NasdaqGS:SGH

Stock Analysis Report

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Executive Summary

SMART Global Holdings, Inc. designs and manufactures electronic products focused in memory and computing technology areas. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has SMART Global Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SGH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SGH's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.0%

SGH

-6.9%

US Semiconductor

-3.4%

US Market


1 Year Return

74.0%

SGH

57.1%

US Semiconductor

29.4%

US Market

Return vs Industry: SGH exceeded the US Semiconductor industry which returned 57.1% over the past year.

Return vs Market: SGH exceeded the US Market which returned 29.4% over the past year.


Shareholder returns

SGHIndustryMarket
7 Day-3.0%-6.9%-3.4%
30 Day24.1%-1.3%0.6%
90 Day49.3%7.3%6.3%
1 Year74.0%74.0%59.7%57.1%32.2%29.4%
3 Year28.4%28.4%98.0%87.9%51.3%41.7%
5 Yearn/a323.4%282.5%119.6%95.2%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SMART Global Holdings undervalued compared to its fair value and its price relative to the market?

1765.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SGH ($48.13) is trading above our estimate of fair value ($46.62)

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


Price To Earnings Ratio

PE vs Industry: SGH is poor value based on its PE Ratio (1765.3x) compared to the US Semiconductor industry average (38.1x).

PE vs Market: SGH is poor value based on its PE Ratio (1765.3x) compared to the US market (21.4x).


Price to Earnings Growth Ratio

PEG Ratio: SGH is poor value based on its PEG Ratio (21.2x)


Price to Book Ratio

PB vs Industry: SGH is good value based on its PB Ratio (4.3x) compared to the US Semiconductor industry average (4.7x).


Next Steps

Future Growth

How is SMART Global Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

83.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGH's forecast earnings growth (83.2% per year) is above the savings rate (2%).

Earnings vs Market: SGH's earnings (83.2% per year) are forecast to grow faster than the US market (19.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SGH's revenue (8.5% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: SGH's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGH's Return on Equity is forecast to be high in 3 years time (26.2%)


Next Steps

Past Performance

How has SMART Global Holdings performed over the past 5 years?

31.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGH has a large one-off loss of $16.7M impacting its November 27 2020 financial results.

Growing Profit Margin: SGH's current net profit margins (0.06%) are lower than last year (1.9%).


Past Earnings Growth Analysis

Earnings Trend: SGH has become profitable over the past 5 years, growing earnings by 31.8% per year.

Accelerating Growth: SGH's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SGH had negative earnings growth (-96.8%) over the past year, making it difficult to compare to the Semiconductor industry average (18.2%).


Return on Equity

High ROE: SGH's Return on Equity (0.2%) is considered low.


Next Steps

Financial Health

How is SMART Global Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SGH's short term assets ($558.5M) exceed its short term liabilities ($282.6M).

Long Term Liabilities: SGH's short term assets ($558.5M) exceed its long term liabilities ($223.8M).


Debt to Equity History and Analysis

Debt Level: SGH's debt to equity ratio (71%) is considered high.

Reducing Debt: SGH's debt to equity ratio has reduced from 4020.8% to 71% over the past 5 years.

Debt Coverage: SGH's debt is well covered by operating cash flow (49.3%).

Interest Coverage: SGH's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet


Next Steps

Dividend

What is SMART Global Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SGH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

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

Growing Dividend: Insufficient data to determine if SGH'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 SGH'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?

2.3yrs

Average management tenure


CEO

Mark Adams (56 yo)

0.58

Tenure

Mr. Mark W. Adams has been President and Chief Executive Officer of SMART Global Holdings, Inc. since August 31, 2020 and also its Director since September 30, 2020. Mr. Adams served as the Chief Executive...


Leadership Team

NamePositionTenureCompensationOwnership
Ajay Shah
Executive Chairman of the Board10.17yrsUS$6.78m2.29%
$ 26.1m
Jack Pacheco
Executive VP & COO9.42yrsUS$1.68m0.16%
$ 1.8m
Bruce Goldberg
VP, Chief Legal Officer11.58yrsUS$1.03m0.0057%
$ 64.5k
Alan Marten
Senior Vice President of Specialty Memory13.42yrsUS$1.18m0.40%
$ 4.6m
KiWan Kim
Executive Vice President11.17yrsUS$1.44m0%
$ 0
Mark Adams
President0.58yrno data2.05%
$ 23.3m
Ken Rizvi
Senior VP & CFO0.083yrno datano data
Suzanne Schmidt
Investor Relations Officerno datano datano data
Karl Motey
Vice President of Strategic Marketing & Communications2.17yrsno datano data
Thomas Coull
Senior VP of Specialty Compute & Storage Solutions and CEO of Penguin Computing2.42yrsUS$1.41m0%
$ 0
Stephen Dow
Senior VP of Specialty Compute & Storage Solution2.17yrsno data0.075%
$ 852.1k

2.3yrs

Average Tenure

60.5yo

Average Age

Experienced Management: SGH's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ajay Shah
Executive Chairman of the Board10.17yrsUS$6.78m2.29%
$ 26.1m
Mark Adams
President0.58yrno data2.05%
$ 23.3m
Kenneth Hao
Director10.17yrsno datano data
Randy Furr
Independent Director3.5yrsUS$204.99k0.053%
$ 609.0k
Mukesh Patel
Independent Non-Employee Director8yrsUS$197.49k0.066%
$ 750.2k
Sandeep Nayyar
Lead Independent Director0.25yrUS$204.99k0.034%
$ 387.8k
Bryan Ingram
Independent Director2.42yrsUS$192.49k0.024%
$ 269.6k
Jason White
Director10.17yrsno datano data
Maximiliane Straub
Independent Director1.92yrsUS$70.00k0.048%
$ 551.5k

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: SGH's board of directors are considered experienced (3.5 years average tenure).


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

SMART Global Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SMART Global Holdings, Inc.
  • Ticker: SGH
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$1.139b
  • Shares outstanding: 23.67m
  • Website: https://www.smartm.com

Number of Employees


Location

  • SMART Global Holdings, Inc.
  • 39870 Eureka Drive
  • Newark
  • California
  • 94560
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGHNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDMay 2017
850BST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 2017

Biography

SMART Global Holdings, Inc. designs and manufactures electronic products focused in memory and computing technology areas. It offers dynamic random access memory (DRAM) modules for desktops, notebooks, and...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 00:23
End of Day Share Price2021/03/03 00:00
Earnings2020/11/27
Annual Earnings2020/08/28


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.