J Smart & Co (Contractors) (SMJ) AI Stock Analysis

• Market Cap: £51.44M
• Dividend Yield: 2.45%
• Average Volume (3M): 4.50K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.31
• Revenue Growth: 5.54%
• EPS Growth: 209.72%
• Country: UK
• Employees: 140
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.13
• Shares Outstanding: 38,822,930
• 10 Day Avg. Volume: 589
• 30 Day Avg. Volume: 4,497
• PEG Ratio: 0.04
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 2.02
• P/FCF Ratio: 36.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: 144.00p ▲(8.68% Upside)

The overall stock score of 68 reflects strong valuation metrics and positive technical indicators, which are slightly offset by financial performance concerns, particularly in cash flow management. The stock's reasonable P/E ratio and attractive dividend yield enhance its appeal, while the bullish technical trend supports potential price appreciation. However, liquidity challenges due to declining cash flow need to be monitored.

Positive Factors

Revenue Growth

Consistent revenue growth highlights the company's ability to expand its market presence and adapt to client needs, supporting long-term stability.

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, enabling the company to invest in growth opportunities.

Net Profit Margin

A robust net profit margin indicates efficient cost management, enhancing profitability and supporting sustainable growth.

Negative Factors

Cash Flow Challenges

Declining free cash flow may strain liquidity, limiting the company's ability to fund operations and invest in future projects.

Operating Cash Flow

Limited cash generation from operations can hinder the company's ability to cover expenses and invest in growth, impacting long-term viability.

EBIT Margin

Negative EBIT margin indicates operational inefficiencies, which could undermine profitability and competitive positioning if not addressed.

J Smart & Co (Contractors) Business Overview & Revenue Model

Company Description

J. Smart & Co. (Contractors) PLC, together with its subsidiaries, engages in the contracting, developing, and constructing public works, shopping centers, offices, factories, warehouses, local authority, and landlords and private housing projects in the United Kingdom. It also contracts building and civil engineering projects; develops and sells residential properties; develops industrial and commercial properties for lease; provides serviced office spaces; carries out small to medium sized building and civil engineering works for various clients; and offers plumbing support services to the construction companies. J. Smart & Co. (Contractors) PLC was founded in 1947 and is headquartered in Edinburgh, the United Kingdom.

How the Company Makes Money

J Smart & Co generates revenue primarily through contract work in construction and development projects. The company's revenue model is based on winning bids for various construction contracts, which may include fixed-price agreements, cost-plus contracts, and time-and-materials contracts. Key revenue streams include residential building projects, commercial developments, and public sector contracts. Additionally, the company may engage in subcontracting work with larger general contractors, further diversifying its income sources. Strategic partnerships with suppliers and other contractors enhance its competitive edge, enabling cost-effective procurement of materials and services, thereby contributing to its overall profitability.

J Smart & Co (Contractors) Financial Statement Overview

Summary

J Smart & Co (Contractors) demonstrates solid revenue growth and a strong net profit margin, indicating effective cost management. The balance sheet is strong with low leverage, providing financial stability. However, cash flow challenges are evident, with declining free cash flow and low operating cash flow relative to net income, which could impact liquidity if not addressed.

Income Statement

The company shows a positive revenue growth trend, with a 3.59% increase in the most recent year. Gross profit margin has improved slightly to 18.63%, indicating better cost management. However, the EBIT margin is negative, reflecting operational inefficiencies. The net profit margin is strong at 21.99%, suggesting effective cost control beyond operating expenses.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.08, indicating low financial leverage and a strong equity position. Return on equity is modest at 3.91%, suggesting moderate profitability relative to shareholder equity. The equity ratio is robust, reflecting a solid capital structure with a high proportion of equity financing.

Cash Flow

Free cash flow has declined significantly, with a growth rate of -168.81%, indicating potential liquidity challenges. The operating cash flow to net income ratio is low at 0.14, suggesting limited cash generation from operations relative to net income. However, the free cash flow to net income ratio is reasonable at 0.59, indicating some level of cash flow efficiency.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.24M	23.24M	22.02M	12.97M	9.60M	12.31M
Gross Profit	4.33M	4.33M	4.03M	6.05M	1.58M	1.43M
EBITDA	7.42M	7.42M	2.84M	562.00K	8.60M	15.23M
Net Income	5.11M	5.11M	1.67M	200.00K	6.62M	10.97M
Balance Sheet
Total Assets	158.34M	158.34M	146.50M	147.93M	146.46M	133.39M
Cash, Cash Equivalents and Short-Term Investments	25.82M	25.82M	12.98M	18.70M	31.84M	19.40M
Total Debt	11.05M	11.05M	5.64M	10.70M	11.26M	11.79M
Total Liabilities	27.73M	27.73M	20.18M	22.46M	21.78M	20.01M
Stockholders Equity	130.60M	130.60M	126.31M	125.47M	124.68M	113.38M
Cash Flow
Free Cash Flow	1.29M	1.29M	-3.83M	-9.94M	-6.59M	-1.34M
Operating Cash Flow	2.18M	2.18M	-510.00K	-3.23M	-4.04M	896.00K
Investing Cash Flow	7.17M	7.17M	2.04M	-6.68M	20.12M	-3.97M
Financing Cash Flow	-1.93M	-1.93M	-2.19M	-2.67M	-3.11M	-2.15M

J Smart & Co (Contractors) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 132.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMJ, the sentiment is Positive. The current price of 132.5 is above the 20-day moving average (MA) of 132.27, above the 50-day MA of 130.89, and above the 200-day MA of 122.34, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 85.95 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SMJ.

J Smart & Co (Contractors) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILN	70 Neutral	£48.71M	8.05	11.79%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£51.44M	10.14	3.98%	2.45%	5.54%	209.72%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HERC	60 Neutral	£47.14M	32.87	23.37%	3.37%	11.70%	79.80%
VANL	57 Neutral	£40.03M	21.51	5.90%	3.29%	-6.46%	-56.20%
SFR	54 Neutral	£83.73M	-5.53	-8.04%	13.07%	-19.13%	-581.31%
NEXS	48 Neutral	£10.62M	-3.33	-10.69%	2.47%	-3.17%	69.15%

J Smart & Co (Contractors) Corporate Events

J. Smart & Co. Confirms Share Capital and Voting Rights as of Year-End 2025

J. Smart & Co. (Contractors) PLC has confirmed that, as at 31 December 2025, its issued share capital comprises 38,822,931 ordinary shares, all carrying equal voting rights, and that it holds no shares in treasury. This updated total voting rights figure provides the denominator shareholders must use to assess and report any notifiable holdings or changes in holdings under the FCA’s Disclosure and Transparency Rules, ensuring continued compliance with UK market disclosure obligations.

The most recent analyst rating on (GB:SMJ) stock is a Hold with a £144.00 price target. To see the full list of analyst forecasts on J Smart & Co (Contractors) stock, see the GB:SMJ Stock Forecast page.

J. Smart & Co. Cancels 24,300 Shares in Latest Buyback

J. Smart & Co. (Contractors) PLC has bought back and immediately cancelled 24,300 of its ordinary 2p shares at 132.5p per share. Following this transaction, the company’s issued share capital and total voting rights stand at 38,822,931 ordinary shares, a figure shareholders should now use when assessing whether they must disclose holdings or changes in holdings under UK regulatory transparency rules.

The most recent analyst rating on (GB:SMJ) stock is a Hold with a £144.00 price target. To see the full list of analyst forecasts on J Smart & Co (Contractors) stock, see the GB:SMJ Stock Forecast page.

J. Smart & Co. Issues 2025 Annual Report and Sets January AGM

J. Smart & Co. (Contractors) PLC has dispatched its Annual Report and Statement of Accounts for the year ended 31 July 2025 to shareholders who requested hard copies, including the notice of its Annual General Meeting (AGM) scheduled for 22 January 2026 at its registered office in Edinburgh. The company is also circulating a shareholder circular with explanatory notes on the AGM resolutions, along with the AGM notice and proxy voting card, and has made the full report, accounts and circular available through the FCA’s National Storage Mechanism and on its corporate website, enhancing transparency and access to information for investors ahead of the meeting.

The most recent analyst rating on (GB:SMJ) stock is a Hold with a £144.00 price target. To see the full list of analyst forecasts on J Smart & Co (Contractors) stock, see the GB:SMJ Stock Forecast page.

J. Smart & Co. Announces Proposed Dividend for 2025

J. Smart & Co. (Contractors) PLC has announced a proposed dividend of 2.29p per share for the financial year ending 31 July 2025. This dividend is contingent upon shareholder approval at the upcoming Annual General Meeting scheduled for 22 January 2026, with key dates including an ex-dividend date of 18 December 2025 and a payment date of 30 January 2026. This announcement reflects the company’s commitment to returning value to its shareholders and could influence investor sentiment positively.

The most recent analyst rating on (GB:SMJ) stock is a Hold with a £124.00 price target. To see the full list of analyst forecasts on J Smart & Co (Contractors) stock, see the GB:SMJ Stock Forecast page.

J. Smart & Co Reports Increased Profits Amidst Construction Challenges

J. Smart & Co (Contractors) PLC reported a significant increase in headline group profit before tax for the year ending July 31, 2025, primarily due to the revaluation of its commercial property portfolio. However, the underlying profit before tax decreased due to poor performance in some subsidiaries and increased loss provisions in private housing developments. The company faces challenges with delays in infrastructure and rising construction costs, impacting trading margins. Despite these challenges, residential sales at developments like Clovenstone Gardens and Winchburgh Canal Quarter exceeded expectations. The company is also progressing with industrial developments and remains focused on sustainability initiatives. Future prospects include fewer private housing sales and steady rental growth in industrial properties, with uncertainty about headline profit for the next financial year.

The most recent analyst rating on (GB:SMJ) stock is a Hold with a £124.00 price target. To see the full list of analyst forecasts on J Smart & Co (Contractors) stock, see the GB:SMJ Stock Forecast page.