Fact based stock research
Smith Micro Software (NasdaqCM:SMSI)
US8321542073
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Smith Micro Software stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 64 (better than 64% compared with investment alternatives), Smith Micro Software (Application Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Smith Micro Software are a good value (attractively priced) with a consolidated Value Rank of 74 (better than 74% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 20). ...read more
RECOMMENDATION: A Combined Rank of 64, is a buy recommendation based on Smith Micro Software's financial characteristics. As the company Smith Micro Software's key financial metrics exhibit good value (Obermatt Value Rank of 74) but low growth (Obermatt Growth Rank of 20) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 74% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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360° Viewnew| Country | USA |
| Industry | Application Software |
| Index | NASDAQ |
| Size class | X-Small |
19-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.
Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Smith Micro Software
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 42 |
|
45 |
|
72 |
|
74 |
|
| GROWTH | ||||||||
| GROWTH | 31 |
|
25 |
|
47 |
|
20 |
|
| SAFETY | ||||||||
| SAFETY | 11 |
|
86 |
|
86 |
|
64 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
15 |
|
17 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
7 |
|
35 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 64 (better than 64% compared with investment alternatives), Smith Micro Software (Application Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Smith Micro Software are a good value (attractively priced) with a consolidated Value Rank of 74 (better than 74% of alternatives), are safely financed (Safety Rank of 64, which means low debt burdens), but show below-average growth (Growth Rank of 20). ...read more
RECOMMENDATION: A Combined Rank of 64, is a buy recommendation based on Smith Micro Software's financial characteristics. As the company Smith Micro Software's key financial metrics exhibit good value (Obermatt Value Rank of 74) but low growth (Obermatt Growth Rank of 20) while being safely financed (Obermatt Safety Rank of 64), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 74% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 42 |
|
45 |
|
72 |
|
74 |
|
| GROWTH | ||||||||
| GROWTH | 31 |
|
25 |
|
47 |
|
20 |
|
| SAFETY | ||||||||
| SAFETY | 11 |
|
86 |
|
86 |
|
64 |
|
| COMBINED | ||||||||
| COMBINED | 6 |
|
41 |
|
41 |
|
64 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 74 (better than 74% compared with alternatives), Smith Micro Software shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Smith Micro Software. Price-to-Sales (P/S) is 91, which means that the stock price compared with what market professionals expect for future sales is lower than for 91% of comparable companies, indicating a good value regarding Smith Micro Software's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 71% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 93. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Smith Micro Software (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 74, is a buy recommendation based on Smith Micro Software's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 64 |
|
74 |
|
91 |
|
91 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 24 |
|
8 |
|
93 |
|
71 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 73 |
|
84 |
|
93 |
|
93 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 42 |
|
45 |
|
72 |
|
74 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 20 (better than 20% compared with alternatives), Smith Micro Software shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below-average for Smith Micro Software. While Sales Growth ranks at 86, professionals currently expect the company to grow more than 86% of its competitors, while all other growth ranks are below the market median. Profit Growth has a rank of 42, which means that, currently, professionals expect the company to grow its profits less than 58% of its competitors, and Capital Growth has a low rank of 10. Historic stock returns were also below average with a current Stock Returns rank of 1 which means that the stock returns have recently been below 99% of alternative investments. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 20, is a sell recommendation for growth and momentum investors. If revenues are expected to increase, but all other growth indicators are negative, the company may be investing in future growth through means not visible in the balance sheet and thus not reflected in capital growth. The fact that Stock Returns have been below market doesn't mean that much, as it may be due to overly optimistic investor behavior in the past, which has been corrected to a more reasonable level recently. If that were the case, a positive Value Rank would be a reason to invest because the company is still expected to grow, while stock prices are now at a more reasonable level. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance isn't stellar here. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 35 |
|
21 |
|
6 |
|
86 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 100 |
|
15 |
|
71 |
|
42 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
95 |
|
100 |
|
10 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 67 |
|
25 |
|
5 |
|
1 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 31 |
|
25 |
|
47 |
|
20 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 64 (better than 64% compared with alternatives), the company Smith Micro Software has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Smith Micro Software is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Smith Micro Software and the other two below average. Leverage is at a rank of 100 meaning the company has a below-average debt-to-equity ratio. It has less debt than 100% of its competitors.Refinancing is at a rank of 12, which means that the portion of the debt about to be refinanced is above-average. It has more debt in the refinancing stage than 88% of its competitors. Liquidity is at a rank of 34, meaning that the company generates less profit to service its debt than 66% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 64 (better than 64% compared with alternatives), Smith Micro Software has a financing structure that is safer than that of its competitors. This is an indication that the company is on the riskier side when it comes to debt service. There is only below-market average liquidity, and a short-term refinancing issue might be around the corner. But in the long-term, the debt levels of Smith Micro Software are on the safer side. Investors may have a short-term debt challenge and liquidity issues with Smith Micro Software and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 58 |
|
100 |
|
66 |
|
100 |
|
| REFINANCING | ||||||||
| REFINANCING | 15 |
|
63 |
|
85 |
|
12 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 28 |
|
57 |
|
57 |
|
34 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 11 |
|
86 |
|
86 |
|
64 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
62 |
|
75 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
23 |
|
1 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
18 |
|
20 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
15 |
|
17 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Smith Micro Software from December 19, 2024.
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