NasdaqCM:SMSI

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

How has Smith Micro Software's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMSI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: SMSI's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

23.9%

SMSI

-0.7%

US Software

0.6%

US Market


1 Year Return

34.5%

SMSI

39.4%

US Software

21.0%

US Market

Return vs Industry: SMSI underperformed the US Software industry which returned 39.4% over the past year.

Return vs Market: SMSI exceeded the US Market which returned 21% over the past year.


Shareholder returns

SMSIIndustryMarket
7 Day23.9%-0.7%0.6%
30 Day18.9%1.0%4.2%
90 Day71.9%1.7%12.4%
1 Year34.5%34.5%40.3%39.4%23.7%21.0%
3 Year144.2%144.2%126.6%119.3%47.4%37.6%
5 Year200.9%200.9%255.6%237.5%131.6%105.9%

Long-Term Price Volatility Vs. Market

How volatile is Smith Micro Software's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Smith Micro Software undervalued compared to its fair value and its price relative to the market?

37.27x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SMSI ($6.74) is trading above our estimate of fair value ($1.87)

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


Price To Earnings Ratio

PE vs Industry: SMSI is good value based on its PE Ratio (37.3x) compared to the US Software industry average (58.7x).

PE vs Market: SMSI is poor value based on its PE Ratio (37.3x) compared to the US market (21.3x).


Price to Earnings Growth Ratio

PEG Ratio: SMSI is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: SMSI is good value based on its PB Ratio (4.8x) compared to the US Software industry average (9.6x).


Next Steps

Future Growth

How is Smith Micro Software forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

24.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMSI's forecast earnings growth (24.5% per year) is above the savings rate (2%).

Earnings vs Market: SMSI's earnings (24.5% per year) are forecast to grow faster than the US market (21.6% per year).

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

Revenue vs Market: SMSI's revenue (9.8% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: SMSI's revenue (9.8% 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


Next Steps

Past Performance

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

52.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMSI has high quality earnings.

Growing Profit Margin: SMSI's current net profit margins (14.2%) are lower than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: SMSI has become profitable over the past 5 years, growing earnings by 52.7% per year.

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

Earnings vs Industry: SMSI had negative earnings growth (-25.3%) over the past year, making it difficult to compare to the Software industry average (14.3%).


Return on Equity

High ROE: SMSI's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is Smith Micro Software's financial position?


Financial Position Analysis

Short Term Liabilities: SMSI's short term assets ($37.0M) exceed its short term liabilities ($7.8M).

Long Term Liabilities: SMSI's short term assets ($37.0M) exceed its long term liabilities ($6.1M).


Debt to Equity History and Analysis

Debt Level: SMSI is debt free.

Reducing Debt: SMSI had no debt 5 years ago.

Debt Coverage: SMSI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SMSI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


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.


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 SMSI'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?

4.8yrs

Average management tenure


CEO

William Smith (72 yo)

39yrs

Tenure

US$1,186,934

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 ($USD1.19M) is about average for companies of similar size in the US market ($USD1.02M).

Compensation vs Earnings: William's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Smith
Co-Founder39yrsUS$1.19m11.69%
$ 32.5m
Timothy Huffmyer
VP, CFO3.58yrsUS$597.83k0.63%
$ 1.8m
David Sperling
VP, Chief Technology Officer & Director of Software Engineering21.33yrsUS$606.44k0.84%
$ 2.3m
Gail Redmond
Senior Vice President of Sales Worldwide4.25yrsUS$680.90k0.68%
$ 1.9m
Kenneth Shebek
VP & Chief Information Officerno dataUS$398.36kno data
Charles Messman
Vice President of Investor Relations & Corporate Development4.75yrsUS$311.51kno data
David Blakeney
Senior Vice President of Engineeringno dataUS$223.10kno data

4.8yrs

Average Tenure

57yo

Average Age

Experienced Management: SMSI's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Smith
Co-Founder39yrsUS$1.19m11.69%
$ 32.5m
Samuel Gulko
Independent Director16.25yrsUS$64.50k0.23%
$ 635.2k
Andrew Arno
Independent Director9.5yrsUS$64.50k0.59%
$ 1.6m
Steven Elfman
Independent Director6.17yrsUS$64.50k0.21%
$ 598.2k
Thomas Campbell
Independent Director25.5yrsUS$64.50k0.11%
$ 316.8k
Gregory Szabo
Independent Director9.5yrsUS$64.50k0.28%
$ 768.4k

12.9yrs

Average Tenure

70.5yo

Average Age

Experienced Board: SMSI's board of directors are seasoned and experienced ( 12.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SMSI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.3%.


Top Shareholders

Company Information

Smith Micro Software, Inc.'s company bio, 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
  • Market Cap: US$278.331m
  • Shares outstanding: 41.30m
  • 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

Biography

Smith Micro Software, Inc. develops and sells software to enhance the mobile experience to wireless and cable service providers worldwide. The company provides SafePath Family, a platform that provides fam...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/14 23:37
End of Day Share Price2021/01/14 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.