NasdaqCM:SGBX

Stock Analysis Report

Executive Summary

SG Blocks, Inc. engages in fabricating modules for construction of buildings in the United States.

Rewards

Revenue is forecast to grow 105.7% per year

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap ($4M)

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Mediocre balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-10.0%

SGBX

1.9%

US Machinery

2.0%

US Market


1 Year Return

-94.0%

SGBX

18.6%

US Machinery

23.6%

US Market

Return vs Industry: SGBX underperformed the US Machinery industry which returned 22.4% over the past year.

Return vs Market: SGBX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SGBXIndustryMarket
7 Day-10.0%1.9%2.0%
30 Day33.3%1.8%3.9%
90 Day-53.3%10.5%12.0%
1 Year-94.0%-94.0%20.8%18.6%26.2%23.6%
3 Yearn/a46.1%36.7%53.2%43.3%
5 Yearn/a78.2%56.7%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SG Blocks undervalued compared to its fair value and its price relative to the market?

0.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SGBX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SGBX's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: SGBX is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGBX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGBX is good value based on its PB Ratio (0.2x) compared to the US Machinery industry average (2.5x).


Next Steps

Future Growth

How is SG Blocks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

139.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGBX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SGBX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SGBX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SGBX's revenue (105.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SGBX's revenue (105.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SG Blocks performed over the past 5 years?

-24.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGBX is currently unprofitable.

Growing Profit Margin: SGBX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGBX is unprofitable, and losses have increased over the past 5 years at a rate of -24.9% per year.

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

Earnings vs Industry: SGBX is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (9.6%).


Return on Equity

High ROE: SGBX has a negative Return on Equity (-75.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SG Blocks's financial position?


Financial Position Analysis

Short Term Liabilities: SGBX's short term assets ($1.6M) do not cover its short term liabilities ($2.0M).

Long Term Liabilities: SGBX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SGBX is debt free.

Reducing Debt: SGBX currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: SGBX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SGBX's debt is covered by short term assets.


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: SGBX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SGBX has less than a year of cash runway if free cash flow continues to reduce at historical rates of -42.4% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SGBX'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 SGBX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of SG Blocks's salary, the management and board of directors tenure and is there insider trading?

1.9yrs

Average management tenure


CEO

Paul Galvin (56yo)

10.8yrs

Tenure

US$707,549

Compensation

Mr. Paul M. Galvin serves as Chief Operating Officer at SG Blocks, Inc. since 2019. Mr. Galvin serves as the Chairman at SG Blocks, Inc. and has been its Chief Executive Officer since April 2009. Mr. Galvi ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD707.55K) is above average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

1.9yrs

Average Tenure

Experienced Management: SGBX's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Age and Tenure

2.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: SGBX's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$24,50802 Apr 19
Paul Galvin
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares12,700
Max PriceUS$1.93
SellUS$79,76304 Feb 19
Hillair Capital Management LLC
EntityCompany
Shares26,499
Max PriceUS$3.02

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Management Team

  • Stevan Armstrong (71yo)

    Chief Technology Officer

    • Tenure: 1.9yrs
    • Compensation: US$202.47k
  • Paul Galvin (56yo)

    Chairman

    • Tenure: 10.8yrs
    • Compensation: US$707.55k
  • Gerald Sheeran

    Controller & Acting CFO

    • Tenure: 0.4yrs

Board Members

  • Mahesh Shetty (59yo)

    Director

    • Compensation: US$621.72k
  • Jim Potts (72yo)

    Independent Director

    • Tenure: 1.1yrs
  • Chris Melton (47yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$69.13k
  • Paul Galvin (56yo)

    Chairman

    • Tenure: 10.8yrs
    • Compensation: US$707.55k
  • Balan Ayyar (53yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$59.13k
  • Yaniv Blumenfeld (46yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$44.13k

Company Information

SG Blocks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SG Blocks, Inc.
  • Ticker: SGBX
  • Exchange: NasdaqCM
  • Founded: 2007
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: US$4.226m
  • Shares outstanding: 23.16m
  • Website: https://www.sgblocks.com

Number of Employees


Location

  • SG Blocks, Inc.
  • 195 Montague Street
  • 14th Floor
  • Brooklyn
  • New York
  • 11201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGBXNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDJun 2017
90SGDB (Deutsche Boerse AG)YesNew Common StockDEEURJun 2017

Biography

SG Blocks, Inc. engages in fabricating modules for construction of buildings in the United States. The company redesigns, repurposes, and converts heavy-gauge steel cargo shipping containers into green building blocks for commercial, industrial, and residential building construction; and purpose-built modules, or prefabricated steel modular units for construction. It also provides engineering and project management services related to the use of modified containers in construction. The company serves architects, landowners, builders, and developers. SG Blocks, Inc. was founded in 2007 and is headquartered in Brooklyn, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/19 00:43
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.