Smith-Midland (SMID) AI Stock Analysis

• Market Cap: $157.07M
• Dividend Yield: N/A
• Average Volume (3M): 9.84K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 1.77
• Revenue Growth: 32.40%
• EPS Growth: 1034.04%
• Country: US
• Employees: 172
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Construction Materials
• EPS (TTM): 1.22
• Shares Outstanding: 5,304,606
• 10 Day Avg. Volume: 11,005
• 30 Day Avg. Volume: 9,842
• PEG Ratio: 0.02
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.33
• Price to Cash Flow (P/CF): 11.50
• P/FCF Ratio: 23.70
• 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

Smith-Midland's strong financial performance is a key strength, driven by robust revenue growth and a solid balance sheet. However, mixed technical indicators and a high P/E ratio suggest caution. The overall score reflects confidence in the company's financial stability but highlights valuation concerns and uncertain short-term market momentum.

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. The company's key revenue streams include contracts with construction firms, government agencies, and infrastructure developers who require durable and customizable concrete solutions. A significant portion of their income is derived from large-scale infrastructure projects, such as highway construction and urban development, where their patented and proprietary product offerings are utilized. Furthermore, Smith-Midland benefits from strategic partnerships and long-term contracts with key players in the construction industry, enhancing their market position and revenue potential.

Smith-Midland Financial Statement Overview

Summary

Smith-Midland exhibits strong revenue growth and maintains a healthy balance sheet with low leverage. While profitability margins show room for enhancement, the company's cash flow position supports operational and financial stability. Overall, Smith-Midland is in a solid financial position with opportunities for further profit maximization and cash flow optimization.

Income Statement

Smith-Midland has shown a robust revenue growth of 28.16% over the past year, which is a positive indicator of market demand and operational efficiency. The TTM gross profit margin stands at 24.55%, showcasing strong production cost management. However, the net profit margin of 8.52% indicates moderate profitability, which could be optimized further. The EBIT and EBITDA margins of 11.22% and 14.82% respectively suggest good operational effectiveness, but there is room for improvement in net earnings.

Balance Sheet

The company's financial structure is solid, with a debt-to-equity ratio of 0.13, reflecting low leverage and a conservative capital structure. The return on equity (ROE) of 16.13% is strong, indicating efficient use of equity capital to generate profits. An equity ratio of 60.55% demonstrates a strong equity base in relation to total assets, supporting financial stability.

Cash Flow

Smith-Midland's free cash flow growth rate is 34.19%, signaling improved cash generation capacity. The operating cash flow to net income ratio of 1.55 suggests effective conversion of net income into cash. However, the free cash flow to net income ratio of 0.56 indicates a moderate level of cash available after capital expenditures, hinting at areas for efficiency improvement.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
76.37M	59.58M	50.13M	50.64M	43.86M	46.69M
	Gross Profit
18.75M	10.65M	9.47M	14.42M	11.04M	9.97M
	EBIT
8.57M	1.12M	854.00K	6.17M	3.76M	2.55M
	EBITDA
11.32M	3.96M	4.10M	8.84M	6.17M	4.34M
	Net Income Common Stockholders
6.51M	795.00K	800.00K	7.57M	2.67M	1.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.61M	9.18M	6.73M	13.49M	9.99M	2.54M
	Total Assets
15.44M	61.35M	54.31M	53.33M	46.50M	42.12M
	Total Debt
3.50M	5.77M	6.47M	4.40M	7.92M	5.39M
	Net Debt
1.89M	-3.40M	-256.00K	-9.09M	-840.00K	4.02M
	Total Liabilities
6.44M	27.19M	21.26M	21.57M	22.85M	21.29M
	Stockholders Equity
9.00M	34.16M	33.05M	31.75M	23.65M	20.82M
Cash Flow		Free Cash Flow
3.65M	2.72M	-9.08M	3.76M	4.86M	-939.00K
	Operating Cash Flow
10.07M	7.73M	-6.33M	9.13M	7.49M	3.93M
	Investing Cash Flow
-6.30M	-4.66M	-2.63M	-3.65M	-2.42M	-4.74M
	Financing Cash Flow
-605.00K	-619.00K	2.20M	-744.00K	2.33M	227.00K

Smith-Midland Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMID, the sentiment is Negative. The current price of 29.61 is below the 20-day moving average (MA) of 30.86, below the 50-day MA of 33.15, and below the 200-day MA of 35.83, indicating a bearish trend. The MACD of -1.14 indicates Negative momentum. The RSI at 43.99 is Neutral, neither overbought nor oversold. The STOCH value of 65.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMID.

Smith-Midland Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXP	75 Outperform	$7.20B	15.46	33.51%	0.46%	0.64%	-1.15%
LOMA	72 Outperform	$1.34B	9.14	24.53%	―	-42.74%	242.59%
CPAC	71 Outperform	$503.52M	8.84	16.44%	9.16%	1.12%	17.25%
JHX	68 Neutral	$9.60B	22.37	21.77%	―	1.26%	-17.38%
SMID	66 Neutral	$157.07M	24.19	17.55%	―	32.40%	1034.04%
CX	64 Neutral	$7.83B	8.36	8.39%	1.53%	-5.07%	417.07%
Sector *	48 Neutral	$1.91B	-1.66	-22.29%	3.86%	0.68%	-27.44%