NasdaqGS:SGH

Stock Analysis Report

Executive Summary

SMART Global Holdings, Inc. designs, manufactures, and supplies specialty memory solutions worldwide.

Snowflake

Fundamentals

Undervalued with excellent balance sheet.

Risks

  • SMART Global Holdings has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

3.9%

SGH

-2.4%

US Semiconductor

-0.6%

US Market


1 Year Return

8.0%

SGH

7.5%

US Semiconductor

0.7%

US Market

SGH matched the Semiconductor industry (7.5%) over the past year.

SGH outperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

SGHIndustryMarket
7 Day3.9%-2.4%-0.6%
30 Day20.9%8.0%4.9%
90 Day67.9%10.1%1.7%
1 Year8.0%8.0%9.6%7.5%3.0%0.7%
3 Yearn/a80.1%69.5%44.8%35.4%
5 Yearn/a119.5%97.2%62.0%44.3%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

SMART Global Holdings's share price is below the future cash flow value, and at a moderate discount (> 20%).

SMART Global Holdings's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

SMART Global Holdings is good value based on earnings compared to the US Semiconductor industry average.

SMART Global Holdings is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

SMART Global Holdings is good value based on expected growth next year.


Price Based on Value of Assets

SMART Global Holdings is overvalued based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is SMART Global Holdings expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

SMART Global Holdings's revenue is expected to grow by 5% yearly, however this is not considered high growth (20% yearly).

SMART Global Holdings's earnings are expected to grow by 14.7% yearly, however this is not considered high growth (20% yearly).

SMART Global Holdings's revenue growth is positive but not above the United States of America market average.

SMART Global Holdings's earnings growth is expected to exceed the United States of America market average.

SMART Global Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

SMART Global Holdings is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

67.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

SMART Global Holdings has delivered over 20% year on year earnings growth in the past 5 years.

SMART Global Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.

SMART Global Holdings's 1-year earnings growth is negative, it can't be compared to the US Semiconductor industry average.


Return on Equity

SMART Global Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

SMART Global Holdings used its assets more efficiently than the US Semiconductor industry average last year based on Return on Assets.


Return on Capital Employed

SMART Global Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is SMART Global Holdings's financial position?


Financial Position Analysis

SMART Global Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

SMART Global Holdings's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

SMART Global Holdings's level of debt (85.7%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (155.9% vs 85.7% today).

Debt is well covered by operating cash flow (53.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.5x debt.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate SMART Global Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate SMART Global Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as SMART Global Holdings has not reported any payouts.

Unable to verify if SMART Global Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as SMART Global Holdings has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of SMART Global Holdings's salary, the management and board of directors tenure and is there insider trading?

7.9yrs

Average management tenure


CEO

Ajay Shah (60yo)

1.7yrs

Tenure

US$16,102,933

Compensation

Mr. Ajay B. Shah is Chairman of the Board at SMART Global Holdings, Inc. since March 2018 and has been its President & CEO since June 2018. Mr. Shah served as Co-Chief Executive Officer of SMART Global Hol ...


CEO Compensation Analysis

Ajay's remuneration is higher than average for companies of similar size in United States of America.

Insufficient data for Ajay to compare compensation growth.


Management Age and Tenure

7.9yrs

Average Tenure

59.5yo

Average Age

The average tenure for the SMART Global Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.5yrs

Average Tenure

58yo

Average Age

The tenure for the SMART Global Holdings board of directors is about average.


Insider Trading

More shares have been bought than sold by SMART Global Holdings individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$36,35602 Aug 19
Stephen Dow
EntityIndividual
Shares1,159
Max PriceUS$31.37
BuyUS$537,18002 Aug 19
Stephen Dow
EntityIndividual
Shares17,059
Max PriceUS$31.49

Ownership Breakdown


Management Team

  • Bruce Goldberg (64yo)

    VP, Chief Legal Officer

    • Tenure: 10.1yrs
    • Compensation: US$1.02m
  • Ajay Shah (60yo)

    Chairman

    • Tenure: 1.7yrs
    • Compensation: US$16.10m
  • Alan Marten (59yo)

    Senior Vice President of Specialty Memory

    • Tenure: 11.9yrs
    • Compensation: US$1.09m
  • Jack Pacheco (59yo)

    Executive VP

    • Tenure: 7.9yrs
    • Compensation: US$1.97m
  • Tom Coull (63yo)

    Senior Vice President of Specialty Compute & Storage Solutions

    • Tenure: 0.9yrs
  • Suzanne Schmidt

    Investor Relations Officer

    • Tenure: 0yrs
  • Karl Motey

    Vice President of Strategic Marketing & Communications

    • Tenure: 0.7yrs
  • KiWan Kim (56yo)

    Senior Vice President of Emerging Markets

    • Tenure: 9.7yrs
    • Compensation: US$1.80m

Board Members

  • Ken Hao (50yo)

    Director

    • Tenure: 8.7yrs
  • Randy Furr (64yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$249.37k
  • Ajay Shah (60yo)

    Chairman

    • Tenure: 1.7yrs
    • Compensation: US$16.10m
  • Mukesh Patel (61yo)

    Non-Employee Director

    • Tenure: 6.5yrs
    • Compensation: US$201.03k
  • Sandeep Nayyar (62yo)

    Independent Director

    • Tenure: 5yrs
    • Compensation: US$208.53k
  • Paul Mercadante (58yo)

    Director

    • Tenure: 8.1yrs
  • Bryan Ingram (54yo)

    Independent Director

    • Tenure: 0.9yrs
  • Jason White (38yo)

    Director

    • Tenure: 8.7yrs
  • Max Straub (54yo)

    Director

    • Tenure: 0.4yrs

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$741.136m
  • Shares outstanding: 23.08m
  • 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, manufactures, and supplies specialty memory solutions worldwide. The company offers dynamic random access memory (DRAM) components, which are used to manufacture module ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/23 00:22
End of Day Share Price2019/09/20 00:00
Earnings2019/05/31
Annual Earnings2018/08/31


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.