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SMART Global Holdings

BST:850
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
850
BST
$496M
Market Cap
  1. Home
  2. DE
  3. Semiconductors
Company description

SMART Global Holdings, Inc. designs and manufactures electronic products focused in memory and computing technology areas. The last earnings update was 105 days ago. More info.


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  • SMART Global Holdings has significant price volatility in the past 3 months.
850 Share Price and Events
7 Day Returns
-0.7%
BST:850
-7.2%
DE Semiconductor
-3%
DE Market
1 Year Returns
4.1%
BST:850
-28.9%
DE Semiconductor
-20.6%
DE Market
850 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
SMART Global Holdings (850) -0.7% -16.1% -40.4% 4.1% - -
DE Semiconductor -7.2% -28% -34.8% -28.9% -26.2% 4.6%
DE Market -3% -19.1% -26.2% -20.6% -25.6% -30.7%
1 Year Return vs Industry and Market
  • 850 outperformed the Semiconductor industry which returned -28.9% over the past year.
  • 850 outperformed the Market in Germany which returned -20.6% over the past year.
Price Volatility
850
Industry
5yr Volatility vs Market

850 Value

 Is SMART Global Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of SMART Global Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for SMART Global Holdings.

BST:850 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.6%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for BST:850
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Semiconductor Unlevered Beta Simply Wall St/ S&P Global 1.24
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.241 (1 + (1- 21%) (46.03%))
1.464
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.46
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.464 * 5.44%)
7.57%

Discounted Cash Flow Calculation for BST:850 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for SMART Global Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

BST:850 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.57%)
2020 83.08 Analyst x1 77.23
2021 49.86 Est @ -39.99% 43.08
2022 35.84 Est @ -28.11% 28.79
2023 28.75 Est @ -19.79% 21.47
2024 24.73 Est @ -13.97% 17.17
2025 22.28 Est @ -9.9% 14.38
2026 20.71 Est @ -7.05% 12.42
2027 19.67 Est @ -5.05% 10.97
2028 18.95 Est @ -3.65% 9.82
2029 18.44 Est @ -2.67% 8.89
Present value of next 10 years cash flows $244.00
BST:850 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $18.44 × (1 + -0.39%) ÷ (7.57% – -0.39%)
$230.64
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $230.64 ÷ (1 + 7.57%)10
$111.13
BST:850 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $244.00 + $111.13
$355.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $355.13 / 23.99
$14.8
BST:850 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in BST:850 represents 0.97581x of NasdaqGS:SGH
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.97581x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 14.80 x 0.97581
€14.44
Value per share (EUR) From above. €14.44
Current discount Discount to share price of €20.17
= -1 x (€20.17 - €14.44) / €14.44
-39.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of SMART Global Holdings is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for SMART Global Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are SMART Global Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
BST:850 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-11-29) in USD $0.89
NasdaqGS:SGH Share Price ** NasdaqGS (2020-04-03) in USD $20.67
Germany Semiconductor Industry PE Ratio Median Figure of 8 Publicly-Listed Semiconductor Companies 18.86x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of SMART Global Holdings.

BST:850 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SGH Share Price ÷ EPS (both in USD)

= 20.67 ÷ 0.89

23.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SMART Global Holdings is overvalued based on earnings compared to the DE Semiconductor industry average.
  • SMART Global Holdings is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does SMART Global Holdings's expected growth come at a high price?
Raw Data
BST:850 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
78.3%per year
Germany Semiconductor Industry PEG Ratio Median Figure of 7 Publicly-Listed Semiconductor Companies 1.09x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

BST:850 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.34x ÷ 78.3%

0.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SMART Global Holdings is good value based on expected growth next year.
Price based on value of assets
What value do investors place on SMART Global Holdings's assets?
Raw Data
BST:850 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-11-29) in USD $11.40
NasdaqGS:SGH Share Price * NasdaqGS (2020-04-03) in USD $20.67
Germany Semiconductor Industry PB Ratio Median Figure of 12 Publicly-Listed Semiconductor Companies 1.4x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
BST:850 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SGH Share Price ÷ Book Value per Share (both in USD)

= 20.67 ÷ 11.40

1.81x

* Primary Listing of SMART Global Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • SMART Global Holdings is overvalued based on assets compared to the DE Semiconductor industry average.
X
Value checks
We assess SMART Global Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Semiconductor industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Semiconductor industry average (and greater than 0)? (1 check)
  5. SMART Global Holdings has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

850 Future Performance

 How is SMART Global Holdings expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
78.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is SMART Global Holdings expected to grow at an attractive rate?
  • SMART Global Holdings's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • SMART Global Holdings's earnings growth is expected to exceed the Germany market average.
  • SMART Global Holdings's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
BST:850 Future Growth Rates Data Sources
Data Point Source Value (per year)
BST:850 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts 78.3%
BST:850 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 10.2%
Germany Semiconductor Industry Earnings Growth Rate Market Cap Weighted Average 18.6%
Germany Semiconductor Industry Revenue Growth Rate Market Cap Weighted Average 6.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
BST:850 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
BST:850 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-08-31 1,356 1
2021-08-31 1,286 65 5
2020-08-31 1,122 109 27 5
2020-04-03
BST:850 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-11-29 1,090 160 21
2019-08-30 1,212 170 51
2019-05-31 1,308 111 75
2019-03-01 1,407 93 105
2018-11-30 1,417 89 129
2018-08-31 1,289 68 119
2018-05-25 1,138 83 80
2018-02-23 1,009 64 56
2017-11-24 867 30 16
2017-08-25 761 -1 -8
2017-05-26 684 -12 1
2017-02-24 627 -27 -8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • SMART Global Holdings's earnings are expected to grow significantly at over 20% yearly.
  • SMART Global Holdings's revenue is expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
BST:850 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from SMART Global Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:850 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-08-31
2021-08-31 2.63 3.34 2.25 3.00
2020-08-31 1.12 1.76 0.67 3.00
2020-04-03
BST:850 Past Financials Data
Date (Data in USD Millions) EPS *
2019-11-29 0.89
2019-08-30 2.24
2019-05-31 3.32
2019-03-01 4.68
2018-11-30 5.81
2018-08-31 5.42
2018-05-25 3.65
2018-02-23 2.81
2017-11-24 0.93
2017-08-25 -0.49
2017-05-26 0.07
2017-02-24 -0.60

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • SMART Global Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess SMART Global Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
SMART Global Holdings has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

850 Past Performance

  How has SMART Global Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare SMART Global Holdings's growth in the last year to its industry (Semiconductor).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • SMART Global Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • SMART Global Holdings's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • SMART Global Holdings's 1-year earnings growth is negative, it can't be compared to the DE Semiconductor industry average.
Earnings and Revenue History
SMART Global Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from SMART Global Holdings Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

BST:850 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-11-29 1,090.14 20.58 109.06 50.99
2019-08-30 1,212.00 51.33 101.72 47.92
2019-05-31 1,307.57 75.43 98.81 46.04
2019-03-01 1,407.39 105.43 94.10 44.48
2018-11-30 1,417.29 129.43 88.50 43.09
2018-08-31 1,288.82 119.46 80.86 39.82
2018-05-25 1,137.87 79.54 73.22 37.88
2018-02-23 1,009.37 55.55 71.82 36.92
2017-11-24 867.36 16.42 71.17 37.01
2017-08-25 761.29 -7.80 69.76 38.16
2017-05-26 684.47 0.95 67.57 38.80
2017-02-24 627.11 -8.35 65.06 39.67
2016-11-25 572.12 -12.35 61.79 38.68
2016-08-26 534.42 -19.96 61.50 38.12
2016-02-26 529.24 -49.30 70.58 38.70
2015-11-27 580.08 -48.64 80.28 39.06
2015-08-28 643.47 -46.45 89.30 42.16
2015-02-27 732.34 -26.11 98.17 52.56
2014-11-28 732.65 -23.26 97.98 58.67
2014-08-29 722.38 -14.44 96.90 61.02
2014-05-30 693.79 -9.92 93.52 61.50
2013-08-30 529.83 -51.34 85.46 54.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • SMART Global Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • SMART Global Holdings used its assets more efficiently than the DE Semiconductor industry average last year based on Return on Assets.
  • SMART Global Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess SMART Global Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Semiconductor industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
SMART Global Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

850 Health

 How is SMART Global Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up SMART Global Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • SMART Global Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • SMART Global Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of SMART Global Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from SMART Global Holdings Company Filings, last reported 4 months ago.

BST:850 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-11-29 271.78 200.34 111.39
2019-08-30 273.46 206.50 98.14
2019-05-31 242.08 207.52 126.10
2019-03-01 250.29 209.23 95.17
2018-11-30 229.67 210.40 62.95
2018-08-31 187.13 211.60 31.38
2018-05-25 166.36 158.68 64.50
2018-02-23 146.91 165.71 51.82
2017-11-24 98.75 170.75 23.50
2017-08-25 82.40 177.29 22.44
2017-05-26 27.38 210.93 22.34
2017-02-24 20.71 214.91 23.34
2016-11-25 -0.98 238.91 33.69
2016-08-26 -1.24 242.70 58.63
2016-02-26
2015-11-27
2015-08-28 8.64 247.00 68.09
2015-02-27 77.66 253.48 41.90
2014-11-28 128.24 255.68 76.48
2014-08-29 150.28 257.82 78.09
2014-05-30 162.82 253.29 64.16
2013-08-30 155.74 255.45 92.41
  • SMART Global Holdings's level of debt (73.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (201.1% vs 73.7% today).
  • Debt is well covered by operating cash flow (79.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.4x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess SMART Global Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. SMART Global Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

850 Dividends

 What is SMART Global Holdings's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from SMART Global Holdings dividends.
If you bought €2,000 of SMART Global Holdings shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate SMART Global Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate SMART Global Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
BST:850 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Europe Semiconductor Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 1.4%
Germany Market Average Dividend Yield Market Cap Weighted Average of 318 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

BST:850 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-08-31
2021-08-31
2020-08-31
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as SMART Global Holdings has not reported any payouts.
  • Unable to verify if SMART Global Holdings's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of SMART Global Holdings's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as SMART Global Holdings has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess SMART Global Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can SMART Global Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. SMART Global Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

850 Management

 What is the CEO of SMART Global Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ajay Shah
COMPENSATION $6,151,904
AGE 60
TENURE AS CEO 2.3 years
CEO Bio

Mr. Ajay B. Shah is Chairman of the Board at SMART Global Holdings, Inc. since March 2018 and has been its President & CEO since June 2018. Mr. Shah served as Co-Chief Executive Officer at SMART Global Holdings, Inc. since March 14, 2018 until 2018. He is a Senior Advisor at Sumeru Equity Partners, Inc. Mr. Shah co-founded Shah Capital Partners, L.P in 2004 and served as its Managing Partner. He is the Principal at Shah Capital Partners. He was responsible for mid-market technology private equity investments. He is the co-founder and Managing Partner at Silver Lake Sumeru. Mr. Shah serves as Co-Founding Managing Partner at Silver Lake. He served as Senior Operating Partner at Sumeru Equity Partners, Inc. He joined Silver Lake in 2007 as the Managing Partner and develops its middle market strategy. Prior to founding Shah Capital, he founded and managed the Technology Solutions Business at Solectron from 1999 to 2002. He co-founded Smart Modular Technologies in 1989 and served as its President and Chief Executive Officer and led through its public offering from 1995 and its sale to Solectron Corporation in 1999. He managed its growth to over $1 billion in revenues and directed its acquisition. He held strategic marketing management and product line management positions at Samsung Semiconductor, Inc. and at Advanced Micro Devices. He serves as the Chairman of the Board at Magellan Navigation Inc. He served as Chairman at SMART Worldwide Holdings, Inc. since April 2004. He has been a Director at National Audubon Society, Inc. since March 13, 2014. He serves as a Director at Outspoken, Cybera, Localweb, SMART Molecular, Krypton Isolation, Inc; Tachyon Networks, Inc.; Proactive Networks, Inc; Tachyon Corp.; API Microelectronics Limited; Mobile Messenger; and Vcustomer Inc. He serves a Director at CALIENT Technologies, Inc. He serves as a Member of the Board of Directors and advisory councils of many public, private and non-profit entities such as KQED Broadcasting, Stanford School of Engineering, Velocity Technology Solutions, Opera Solutions and Alpha Petroleum. He serves as a Member of Governing Board at The Indian School of Business. He serves as a Trustee of the American India Foundation (AIF). He served as a Director at Moser-Baer India Ltd. from January 28, 2005 to July 16, 2006. He served as the Chairman of SMART Modular Technologies (WWH) Inc. since April 2004. He served as a Member of the Board of Directors of NPTest Holding Corp. since August 2003. He served as a Director of ProactiveNet, Inc. He served as a Director of Magellan Navigation, Inc., AVI-SPL, Inc. and CMAC MicroTechnology. He served as a Director of Power-One Inc. since May 2009 until July 2013. He served as the Director of SMART Modular Technologies (WWH) Inc. from April 2004 to August 26, 2011. He served as a Member of the Board of Directors of Flextronics Corporation from 2002 to September 2, 2003, TES Electronic Solutions US Inc. from 2005 to 2011, Ashtech from 2006 to 2011, Flextronics International Ltd. from 2005 to 2009, Ingenient Technologies Inc. from 2005 to 2009, Northern California Public Broadcasting from 2003 to 2008 and PulseCore from 2006 to 2009. He was an Executive Chairman of SMART Global Holdings, Inc. from August 2011 to March 2018. He served as a Director of Spansion Inc. from May 10, 2010 to May 13, 2013. He was a Board member of The Tech Museum of Innovation. He served as a Member of Advisory Board at Meru Networks, Inc. and Shah Capital Partners, LP. He has extensive operating and investing experience in the technology sector. He is a senior fellow of the American Leadership Forum. He was elected Entrepreneur of the Year for Silicon Valley in 1997. Mr. Shah holds an M.S. in Engineering Management from Stanford University and a B.S. in Engineering with a major in Mechanical Engineering from the University of Baroda.

CEO Compensation
  • Insufficient data for Ajay to compare compensation growth.
  • Ajay's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the SMART Global Holdings management team in years:

5.4
Average Tenure
60
Average Age
  • The average tenure for the SMART Global Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ajay Shah

TITLE
Chairman
COMPENSATION
$6M
AGE
60
TENURE
2.3 yrs

Jack Pacheco

TITLE
Executive VP
COMPENSATION
$1M
AGE
59
TENURE
8.5 yrs

Alan Marten

TITLE
Senior Vice President of Specialty Memory
COMPENSATION
$1M
AGE
59
TENURE
12.5 yrs

KiWan Kim

TITLE
Senior VP of Emerging Markets & President of SMART Brazil
COMPENSATION
$938K
AGE
56
TENURE
10.3 yrs

Tom Coull

TITLE
Senior VP of Specialty Compute & Storage Solutions and CEO of Penguin Computing
COMPENSATION
$1M
AGE
64
TENURE
1.5 yrs

Suzanne Schmidt

TITLE
Investor Relations Officer

Bruce Goldberg

TITLE
VP, Chief Legal Officer
COMPENSATION
$1M
AGE
64
TENURE
10.7 yrs

Karl Motey

TITLE
Vice President of Strategic Marketing & Communications
TENURE
1.3 yrs

Stephen Dow

TITLE
Senior Vice President of Specialty Compute & Storage Solution
AGE
60
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the SMART Global Holdings board of directors in years:

7.1
Average Tenure
58
Average Age
  • The tenure for the SMART Global Holdings board of directors is about average.
Board of Directors

Sandeep Nayyar

TITLE
Independent Director
COMPENSATION
$205K
AGE
59
TENURE
5.6 yrs

Ajay Shah

TITLE
Chairman
COMPENSATION
$6M
AGE
60
TENURE
9.3 yrs

Mukesh Patel

TITLE
Independent Non-Employee Director
COMPENSATION
$197K
AGE
61
TENURE
7.1 yrs

Randy Furr

TITLE
Independent Director
COMPENSATION
$208K
AGE
64
TENURE
2.6 yrs

Ken Hao

TITLE
Director
AGE
50
TENURE
9.3 yrs

Paul Mercadante

TITLE
Director
AGE
58
TENURE
8.7 yrs

Jason White

TITLE
Director
AGE
38
TENURE
9.3 yrs

Bryan Ingram

TITLE
Independent Director
COMPENSATION
$234K
AGE
55
TENURE
1.5 yrs

Max Straub

TITLE
Independent Director
COMPENSATION
$264K
AGE
54
TENURE
1 yrs
Who owns this company?
Recent Insider Trading
  • SMART Global Holdings individual insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
22. Jan 20 Sell Thomas Coull Individual 21. Jan 20 21. Jan 20 -432 €30.90 €-13,350
02. Aug 19 Sell Stephen Dow Individual 17. Jul 19 17. Jul 19 -1,159 €27.95 €-32,389
02. Aug 19 Buy Stephen Dow Individual 17. Jul 19 17. Jul 19 17,059 €28.05 €478,573
X
Management checks
We assess SMART Global Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. SMART Global Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

850 News

Simply Wall St News

850 Company Info

Description

SMART Global Holdings, Inc. designs and manufactures electronic products focused in memory and computing technology areas. It offers dynamic random access memory (DRAM) modules for desktops, notebooks, and servers; and embedded and removable flash memory products; and flash component products, such as embedded multimedia controllers, and embedded and removal products in USB, CompactFlash and SD/microSD card configurations. The company also provides supply chain services, including procurement, logistics, inventory management, temporary warehousing, programming, kitting, and packaging. In addition, it offers specialty compute and storage system solutions to customers various verticals, including financial services, energy, government, social media, and education end markets; and offers hardware and software products, including solutions based on the Open Compute Project. Further it provides servers, software, integrated turn-key clusters, enterprise-grade storage, and bare metal HPC in hardware or cloud-based solutions through Penguin Computing On-Demand; Open Compute Tundra Extreme Scale products; turn-key storage solutions based upon its Frostbyte storage platform; and rackmount servers and GPU accelerated computing platforms. The company sells its products directly to original equipment manufacturers, enterprise, government and other end customers through direct sales force, customer service representatives, on-site field application engineers, independent sales representatives, distributors, integrators, and resellers. The company was formerly known as Saleen Holdings, Inc. and changed its name to SMART Global Holdings, Inc. in August 2014. SMART Global Holdings, Inc. was founded in 1988 and is headquartered in Newark, California.

Details
Name: SMART Global Holdings, Inc.
850
Exchange: BST
Founded: 1988
$459,682,994
23,993,029
Website: http://www.smartm.com
Address: SMART Global Holdings, Inc.
39870 Eureka Drive,
Newark,
California, 94560,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SGH Ordinary Shares Nasdaq Global Select US USD 24. May 2017
BST 850 Ordinary Shares Boerse-Stuttgart DE EUR 24. May 2017
Number of employees
Current staff
Staff numbers
1,712
SMART Global Holdings employees.
Industry
Semiconductors
Semiconductors
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 23:51
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2019/12/20
Last earnings reported: 2019/11/29
Last annual earnings reported: 2019/08/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.