Smith-Midland Corporation

NasdaqCM:SMID Stock Report

Market Cap: US$152.6m

Smith-Midland Future Growth

Future criteria checks 0/6

We currently don't have sufficient analyst coverage to forecast growth and revenue for Smith-Midland.

Key information

n/a

Earnings growth rate

n/a

EPS growth rate

Basic Materials earnings growth12.0%
Revenue growth raten/a
Future return on equityn/a
Analyst coverage

None

Last updatedn/a

Recent future growth updates

Recent updates

Seeking Alpha • Apr 30

Smith-Midland Still Deserves Caution Despite Continued Strong Growth

Summary Smith-Midland Corporation remains a 'Hold' as valuation is not yet compelling despite strong operational growth. Revenue grew 19% to $93.4 million, with barrier rentals surging 63.9%, driven by special projects and increased rental utilization. Profitability improved significantly, with net income up to $12.5 million and EBITDA reaching $19.9 million, but backlog declined to $53.1 million. SMID trades below peers on EV/EBITDA, but economic uncertainty and shrinking backlog warrant continued caution before upgrading. Read the full article on Seeking Alpha
Analysis Article • Sep 23

We Think Smith-Midland (NASDAQ:SMID) Can Stay On Top Of Its Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Aug 16

Market Cool On Smith-Midland Corporation's (NASDAQ:SMID) Earnings

There wouldn't be many who think Smith-Midland Corporation's ( NASDAQ:SMID ) price-to-earnings (or "P/E") ratio of...
Analysis Article • Dec 20

Smith-Midland (NASDAQ:SMID) Seems To Use Debt Quite Sensibly

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' When we think about how risky a company...
Analysis Article • Sep 14

Revenues Tell The Story For Smith-Midland Corporation (NASDAQ:SMID) As Its Stock Soars 26%

Smith-Midland Corporation ( NASDAQ:SMID ) shares have had a really impressive month, gaining 26% after a shaky period...
Seeking Alpha • Sep 11

Smith-Midland: Volatility And Price Make This Prospect Unappealing

Summary Smith-Midland Corporation's stock is downgraded to a 'sell' due to volatile results and high valuation compared to similar firms. Despite revenue growth from $50.1 million in 2022 to $59.6 million in 2023, net profits remained flat at $0.8 million. The company's backlog dropped from $64.6 million in Q1 2024 to $59.2 million, indicating potential revenue normalization. Shares are expensive even under optimistic assumptions, making Smith-Midland a less attractive investment opportunity. Read the full article on Seeking Alpha
Analysis Article • Mar 20

Here's Why Smith-Midland (NASDAQ:SMID) Has A Meaningful Debt Burden

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Dec 28

Smith-Midland Corporation's (NASDAQ:SMID) P/S Is Still On The Mark Following 26% Share Price Bounce

Despite an already strong run, Smith-Midland Corporation ( NASDAQ:SMID ) shares have been powering on, with a gain of...
Analysis Article • Dec 01

Smith-Midland (NASDAQ:SMID) Might Be Having Difficulty Using Its Capital Effectively

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...
Analysis Article • Nov 15

Smith-Midland (NASDAQ:SMID) Takes On Some Risk With Its Use Of Debt

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Analysis Article • Jun 27

Smith-Midland (NASDAQ:SMID) May Have Issues Allocating Its Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Analysis Article • Mar 19

Returns On Capital At Smith-Midland (NASDAQ:SMID) Paint A Concerning Picture

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...
Analysis Article • Dec 24

We Think Smith-Midland (NASDAQ:SMID) Is Taking Some Risk With Its Debt

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Seeking Alpha • Sep 26

Smith-Midland Is A Good Company But It Is Extremely Overvalued

Summary SMID manufactures precast products, particularly for transportation infrastructure. The company enjoys a small moat in a competitive industry, has low capital requirements and no debt. SMID has shown that it is able to grow revenues following increases in government spending, and even to grow its share of that market. However, I believe that the company's stock is so highly priced that even under the most optimistic scenarios it is overvalued. If the optimistic scenarios do not materialize, the stock provides no margin of safety, in my opinion. Smith-Midland (SMID) is a manufacturer of precast concrete products, including walls, highway protection barriers and sound blocking barriers. The company operates in a competitive industry, with a little help from patented products. However, the company has been able to operate profitably for most of its history. SMID has also been able to more than double its revenues in the past two decades. SMID does not have a lot of debt and has been able to generate interesting cash flows, with low working capital or PP&E requirements. That is, SMID is a good company. However, for reasons that I cannot grasp, the company trades at what I consider an unjustifiable, extremely high price. Even under the most positive circumstances, I believe there is no way SMID can generate a level of business that is consistent with their current valuation. Note: Unless otherwise stated, all information has been obtained from SMID's filings with the SEC. Precast industry characteristics The precast industry is a low moat, high competition industry. The reasons are its low barriers to entry and the technical competence of its customers. Beginning with barriers to entry, precast is not a capital intensive industry like cement manufacturing is. Please don't get me wrong, precast manufacturers do need factories, but their cost is not even comparable to that of a cement manufacturer. With manufacturing processes that are free for public use, anyone with some capital can join the business. There are multiple products that can be manufactured by precasting concrete, the National Precast Concrete Association (NPCA) lists almost a hundred. That means some manufacturers can build a niche in specific applications. Precast is also affected by logistic costs, being a heavy product. That means that companies can build some moat by being close to their customers. Competitors may not be able to compete because their logistic costs are higher. In the case of SMID, the company has three manufacturing facilities, located in Virginia, North Carolina and South Carolina. The map below, obtained from the NPCA, is filtered to show only NPCA certified manufacturers of walls and highway barriers, SMID's two core products. The map shows that even in its home states, the company faces competition, and even more so outside of them. NPCA certified manufacturers of precast walls and highway barriers (National Precast Concrete Association) A second factor generating competition in the industry is that its customers are technically competent. Contractors purchase precast to apply in their construction projects. The purchase process is probably led by engineers that have a suite of metrics to compare the relative value of each competitor's products. SMID has tried to fight these factors (low barriers to entry and metric based competition) by developing patented products. These include Slender Wall, a precast wall for building construction, and J-J Hooks, a highway barrier, the company's star product. According to SMID these products enjoy enhanced technical characteristics that make installation easier and durable. The company also has trademarks or patents for its other product lines. These patented products do enjoy some competitive power. SMID has licensed them to several manufacturers in other US and abroad (Australia, Belgium, New Zealand and Trinidad). The company charges between 4% to 6% on sales as royalties. In 2021, SMID received $2.2 million in royalties, which would translate to approximately $44 million in products sold by its licensees. Finally, most of SMID's products are sold on a non recurring basis. Walls, highway barriers, sound barriers and precast buildings are all sold on a project by project basis. Each project can represent a significant portion of that year's revenues. This means that the product mix is also changing constantly. All in all, the dynamics of the industry affect SMID, whose gross profit margins have been relatively low and also variable, as the chart below shows. Data by YCharts Smith-Midland's cost and financial structure As the chart below shows, SMID's has been able to consistently grow revenues. Even during the financial crisis, the company was able to keep a consistent level of revenues. In the meantime, SMID was able to grow its gross profits, albeit these present higher variability because of product mix changes. Data by YCharts Variable gross margins generate substantial operating leverage at the operating income level. SMID's SG&A costs are not enormous, averaging 20% of revenue since the 2000s. The problem is that the 20% figure is too close to the company's gross margin. The result is extremely variable operating income. Fortunately, the company has rarely been operationally unprofitable. Data by YCharts On a more positive note, SMID requires little PP&E expending and also a low level of inventories that are turned quickly. The company manufactures mostly after a contractor places an order. The jump in PP&E below is substantial and will be explained in a different section, but still, $22 million in net PP&E for a $50 million revenue company is not substantial. Data by YCharts This has generated a good cash flow structure, where SMID is able to convert operating income into FCF. Low levels of investment also allow the company to avoid substantial debt. Data by YCharts Dependence on government spending Some readers may have noticed a sudden increase in revenue, gross profits, operating income and net PP&E beginning in 2015. In my opinion, this increase was caused by increased infrastructure spending by the US government, but also by SMID's gaining market share. The two charts below show that the fastest growing product categories after 2015 were barriers and sound-walls. These categories are almost exclusively demanded by the federal, state and local governments (indirectly through contractors). They are used in transportation infrastructure projects, highways in particular. In the service field, the increase in installation and rentals is also associated with barriers, and therefore to transportation infrastructure. The fastest growth stage for these services starts in 2018, cannibalizing a significant portion of barrier sales. The increase in barrier rental explains the jump in net PP&E, as barriers that are rented are considered company property. SMID's revenue by product and service (SMID's filings with the SEC) As the chart below shows, there has definitely been a significant increase in transportation construction since 2010 in the US. However, transportation construction spending and SMID's revenues do not go hand in hand. Between 2012 and 2014, spending grew but SMID's revenues decreased. Since 2015, SMID's revenues started growing before spending did. This all signals that although construction spending has become an important driver for SMID's business, the company can both lose and gain market share in this industry as well. Data by YCharts Going forward, an extreme valuation As a summary, I commented that the precast industry is relatively prone to rivalry, based on its low barriers to entrance and competent customers. Some protection against rivalry can be provided by geographic location (transportation costs) and patents.
Seeking Alpha • Sep 15

Smith-Midland subsidiary gets license agreement with Critical Precast Structures

Easi-Set Worldwide, a subsidiary of Smith-Midland (NASDAQ:SMID) signed license agreement with Critical Precast Structures, a subsidiary of the Powell Noise Wall Group, in Ontario Canada. Critical will manufacture Easi-Set & Easi-Span modular buildings for the Ontario and Northern New York state markets. "This agreement with Critical widens and deepens our unique relationships across our family of Easi-Set Buildings licensees. Powered by the framework and actions of our licensing strategy, Smith-Midland continues to broaden its global footprint," said Art Miles, President, Easi-Set Industries.
Analysis Article • Sep 14

Is Smith-Midland (NASDAQ:SMID) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Jul 29

Returns On Capital Signal Tricky Times Ahead For Smith-Midland (NASDAQ:SMID)

Did you know there are some financial metrics that can provide clues of a potential multi-bagger? Typically, we'll want...
Seeking Alpha • Jul 28

Smith-Midland nabs multiple contracts worth $8.9M

Smith-Midland (NASDAQ:SMID) secured $8.9M+ in orders in recent weeks through the projects which incorporate a variety of the company's precast products, including a $3.4M order for its Soundwall panels and posts. With the custom retaining wall contract for the HRBT project, Smith-Midland will have provided three separate precast concrete products for the largest highway construction project in Virginia. "There is growing demand for our offerings through increased commercial construction and infrastructure spending, and we look forward to announcing additional projects over the coming months," President and CEO Ashley Smith commented.
Analysis Article • Jun 07

Here's Why Smith-Midland (NASDAQ:SMID) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Seeking Alpha • Mar 31

Smith-Midland: The Triple Play - Macro Tailwinds, Governmental Mandates, And A Fundamental Business Shift

SMID is a precast concrete manufacturer that is positioned to capitalize on both macro-economic and governmental tailwinds that are afoot in their two main business lines, SlenderWall and J-J Hooks. SlenderWall is a precast modular wall panel for mid/high rise buildings that requires significantly less labor. J-J Hooks are freestanding moveable highway barriers that you see when highways are under construction. A major supply shortage of construction workers is forcing developers to find less-labor intensive ways of completing projects. We firmly believe this supply dynamic will lead them to SlenderWall. SMID recently shifted their J-J Hooks business from a lumpy sales-based business to a higher margin and recurring revenue rental-based business. SMID has expanded capacity from 30K ft. in 2015 to 300K ft. and is looking to double this by 2024/25. On top of this business shift, the recent MASH TL3 standard enacted by the NHS is forcing all national highway barriers to be updated over the next 5-7 years. We believe that this will lead to SMID seeing sustained high demand in their J-J Hooks rental business.
Analysis Article • Jan 27

If You Like EPS Growth Then Check Out Smith-Midland (NASDAQ:SMID) Before It's Too Late

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...
Seeking Alpha • Jan 21

Smith-Midland Corporation: Nothing Special

Smith-Midland Corporation has a mixed operating history but has consistently been cash flow positive. The company is seeing solid performance based on what data from 2021 is currently available. But shares are priced at levels that don't make sense relative to this recent performance.
Analysis Article • Dec 24

Smith-Midland (NASDAQ:SMID) Could Easily Take On More Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...
Analysis Article • Nov 18

Smith-Midland (NASDAQ:SMID) Has Some Way To Go To Become A Multi-Bagger

There are a few key trends to look for if we want to identify the next multi-bagger. Typically, we'll want to notice a...
Seeking Alpha • Oct 12

Smith-Midland: An Undiscovered Infrastructure Winner

SMID sells precast concrete products for the infrastructure industry. The company has grown its bottom line at more than 100% YTD, yet has an attractive EV/EBIT of below 9x. The recent move into the Californian market and increased infrastructure spending should pose strong tailwinds for the business. With no coverage by analysts and on Seeking Alpha so far, an investment in SMID could bring with it a first-mover advantage.
Analysis Article • Sep 14

Is Smith-Midland (NASDAQ:SMID) Using Too Much Debt?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...
Analysis Article • Aug 10

Returns At Smith-Midland (NASDAQ:SMID) Are On The Way Up

What trends should we look for it we want to identify stocks that can multiply in value over the long term? Typically...
Analysis Article • Jul 16

With EPS Growth And More, Smith-Midland (NASDAQ:SMID) Is Interesting

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Smith-Midland has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Earnings and Revenue Growth Forecasts

NasdaqCM:SMID - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20259313514N/A
9/30/20258912511N/A
6/30/2025911206N/A
3/31/2025841038N/A
12/31/2024798-15N/A
9/30/2024767410N/A
6/30/202468539N/A
3/31/202463239N/A
12/31/202360138N/A
9/30/2023581-30N/A
6/30/202354-1-6-3N/A
3/31/2023531-10-7N/A
12/31/2022501-9-6N/A
9/30/2022461-10-2N/A
6/30/2022475-61N/A
3/31/2022465-24N/A
12/31/202151849N/A
9/30/202152889N/A
6/30/2021516911N/A
3/31/2021496811N/A
12/31/202044357N/A
9/30/202045337N/A
6/30/202046204N/A
3/31/2020462-13N/A
12/31/2019472-14N/A
9/30/2019462N/A6N/A
6/30/2019422N/A9N/A
3/31/2019412N/A11N/A
12/31/2018402N/A8N/A
9/30/2018391N/A7N/A
6/30/2018401N/A3N/A
3/31/2018411N/A1N/A
12/31/2017423N/A3N/A
9/30/2017423N/A5N/A
6/30/2017434N/A5N/A
3/31/2017414N/A6N/A
12/31/2016403N/A4N/A
9/30/2016382N/A2N/A
6/30/2016362N/A1N/A
3/31/2016331N/A0N/A
12/31/2015291N/A0N/A
9/30/2015260N/A-2N/A
6/30/201522-1N/A0N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if SMID's forecast earnings growth is above the savings rate (3.5%).

Earnings vs Market: Insufficient data to determine if SMID's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if SMID's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SMID's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if SMID's revenue is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/06/09 00:56
End of Day Share Price 2026/06/09 00:00
Earnings2025/12/31
Annual Earnings2025/12/31

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

Smith-Midland Corporation is covered by 0 analysts. 0 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.