NasdaqGM:SMTX

Stock Analysis Report

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Executive Summary

SMTC Corporation provides electronics manufacturing services in the United States, Canada, and Mexico. More Details


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SMTX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SMTX's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

0.5%

SMTX

-2.7%

US Electronic

-0.4%

US Market


1 Year Return

104.5%

SMTX

53.5%

US Electronic

36.3%

US Market

Return vs Industry: SMTX exceeded the US Electronic industry which returned 53.5% over the past year.

Return vs Market: SMTX exceeded the US Market which returned 36.3% over the past year.


Shareholder returns

SMTXIndustryMarket
7 Day0.5%-2.7%-0.4%
30 Day-0.2%0.9%-1.3%
90 Day23.8%9.6%4.9%
1 Year104.5%104.5%57.3%53.5%39.2%36.3%
3 Year178.2%178.2%45.6%39.4%48.7%39.2%
5 Year338.1%338.1%150.3%133.8%117.0%92.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is SMTC 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: SMTX ($5.87) is trading below our estimate of fair value ($23.68)

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


Price To Earnings Ratio

PE vs Industry: SMTX is poor value based on its PE Ratio (41.7x) compared to the US Electronic industry average (30.1x).

PE vs Market: SMTX is poor value based on its PE Ratio (41.7x) compared to the US market (21.5x).


Price to Earnings Growth Ratio

PEG Ratio: SMTX is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SMTX is overvalued based on its PB Ratio (3.7x) compared to the US Electronic industry average (2.6x).


Next Steps

Future Growth

How is SMTC forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

106.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMTX's forecast earnings growth (106.7% per year) is above the savings rate (2%).

Earnings vs Market: SMTX's earnings (106.7% per year) are forecast to grow faster than the US market (19.3% per year).

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

Revenue vs Market: SMTX's revenue (12.6% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: SMTX's revenue (12.6% 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 SMTX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SMTC performed over the past 5 years?

-11.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMTX has a large one-off loss of $2.7M impacting its September 27 2020 financial results.

Growing Profit Margin: SMTX became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SMTX has become profitable over the past 5 years, growing earnings by -11.2% per year.

Accelerating Growth: SMTX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SMTX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-9.3%).


Return on Equity

High ROE: SMTX's Return on Equity (8.9%) is considered low.


Next Steps

Financial Health

How is SMTC's financial position?


Financial Position Analysis

Short Term Liabilities: SMTX's short term assets ($175.3M) exceed its short term liabilities ($143.3M).

Long Term Liabilities: SMTX's short term assets ($175.3M) exceed its long term liabilities ($46.3M).


Debt to Equity History and Analysis

Debt Level: SMTX's debt to equity ratio (155%) is considered high.

Reducing Debt: SMTX's debt to equity ratio has increased from 65.6% to 155% over the past 5 years.

Debt Coverage: SMTX's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: SMTX's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

What is SMTC current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

3.2yrs

Average management tenure


CEO

Eddie, Ed Smith (58 yo)

4.08yrs

Tenure

US$673,917

Compensation

Mr. Edward J. Smith, also known as Eddie, Ed, has been the Chief Executive Officer and President of SMTC Corporation since May 16, 2017. He has been Independent Director of Aqua Metals, Inc. since March 1,...


CEO Compensation Analysis

Compensation vs Market: Eddie, Ed's total compensation ($USD673.92K) is about average for companies of similar size in the US market ($USD946.79K).

Compensation vs Earnings: Eddie, Ed's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Edward Smith
President4.08yrsUS$673.92k1.62%
$ 2.7m
Steven Waszak
CFO and Senior VP of Mergers & Acquisitions3yrsUS$572.76k0.12%
$ 195.0k
Richard Fitzgerald
Chief Operating Officer3.75yrsUS$599.68k0.90%
$ 1.5m
Josh Chien
Senior Vice President of Global Sales5yrsno datano data
Carlos Diaz
Senior Vice President of Operations0.67yrno datano data
Phil Wehrli
Senior Vice President of Global Planning & Supply Chain3.17yrsno datano data
Terry Wegman
Senior Vice President of Sales & Marketing2.42yrsno datano data
Blair McInnis
VP of Finance & Corporate Controllerno datano datano data

3.2yrs

Average Tenure

58yo

Average Age

Experienced Management: SMTX's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Edward Smith
President4.08yrsUS$673.92k1.62%
$ 2.7m
John Waterfield
Independent Director8.92yrsUS$65.00k3.58%
$ 6.0m
Clarke Bailey
Independent Chairman of the Boardno dataUS$142.00k1.67%
$ 2.8m
David Sandberg
Independent Director11.92yrsUS$68.00k3.72%
$ 6.2m
Frederick Wasserman
Independent Director7.58yrsUS$75.00k0.28%
$ 471.5k

8.3yrs

Average Tenure

58yo

Average Age

Experienced Board: SMTX's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SMTC Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SMTC Corporation
  • Ticker: SMTX
  • Exchange: NasdaqGM
  • Founded: 1985
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$167.376m
  • Shares outstanding: 28.51m
  • Website: https://www.smtc.com

Number of Employees


Location

  • SMTC Corporation
  • 7050 Woodbine Avenue
  • Suite 300
  • Markham
  • Ontario
  • L3R 4G8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SMTXNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJul 2000
XM91DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2000

Biography

SMTC Corporation provides electronics manufacturing services in the United States, Canada, and Mexico. The company offers end-to-end electronics manufacturing services, including product design and enginee...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/06 23:02
End of Day Share Price2021/03/05 00:00
Earnings2020/09/27
Annual Earnings2019/12/29


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.