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Market Cap

US$172.2m

Last Updated

2021/04/05 22:04 UTC

Data Sources

Company Financials +

Executive Summary

SMTC Corporation provides electronics manufacturing services worldwide. More Details


Snowflake Analysis

Adequate balance sheet and slightly overvalued.


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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 1% a week.

Volatility Over Time: SMTX's weekly volatility has decreased from 8% to 1% over the past year.


Market Performance


7 Day Return

0.5%

SMTX

-0.5%

US Electronic

0.9%

US Market


1 Year Return

159.2%

SMTX

87.7%

US Electronic

57.9%

US Market

Return vs Industry: SMTX exceeded the US Electronic industry which returned 111.8% over the past year.

Return vs Market: SMTX exceeded the US Market which returned 72% over the past year.


Shareholder returns

SMTXIndustryMarket
7 Day0.5%-0.5%0.9%
30 Day2.9%4.2%2.3%
90 Day2.0%6.8%6.3%
1 Year159.2%159.2%91.6%87.7%60.8%57.9%
3 Year145.5%145.5%67.9%61.0%64.5%53.9%
5 Year289.7%289.7%164.7%147.9%120.9%96.4%

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 ($6.04) is trading below our estimate of fair value ($23.82)

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


Price To Earnings Ratio

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

PE vs Market: SMTX 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 SMTX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SMTX is overvalued based on its PB Ratio (4.2x) compared to the US Electronic industry average (2.9x).


Future Growth

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

24.0%

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 SMTC 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.


Past Performance

How has SMTC performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMTX is currently unprofitable.

Growing Profit Margin: SMTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMTX is unprofitable, and losses have increased over the past 5 years at a rate of 9.3% per year.

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

Earnings vs Industry: SMTX is unprofitable, making it difficult to compare its past year earnings growth to the Electronic industry (-6.4%).


Return on Equity

High ROE: SMTX has a negative Return on Equity (-1.41%), as it is currently unprofitable.


Financial Health

How is SMTC's financial position?


Financial Position Analysis

Short Term Liabilities: SMTX's short term assets ($168.6M) exceed its short term liabilities ($142.7M).

Long Term Liabilities: SMTX's short term assets ($168.6M) exceed its long term liabilities ($46.0M).


Debt to Equity History and Analysis

Debt Level: SMTX's debt to equity ratio (165.4%) is considered high.

Reducing Debt: SMTX's debt to equity ratio has increased from 59.6% to 165.4% over the 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: Whilst unprofitable SMTX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SMTX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 24.6% per year.


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)

4.17yrs

Tenure

US$465,000

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 ($USD465.00K) is below average for companies of similar size in the US market ($USD941.71K).

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


Leadership Team

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


Board Members

Experienced Board: SMTX's board of directors are considered experienced (7.9 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$172.223m
  • 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


Biography

SMTC Corporation provides electronics manufacturing services worldwide. The company offers end-to-end electronics manufacturing services, including product design and engineering; printed circuit board ass...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/05 22:04
End of Day Share Price2021/04/01 00:00
Earnings2021/01/03
Annual Earnings2021/01/03


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.