Smith-Midland (SMID) AI Stock Analysis

• Market Cap: $222.90M
• Dividend Yield: N/A
• Average Volume (3M): 10.74K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.77
• Revenue Growth: 32.97%
• EPS Growth: 160.17%
• Country: US
• Employees: 172
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Construction Materials
• EPS (TTM): 0.79
• Shares Outstanding: 5,304,606
• 10 Day Avg. Volume: 8,297
• 30 Day Avg. Volume: 10,745
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 1.93
• Enterprise Value/Gross Profit: 6.83
• Enterprise Value/Ebitda: 9.54
• 1Y Price Target: $48.00
• Price Target Upside: 18.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: $48.00 ▲(18.64% Upside)

Smith-Midland's stock is supported by strong technical indicators and solid financial performance, despite challenges in cash flow management. The valuation is reasonable, aligning with industry standards. The absence of earnings call and corporate events data does not impact the overall assessment.

Positive Factors

Revenue Growth

The company's strong revenue growth and profitability indicate a solid market position and effective business model, supporting long-term expansion.

Balance Sheet Health

A low debt-to-equity ratio suggests conservative financial management, providing stability and flexibility for future investments and growth.

Profit Margins

Strong profit margins reflect efficient cost management and competitive pricing power, enhancing long-term profitability and shareholder value.

Negative Factors

Cash Flow Challenges

Declining free cash flow indicates potential liquidity issues, which could hinder the company's ability to fund operations and growth initiatives sustainably.

Cash Generation Efficiency

Moderate cash generation relative to net income suggests inefficiencies that may affect the company's ability to reinvest in growth and manage financial obligations effectively.

Cost Pressures

Potential cost pressures could erode profit margins, impacting long-term profitability and necessitating careful cost management to maintain financial health.

Smith-Midland Business Overview & Revenue Model

Company Description

Smith-Midland Corporation, through its subsidiaries, invents, develops, manufactures, markets, leases, licenses, sells, and installs precast concrete products primarily for use in the construction, highway, utilities, and farming industries. It offers SlenderWall, a patented, lightweight, energy efficient concrete and steel exterior wall panel for use in building construction; Sierra Wall that provides sound and sight barrier for use alongside highways around residential, industrial, and commercial properties; J-J Hooks highway safety barriers for use on roadways to separate lanes of traffic in construction work zone or traffic control purposes; and Easi-Set precast building and Easi-Span expandable precast buildings for use in housing communications operations, traffic control systems, and mechanical and electrical stations. The company also provides Easi-Set utility vaults for house equipment, such as cable, telephone, or traffic signal equipment, and for underground storage, as well as custom-built utility vaults for special needs; SoftSound soundwall panels to absorb highway noise; Beach Prisms, an erosion control module for seawalls and jetties; and H2Out secondary drainage systems for panelized exterior cladding. In addition, it licenses its proprietary products in Canada, Australia, Belgium, Mexico, New Zealand, and Trinidad. The company markets its products through in-house sales force and independent sales representatives to contractors performing public and private construction contracts, such as construction of commercial buildings, public and private roads and highways, airports, and municipal utilities; and federal, state, and local transportation authorities. Smith-Midland Corporation was incorporated in 1960 and is based in Midland, Virginia.

How the Company Makes Money

Smith-Midland generates revenue through the sale of its precast concrete products, which are used in various construction and infrastructure projects. The company primarily earns through direct sales to contractors, municipalities, and government agencies involved in public works and private construction projects. Key revenue streams include standard product sales, custom projects, and engineering services. Additionally, SMID may engage in strategic partnerships with construction firms and government entities to secure contracts for larger projects, enhancing its market reach and revenue potential. The company's focus on innovative products and sustainable practices also positions it favorably in competitive bidding scenarios, contributing to its earnings.

Smith-Midland Financial Statement Overview

Summary

Smith-Midland shows strong revenue growth and profitability with healthy margins and a solid balance sheet. However, challenges in cash flow management, particularly in free cash flow generation, need attention to sustain operations and support growth.

Income Statement

Smith-Midland has demonstrated strong revenue growth with a 7.75% increase in TTM. The company maintains healthy margins, with a gross profit margin of 27.32% and a net profit margin of 11.67% in TTM. The EBIT and EBITDA margins are also robust at 15.26% and 18.45%, respectively. This indicates efficient cost management and profitability. However, the company should continue to monitor cost pressures that could impact margins.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.11, indicating conservative leverage. The return on equity is impressive at 27.31%, showcasing effective use of equity to generate profits. The equity ratio stands at 60.65%, suggesting a strong equity base relative to total assets. The company should maintain this balance to support future growth and mitigate risks.

Cash Flow

The cash flow statement reveals challenges in free cash flow, with a significant decline of 86.85% in TTM. The operating cash flow to net income ratio is 0.47, indicating moderate cash generation from operations relative to net income. The free cash flow to net income ratio is 0.39, suggesting limited cash available after capital expenditures. Improving cash flow efficiency will be crucial for sustaining operations and funding growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	91.00M	78.51M	59.58M	50.13M	50.64M	43.86M
Gross Profit	25.73M	20.01M	10.65M	9.47M	14.42M	11.04M
EBITDA	18.43M	12.71M	3.96M	4.10M	8.84M	6.17M
Net Income	12.04M	7.67M	795.00K	800.00K	7.57M	2.67M
Balance Sheet
Total Assets	81.18M	67.99M	61.35M	54.31M	53.33M	46.50M
Cash, Cash Equivalents and Short-Term Investments	7.10M	7.55M	9.18M	6.73M	13.49M	9.99M
Total Debt	4.86M	5.21M	5.77M	6.47M	4.40M	7.92M
Total Liabilities	31.93M	26.25M	27.19M	21.26M	21.57M	22.85M
Stockholders Equity	49.24M	41.74M	34.16M	33.05M	31.75M	23.65M
Cash Flow
Free Cash Flow	414.00K	-1.04M	2.72M	-9.08M	3.76M	4.86M
Operating Cash Flow	5.63M	5.16M	7.73M	-6.33M	9.13M	7.49M
Investing Cash Flow	-5.16M	-6.15M	-4.66M	-2.63M	-3.65M	-2.42M
Financing Cash Flow	-651.00K	-635.00K	-619.00K	2.20M	-744.00K	2.33M

Smith-Midland Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 40.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMID, the sentiment is Neutral. The current price of 40.46 is below the 20-day moving average (MA) of 41.31, above the 50-day MA of 38.49, and above the 200-day MA of 36.62, indicating a neutral trend. The MACD of 0.75 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SMID.

Smith-Midland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMID	78 Outperform	$222.90M	17.46	27.87%	―	32.97%	160.17%
CPAC	78 Outperform	$614.68M	10.13	16.29%	7.39%	3.95%	27.28%
EXP	76 Outperform	$7.49B	17.01	31.87%	0.42%	0.88%	-4.17%
CX	73 Outperform	$13.85B	8.94	7.12%	0.92%	-9.62%	795.20%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
LOMA	58 Neutral	$966.95M	14.37	8.93%	―	-33.46%	-32.34%

Smith-Midland Corporate Events

Smith-Midland Holds Annual Stockholders Meeting

On August 1, 2025, Smith-Midland held its Annual Meeting of Stockholders where several key decisions were made. The Board of Directors’ nominees were elected to serve until the next annual meeting, and BDO USA, LLP was ratified as the independent registered public accounting firm for the year ending December 31, 2025. Additionally, stockholders approved an advisory vote on executive compensation for named executive officers.