company background image
SDC

SmileDirectClub NasdaqGS:SDC Stock Report

Last Price

US$1.04

Market Cap

US$397.2m

7D

-1.0%

1Y

-87.6%

Updated

30 Jun, 2022

Data

Company Financials +
SDC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance0/6
Financial Health0/6
Dividends0/6

SDC Stock Overview

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

SmileDirectClub Competitors

Price History & Performance

Summary of all time highs, changes and price drops for SmileDirectClub
Historical stock prices
Current Share PriceUS$1.04
52 Week HighUS$8.78
52 Week LowUS$0.98
Beta2.25
1 Month Change-26.24%
3 Month Change-59.69%
1 Year Change-87.60%
3 Year Changen/a
5 Year Changen/a
Change since IPO-93.76%

Recent News & Updates

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.

Shareholder Returns

SDCUS Medical EquipmentUS Market
7D-1.0%3.4%1.6%
1Y-87.6%-24.5%-20.8%

Return vs Industry: SDC underperformed the US Medical Equipment industry which returned -24.5% over the past year.

Return vs Market: SDC underperformed the US Market which returned -20.8% over the past year.

Price Volatility

Is SDC's price volatile compared to industry and market?
SDC volatility
SDC Average Weekly Movement12.8%
Medical Equipment Industry Average Movement10.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: SDC is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: SDC's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20143,200David Katzmanhttps://www.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 doctor, and monitoring through completion of their treatment with a network of approximately 250 licensed orthodontists and general dentists through its 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 Fundamentals Summary

How do SmileDirectClub's earnings and revenue compare to its market cap?
SDC fundamental statistics
Market CapUS$397.21m
Earnings (TTM)-US$96.11m
Revenue (TTM)US$589.80m

0.2x

P/S Ratio

-1.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SDC income statement (TTM)
RevenueUS$589.80m
Cost of RevenueUS$172.70m
Gross ProfitUS$417.09m
Other ExpensesUS$513.21m
Earnings-US$96.11m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.80
Gross Margin70.72%
Net Profit Margin-16.30%
Debt/Equity Ratio-359.1%

How did SDC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales 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 SDC?

Other financial metrics that can be useful for relative valuation.

SDC 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/Revenue0.7x
Enterprise Value/EBITDA-1.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SDC's PS Ratio compare to its peers?

SDC PS Ratio vs Peers
The above table shows the PS ratio for SDC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average8.4x
RXST RxSight
13.8x34.1%US$387.3m
LUNG Pulmonx
10.9x24.3%US$546.4m
UFPT UFP Technologies
2.6x16.7%US$601.7m
UTMD Utah Medical Products
6.2xn/aUS$313.1m
SDC SmileDirectClub
0.2x14.0%US$397.2m

Price-To-Sales vs Peers: SDC is good value based on its Price-To-Sales Ratio (0.2x) compared to the peer average (8.4x).


Price to Earnings Ratio vs Industry

How does SDC's PE Ratio compare vs other companies in the US Medical Equipment Industry?

Price-To-Sales vs Industry: SDC is good value based on its Price-To-Sales Ratio (0.2x) compared to the US Medical Equipment industry average (3.8x)


Price to Sales Ratio vs Fair Ratio

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

SDC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.2x
Fair PS Ratio4.5x

Price-To-Sales vs Fair Ratio: SDC is good value based on its Price-To-Sales Ratio (0.2x) compared to the estimated Fair Price-To-Sales Ratio (4.5x).


Share Price vs Fair Value

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

Below Fair Value: Insufficient data to calculate SDC's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SDC's fair value for valuation analysis.


Price to Earnings Growth Ratio

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


Discover undervalued companies

Future Growth

How is SmileDirectClub forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


22.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SDC's revenue (14% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: SDC's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDC is forecast to be unprofitable in 3 years.


Discover growth companies

Past Performance

How has SmileDirectClub performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-9.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SDC is currently unprofitable.

Growing Profit Margin: SDC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SDC is unprofitable, and losses have increased over the past 5 years at a rate of 9.5% per year.

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

Earnings vs Industry: SDC is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (12.9%).


Return on Equity

High ROE: SDC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is SmileDirectClub's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SDC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SDC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SDC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SDC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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

Forecast Cash Runway: SDC has less than a year of cash runway if free cash flow continues to reduce at historical rates of 6.5% each year


Discover healthy companies

Dividend

What is SmileDirectClub 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 SDC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if SDC'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 SDC has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

David Katzman (61 yo)

8.42yrs

Tenure

US$6,444,617

Compensation

Mr. David B. Katzman serves as the Managing Partner at Camelot Venture Group. Mr. Katzman founded Camelot Venture Group in October 2008. He has been Chief Executive Officer and Chairman at SmileDirectClub...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.44M) is above average for companies of similar size in the US market ($USD2.86M).

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


Leadership Team

Experienced Management: SDC's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: SDC's board of directors are not considered experienced ( 2.4 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

SmileDirectClub, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: SmileDirectClub, Inc.
  • Ticker: SDC
  • Exchange: NasdaqGS
  • Founded: 2014
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Implied Market Cap: US$397.210m
  • Market Cap: US$125.527m
  • Shares outstanding: 389.69m
  • Website: https://www.smiledirectclub.com

Number of Employees


Location

  • SmileDirectClub, Inc.
  • 414 Union Street
  • Nashville
  • Tennessee
  • 37219
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/30 00:00
End of Day Share Price2022/06/30 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.