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Smart Sand Inc (SND)
:SND

Smart Sand (SND) AI Stock Analysis

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Smart Sand

(NASDAQ:SND)

Rating:57Neutral
Price Target:
$2.00
▲(1.52%Upside)
Smart Sand's overall stock score is driven by its stable financial position and positive cash flows, despite profitability challenges. The technical analysis suggests a neutral market position, while the valuation remains a concern due to the negative P/E ratio. The share repurchase plan adds a positive strategic element, slightly boosting the overall score.

Smart Sand (SND) vs. SPDR S&P 500 ETF (SPY)

Smart Sand Business Overview & Revenue Model

Company DescriptionSmart Sand, Inc. is a provider of industrial sand primarily used as a proppant in the hydraulic fracturing of oil and natural gas wells. The company operates within the energy sector, supplying high-quality sand products to companies engaged in the exploration and production of oil and gas. Smart Sand's core operations include the mining, processing, and distribution of sand tailored to meet the specifications required by its energy sector clients.
How the Company Makes MoneySmart Sand makes money by mining and selling industrial sand, which is a critical component in the hydraulic fracturing process used by oil and gas companies to extract hydrocarbons. The company's revenue model is heavily dependent on the demand for its sand products, which is closely tied to the levels of drilling and completion activities in the oil and gas industry. Key revenue streams include long-term contracts with major exploration and production companies, spot market sales, and logistics services related to the transportation and delivery of sand to well sites. Smart Sand's earnings are influenced by factors such as the price of oil and gas, the level of drilling activity, and the company's ability to efficiently manage its mining and logistics operations.

Smart Sand Earnings Call Summary

Earnings Call Date:May 13, 2025
(Q3-2024)
|
% Change Since: -8.80%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. Positive aspects included a focus on free cash flow, shareholder returns, and strategic growth initiatives. However, challenges such as decreased sales volumes and revenue, alongside lower contribution margins and EBITDA, highlighted operational pressures. The company remains optimistic about future demand and pricing improvements, particularly in natural gas markets.
Q3-2024 Updates
Positive Updates
Positive Free Cash Flow
Smart Sand reported positive free cash flow of $3.7 million for the third quarter and $11.7 million year-to-date. The company remains cash flow positive for 2024.
Special Dividend and Share Buyback
A special dividend of $0.10 per share was paid, and a share buyback plan of up to $10 million was announced, indicating a focus on returning capital to shareholders.
New Credit Facility
A new 5-year $30 million ABL credit facility was established with First Citizens Bank, providing efficient and flexible funding.
Sales Volume Increase
Sales volumes increased by 9% over 2023, with approximately 1.2 million tons delivered in the third quarter.
Decreased Capital Expenditures
Capital expenditures are down $11 million year-to-date, with total expected to be at or under $10 million for 2024, compared to $23 million in 2023.
Growth in Industrial Product Solutions
IPS sales volumes increased by 38% sequentially and are expected to grow from under 5% to around 10% of total sales volumes in 2025.
Negative Updates
Decrease in Sales Volumes and Revenue
Third quarter sales volumes decreased by 7% from the second quarter, with total revenues dropping from $73.8 million to $63.2 million.
Lower Contribution Margin and EBITDA
Contribution margin fell to $13.2 million from $19.8 million in the second quarter, with adjusted EBITDA dropping to $5.7 million from $11.9 million.
Non-Cash Charge and Increased Operating Expenses
A $1.1 million non-cash charge was incurred due to the closure of a Canadian facility, contributing to an increase in operating expenses to $11.4 million from $9.5 million.
Company Guidance
During Smart Sand's Q3 2024 earnings call, the company provided several financial metrics and guidance reflecting its performance and strategic initiatives. The company reported sales volumes of just under 1.2 million tons and an adjusted EBITDA of $5.7 million for the quarter. Positive free cash flow was reported at $3.7 million, contributing to a year-to-date free cash flow of $11.7 million. Despite a 7% decrease from the previous quarter, total revenues were $63.2 million, with a contribution margin of $13.2 million or $11.09 per ton sold. Smart Sand also highlighted a decrease in capital expenditures, down to $5.1 million year-to-date compared to $16.1 million in 2023, and anticipated total capital expenditures to remain under $10 million for 2024. The company announced a share buyback plan of up to $10 million and recently paid a special dividend of $0.10 per share, demonstrating a commitment to returning capital to shareholders. Looking forward, Smart Sand expects a pickup in activity, especially in natural gas markets, and anticipates continued demand for Northern White Sand. They foresee fourth-quarter sand sales volumes ranging from 1.1 to 1.4 million tons and anticipate positive free cash flow for the year despite increased capital expenditures in the fourth quarter.

Smart Sand Financial Statement Overview

Summary
Smart Sand exhibits a mixed financial performance. The income statement highlights challenges with profitability and revenue, marked by negative EBIT and declining gross margins. However, the balance sheet shows stable leverage and equity positions, while the cash flow statement indicates strong operating and free cash flows, suggesting potential for financial flexibility and future improvements.
Income Statement
45
Neutral
Smart Sand's income statement reflects challenges in profitability and growth. The TTM (Trailing-Twelve-Months) data shows a negative EBIT and net income, indicating operational and net losses. The gross profit margin has decreased compared to previous periods, suggesting pressures on the cost structure. Additionally, revenue has declined from the previous year, marking a negative growth trend. Despite these challenges, the company maintains a positive EBITDA, indicating potential operational cash flow resilience.
Balance Sheet
60
Neutral
The balance sheet shows a moderate financial position with a relatively low debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative due to net losses, impacting overall shareholder value. The equity ratio remains healthy, indicating a substantial equity buffer against liabilities. These factors reflect a stable but challenged financial foundation.
Cash Flow
70
Positive
Cash flow analysis for Smart Sand highlights strong operating cash flow relative to net income, indicating efficient cash conversion despite net losses. Free cash flow is positive, showing effective capital expenditure management. The company has improved its free cash flow position compared to previous periods, signaling potential for reinvestment and debt servicing.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue293.88M311.37M295.97M255.74M126.65M122.34M
Gross Profit35.78M44.82M41.55M29.59M-15.91M18.12M
EBITDA17.68M31.75M27.29M24.98M-31.47M50.00M
Net Income-21.02M2.99M4.65M-703.00K-50.67M37.95M
Balance Sheet
Total Assets326.91M341.55M346.30M360.00M374.02M427.68M
Cash, Cash Equivalents and Short-Term Investments5.11M1.55M6.07M5.51M25.59M11.72M
Total Debt32.60M37.22M43.75M44.54M55.20M63.44M
Total Liabilities107.00M97.74M104.03M116.53M132.86M138.87M
Stockholders Equity219.91M243.81M242.27M243.47M241.16M288.81M
Cash Flow
Free Cash Flow21.55M10.85M7.96M-7.31M21.22M16.92M
Operating Cash Flow30.45M17.86M30.99M5.42M32.44M25.54M
Investing Cash Flow-8.81M-6.92M-22.90M-18.21M-11.14M-8.56M
Financing Cash Flow-21.13M-15.46M-7.53M-7.29M-7.43M-7.90M

Smart Sand Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.97
Price Trends
50DMA
2.00
Negative
100DMA
2.12
Negative
200DMA
2.18
Negative
Market Momentum
MACD
<0.01
Positive
RSI
45.31
Neutral
STOCH
7.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SND, the sentiment is Negative. The current price of 1.97 is below the 20-day moving average (MA) of 2.05, below the 50-day MA of 2.00, and below the 200-day MA of 2.18, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.31 is Neutral, neither overbought nor oversold. The STOCH value of 7.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SND.

Smart Sand Peers Comparison

Overall Rating
UnderperformOutperform
Sector (52)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$76.30M9.338.71%18.03%-39.52%
62
Neutral
$82.20M53.642.37%7.30%208.99%
61
Neutral
39.383.10%25.65%38.75%22.73%
SNSND
57
Neutral
$86.84M28.65-9.09%-0.94%-353.00%
52
Neutral
C$2.91B-1.09-3.26%6.12%5.32%-43.41%
50
Neutral
$119.31M33.55-6.93%0.65%-2.03%-348.43%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SND
Smart Sand
1.97
-0.04
-1.99%
SLNG
Stabilis Solutions
4.42
0.49
12.47%
MMLP
Martin Midstream
3.06
-0.17
-5.26%
NCSM
Ncs Multistage Holdings
30.03
13.87
85.83%
OXLC
Oxford Lane Capital
4.21
-0.30
-6.65%

Smart Sand Corporate Events

Executive/Board ChangesShareholder Meetings
Smart Sand Holds Annual Stockholders Meeting on June 3
Neutral
Jun 5, 2025

On June 3, 2025, Smart Sand, Inc. held its annual meeting of stockholders where key decisions were made. Charles E. Young was elected as a Class III board member for a three-year term, the appointment of Grant Thornton LLP as the independent registered public accounting firm for 2025 was ratified, and the compensation for the company’s executive officers for 2024 was approved on an advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, impacting its corporate structure and financial oversight.

The most recent analyst rating on (SND) stock is a Hold with a $2.25 price target. To see the full list of analyst forecasts on Smart Sand stock, see the SND Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
Smart Sand Implements Share Repurchase Trading Plan
Positive
May 22, 2025

On May 22, 2025, Smart Sand, Inc. announced the implementation of a written trading plan under Rule 10b5-1, part of its $10 million share repurchase program. This plan allows the company to repurchase up to $1.5 million of its shares, circumventing trading blackout periods and insider trading laws. Additionally, on May 16, 2025, Smart Sand amended its credit agreements to facilitate this trading plan, reflecting strategic financial adjustments to support its stock repurchase initiatives.

The most recent analyst rating on (SND) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Smart Sand stock, see the SND Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025