SMTC Corporation provides electronics manufacturing services in the United States, Canada, and Mexico. More Details
Reasonable growth potential and fair value.
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.
7 Day Return
1 Year Return
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.
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
2 weeks ago | Simply Wall StWhat Is SMTC Corporation's (NASDAQ:SMTX) Share Price Doing?
1 month ago | Simply Wall StIf You Had Bought SMTC (NASDAQ:SMTX) Shares Five Years Ago You'd Have Earned 350% Returns
2 months ago | Simply Wall StWhat Can The Trends At SMTC (NASDAQ:SMTX) Tell Us About Their Returns?
Is SMTC undervalued compared to its fair value and its price relative to the market?
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).
How is SMTC forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
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
How has SMTC performed over the past 5 years?
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.
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 ($46.3M).
Debt to Equity History and Analysis
Debt Level: SMTX's debt to equity ratio (155%) is considered high.
Reducing Debt: SMTX's debt to equity ratio has increased from 65.6% to 155% over the past 5 years.
Debt Coverage: SMTX's debt is not well covered by operating cash flow (8.2%).
Interest Coverage: SMTX's interest payments on its debt are not well covered by EBIT (2x coverage).
What is SMTC current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate SMTX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate SMTX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if SMTX's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if SMTX's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of SMTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Eddie, Ed Smith (58 yo)
Mr. Edward J. Smith, also known as Eddie, Ed, has been the Chief Executive Officer and President of SMTC Corporation since May 16, 2017. He has been Independent Director of Aqua Metals, Inc. since March 1,...
CEO Compensation Analysis
Compensation vs Market: Eddie, Ed's total compensation ($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.
|CFO and Senior VP of Mergers & Acquisitions||3yrs||US$572.76k||0.12% |
|Chief Operating Officer||3.75yrs||US$599.68k||0.90% |
|Senior Vice President of Global Sales||5yrs||no data||no data|
|Senior Vice President of Operations||0.67yr||no data||no data|
|Senior Vice President of Global Planning & Supply Chain||3.17yrs||no data||no data|
|Senior Vice President of Sales & Marketing||2.42yrs||no data||no data|
|VP of Finance & Corporate Controller||no data||no data||no data|
Experienced Management: SMTX's management team is considered experienced (3.2 years average tenure).
|Independent Director||8.92yrs||US$65.00k||3.58% |
|Independent Chairman of the Board||no data||US$142.00k||1.67% |
|Independent Director||11.92yrs||US$68.00k||3.72% |
|Independent Director||7.58yrs||US$75.00k||0.28% |
Experienced Board: SMTX's board of directors are considered experienced (8.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
SMTC Corporation's company bio, employee growth, exchange listings and data sources
- 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
- SMTC Corporation
- 7050 Woodbine Avenue
- Suite 300
- L3R 4G8
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|SMTX||NasdaqGM (Nasdaq Global Market)||Yes||Common Shares||US||USD||Jul 2000|
|XM91||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Jul 2000|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/03/06 23:02|
|End of Day Share Price||2021/03/05 00:00|
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.