SMART Global Holdings
Market Cap
US$741.1m
Last Updated
2019/09/23 00:22 UTC
Data Sources
Company Financials +
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
| SGH | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.9% | -2.4% | -0.6% |
| 30 Day | 20.9% | 8.0% | 4.9% |
| 90 Day | 67.9% | 10.1% | 1.7% |
| 1 Year | 8.0%8.0% | 9.6%7.5% | 3.0%0.7% |
| 3 Year | n/a | 80.1%69.5% | 44.8%35.4% |
| 5 Year | n/a | 119.5%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
8 months ago | Simply Wall St
SMART Global Holdings, Inc. (NASDAQ:SGH) Earns Among The Best Returns In Its Industry10 months ago | Simply Wall St
Should We Be Delighted With SMART Global Holdings Inc's (NASDAQ:SGH) ROE Of 64%?1 year ago | Simply Wall St
Should You Be Concerned About SMART Global Holdings Inc's (NASDAQ:SGH) Investors?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
| Entity | Individual |
| Shares | 1,159 |
| Max Price | US$31.37 |
| Entity | Individual |
| Shares | 17,059 |
| Max Price | US$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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| SGH | NasdaqGS (Nasdaq Global Select) | Yes | Ordinary Shares | US | USD | May 2017 |
| 850 | BST (Boerse-Stuttgart) | Yes | Ordinary Shares | DE | EUR | May 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/09/23 00:22 |
| End of Day Share Price | 2019/09/20 00:00 |
| Earnings | 2019/05/31 |
| Annual Earnings | 2018/08/31 |
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.