J Smart & Co (Contractors) (SMJ) AI Stock Analysis

• Market Cap: £43.89M
• Dividend Yield: 2.87%
• Average Volume (3M): 2.88K
• Price to Earnings (P/E): 26.7
• Beta (1Y): 0.36
• Revenue Growth: 69.75%
• EPS Growth: 761.22%
• Country: UK
• Employees: 140
• Sector: Industrials
• Sector Strength: 64
• Industry: Engineering & Construction
• EPS (TTM): 0.04
• Shares Outstanding: 39,009,884
• 10 Day Avg. Volume: 6,247
• 30 Day Avg. Volume: 2,879
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.64
• Price to Cash Flow (P/CF): -23.50
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

The stock of J Smart & Co (Contractors) is characterized by strong revenue growth and a stable balance sheet. However, concerns over profitability margins and negative cash flows weigh on its financial health. The technical indicators suggest bearish sentiment, and valuation metrics indicate potential overvaluation. Improvements in cash flow and profitability could enhance its attractiveness.

J Smart & Co (Contractors) Business Overview & Revenue Model

Company Description

J Smart & Co (Contractors) (SMJ) is a UK-based company primarily engaged in the construction and real estate sectors. The company focuses on building projects, civil engineering works, and property development. Its core services include construction contracting, property investment, and property development, catering to both residential and commercial markets.

How the Company Makes Money

J Smart & Co (Contractors) makes money through a diversified revenue model primarily based on construction contracting, property development, and property investment. The construction contracting segment involves undertaking building and civil engineering projects for various clients, generating income from project fees and contracts. The property development segment contributes revenue through the sale and lease of residential and commercial properties developed by the company. Additionally, the property investment segment provides a steady income stream through rental income from properties held within its investment portfolio. These key revenue streams are supported by strategic partnerships with clients and suppliers, ensuring a consistent flow of projects and investment opportunities.

J Smart & Co (Contractors) Financial Statement Overview

Summary

J Smart & Co (Contractors) exhibits solid top-line growth supported by a strong balance sheet with low leverage. However, profitability and cash flow generation remain areas of concern, limiting the overall financial health. Continued focus on improving margins and cash flow conversion is necessary to enhance financial performance.

Income Statement

The company shows a strong revenue growth rate of 69.8% from the previous year, indicating a positive trend. However, the net profit margin is relatively moderate at 7.6%, and there is a significant decrease in gross profit margin to 18.3%. The EBIT margin is low at 3.0%, suggesting limited operating efficiency.

Balance Sheet

The company has a robust equity ratio of 86.2%, reflecting strong financial stability and low leverage with a debt-to-equity ratio of 0.04. Return on equity is moderate at 1.3%. The strong equity position offsets some concerns about profitability.

Cash Flow

The operating cash flow is negative, which is concerning, while free cash flow has shown improvement but remains negative. The company faces challenges in converting net income into cash, with a negative operating cash flow to net income ratio.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
19.44M	22.02M	12.97M	9.60M	12.31M	19.22M
	Gross Profit
8.20M	4.03M	6.05M	1.58M	1.43M	49.00K
	EBIT
1.43M	666.00K	-657.00K	7.82M	14.27M	4.35M
	EBITDA
502.00K	2.84M	598.00K	8.35M	14.96M	4.54M
	Net Income Common Stockholders
118.00K	1.67M	200.00K	6.62M	10.97M	3.58M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
22.30M	12.98M	18.70M	31.84M	19.40M	23.17M
	Total Assets
115.71M	146.50M	147.93M	146.46M	133.39M	114.98M
	Total Debt
12.75M	5.64M	10.70M	11.26M	11.79M	10.31M
	Net Debt
-9.50M	-7.29M	-7.95M	-20.53M	-7.57M	-12.81M
	Total Liabilities
19.48M	20.18M	22.46M	21.78M	20.01M	15.72M
	Stockholders Equity
96.23M	126.31M	125.47M	124.68M	113.38M	99.26M
Cash Flow		Free Cash Flow
-2.58M	-3.83M	-9.94M	-6.59M	-1.34M	2.09M
	Operating Cash Flow
-475.00K	-510.00K	-3.23M	-4.04M	896.00K	4.86M
	Investing Cash Flow
-5.65M	2.04M	-6.68M	20.12M	-3.97M	-3.09M
	Financing Cash Flow
-3.10M	-2.19M	-2.67M	-3.11M	-2.15M	-1.59M

J Smart & Co (Contractors) Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 112.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SMJ, the sentiment is Negative. The current price of 112.5 is below the 20-day moving average (MA) of 122.75, below the 50-day MA of 124.10, and below the 200-day MA of 124.07, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 2.24 is Positive, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SMJ.

J Smart & Co (Contractors) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UTG	78 Outperform	£4.03B	8.57	9.95%	4.36%	7.75%	276.67%
BLND	65 Neutral	£3.59B	19.75	3.17%	6.71%	-30.83%	―
Sector *	62 Neutral	$7.16B	12.21	3.08%	3.43%	3.62%	-14.48%
GPE	61 Neutral	£1.11B	―	-1.38%	2.49%	-2.73%	91.05%
SMJ	54 Neutral	£43.89M	26.66	1.33%	2.87%	69.75%	761.22%
WKP	54 Neutral	£791.92M	―	-2.20%	6.88%	1.86%	84.48%
LAND	52 Neutral	£3.77B	35.72	1.61%	7.87%	-1.73%	―

J Smart & Co (Contractors) Corporate Events

J. Smart & Co. Announces New Executive Director Appointment

J. Smart & Co. (Contractors) PLC has announced the appointment of Jane Oliver as an executive director, effective April 4, 2025. This leadership change is expected to influence the company’s strategic direction and operational management, potentially impacting its market positioning and stakeholder relations.

J. Smart & Co. Announces Share Capital Details

J. Smart & Co. (Contractors) PLC announced that as of March 31, 2025, its issued share capital comprises 39,009,882 ordinary shares with equal voting rights. The company does not hold any shares in Treasury, and this information is relevant for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules.

J. Smart & Co. Cancels 25,000 Ordinary Shares

J. Smart & Co. (Contractors) PLC has announced the purchase and immediate cancellation of 25,000 of its ordinary shares at a price of 125.0p each. This action reduces the total number of shares in issue to 39,009,882, which also represents the total number of voting rights. Shareholders can use this updated figure for calculations related to their interests in the company under the FCA’s Disclosure and Transparency Rules.

J. Smart & Co. Announces Share Capital Details

J. Smart & Co. (Contractors) PLC announced that as of February 28, 2025, its issued share capital comprises 39,034,882 ordinary shares, all with equal voting rights. This information is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

J Smart & Co Reduces Share Count with Recent Buyback and Cancellation

J Smart & Co (Contractors) PLC has announced the purchase and immediate cancellation of 80,000 of its ordinary shares, which were bought at a price of 125.0p each. This action reduces the total number of ordinary shares in circulation to 39,034,882, a figure now representing the total voting rights in the company. Shareholders may use this updated number for calculating changes in their interests according to FCA’s Disclosure and Transparency Rules.

J. Smart & Co. (Contractors) PLC AGM Resolutions Passed

J. Smart & Co. (Contractors) PLC announced the successful passing of all resolutions at its Annual General Meeting held on 16 January 2025. Key resolutions included the approval of the Director’s Remuneration Policy, re-election of directors, appointment of auditors, and authorization for the purchase of company shares. These decisions reflect strong shareholder support and are likely to positively impact the company’s governance and financial strategies.

J. Smart & Co. Authorizes Share Repurchase

J. Smart & Co. (Contractors) PLC, a company involved in contracting services, announced that it has passed a special resolution at its Annual General Meeting held on January 16, 2025. The resolution authorizes the company to make market purchases of its ordinary shares, indicating a strategic move likely aimed at optimizing capital structure or shareholder value.