NasdaqGS:SDC

Stock Analysis Report

Executive Summary

SmileDirectClub, Inc. operates a teledentistry platform that provides members with a customized clear aligner therapy treatment in the United States and internationally.


Snowflake Analysis

High growth potential with adequate balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.9%

SDC

11.3%

US Medical Equipment

5.3%

US Market


1 Year Return

n/a

SDC

-4.5%

US Medical Equipment

-10.7%

US Market

Return vs Industry: Insufficient data to determine how SDC performed against the US Medical Equipment industry.

Return vs Market: Insufficient data to determine how SDC performed against the US Market.


Shareholder returns

SDCIndustryMarket
7 Day8.9%11.3%5.3%
30 Day-36.4%-8.5%-13.6%
90 Day-44.0%-15.6%-19.8%
1 Yearn/a-3.8%-4.5%-8.9%-10.7%
3 Yearn/a47.0%43.0%15.5%8.0%
5 Yearn/a78.8%60.2%35.2%20.4%

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?

1.45x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SDC ($4.66) is trading above our estimate of fair value ($1.27)

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


Price To Earnings Ratio

PE vs Industry: SDC is unprofitable, so we can't compare its PE Ratio to the 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 (1.4x) compared to the US Medical Equipment industry average (3x).


Next Steps

Future Growth

How is SmileDirectClub forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

47.5%

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 (1.7%).

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 (22% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: SDC's revenue (22% 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 low in 3 years time (4.6%).


Next Steps

Past Performance

How has SmileDirectClub performed over the past 5 years?

-53.2%

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 (1%).


Return on Equity

High ROE: SDC has a negative Return on Equity (-117.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is SmileDirectClub's financial position?


Financial Position Analysis

Short Term Liabilities: SDC's short term assets ($590.5M) exceed its short term liabilities ($206.9M).

Long Term Liabilities: SDC's short term assets ($590.5M) exceed its long term liabilities ($220.5M).


Debt to Equity History and Analysis

Debt Level: SDC's debt to equity ratio (39.7%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: SDC's debt is covered by short term assets (assets are 3.2x 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: SDC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SDC has sufficient cash runway for 1 years if free cash flow continues to reduce at historical rates of -79.1% each year.


Next Steps

Dividend

What is SmileDirectClub's 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 payouts.

High Dividend: Unable to evaluate SDC'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 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?

2.0yrs

Average management tenure


CEO

David Katzman (59yo)

6.25s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Alexander Fenkell
Co-Founder & Director6.25yrsUS$316.61kno data
Jordan Katzman
Co-Founder & Director6.25yrsUS$209.61kno data
Steven Katzman
COO & Director1.92yrsUS$666.53kno data
Susan Rammelt
Chief Legal Officer0.67yrUS$1.36m0.0040% $75.2k
David Katzman
CEO & Chairman6.25yrsno data0.036% $678.5k
Kyle Wailes
Chief Financial Officer1.92yrsno data0.44% $8.3m
Justin Skinner
Chief Technology Officer1.25yrsno datano data
Alison Sternberg
Vice President of Investor Relationsno datano datano data
Cheryl DeSantis
Chief People Officer1.25yrsno datano data
Kay Oswald
President of International1.42yrsno data0.031% $587.6k

2.0yrs

Average Tenure

41yo

Average Age

Experienced Management: SDC's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alexander Fenkell
Co-Founder & Director6.25yrsUS$316.61kno data
Jordan Katzman
Co-Founder & Director6.25yrsUS$209.61kno data
Steven Katzman
COO & Director1.92yrsUS$666.53kno data
Susan Rammelt
Chief Legal Officer0.67yrUS$1.36m0.0040% $75.2k
David Katzman
CEO & Chairman6.25yrsno data0.036% $678.5k
Richard Schnall
Independent Director1.67yrsno datano data
Richard Wallman
Independent Director0.58yrno data0.033% $623.7k
Carol Hamilton
Director0.58yrno datano data
William Frist
Independent Director0.58yrno datano data

1.7yrs

Average Tenure

56yo

Average Age

Experienced Board: SDC's board of directors are not considered experienced ( 1.7 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: SDC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: SDC only recently listed within the past 12 months, with total shares outstanding growing by 93989.3% 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$1.899b
  • Market Cap: US$483.409m
  • Shares outstanding: 384.32m
  • Website: https://smiledirectclub.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SDCNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDSep 2019
SDC *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNSep 2019

Biography

SmileDirectClub, Inc. operates a teledentistry platform that provides members with a customized clear aligner therapy treatment in the United States and internationally. 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 proprietary with a network of approximately 250 state licensed orthodontists and general dentists through its teledentistry platform, SmileCheck. It also offers aligners, impression kits, whitening gels, and retainers. In addition, it operates SmilePay, a financing program. The company was founded in 2014 and is headquartered in Nashville, Tennessee. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 02:38
End of Day Share Price2020/03/31 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.