Smith-Midland (SMID) AI Stock Analysis

• Market Cap: $178.13M
• Dividend Yield: N/A
• Average Volume (3M): 9.66K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.87
• Revenue Growth: 16.37%
• EPS Growth: 81.03%
• Country: US
• Employees: 172
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.54
• Shares Outstanding: 5,304,606
• 10 Day Avg. Volume: 11,330
• 30 Day Avg. Volume: 9,659
• PEG Ratio: 0.04
• Price to Book (P/B): 5.65
• Price to Sales (P/S): 3.00
• P/FCF Ratio: -225.66
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 2.11
• Enterprise Value/Gross Profit: 7.51
• Enterprise Value/Ebitda: 10.19
• 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: 67 Neutral
• Price Target: $37.00 ▲(7.62% Upside)

Smith-Midland's strong financial performance is the most significant factor, supported by robust profitability and a stable balance sheet. The technical analysis indicates a bearish trend, which tempers the overall score. Valuation is reasonable, but the lack of a dividend yield is a minor drawback. The absence of recent earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Strong Financial Health

The company's robust profitability and stable balance sheet indicate a solid financial foundation, enhancing its ability to invest in growth and weather economic fluctuations.

Infrastructure Demand

Continued infrastructure demand supports long-term revenue growth, providing a stable market for Smith-Midland's products and enhancing its competitive position.

Proprietary Product Growth

Growth in proprietary products like SlenderWall enhances margins and competitive differentiation, supporting sustainable long-term revenue and profitability.

Negative Factors

Revenue Decline

A decline in revenue compared to the previous year could indicate challenges in maintaining growth momentum, potentially impacting future financial performance.

Backlog Decrease

A decrease in backlog suggests potential future revenue challenges, as it may indicate reduced demand or delays in project execution, affecting long-term growth.

Inflationary Pressures

Persistent inflationary pressures could erode profit margins by increasing material costs, challenging the company's ability to maintain its current profitability levels.

Smith-Midland Business Overview & Revenue Model

Company Description

Smith-Midland Corporation (SMID) is a leading manufacturer of precast concrete products, specializing in providing innovative solutions for the construction and infrastructure sectors. Founded in 1960, the company operates primarily in the United States and serves various markets, including transportation, commercial construction, and utilities. Core offerings include precast concrete wall systems, sound barriers, and custom precast products designed to meet specific customer needs.

How the Company Makes Money

Smith-Midland generates revenue through the manufacturing and sale of precast concrete products, which are used in a wide range of construction projects. The company has multiple key revenue streams, including direct sales to contractors and construction firms, as well as government contracts for public infrastructure projects. Additionally, SMID benefits from partnerships with engineering firms and construction companies that often specify their products in project designs. The company also engages in the development of proprietary products, which can provide higher margins. Overall, strong demand for infrastructure development and construction projects drives the company's earnings.

Smith-Midland Financial Statement Overview

Summary

Smith-Midland demonstrates strong financial health with robust profitability, a stable balance sheet, and impressive cash flow generation. Despite a recent dip in revenue, the company maintains strong margins and a conservative leverage position, positioning it well for future growth. Potential risks include past fluctuations in cash flow, but overall, the financial outlook is positive.

Income Statement

Smith-Midland shows strong profitability with a TTM gross profit margin of 28.03% and a net profit margin of 13.25%. Despite a slight revenue decline of 2.34% in the TTM, the company maintains robust EBIT and EBITDA margins of 13.35% and 19.90%, respectively. The company has demonstrated significant revenue growth in previous years, indicating a generally positive trajectory.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.09, indicating conservative leverage. The return on equity is strong at 25.02%, reflecting efficient use of equity to generate profits. The equity ratio stands at 61.01%, suggesting a stable financial structure with a high proportion of assets financed by equity.

Cash Flow

Cash flow performance is strong with a remarkable free cash flow growth of 1114.25% in the TTM. The operating cash flow to net income ratio is healthy at 0.61, and the free cash flow to net income ratio is 0.45, indicating good cash generation relative to net income. However, past volatility in free cash flow growth suggests potential risks.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.87M	78.51M	59.58M	50.13M	50.64M	43.86M
Gross Profit	24.91M	20.01M	10.65M	9.47M	14.42M	11.04M
EBITDA	18.36M	12.71M	3.96M	4.10M	11.96M	6.17M
Net Income	11.77M	7.67M	795.00K	800.00K	7.57M	2.67M
Balance Sheet
Total Assets	85.44M	67.99M	61.35M	54.31M	53.27M	46.50M
Cash, Cash Equivalents and Short-Term Investments	13.38M	7.55M	9.18M	6.73M	13.49M	9.99M
Total Debt	4.69M	5.21M	5.77M	6.47M	4.35M	7.92M
Total Liabilities	33.31M	26.25M	27.19M	21.26M	21.52M	22.85M
Stockholders Equity	52.13M	41.74M	34.16M	33.05M	31.75M	23.65M
Cash Flow
Free Cash Flow	5.03M	-1.04M	2.72M	-9.08M	3.76M	4.86M
Operating Cash Flow	11.07M	5.16M	7.73M	-6.33M	9.13M	7.49M
Investing Cash Flow	-6.01M	-6.15M	-4.66M	-2.63M	-3.65M	-2.42M
Financing Cash Flow	-692.00K	-635.00K	-619.00K	2.20M	-744.00K	2.33M

Smith-Midland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMID, the sentiment is Negative. The current price of 34.38 is below the 20-day moving average (MA) of 35.04, below the 50-day MA of 35.46, and below the 200-day MA of 34.96, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 12.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMID.

Smith-Midland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXP	77 Outperform	$6.69B	16.31	30.10%	0.47%	1.50%	-4.44%
CPAC	74 Outperform	$928.96M	14.58	16.04%	5.46%	9.24%	24.01%
MLM	73 Outperform	$37.69B	33.62	11.63%	0.51%	1.99%	-41.08%
SMID	67 Neutral	$178.13M	15.58	25.46%	―	16.37%	81.03%
USLM	63 Neutral	$3.65B	27.98	24.29%	0.19%	20.27%	31.94%
LOMA	63 Neutral	$1.49B	39.23	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%