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SMSI

Smith Micro Software NasdaqCM:SMSI Stock Report

Last Price

US$2.47

Market Cap

US$138.9m

7D

-8.9%

1Y

-48.3%

Updated

24 Sep, 2022

Data

Company Financials +
SMSI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SMSI Stock Overview

Smith Micro Software, Inc. develops and sells software to enhance the mobile experience to wireless and cable service providers worldwide.

Smith Micro Software Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Smith Micro Software
Historical stock prices
Current Share PriceUS$2.47
52 Week HighUS$6.52
52 Week LowUS$2.11
Beta0.96
1 Month Change0%
3 Month Change-7.84%
1 Year Change-48.33%
3 Year Change-52.04%
5 Year Change120.54%
Change since IPO-95.74%

Recent News & Updates

Shareholder Returns

SMSIUS SoftwareUS Market
7D-8.9%-4.4%-5.2%
1Y-48.3%-35.3%-23.0%

Return vs Industry: SMSI underperformed the US Software industry which returned -35.3% over the past year.

Return vs Market: SMSI underperformed the US Market which returned -23.1% over the past year.

Price Volatility

Is SMSI's price volatile compared to industry and market?
SMSI volatility
SMSI Average Weekly Movement10.1%
Software Industry Average Movement9.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

Stable Share Price: SMSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: SMSI's weekly volatility (10%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1982373William Smithhttps://www.smithmicro.com

Smith Micro Software, Inc. develops and sells software to enhance the mobile experience to wireless and cable service providers worldwide. It offers SafePath Family, SafePath IoT, and SafePath Home product suite, which provides tools to protect digital lifestyles and manage connected devices inside and outside the home; and CommSuite, a messaging platform that helps mobile service providers deliver a next-generation voicemail experience to mobile subscribers, as well as enables multi-language Voice-to-Text transcription messaging. It also offers ViewSpot, a retail display management platform that provides on-screen and interactive demos to wireless carriers and retailers; and technical support and customer services.

Smith Micro Software Fundamentals Summary

How do Smith Micro Software's earnings and revenue compare to its market cap?
SMSI fundamental statistics
Market CapUS$138.90m
Earnings (TTM)-US$38.11m
Revenue (TTM)US$56.53m

2.5x

P/S Ratio

-3.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMSI income statement (TTM)
RevenueUS$56.53m
Cost of RevenueUS$15.05m
Gross ProfitUS$41.48m
Other ExpensesUS$79.59m
Earnings-US$38.11m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.68
Gross Margin73.38%
Net Profit Margin-67.42%
Debt/Equity Ratio0%

How did SMSI perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is SMSI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SMSI?

Other financial metrics that can be useful for relative valuation.

SMSI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.5x
Enterprise Value/EBITDA-7.6x
PEG Ration/a

Price to Sales Ratio vs Peers

How does SMSI's PS Ratio compare to its peers?

SMSI PS Ratio vs Peers
The above table shows the PS ratio for SMSI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1.4x
RDCM RADCOM
3.8x9.0%US$162.3m
RAAS Cloopen Group Holding
1xn/aUS$139.6m
XNET Xunlei
0.3xn/aUS$97.3m
ASUR Asure Software
1.3x8.4%US$107.4m
SMSI Smith Micro Software
2.5x18.2%US$138.9m

Price-To-Sales vs Peers: SMSI is expensive based on its Price-To-Sales Ratio (2.5x) compared to the peer average (1.4x).


Price to Earnings Ratio vs Industry

How does SMSI's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Sales vs Industry: SMSI is good value based on its Price-To-Sales Ratio (2.5x) compared to the US Software industry average (4.3x)


Price to Sales Ratio vs Fair Ratio

What is SMSI's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SMSI PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio2.5x
Fair PS Ratio3.3x

Price-To-Sales vs Fair Ratio: SMSI is good value based on its Price-To-Sales Ratio (2.5x) compared to the estimated Fair Price-To-Sales Ratio (3.3x).


Share Price vs Fair Value

What is the Fair Price of SMSI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SMSI ($2.47) is trading above our estimate of fair value ($0.52)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Smith Micro Software forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


78.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMSI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SMSI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SMSI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SMSI's revenue (18.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SMSI's revenue (18.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


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Past Performance

How has Smith Micro Software performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-31.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMSI is currently unprofitable.

Growing Profit Margin: SMSI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMSI is unprofitable, and losses have increased over the past 5 years at a rate of 31.2% per year.

Accelerating Growth: Unable to compare SMSI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SMSI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (18.3%).


Return on Equity

High ROE: SMSI has a negative Return on Equity (-43.84%), as it is currently unprofitable.


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Financial Health

How is Smith Micro Software's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SMSI's short term assets ($19.4M) exceed its short term liabilities ($10.2M).

Long Term Liabilities: SMSI's short term assets ($19.4M) exceed its long term liabilities ($3.8M).


Debt to Equity History and Analysis

Debt Level: SMSI is debt free.

Reducing Debt: SMSI has no debt compared to 5 years ago when its debt to equity ratio was 840.8%.


Balance Sheet


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: SMSI has sufficient cash runway for 2 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: Insufficient data to determine if SMSI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


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Dividend

What is Smith Micro Software current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SMSI's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SMSI has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

William Smith (74 yo)

40.67yrs

Tenure

US$2,129,543

Compensation

Mr. William W. Smith, Jr., co-founded Smith Micro Software Inc. in 1982 and has been its Chairman of the Board, President and Chief Executive Officer since 1982. Mr. Smith served at Rockwell International...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD2.13M) is above average for companies of similar size in the US market ($USD780.01K).

Compensation vs Earnings: William's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: SMSI's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: SMSI's board of directors are seasoned and experienced ( 11.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SMSI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

NasdaqCM:SMSI Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
16 Sep 22BuyUS$2,699Chetan SharmaIndividual1,000US$2.70
14 Sep 22BuyUS$12,955William SmithIndividual5,000US$2.59
13 Sep 22BuyUS$6,500James KemptonIndividual2,500US$2.60
30 Aug 22BuyUS$3,961Thomas CampbellIndividual1,700US$2.33
23 Aug 22BuyUS$11,215Asha KeddyIndividual5,000US$2.24
22 Aug 22BuyUS$64,204Andrew ArnoIndividual27,500US$2.35
19 Aug 22BuyUS$22,932Gregory SzaboIndividual10,000US$2.29
17 Aug 22BuyUS$9,393Samuel GulkoIndividual4,000US$2.35
17 Aug 22BuyUS$35,271Andrew ArnoIndividual15,000US$2.35
07 Dec 21SellUS$586,300William SmithIndividual110,000US$5.33

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.


Top Shareholders

Top 25 shareholders own 28.48% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.29%
William Smith
5,226,828$12.9m9.21%no data
3.87%
The Vanguard Group, Inc.
2,173,946$5.4m-17%no data
3.54%
Pacific Ridge Capital Partners, LLC
1,989,101$4.9m-8.82%1.26%
1.29%
Renaissance Technologies LLC
723,204$1.8m24.63%no data
1.07%
Dimensional Fund Advisors LP
603,177$1.5m31.76%no data
0.93%
BlackRock, Inc.
523,237$1.3m-80.63%no data
0.91%
Geode Capital Management, LLC
513,655$1.3m-43.01%no data
0.86%
Neuberger Berman Investment Advisers LLC
482,602$1.2m-7.17%no data
0.76%
Millennium Management LLC
429,333$1.1m0%no data
0.6%
Andrew Arno
335,105$827.7k14.52%no data
0.59%
Susquehanna International Group, LLP, Asset Management Arm
332,446$821.1k-14.61%no data
0.57%
Raymond James Financial Services Advisors, Inc.
322,475$796.5k3.47%no data
0.46%
Citadel Advisors LLC
258,633$638.8k74.59%no data
0.44%
Gail Redmond
248,603$614.0k0%no data
0.44%
Charles Messman
248,231$613.1k0%no data
0.4%
Group One Trading LP, Asset Management Arm
222,243$548.9k2.24%0.02%
0.36%
Ergoteles LLC
201,100$496.7k0%0.02%
0.31%
CM Management, LLC
175,000$432.3k9.38%0.47%
0.31%
Gregory Szabo
174,000$429.8k6.1%no data
0.29%
State Street Global Advisors, Inc.
162,894$402.3k-77.02%no data
0.26%
Samuel Gulko
148,250$366.2k2.77%no data
0.25%
Steven Elfman
138,750$342.7k0%no data
0.24%
ARS Investment Partners, LLC
134,565$332.4k7.83%0.05%
0.23%
UBS Asset Management
130,049$321.2k-14.27%no data
0.21%
Simplex Trading, LLC, Asset Management Arm
116,868$288.7k49.64%0.01%

Company Information

Smith Micro Software, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Smith Micro Software, Inc.
  • Ticker: SMSI
  • Exchange: NasdaqCM
  • Founded: 1982
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$138.898m
  • Shares outstanding: 56.23m
  • Website: https://www.smithmicro.com

Number of Employees


Location

  • Smith Micro Software, Inc.
  • 5800 Corporate Drive
  • Pittsburgh
  • Pennsylvania
  • 15237
  • United States


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMSINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 1995
SS91DB (Deutsche Boerse AG)YesCommon StockDEEURSep 1995

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.