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

• Market Cap: £51.47M
• Dividend Yield: 2.32%
• Average Volume (3M): 4.50K
• Price to Earnings (P/E): 10.1
• Beta (1Y): 0.32
• Revenue Growth: 5.54%
• EPS Growth: 211.37%
• Country: UK
• Employees: 140
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.13
• Shares Outstanding: 38,847,233
• 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: Hold
• 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) (SMJ) is a construction and contracting firm based in the UK, specializing in a wide range of services including residential and commercial building, renovation, and infrastructure development. The company operates across multiple sectors, including construction, civil engineering, and property management, providing tailored solutions to meet the diverse needs of its clients. With a commitment to quality, safety, and sustainability, J Smart & Co has established itself as a reputable player in the construction industry, delivering projects that enhance community infrastructure and support economic growth.

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: Negative
• 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 130.32, above the 50-day MA of 129.52, and above the 200-day MA of 121.41, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 85.95 is Negative, neither overbought nor oversold. The STOCH value of 40.29 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	£43.02M	7.11	11.79%	7.35%	-25.56%	-42.49%
SMJ	68 Neutral	£51.47M	10.14	3.98%	2.32%	5.54%	211.37%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
VANL	57 Neutral	£38.41M	20.64	5.90%	3.38%	-6.46%	-56.20%
NEXS	48 Neutral	£11.02M	-3.46	-10.69%	2.43%	-3.17%	69.15%

J Smart & Co (Contractors) Corporate Events

J. Smart & Co. Announces Share Capital Details

J. Smart & Co. (Contractors) PLC announced that as of July 31, 2025, its issued share capital comprises 38,889,231 ordinary shares, all with equal voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

J. Smart & Co. Cancels 41,711 Ordinary Shares

J. Smart & Co. (Contractors) PLC announced the purchase and immediate cancellation of 41,711 of its ordinary shares at a price of 122.0p per share. This transaction reduces the total number of ordinary shares in issue to 38,889,231, which also represents the total number of voting rights. This move may impact shareholders’ calculations regarding their interests under the FCA’s Disclosure and Transparency Rules.

J. Smart & Co Updates Share Capital and Voting Rights

J. Smart & Co (Contractors) PLC announced that as of 30 June 2025, its issued share capital consists of 38,930,942 ordinary shares, each with equal voting rights. This update is significant for shareholders as it provides the denominator for calculating their interests in accordance with the FCA’s Disclosure and Transparency Rules, potentially impacting their reporting obligations.

J. Smart & Co. Reduces Share Count Through Buyback

J. Smart & Co. (Contractors) PLC announced the purchase and immediate cancellation of 20,551 of its ordinary shares at a price of 121.5p each. This action reduces the total number of ordinary shares in issue to 38,930,942, which also represents the total number of voting rights. This move may impact shareholders as it affects the calculations for notifying changes in their interests under the FCA’s Disclosure and Transparency Rules.

J. Smart & Co. Announces Share Capital Structure Update

J. Smart & Co. (Contractors) PLC announced that as of May 31, 2025, its issued share capital consists of 38,951,493 ordinary shares, all with equal voting rights. This information is crucial for shareholders for calculating their interests under the FCA’s Disclosure and Transparency Rules, impacting how they manage their stakes in the company.

J. Smart & Co. Cancels 34,508 Ordinary Shares

J. Smart & Co. (Contractors) PLC announced the purchase and immediate cancellation of 34,508 of its ordinary shares at a price of 120.0p per share, reducing the total number of shares in issue to 38,951,493. This move impacts the company’s voting rights, which now stand at 38,951,493, providing a new denominator for shareholders to calculate their interests under the FCA’s Disclosure and Transparency Rules.