NasdaqCM:SMIT

Stock Analysis Report

Executive Summary

Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has Schmitt Industries's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMIT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.9%

SMIT

-4.2%

US Electronic

-4.2%

US Market


1 Year Return

24.3%

SMIT

2.0%

US Electronic

14.0%

US Market

Return vs Industry: SMIT exceeded the US Electronic industry which returned 5.6% over the past year.

Return vs Market: SMIT matched the US Market which returned 17.8% over the past year.


Shareholder returns

SMITIndustryMarket
7 Day4.9%-4.2%-4.2%
30 Day-11.5%-8.2%-1.8%
90 Day-12.3%-4.5%2.6%
1 Year24.3%24.3%3.0%2.0%16.3%14.0%
3 Year102.5%102.5%31.5%27.9%43.2%34.0%
5 Year20.1%20.1%60.5%52.6%65.9%47.6%

Price Volatility Vs. Market

How volatile is Schmitt Industries's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Schmitt Industries undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMIT ($3.26) is trading below our estimate of fair value ($7.64)

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


Price To Earnings Ratio

PE vs Industry: SMIT is unprofitable, so we can't compare its PE Ratio to the Electronic industry average.

PE vs Market: SMIT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SMIT is good value based on its PB Ratio (1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Schmitt Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

21.4%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Schmitt Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Schmitt Industries performed over the past 5 years?

-8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMIT is currently unprofitable.

Growing Profit Margin: SMIT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMIT is unprofitable, and losses have increased over the past 5 years at a rate of -8.6% per year.

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

Earnings vs Industry: SMIT is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (13.8%).


Return on Equity

High ROE: SMIT has a negative Return on Equity (-10.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Schmitt Industries's financial position?


Financial Position Analysis

Short Term Liabilities: SMIT's short term assets ($14.0M) exceed its short term liabilities ($1.2M).

Long Term Liabilities: SMIT has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: SMIT is debt free.

Reducing Debt: SMIT had no debt 5 years ago.


Balance Sheet

Inventory Level: SMIT has a low level of unsold assets or inventory.

Debt Coverage by Assets: SMIT's debt is not covered by short term assets (assets are -136.7x debt).


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: Whilst unprofitable SMIT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SMIT is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -7.8% per year.


Next Steps

Dividend

What is Schmitt Industries's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SMIT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SMIT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SMIT'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 SMIT'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?

0.6yrs

Average management tenure


CEO

Mike Zapata (41yo)

0.6yrs

Tenure

US$202,639

Compensation

Mr. Michael R. Zapata, also known as Mike, is an Executive Chairman and President of Schmitt Industries Inc since December 1, 2018 and also serves as its Chief Executive Officer since July 30, 2019. He has ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD202.64K) is below average for companies of similar size in the US market ($USD521.92K).

Compensation vs Earnings: Insufficient data to compare Mike's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Zapata
President0.6yrsUS$202.64k1.29% $173.2k
Jamie Schmidt
CFO & Treasurer0.08yrsno data0.19% $25.0k
Donna Witkowski
President of SBS1.2yrsno datano data

0.6yrs

Average Tenure

Experienced Management: SMIT's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Zapata
President0.6yrsUS$202.64k1.29% $173.2k
Steven Strom
Independent Director0.7yrsno data0.42% $56.1k
David Hudson
Director13.8yrsUS$19.50k0.083% $11.2k
Andrews Hines
Independent Director1.3yrsUS$2.00k0.98% $131.7k
Charles Davidson
Independent Director3.8yrsUS$44.00k0.51% $67.6k

1.3yrs

Average Tenure

60yo

Average Age

Experienced Board: SMIT's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: SMIT insiders have sold more shares than they have bought 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 2.6%.


Top Shareholders

Company Information

Schmitt Industries, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Schmitt Industries, Inc.
  • Ticker: SMIT
  • Exchange: NasdaqCM
  • Founded: 1984
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$13.384m
  • Shares outstanding: 4.16m
  • Website: https://www.schmittindustries.com

Number of Employees


Location

  • Schmitt Industries, Inc.
  • 2765 NW Nicolai Street
  • Portland
  • Oregon
  • 97210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMITNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 1995
SI1ADB (Deutsche Boerse AG)YesCommon StockDEEURJan 1995

Biography

Schmitt Industries, Inc., together with its subsidiaries, designs, manufactures, and sells test and measurement products worldwide. The company’s Balancer segment offers computer-controlled vibration detection, balancing, and process control systems. Its products comprise SB-5500, an optional acoustic emission monitoring system (AEMS) control card to monitor the AE signals generated on the grinding machine; process control cards to provide enhanced control of the grinding process; SB-2000, a compact manual balancing system; and AE-1000, an AE control platform, which reduces air machine grinding time under the Schmitt Dynamic Balance System brand name. This segment sells its products to end user operators, as well as manufacturers of grinding machines for automotive, industrial, aerospace, and medical industries through independent manufacturers’ representatives and distributors. Its Measurement segment provides laser and confocal chromatic white light sensors for distance, measurement, and dimensional sizing products under the Acuity brand name for various application, including manufacturing, lumber production, steel casting, glass and paper production, medical imaging, crane control and micron-level part, and surface inspection; and ultrasonic measurement products that measure the levels of liquid tanks and transmit that data through satellite to a secure Website for display, as well as remote tank monitoring products under the Xact brand name. Schmitt Industries, Inc. was founded in 1984 and is based in Portland, Oregon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 00:02
End of Day Share Price2020/02/24 00:00
Earnings2019/11/30
Annual Earnings2019/05/31


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.