SM Investments Corporation
SM Investments Corporation Fundamental Analysis
SM Investments Corporation (SVTMF) shows moderate financial fundamentals with a PE ratio of 8.77, profit margin of 13.86%, and ROE of 13.55%. The company generates $656.2B in annual revenue with moderate year-over-year growth of 6.25%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SVTMF's fundamental strength across five key dimensions:
Efficiency Score
WeakSVTMF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSVTMF trades at attractive valuation levels.
Growth Score
ModerateSVTMF shows steady but slowing expansion.
Financial Health Score
ExcellentSVTMF maintains a strong and stable balance sheet.
Profitability Score
WeakSVTMF struggles to sustain strong margins.
Key Financial Metrics
Is SVTMF Expensive or Cheap?
P/E Ratio
SVTMF trades at 8.77 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SVTMF's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values SM Investments Corporation at 1.14 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 2.04 times EBITDA. This is generally considered low.
How Well Does SVTMF Make Money?
Net Profit Margin
For every $100 in sales, SM Investments Corporation keeps $13.86 as profit after all expenses.
Operating Margin
Core operations generate 22.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.55 in profit for every $100 of shareholder equity.
ROA
SM Investments Corporation generates $5.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SM Investments Corporation produces operating cash flow of $116.31B, showing steady but balanced cash generation.
Free Cash Flow
SM Investments Corporation generates strong free cash flow of $105.64B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $86.45 in free cash annually.
FCF Yield
SVTMF converts 13.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.14
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.22
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.79
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.07
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How SVTMF Stacks Against Its Sector Peers
| Metric | SVTMF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.77 | 24.26 | Better (Cheaper) |
| ROE | 13.55% | 1131.00% | Weak |
| Net Margin | 13.86% | 639.00% | Weak |
| Debt/Equity | 0.79 | 0.76 | Neutral |
| Current Ratio | 1.07 | 2.56 | Neutral |
| ROA | 5.01% | -8481.00% (disorted) | Weak |
SVTMF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SM Investments Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.59%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
82.72%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
48.06%
Industry Style: Cyclical, Growth, Discretionary
High Growth