NasdaqCM:SIC

Stock Analysis Report

Executive Summary

Select Interior Concepts, Inc., together with its subsidiaries, installs and distributes interior building products for residential interior design services markets in the United States.

Rewards

Trading at 96.7% below its fair value

Earnings are forecast to grow 44.2% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Does not have a meaningful market cap ($42M)



Snowflake Analysis

Very undervalued with moderate growth potential.

Share Price & News

How has Select Interior Concepts's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-25.1%

SIC

-7.3%

US Consumer Services

-2.8%

US Market


1 Year Return

-86.1%

SIC

-7.9%

US Consumer Services

-15.9%

US Market

Return vs Industry: SIC underperformed the US Consumer Services industry which returned -7.2% over the past year.

Return vs Market: SIC underperformed the US Market which returned -15.1% over the past year.


Shareholder returns

SICIndustryMarket
7 Day-25.1%-7.3%-2.8%
30 Day-76.5%-22.6%-18.8%
90 Day-81.1%-16.6%-24.0%
1 Year-86.1%-86.1%-7.7%-7.9%-14.2%-15.9%
3 Yearn/a51.7%45.0%9.9%2.8%
5 Yearn/a112.5%88.3%27.2%13.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Select Interior Concepts 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: SIC ($1.67) is trading below our estimate of fair value ($50.89)

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


Price To Earnings Ratio

PE vs Industry: SIC is good value based on its PE Ratio (6x) compared to the Consumer Services industry average (25.2x).

PE vs Market: SIC is good value based on its PE Ratio (6x) compared to the US market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: SIC is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: SIC is good value based on its PB Ratio (0.3x) compared to the US Consumer Services industry average (1.5x).


Next Steps

Future Growth

How is Select Interior Concepts forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

44.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SIC's forecast earnings growth (44.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SIC's earnings (44.2% per year) are forecast to grow faster than the US market (13.4% per year).

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

Revenue vs Market: SIC's revenue is expected to decline over the next 3 years (-18.3% per year).

High Growth Revenue: SIC's revenue is forecast to decline over the next 3 years (-18.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Select Interior Concepts performed over the past 5 years?

24.6%

Last years revenue growth


Earnings and Revenue History

Quality Earnings: SIC has a large one-off gain of $5.6M impacting its December 31 2019 financial results.

Growing Profit Margin: SIC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SIC has become profitable over the past 5 years, growing earnings by 0% per year.

Accelerating Growth: SIC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SIC has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Services industry (17.6%).


Return on Equity

High ROE: SIC's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Select Interior Concepts's financial position?


Financial Position Analysis

Short Term Liabilities: SIC's short term assets ($186.4M) exceed its short term liabilities ($82.2M).

Long Term Liabilities: SIC's short term assets ($186.4M) exceed its long term liabilities ($176.8M).


Debt to Equity History and Analysis

Debt Level: SIC's debt to equity ratio (108.5%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: SIC's debt is covered by short term assets (assets are 1.1x 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: SIC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: SIC is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Select Interior Concepts's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Ty Johnson (46yo)

2.42s

Tenure

US$851,475

Compensation

Mr. Tyrone Johnson, also known as Ty, served as President of North America at Euramax Holdings, Inc. and at Euramax International, Inc. from May 2015 to December 2015. He has been Chief Executive Officer  ...


CEO Compensation Analysis

Compensation vs Market: Ty's total compensation ($USD851.48K) is above average for companies of similar size in the US market ($USD618.59K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Tyrone Johnson
CEO & Director2.42yrsUS$851.48k0.70% $293.4k
Kendall Hoyd
President of Residential Design Services1.67yrsUS$563.15k0.39% $164.4k
Nadeem Moiz
Chief Financial Officer1.67yrsno data0.36% $152.5k
Shawn Baldwin
General Counsel & Corporate Secretary1.5yrsno data0.31% $128.7k
D'Andre Davis
Head of Strategy & M&Ano datano datano data

1.7yrs

Average Tenure

47.5yo

Average Age

Experienced Management: SIC's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Tyrone Johnson
CEO & Director2.42yrsUS$851.48k0.70% $293.4k
J. Smith
Independent Chairman1.25yrsno data0.035% $14.7k
Bryant Riley
Director0.42yrno datano data
Brett Wyard
Independent Director2.33yrsUS$50.00kno data
Donald McAleenan
Independent Director2.42yrsUS$90.00k0.016% $6.8k
S. Coster
Independent Director1.67yrsUS$40.00k0.0072% $3.0k
Robert Vansant
Independent Director2.42yrsUS$80.00k0.017% $7.0k

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: SIC's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

Select Interior Concepts, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Select Interior Concepts, Inc.
  • Ticker: SIC
  • Exchange: NasdaqCM
  • Founded: 2015
  • Industry: Specialized Consumer Services
  • Sector: Consumer Services
  • Market Cap: US$41.998m
  • Shares outstanding: 25.15m
  • Website: https://www.selectinteriorconcepts.com

Number of Employees


Location

  • Select Interior Concepts, Inc.
  • 400 Galleria Parkway
  • Suite 1760
  • Atlanta
  • Georgia
  • 30339
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SICNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 2018

Biography

Select Interior Concepts, Inc., together with its subsidiaries, installs and distributes interior building products for residential interior design services markets in the United States. The company operates through two segments, Residential Design Services and Architectural Surfaces Group. The Residential Design Services segment provides an integrated, outsourced solution for the design, consultation, sourcing, distribution, and installation needs of homebuyer customers. It works with homebuyers in the selection of an array of interior products and finishes, including flooring, cabinets, countertops, wall tile, and related interior items, primarily for newly constructed homes; and coordinates the ordering, fulfillment, and installation of interior products. The Architectural Surfaces Group segment imports and distributes natural and engineered stone slabs, such as marble, granite, porcelain, and quartz for kitchen and bathroom countertops; and ceramic and porcelain tiles for flooring, backsplash, and wall tile applications, as well as tile. It markets these materials through a network of 23 distribution centers and showrooms. The company serves new residential and commercial construction markets, as well as distributes its products to the repair and remodel market. The company was incorporated in 2015 and is headquartered in Atlanta, Georgia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/05 10:20
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.