NOT FOR DISTRIBUTION
Header cover image

Market Cap

US$4.0b

Last Updated

2021/04/16 23:25 UTC

Data Sources

Company Financials +

Executive Summary

SmileDirectClub, Inc. operates as an oral care company. More Details

Rewards

Trading at 62.2% below our estimate of its fair value

Earnings are forecast to grow 51.42% per year

Risk Analysis

No risks detected for SDC from our risk checks.


Snowflake Analysis

Exceptional growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SDC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SDC's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

SDC

3.4%

US Medical Equipment

1.3%

US Market


1 Year Return

118.3%

SDC

37.4%

US Medical Equipment

53.9%

US Market

Return vs Industry: SDC exceeded the US Medical Equipment industry which returned 41.8% over the past year.

Return vs Market: SDC exceeded the US Market which returned 57.5% over the past year.


Shareholder returns

SDCIndustryMarket
7 Day-1.8%3.4%1.3%
30 Day-12.7%7.9%3.3%
90 Day-11.1%5.9%8.9%
1 Year118.3%118.3%38.5%37.4%56.6%53.9%
3 Yearn/a83.5%79.0%64.4%53.6%
5 Yearn/a161.1%141.4%120.4%95.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SmileDirectClub 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: SDC ($10.36) is trading below our estimate of fair value ($27.4)

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


Price To Earnings Ratio

PE vs Industry: SDC is unprofitable, so we can't compare its PE Ratio to the US Medical Equipment industry average.

PE vs Market: SDC 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 SDC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SDC is good value based on its PB Ratio (3.9x) compared to the US Medical Equipment industry average (5.1x).


Future Growth

How is SmileDirectClub forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

51.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SDC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: SDC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SDC's is expected to become profitable in the next 3 years.

Revenue vs Market: SDC's revenue (20.6% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: SDC's revenue (20.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SDC's Return on Equity is forecast to be high in 3 years time (22.4%)


Past Performance

How has SmileDirectClub performed over the past 5 years?

31.6%

Last years 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: Insufficient data to determine if SDC's year-on-year earnings growth rate was positive over the past 5 years.

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 (10.1%).


Return on Equity

High ROE: SDC has a negative Return on Equity (-118.95%), as it is currently unprofitable.


Financial Health

How is SmileDirectClub's financial position?


Financial Position Analysis

Short Term Liabilities: SDC's short term assets ($580.8M) exceed its short term liabilities ($186.5M).

Long Term Liabilities: SDC's short term assets ($580.8M) exceed its long term liabilities ($464.1M).


Debt to Equity History and Analysis

Debt Level: SDC's debt to equity ratio (165.1%) is considered high.

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


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SDC has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

What is SmileDirectClub current dividend yield, its reliability and sustainability?


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.


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 SDC'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?

2.9yrs

Average management tenure


CEO

David Katzman (60 yo)

7.25yrs

Tenure

US$6,630,512

Compensation

Mr. David B. Katzman has been Chief Executive Officer and Chairman at SmileDirectClub Inc since co-founding it in 2014. Mr. Katzman is the Managing Partner at Camelot Venture Group. Mr. Katzman founded Cam...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD6.63M) is about average for companies of similar size in the US market ($USD5.19M).

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


Leadership Team

Experienced Management: SDC's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: SDC's board of directors are not considered experienced ( 1.6 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 company bio, 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$3.984b
  • Market Cap: US$1.191b
  • Shares outstanding: 386.94m
  • Website: https://www.smiledirectclub.com

Number of Employees


Location

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

Listings


Biography

SmileDirectClub, Inc. operates as an oral care company. It offers clear aligner therapy treatment. The company manages the end-to-end process, which include marketing, aligner manufacturing, fulfillment, t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 23:25
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.