SMART Global Holdings, Inc.
SMART Global Holdings, Inc. Fundamental Analysis
SMART Global Holdings, Inc. (SGH) shows weak financial fundamentals with a PE ratio of 42.25, profit margin of 1.91%, and ROE of 5.32%. The company generates $1.4B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 34.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze SGH's fundamental strength across five key dimensions:
Efficiency Score
WeakSGH struggles to generate sufficient returns from assets.
Valuation Score
ModerateSGH shows balanced valuation metrics.
Growth Score
WeakSGH faces weak or negative growth trends.
Financial Health Score
ModerateSGH shows balanced financial health with some risks.
Profitability Score
WeakSGH struggles to sustain strong margins.
Key Financial Metrics
Is SGH Expensive or Cheap?
P/E Ratio
SGH trades at 42.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, SGH's PEG of -1.18 indicates potential undervaluation.
Price to Book
The market values SMART Global Holdings, Inc. at 2.84 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 18.48 times EBITDA. This signals the market has high growth expectations.
How Well Does SGH Make Money?
Net Profit Margin
For every $100 in sales, SMART Global Holdings, Inc. keeps $1.91 as profit after all expenses.
Operating Margin
Core operations generate 4.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.32 in profit for every $100 of shareholder equity.
ROA
SMART Global Holdings, Inc. generates $1.64 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SMART Global Holdings, Inc. generates limited operating cash flow of $129.84M, signaling weaker underlying cash strength.
Free Cash Flow
SMART Global Holdings, Inc. produces free cash flow of $128.19M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.42 in free cash annually.
FCF Yield
SGH converts 11.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.33
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How SGH Stacks Against Its Sector Peers
| Metric | SGH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.25 | 35.19 | Worse (Expensive) |
| ROE | 5.32% | 1155.00% | Weak |
| Net Margin | 1.91% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.29 | 0.41 | Weak (High Leverage) |
| Current Ratio | 2.33 | 4.71 | Strong Liquidity |
| ROA | 1.64% | -314918.00% (disorted) | Weak |
SGH outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SMART Global Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta