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SmileDirectClub, Inc.OTCPK:SDCC.Q Stock Report

Market Cap US$1.8m
Share Price
n/a
1Y-99.4%
7D-42.9%
1D-13.0%
Portfolio Value
​
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SmileDirectClub, Inc.

OTCPK:SDCC.Q Stock Report

Market Cap: US$1.8m

This company listing is no longer active

This company may still be operating, however this listing is no longer active. Find out why through their latest events.

SmileDirectClub (SDCC.Q) Stock Overview

SmileDirectClub, Inc., an oral care company, offers clear aligner therapy treatment. More details

SDCC.Q fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health0/6
Dividends0/6

Rewards

Revenue is forecast to grow 11.57% per year

Earnings have grown 0.8% per year over the past 5 years

Trading at good value compared to peers and industry

Risk Analysis

Negative shareholders equity

Highly volatile share price over the past 3 months

Has less than 1 year of cash runway

Does not have a meaningful market cap ($2M)

+ 1 more risk

SDCC.Q Community Fair Values

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SmileDirectClub, Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for SmileDirectClub
Historical stock prices
Current Share PriceUS$0.004
52 Week HighUS$1.09
52 Week LowUS$0.001
Beta2.09
1 Month Change-50.62%
3 Month Change-91.98%
1 Year Change-99.43%
3 Year Change-99.97%
5 Year Changen/a
Change since IPO-99.98%

Recent News & Updates

Recent updates

Seeking Alpha • Oct 20

SmileDirectClub: Avoid This Cash Burner

Summary SmileDirectClub continues to disappoint investors and its most recent quarterly earnings reflect that trend. Financial metrics are declining on all metrics, and order volume is going down as well. Balance sheet risk is high, and we believe the company is burning too much cash with no signs of stopping. Company Overview SmileDirectClub (SDC) is an oral care company that offers clear aligner therapy treatment along with other dental products, such as teeth whitening and impression kits. The company was founded in 2014 and is based in Nashville, Tennessee. Since founding the company has served more than 1.5 million customers and has more than 1,000 partners around the globe to provide SmileDirectClub products. In 2019, SmileDirectClub completed its initial public offering at $23 per share at an $8.9 billion valuation. Since then, the company has seen its value disappear dramatically, and is now priced at less than $1 per share. Year-to-date, the company has lost 62% of its value since in the beginning of the year, which is around ~3x larger than the broader index. Currently, the company's valuation stands at $335.74 million. Data by YCharts Poor Financial Results The most recent earnings in Q2 2022 has been disappointing for investors, and has shown that the company is not able to turnaround its business despite management's claims that there is a lot of growth opportunities ahead. For a new company, top line metrics are the most important, and we've seen a dramatic decrease in quarterly revenue on a year-over-year basis, as the company saw a decline of 27.8% in net revenue. Bottom line metrics performed a bit better, but still deteriorated since the same quarter in 2021. For example, EPS loss widened by $0.03 and Adjusted EBITDA declined slightly by $0.7 million. We believe these negative results under the backdrop of a better macroeconomic environment than what we see today should be extremely concerning for investors. Q2 2022 Earnings Presentation Economic Headwinds SmileDirectClub provides orthodontic services that are more discretionary than other orthodontic services as its technology and product focuses on aesthetic improvements for most part. For a product that costs over $2,000, it is reasonable to assume that the demand for the company's product is sensitive to economic conditions, especially related to consumer spend. SmileDirectClub recognizes this and has largely attributed its poor Q2 earnings to the economic difficulties. Q2 2022 Earnings Presentation We don't disagree with the company's assessment that the economy is affecting the company's business prospects. However, it is safe to say that economic conditions are far worse right now than it has been in Q2, which should raise the likelihood of even worse performance as the company gears up for its Q3 earnings. Since Q2 earnings were announced, the Federal Reserve has hiked rates even more, monetary conditions are tighter, and inflation is persisting higher than expected. Overall, we don't expect any good quarters to come out of SmileDirectClub anytime soon. Troubling Cash Burn The company's net loss of $65 million in Q2 should be a troubling trend of high cash burn and deteriorating balance sheet. On a quarter-over-quarter basis, net debt has increased from $594.9 million to $633.9 million, which presents a 7% increase in net debt at a time when interest rate expenses are rising due to the higher interest rate environment. The company proposed some strategic actions to reduce costs, such as exiting international market and reducing capex, but we believe these moves are not significant enough to stop the bleeding, and will come at the expense of its future growth potential. Management has not had a clear strategy toward sustainable growth and healthy profitability, and we believe that liquidity risk remains high as the company tries to navigate through deteriorating market conditions. Q2 2022 Earnings Presentation Upside Risks High Short Float
Seeking Alpha • Sep 06

SmileDirectClub adds new retainer manufacturing tech at Antioch Smile Labs

SmileDirectClub (NASDAQ:SDC) has announced the complete transition of its second-generation retainer manufacturing technology in its FDA-registered Smile Labs based in Antioch, Tennessee. The upgraded retainer manufacturing lines feature the patented laser technology and automations that are leveraged to produce SmileDirectClub's (SDC) Comfort Sense aligners. The advanced technology will enable the facility now produce twice as many aligners and retainers with approximately 1/3 of the manpower, effectively increasing productivity by 225%.
Analysis Article • Aug 14

News Flash: 9 Analysts Think SmileDirectClub, Inc. (NASDAQ:SDC) Earnings Are Under Threat

One thing we could say about the analysts on SmileDirectClub, Inc. ( NASDAQ:SDC ) - they aren't optimistic, having just...
Seeking Alpha • Aug 06

SmileDirectClub: No Easy Solutions

SmileDirectClub is facing the issues of an uneconomical business model and high debt load. The combination makes it hard to become upbeat and see a solution out of this current mess. I do not see any reason to be involved here with the shares. In February of this year, I wondered if investors in SmileDirectClub (SDC) had something to smile about. The company has seen very soft performance since the company went public in 2019. While the pandemic offered a valid reason for underperformance in 2020, the same cannot be said for 2021 as results only turned for the worse. Given the huge cash burn, I was very cautious as the hole seems very deep, too deep to see any appeal. Former Takes SmileDirectClub offers clean aligners in an affordable and convenient way and with a $2,000 cost per treatment. The solution is far cheaper than traditional orthodontic solutions which come in at 3-4 times that price, while patients require fewer visits with the solution as well. Founded in 2014, the company focuses on cheaper costs, fewer visits for patients, as improved aesthetics and proliferation in technology in healthcare have been drivers behind the initial adoption of the solution. This allowed the company to go public at $23 in 2019, levels at which operating assets were valued in excess of $8 billion. That was a big valuation for a business which generated $423 million in sales in 2018, albeit that sales tripled that year. Operating losses for the year came in at $91 million. The company has seen solid momentum ahead of the IPO with sales doubling to $373 million in the first half of 2019, with adjusted operating losses narrowing to $31 million for the six-month period. With revenues trending at $800 million per annum, sales multiples fell to 10 times, yet slower growth and losses left real question marks. This comes as the company is facing stiff competition from Align Technology (ALGN), among others, as this competitor traded at just 6 times sales while being incredibly profitable. Given all of this, regulatory concerns, as well as bad governance practices, I was very cautious. Early in 2020, the company posted 2019 sales of $750 million, while adjusted EBITDA losses were reported around a hundred million. The company guided for over a billion in sales in 2020 and anticipated EBITDA losses to narrow to $50-$75 million, yet the pandemic threw these projections out the window. In the end, 2020 revenues actually fell to $657 million, with EBITDA losses reported at $77 million, as GAAP losses were substantially higher. The company saw continued pressure on the business with first quarter sales of $199 million falling to $174 million in the second quarter, to just $154 million in the third quarter, as losses were building. With the pandemic fading, these poor results were clearly the result of self-inflicted issues. With cash down to $300 million at the start of the year, while debt increased to three quarters of a billion, I was very cautious as the fourth quarter outlook for 2021 called for sales at just $130 million. Add to that a CFO resignation, and it was very easy to stay away from the shares. Woes Continue Since shares traded around the $2 mark in February, shares have only gradually come down further, having fallen to a low of $1 in recent weeks, now trading at $1.30 per share. Towards the end of February, the company posted its fourth quarter results as revenues of $126 million fell short compared to the guidance. EBITDA losses were posted at $62 million, as net losses were reported at $95 million. The company hardly expects a recovery in 2022 sales, seeing revenues between $600 and $650 million. Despite flattish sales compared to the $638 million revenue number in 2021, the full year EBITDA guidance calls for losses of around $50 million. Net debt has risen to $516 million following the continuation of the losses here.
Seeking Alpha • May 17

SmileDirectClub: Nothing To Smile At

SmileDirectClub has experienced a great deal of pain over the past couple of years and that picture isn't getting much better. Cost-cutting plans are in place, but SmileDirectClub will still be losing cash this year. Add in its debt in excess of cash and the fact that there are no clear signs of improvement, and investors should be cautious if they buy into SDC stock.
Analysis Article • Mar 10

Why SmileDirectClub (NASDAQ:SDC) may Have Even Less Time to Turn Things Around

The last time I wrote on SmileDirectClub (NASDAQ:SDC), I had a pretty upbeat story. I focused on the technology and the lowered cost of distribution, which benefited consumers by allowing them to better their teeth at a lower price. I was wrong. SDC is failing to execute their vision, and today we will go over some risks for investors. If SDC manages to turn the business around, then investors will be privy to "Deep Value", however the business has some risk of failing that can't be overlooked.
Seeking Alpha • Feb 22

SmileDirectClub: Prove Me Wrong Starting With Q4 Numbers

Oral care player continues to report negative earnings. The market as a result has punished the stock aggressively. The potential is enormous but the stock has to jump through more hoops to convince me at this juncture.
Seeking Alpha • Dec 09

SmileDirectClub: An Amazing Opportunity

SmileDirectClub is a disruptive oral care company that is best positioned to capitalize on a growing market. The new marketing strategy may turn out to be a game-changer while expansion into GPs and internationally is heading in the right direction. The last couple of quarters were an anomaly, but the company's fundamentals are getting stronger and the product and market positioning are compelling. SDC's valuation is too cheap to pass on.
Seeking Alpha • Oct 29

SmileDirectClub: Don't Wait For A Short Squeeze

SmileDirectClub has exhausted its potential to become a new target for a short squeeze (based on sentiment analysis). From a financial point of view, nothing changes - SDC does not even give an indication that it might become profitable in the coming years. Some multiples are small indeed, but that seems to be a result of unwarranted hopes rather than undervaluation. High competition and price pressures give us no reason to think otherwise. The next logical bottom for SDC would be $3-2.8/share in the medium-term - that's 43.4%-47.2% below the current stock price. With all that in mind, I do not recommend buying SDC on a sustained downtrend.
Seeking Alpha • Oct 13

SmileDirectClub Stock Has Short Squeeze Potential

SmileDirectClub stock has been trending on Reddit's WallStreetBets community lately. The stock has not only seen a huge uptick in Reddit interest but it also has high short interest. This gives the stock some potential as a squeeze play. In this article I outline a neutral thesis on SmileDirectClub arguing that it has short-term potential but might falter long term.
Analysis Article • Sep 27

3D Printing Done Right - How SmileDirectClub (NASDAQ:SDC) Gives a Better and Cost-Effective Dental Service

SmileDirectClub, Inc. (NASDAQ:SDC) share price declined 50% over the last year. Some investors view this as a failing business, while others love the product and see this as an opportunity to buy low. In this article, we will analyze both the fundamentals and the business of SmileDirectClub.
Analysis Article • Sep 02

SmileDirectClub's (NASDAQ:SDC) Cash Burn Situation is Getting Better - But Not Good Enough for a Short-squeeze

It might be hard to believe at the moment, but SmileDirectClub(NASDAQ:SDC) was initially valued at over US$8b. After a fiasco IPO debut that saw the price decline at over 50%, the stock just started to recover when the 2020 pandemic hit, sending it to a fresh new low. Since then, the company has struggled through disappointing earnings and currently trades near the lows. As SDC remains unprofitable, this article will examine its cash burn situation.
Seeking Alpha • Sep 01

SmileDirectClub: Multiple Catalysts Are Aligning

SmileDirectClub has enjoyed great success in the oral care market with their new aligners and whitening offerings. However, with the mounting competitive pressures and a not-so-good balance sheet, their growth may not be enticing enough for a long-term investment. I remain neutral on the industry as competitive pressures mount and am avoiding the company as their long-term prospects remain volatile.
Analysis Article • Aug 10

SmileDirectClub (NASDAQ:SDC) Is Carrying A Fair Bit Of Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • May 11

SmileDirectClub (NASDAQ:SDC) Is Carrying A Fair Bit Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Mar 01

When Can We Expect A Profit From SmileDirectClub, Inc. (NASDAQ:SDC)?

We feel now is a pretty good time to analyse SmileDirectClub, Inc.'s ( NASDAQ:SDC ) business as it appears the company...

Shareholder Returns

SDCC.QUS Medical EquipmentUS Market
7D-42.9%2.2%1.6%
1Y-99.4%-19.0%18.6%

Return vs Industry: SDCC.Q underperformed the US Medical Equipment industry which returned 3.3% over the past year.

Return vs Market: SDCC.Q underperformed the US Market which returned 14.9% over the past year.

Price Volatility

Is SDCC.Q's price volatile compared to industry and market?
SDCC.Q volatility
SDCC.Q Average Weekly Movement87.7%
Medical Equipment Industry Average Movement8.5%
Market Average Movement7.3%
10% most volatile stocks in US Market16.7%
10% least volatile stocks in US Market3.2%

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

Volatility Over Time: SDCC.Q's weekly volatility has increased from 47% to 88% over the past year.

About the Company

FoundedEmployeesCEOWebsite
20142,700David Katzmanwww.smiledirectclub.com

SmileDirectClub, Inc., an oral care company, offers clear aligner therapy treatment. The company manages the end-to-end process, which include marketing, aligner manufacturing, fulfillment, treatment by a customer’s dentist or orthodontist, and facilitating remote clinical monitoring through a network of orthodontists and general dentists through its proprietary teledentistry platform, SmileCheck in the United States, Puerto Rico, Canada, Australia, the United Kingdom, New Zealand, Ireland, Hong Kong, Germany, Singapore, France, Spain, and Austria. It also offers aligners, impression and whitening kits, whitening gels, and retainers; and toothbrushes, toothpastes, water flossers, SmileSpa, and various ancillary oral care products.

SmileDirectClub, Inc. Fundamentals Summary

How do SmileDirectClub's earnings and revenue compare to its market cap?
SDCC.Q fundamental statistics
Market capUS$1.77m
Earnings (TTM)-US$82.71m
Revenue (TTM)US$414.88m
0.0x
P/S Ratio
0.0x
P/E Ratio

Is SDCC.Q overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SDCC.Q income statement (TTM)
RevenueUS$414.88m
Cost of RevenueUS$127.53m
Gross ProfitUS$287.35m
Other ExpensesUS$370.06m
Earnings-US$82.71m

Last Reported Earnings

Jun 30, 2023

Next Earnings Date

n/a

Earnings per share (EPS)-0.62
Gross Margin69.26%
Net Profit Margin-19.94%
Debt/Equity Ratio-176.2%

How did SDCC.Q perform over the long term?

See historical performance and comparison

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/02/02 21:37
End of Day Share Price 2024/02/01 00:00
Earnings2023/06/30
Annual Earnings2022/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

SmileDirectClub, Inc. is covered by 12 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael RyskinBofA Global Research
Alexander NowakCraig-Hallum Capital Group LLC
Nathan RichGoldman Sachs