NasdaqGS:SND

Stock Analysis Report

Executive Summary

Smart Sand, Inc., integrated frac sand supply and services company, engages in the excavation, processing, and sale of industrial sands for use in hydraulic fracturing operations in the oil and gas industry in the United States.

Rewards

PE ratio (2.9x) is below the US market (18.3x)

Risk Analysis

Earnings are forecast to decline by an average of -53.5% per year for the next 3 years

Highly volatile share price over past 3 months

Large one-off items impacting financial results

Profit margins (10.4%) are lower than last year (16.7%)

+ 1 more risk


Snowflake Analysis

Excellent balance sheet and fair value.


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Share Price & News

How has Smart Sand's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.2%

SND

-0.09%

US Energy Services

1.8%

US Market


1 Year Return

-38.3%

SND

-30.5%

US Energy Services

20.1%

US Market

Return vs Industry: SND underperformed the US Energy Services industry which returned -30.4% over the past year.

Return vs Market: SND underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

SNDIndustryMarket
7 Day-5.2%-0.09%1.8%
30 Day-18.0%-10.2%1.4%
90 Day-18.4%-0.5%8.8%
1 Year-38.3%-38.3%-28.2%-30.5%22.7%20.1%
3 Year-90.3%-90.3%-54.4%-60.3%50.1%40.4%
5 Yearn/a-57.7%-64.7%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Smart Sand undervalued compared to its fair value and its price relative to the market?

2.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SND ($1.82) is trading above our estimate of fair value ($1.42)

Significantly Below Fair Value: SND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SND is good value based on its PE Ratio (2.9x) compared to the Energy Services industry average (14.5x).

PE vs Market: SND is good value based on its PE Ratio (2.9x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: SND's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SND is good value based on its PB Ratio (0.3x) compared to the US Energy Services industry average (0.6x).


Next Steps

Future Growth

How is Smart Sand forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-53.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SND's earnings are forecast to decline over the next 3 years (-53.5% per year).

Earnings vs Market: SND's earnings are forecast to decline over the next 3 years (-53.5% per year).

High Growth Earnings: SND's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SND's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: SND's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Smart Sand performed over the past 5 years?

37.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SND has a large one-off loss of $22.9M impacting its September 30 2019 financial results.

Growing Profit Margin: SND's current net profit margins (10.4%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: SND's earnings have grown significantly by 37.7% per year over the past 5 years.

Accelerating Growth: SND's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SND had negative earnings growth (-27.1%) over the past year, making it difficult to compare to the Energy Services industry average (-27.1%).


Return on Equity

High ROE: SND's Return on Equity (10.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Smart Sand's financial position?


Financial Position Analysis

Short Term Liabilities: SND's short term assets ($79.1M) exceed its short term liabilities ($61.6M).

Long Term Liabilities: SND's short term assets ($79.1M) exceed its long term liabilities ($69.5M).


Debt to Equity History and Analysis

Debt Level: SND's debt to equity ratio (12.5%) is considered satisfactory.

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

Debt Coverage: SND's debt is well covered by operating cash flow (190.9%).

Interest Coverage: SND's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet

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

Debt Coverage by Assets: SND's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SND'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 SND'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?

3.3yrs

Average management tenure


CEO

Charles Young (51yo)

5.6yrs

Tenure

US$1,668,182

Compensation

Mr. Charles Edwin Young is the Founder of Smart Sand, Inc., and has been its Chief Executive Officer since July 2014. Mr. Young serves as Chief Executive Officer of Smart Sand GP LLC. He served the Preside ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD1.67M) is above average for companies of similar size in the US market ($USD521.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Young
CEO & Director5.6yrsUS$1.67m16.14% $12.1m
Lee Beckelman
Chief Financial Officer5.5yrsUS$1.09m0.73% $547.9k
William Young
Chief Operating Officer1.8yrsUS$990.11k0.56% $422.5k
Robert Kiszka
Executive Vice President of Operations5.8yrsUS$1.12m1.69% $1.3m
Susan Neumann
VP of Accounting & Controller3.3yrsno data0.14% $105.8k
Phil Cerniglia
Investor Relations & Budgeting Manager0yrsno datano data
James Young
Executive VP2.7yrsno data0.30% $228.7k
Ronald Whelan
Executive Vice President of Sales1.7yrsno data0.33% $244.8k
Josh Jayne
Finance Manager0yrsno datano data

3.3yrs

Average Tenure

45yo

Average Age

Experienced Management: SND's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Young
CEO & Director5.6yrsUS$1.67m16.14% $12.1m
José Feliciano
Co-Chairman of the Board8.4yrsUS$192.50k0.12% $90.4k
Timothy Pawlenty
Independent Director7.7yrsUS$140.00k0.20% $150.3k
Sharon Spurlin
Independent Director5yrsUS$152.50k0.18% $134.7k
Colin Leonard
Independent Director8.4yrsUS$152.50k0.086% $65.0k
Andrew Speaker
Co-Chairman of the Board5.7yrsUS$80.00k2.79% $2.1m

8.0yrs

Average Tenure

52yo

Average Age

Experienced Board: SND's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SND insiders have only sold shares 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

Smart Sand, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Smart Sand, Inc.
  • Ticker: SND
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Oil and Gas Equipment and Services
  • Sector: Energy
  • Market Cap: US$75.199m
  • Shares outstanding: 41.32m
  • Website: https://www.smartsand.com

Number of Employees


Location

  • Smart Sand, Inc.
  • 1725 Hughes Landing Boulevard
  • Suite 800
  • The Woodlands
  • Texas
  • 77380
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1SDDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2016
SNDNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 2016

Biography

Smart Sand, Inc., integrated frac sand supply and services company, engages in the excavation, processing, and sale of industrial sands for use in hydraulic fracturing operations in the oil and gas industry in the United States. The company sells its products primarily to oil and natural gas exploration and production companies, and oilfield service companies. As of December 31, 2018, it had approximately 321 million tons of proven recoverable sand reserves. The company was incorporated in 2011 and is headquartered in The Woodlands, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 01:13
End of Day Share Price2020/02/14 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.