average tenure).

Board Members

Experienced Board: SMCRT's board of directors are considered experienced (5.3 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/24 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31