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SMAR

Smartsheet NYSE:SMAR Stock Report

Last Price

US$34.76

Market Cap

US$4.5b

7D

23.0%

1Y

-52.7%

Updated

26 Jun, 2022

Data

Company Financials +
SMAR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

SMAR Stock Overview

Smartsheet Inc. provides cloud-based enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations.

Smartsheet Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Smartsheet
Historical stock prices
Current Share PriceUS$34.76
52 Week HighUS$85.65
52 Week LowUS$27.05
Beta1.58
1 Month Change-6.53%
3 Month Change-36.08%
1 Year Change-52.68%
3 Year Change-28.18%
5 Year Changen/a
Change since IPO78.26%

Recent News & Updates

Jun 16

Smartsheet Stock: Still Unjustifiably Cheap

Smartsheet posted good results for the FY23Q1 quarter in general. Billings growth was somewhat softer, but this could be just a one-time phenomenon. Future growth prospects remain strong, which encourages management to prefer continued investments over short-term profitability. Still, Smartsheet could reach breakeven FCF this year, showing a clear path towards profitability. Whether compared to peers or the market in general valuation seems very conservative at current levels, which calls for a good entry point or to hold onto SMAR stock.

Shareholder Returns

SMARUS SoftwareUS Market
7D23.0%9.9%6.6%
1Y-52.7%-17.9%-18.4%

Return vs Industry: SMAR underperformed the US Software industry which returned -17.9% over the past year.

Return vs Market: SMAR underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is SMAR's price volatile compared to industry and market?
SMAR volatility
SMAR Average Weekly Movement10.9%
Software Industry Average Movement11.1%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

Stable Share Price: SMAR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: SMAR's weekly volatility (11%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20052,938Mark Maderhttps://www.smartsheet.com

Smartsheet Inc. provides cloud-based enterprise platform to plan, capture, manage, automate, and report on work for teams and organizations. The company offers Dashboards for real-time visibility into the status of work to align individuals, managers, and executives; Portals to locate and access from any device the resources available for a project without IT assistance; Cardview to organize, share, and act on workflows; and Grid to keep teams on task by tracking multiple moving parts. It also provides Reports that allow users to see and action their work in one centralized location; Projects, which offers interface with capabilities that foster collaboration among teams and organizations; Calendar that align teams and organizations by connecting deadlines to workflows; Forms to collect information in a structured and consistent format; Automated actions to automate repetitive processes; and Integrations to connect, sync, and extend existing enterprise applications across workflows to create work execution.

Smartsheet Fundamentals Summary

How do Smartsheet's earnings and revenue compare to its market cap?
SMAR fundamental statistics
Market CapUS$4.50b
Earnings (TTM)-US$204.48m
Revenue (TTM)US$602.06m

7.5x

P/S Ratio

-22.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SMAR income statement (TTM)
RevenueUS$602.06m
Cost of RevenueUS$127.06m
Gross ProfitUS$475.00m
Other ExpensesUS$679.48m
Earnings-US$204.48m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.58
Gross Margin78.90%
Net Profit Margin-33.96%
Debt/Equity Ratio0%

How did SMAR perform over the long term?

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

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

SMAR 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/Revenue6.9x
Enterprise Value/EBITDA-23.7x
PEG Ration/a

Price to Sales Ratio vs Peers

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

SMAR PS Ratio vs Peers
The above table shows the PS ratio for SMAR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average9.6x
COUP Coupa Software
6.6x19.0%US$5.0b
SPT Sprout Social
18.5x27.7%US$3.8b
BL BlackLine
10x19.3%US$4.5b
RNG RingCentral
3.4x19.7%US$5.9b
SMAR Smartsheet
7.5x24.1%US$4.5b

Price-To-Sales vs Peers: SMAR is good value based on its Price-To-Sales Ratio (7.5x) compared to the peer average (9.6x).


Price to Earnings Ratio vs Industry

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

Price-To-Sales vs Industry: SMAR is expensive based on its Price-To-Sales Ratio (7.5x) compared to the US Software industry average (4.7x)


Price to Sales Ratio vs Fair Ratio

What is SMAR'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.

SMAR PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.5x
Fair PS Ratio10.8x

Price-To-Sales vs Fair Ratio: SMAR is good value based on its Price-To-Sales Ratio (7.5x) compared to the estimated Fair Price-To-Sales Ratio (10.8x).


Share Price vs Fair Value

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

Below Fair Value: SMAR ($34.76) is trading below our estimate of fair value ($45.98)

Significantly Below Fair Value: SMAR is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SMAR's PEG Ratio to determine if it is good value.


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Future Growth

How is Smartsheet forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SMAR's revenue (24.1% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: SMAR's revenue (24.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SMAR is forecast to be unprofitable in 3 years.


Discover growth companies

Past Performance

How has Smartsheet 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


-31.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SMAR is currently unprofitable.

Growing Profit Margin: SMAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMAR is unprofitable, and losses have increased over the past 5 years at a rate of 31.7% per year.

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

Earnings vs Industry: SMAR is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (27.1%).


Return on Equity

High ROE: SMAR has a negative Return on Equity (-42.51%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Smartsheet'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: SMAR's short term assets ($612.1M) exceed its short term liabilities ($442.1M).

Long Term Liabilities: SMAR's short term assets ($612.1M) exceed its long term liabilities ($58.9M).


Debt to Equity History and Analysis

Debt Level: SMAR is debt free.

Reducing Debt: SMAR has not had any debt for past 5 years.


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: SMAR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SMAR 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 Smartsheet 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

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SMAR'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 SMAR has not reported any payouts.


Discover strong dividend paying companies

Management

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

9.0yrs

Average management tenure


CEO

Mark Mader (50 yo)

16.42yrs

Tenure

US$15,632,439

Compensation

Mr. Mark P. Mader is a Director at Zoom Information, Inc. He serves as an Outside Independent Director at ZoomInfo Technologies Inc. since February 2020. He served as a member of the Board of Managers/Dire...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD15.63M) is above average for companies of similar size in the US market ($USD6.88M).

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


Leadership Team

Experienced Management: SMAR's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: SMAR's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SMAR 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 3.5%.


Top Shareholders

Company Information

Smartsheet Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Smartsheet Inc.
  • Ticker: SMAR
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$4.500b
  • Shares outstanding: 129.45m
  • Website: https://www.smartsheet.com

Number of Employees


Location

  • Smartsheet Inc.
  • 10500 NE 8th Street
  • Suite 1300
  • Bellevue
  • Washington
  • 98004-4357
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/30
Annual Earnings2022/01/31


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.