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Smith Micro Software

Nasdaq:SMSI
Snowflake Description

Very undervalued with flawless balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SMSI
Nasdaq
$174M
Market Cap
  1. Home
  2. US
  3. Software
Company description

Smith Micro Software, Inc. develops and sells software to enhance the mobile experience to wireless service providers and cable multiple service operators worldwide. The last earnings update was 17 days ago. More info.


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  • Smith Micro Software has significant price volatility in the past 3 months.
SMSI Share Price and Events
7 Day Returns
-5.8%
NasdaqCM:SMSI
2.5%
US Software
0.7%
US Market
1 Year Returns
122.2%
NasdaqCM:SMSI
32.7%
US Software
13.7%
US Market
SMSI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Smith Micro Software (SMSI) -5.8% -28.4% -29.6% 122.2% 189.1% -4.4%
US Software 2.5% 9.9% 4.7% 32.7% 116.8% 154.3%
US Market 0.7% 4.7% 6.1% 13.7% 39.2% 44.5%
1 Year Return vs Industry and Market
  • SMSI outperformed the Software industry which returned 32.7% over the past year.
  • SMSI outperformed the Market in United States of America which returned 13.7% over the past year.
Price Volatility
SMSI
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Smith Micro Software 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 Smith Micro Software 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 Smith Micro Software.

NasdaqCM:SMSI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqCM:SMSI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.126 (1 + (1- 21%) (4.01%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.108 * 5.96%)
9.34%

Discounted Cash Flow Calculation for NasdaqCM:SMSI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Smith Micro Software 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.

NasdaqCM:SMSI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.34%)
2020 14.04 Analyst x1 12.84
2021 17.89 Analyst x1 14.97
2022 20.82 Est @ 16.39% 15.93
2023 23.38 Est @ 12.29% 16.36
2024 25.59 Est @ 9.42% 16.38
2025 27.48 Est @ 7.41% 16.09
2026 29.14 Est @ 6.01% 15.60
2027 30.60 Est @ 5.03% 14.98
2028 31.93 Est @ 4.34% 14.30
2029 33.16 Est @ 3.85% 13.58
Present value of next 10 years cash flows $151.00
NasdaqCM:SMSI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $33.16 × (1 + 2.73%) ÷ (9.34% – 2.73%)
$515.62
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $515.62 ÷ (1 + 9.34%)10
$211.20
NasdaqCM:SMSI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $151.00 + $211.20
$362.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $362.20 / 38.50
$9.41
NasdaqCM:SMSI Discount to Share Price
Calculation Result
Value per share (USD) From above. $9.41
Current discount Discount to share price of $4.51
= -1 x ($4.51 - $9.41) / $9.41
52.1%

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

Current Discount
Amount off the current price Smith Micro Software is available for.
Intrinsic value
>50%
Share price is $4.51 vs Future cash flow value of $9.41
Current Discount Checks
For Smith Micro Software to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Smith Micro Software's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Smith Micro Software's share price is below the future cash flow value, and at a substantial discount (> 40%).
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 Smith Micro Software's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Smith Micro Software's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqCM:SMSI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $0.31
NasdaqCM:SMSI Share Price ** NasdaqCM (2019-11-18) in USD $4.51
United States of America Software Industry PE Ratio Median Figure of 71 Publicly-Listed Software Companies 44.43x
United States of America Market PE Ratio Median Figure of 2,924 Publicly-Listed Companies 18.25x

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

** Primary Listing of Smith Micro Software.

NasdaqCM:SMSI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqCM:SMSI Share Price ÷ EPS (both in USD)

= 4.51 ÷ 0.31

14.7x

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

  • Smith Micro Software is good value based on earnings compared to the US Software industry average.
  • Smith Micro Software is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Smith Micro Software's expected growth come at a high price?
Raw Data
NasdaqCM:SMSI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
25.9%per year
United States of America Software Industry PEG Ratio Median Figure of 60 Publicly-Listed Software Companies 2.54x
United States of America Market PEG Ratio Median Figure of 2,038 Publicly-Listed Companies 1.46x

*Line of best fit is calculated by linear regression .

NasdaqCM:SMSI PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.7x ÷ 25.9%

0.57x

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

  • Smith Micro Software is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Smith Micro Software's assets?
Raw Data
NasdaqCM:SMSI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $1.16
NasdaqCM:SMSI Share Price * NasdaqCM (2019-11-18) in USD $4.51
United States of America Software Industry PB Ratio Median Figure of 214 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,086 Publicly-Listed Companies 1.76x
NasdaqCM:SMSI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqCM:SMSI Share Price ÷ Book Value per Share (both in USD)

= 4.51 ÷ 1.16

3.88x

* Primary Listing of Smith Micro Software.

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

  • Smith Micro Software is good value based on assets compared to the US Software industry average.
X
Value checks
We assess Smith Micro Software'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 Software 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 Software industry average (and greater than 0)? (1 check)
  5. Smith Micro Software has a total score of 6/6, 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.

Future Performance

 How is Smith Micro Software expected to perform in the next 1 to 3 years based on estimates from 3 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
25.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Smith Micro Software expected to grow at an attractive rate?
  • Smith Micro Software's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Smith Micro Software's earnings growth is expected to exceed the United States of America market average.
  • Smith Micro Software's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqCM:SMSI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqCM:SMSI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 25.9%
NasdaqCM:SMSI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 20.9%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 14.7%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NasdaqCM:SMSI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqCM:SMSI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 64 17 1
2020-12-31 52 8 12 3
2019-12-31 44 3 10 2
2019-11-18
NasdaqCM:SMSI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 38 5 10
2019-06-30 33 -2 5
2019-03-31 29 -2 -1
2018-12-31 26 -3 -3
2018-09-30 25 -5 -6
2018-06-30 24 -6 -7
2018-03-31 23 -8 -6
2017-12-31 23 -7 -7
2017-09-30 24 -9 -10
2017-06-30 25 -12 -13
2017-03-31 27 -13 -15
2016-12-31 28 -12 -15

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Smith Micro Software's earnings are expected to grow significantly at over 20% yearly.
  • Smith Micro Software's revenue is expected to grow significantly at over 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
NasdaqCM:SMSI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Smith Micro Software Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:SMSI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 0.40 0.40 0.40 1.00
2020-12-31 0.31 0.33 0.27 3.00
2019-12-31 0.26 0.27 0.25 2.00
2019-11-18
NasdaqCM:SMSI Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 0.31
2019-06-30 0.18
2019-03-31 -0.02
2018-12-31 -0.14
2018-09-30 -0.32
2018-06-30 -0.41
2018-03-31 -0.44
2017-12-31 -0.49
2017-09-30 -0.79
2017-06-30 -1.06
2017-03-31 -1.20
2016-12-31 -1.28

*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.
  • Unable to establish if Smith Micro Software will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Smith Micro Software'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Smith Micro Software 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.

Past Performance

  How has Smith Micro Software 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 Smith Micro Software's growth in the last year to its industry (Software).
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.
  • Smith Micro Software has delivered over 20% year on year earnings growth in the past 5 years.
  • Smith Micro Software has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Smith Micro Software has become profitable in the last year making it difficult to compare the US Software industry average.
Earnings and Revenue History
Smith Micro Software'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 Smith Micro Software Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqCM:SMSI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 38.42 9.70 16.66 10.59
2019-06-30 33.16 5.16 15.82 9.58
2019-03-31 29.25 -0.61 15.14 9.03
2018-12-31 26.29 -3.14 14.39 8.60
2018-09-30 24.67 -6.07 14.21 8.68
2018-06-30 23.94 -6.71 14.48 8.73
2018-03-31 22.86 -6.30 14.68 8.71
2017-12-31 22.97 -6.66 14.74 8.95
2017-09-30 24.33 -10.23 15.60 10.47
2017-06-30 25.00 -13.19 17.03 12.55
2017-03-31 26.60 -14.52 18.68 14.48
2016-12-31 28.24 -15.34 19.56 15.91
2016-09-30 31.16 -12.21 20.22 15.80
2016-06-30 34.27 -8.35 20.07 15.11
2016-03-31 36.19 -6.30 19.82 14.45
2015-12-31 39.51 -2.60 20.03 13.86
2015-09-30 40.06 -1.81 20.02 13.41
2015-06-30 39.92 -2.18 20.31 13.12
2015-03-31 39.06 -6.64 20.93 13.28
2014-12-31 36.98 -11.80 22.78 14.19
2014-09-30 38.27 -13.51 24.69 15.16
2014-06-30 37.57 -25.41 27.77 17.33
2014-03-31 39.52 -26.96 31.48 19.62
2013-12-31 42.68 -27.95 33.89 21.31
2013-09-30 42.86 -30.59 35.64 22.84
2013-06-30 45.13 -22.36 36.43 23.33
2013-03-31 44.82 -21.94 36.10 23.60
2012-12-31 43.33 -25.46 36.88 24.77

*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.
  • Smith Micro Software has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Smith Micro Software used its assets more efficiently than the US Software industry average last year based on Return on Assets.
  • Smith Micro Software has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Smith Micro Software'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 Software 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.
Smith Micro Software has a total score of 4/6, 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.

Health

 How is Smith Micro Software'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 Smith Micro Software's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Smith Micro Software is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Smith Micro Software's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Smith Micro Software'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.
  • Low level of unsold assets.
  • Smith Micro Software has no debt, it does not need to be covered by short term assets.
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 Smith Micro Software Company Filings, last reported 1 month ago.

NasdaqCM:SMSI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 44.79 0.00 23.87
2019-06-30 29.67 0.00 6.61
2019-03-31 26.04 0.00 7.38
2018-12-31 20.56 0.00 12.16
2018-09-30 3.14 2.96 8.39
2018-06-30 3.98 2.89 8.75
2018-03-31 3.73 2.82 3.65
2017-12-31 4.57 3.76 2.21
2017-09-30 4.56 3.69 3.94
2017-06-30 0.47 4.32 2.38
2017-03-31 0.65 4.12 2.50
2016-12-31 3.06 2.59 2.23
2016-09-30 5.39 1.77 5.94
2016-06-30 7.63 0.00 7.13
2016-03-31 10.59 0.00 13.08
2015-12-31 14.03 0.00 12.90
2015-09-30 14.15 0.00 12.61
2015-06-30 14.50 0.00 11.50
2015-03-31 15.33 0.00 13.78
2014-12-31 14.90 0.00 13.05
2014-09-30 14.25 0.00 12.69
2014-06-30 9.61 0.00 6.26
2014-03-31 13.71 0.00 11.25
2013-12-31 18.17 0.00 14.84
2013-09-30 18.92 0.00 18.06
2013-06-30 31.16 0.00 23.46
2013-03-31 37.44 0.00 28.26
2012-12-31 42.66 0.00 32.20
  • Smith Micro Software has no debt.
  • Smith Micro Software currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • Smith Micro Software has no debt, it does not need to be covered by operating cash flow.
  • Smith Micro Software has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Smith Micro Software'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. Smith Micro Software has a total score of 6/6, 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.

Dividends

 What is Smith Micro Software'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 Smith Micro Software dividends.
If you bought $2,000 of Smith Micro Software 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 Smith Micro Software's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Smith Micro Software'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
NasdaqCM:SMSI 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 3 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1956 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

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

NasdaqCM:SMSI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31
2019-12-31
2019-11-18

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

  • Unable to perform a dividend volatility check as Smith Micro Software has not reported any payouts.
  • Unable to verify if Smith Micro Software's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Smith Micro Software's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Smith Micro Software 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 Smith Micro Software's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Smith Micro Software afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Smith Micro Software 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.

Management

 What is the CEO of Smith Micro Software'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
William Smith
COMPENSATION $900,127
AGE 71
TENURE AS CEO 37.8 years
CEO Bio

Mr. William W. Smith, Jr., co-founded Smith Micro Software Inc. in 1982 and has been its Chairman of the Board, President and Chief Executive Officer since 1982. Mr. Smith served at Rockwell International Corporation in a variety of technical and management positions from 1975 to 1984. He served at Xerox Data Systems from 1972 to 1975 and RCA Computer Systems Division from 1969 to 1972 in mainframe sales and pre-sale technical roles. He has been a Director of Smith Micro Software Inc. since 1982. Mr. Smith received a B.A. in Business Administration from Grove City College.

CEO Compensation
  • William's compensation has increased in line with Smith Micro Software recently becoming profitable.
  • William's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Smith Micro Software management team in years:

6.3
Average Tenure
53
Average Age
  • The average tenure for the Smith Micro Software management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

William Smith

TITLE
Co-Founder
COMPENSATION
$900K
AGE
71
TENURE
37.8 yrs

Tim Huffmyer

TITLE
VP, CFO
COMPENSATION
$578K
AGE
45
TENURE
2.4 yrs

David Sperling

TITLE
VP, Chief Technology Officer & Director of Software Engineering
COMPENSATION
$584K
AGE
50
TENURE
20.2 yrs

Gail Redmond

TITLE
Senior Vice President of Worldwide Sales
COMPENSATION
$586K
AGE
57
TENURE
3.1 yrs

Ken Shebek

TITLE
VP of Operations & Chief Information Officer
COMPENSATION
$398K
AGE
56
TENURE
8.9 yrs

Charles Messman

TITLE
Vice President of Investor Relations & Corporate Development
COMPENSATION
$312K
AGE
48
TENURE
3.6 yrs
Board of Directors Tenure

Average tenure and age of the Smith Micro Software board of directors in years:

11.7
Average Tenure
69.5
Average Age
  • The average tenure for the Smith Micro Software board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

William Smith

TITLE
Co-Founder
COMPENSATION
$900K
AGE
71
TENURE
37.8 yrs

Tom Campbell

TITLE
Independent Director
COMPENSATION
$47K
AGE
68
TENURE
24.3 yrs

Sam Gulko

TITLE
Independent Director
COMPENSATION
$47K
AGE
87
TENURE
15.1 yrs

Andy Arno

TITLE
Independent Director
COMPENSATION
$47K
AGE
60
TENURE
8.3 yrs

Greg Szabo

TITLE
Independent Director
COMPENSATION
$47K
AGE
71
TENURE
8.3 yrs

Steve Elfman

TITLE
Independent Director
COMPENSATION
$47K
AGE
63
TENURE
5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
16. Aug 19 Sell Thomas Campbell Individual 13. Aug 19 13. Aug 19 -20,000 $6.19 $-123,800
02. Aug 19 Sell Timothy Huffmyer Individual 30. Jul 19 30. Jul 19 -42,000 $5.48 $-230,160
14. May 19 Sell Thomas Campbell Individual 13. May 19 13. May 19 -5,000 $3.20 $-16,000
X
Management checks
We assess Smith Micro Software'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. Smith Micro Software 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.

News

Simply Wall St News

Are Smith Micro Software, Inc.’s (NASDAQ:SMSI) Returns On Investment Worth Your While?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Smith Micro Software:0.11 = US$4.0m ÷ (US$41m - US$4.9m) (Based on the trailing twelve months to June 2019.) So, Smith Micro Software has an ROCE of 11%. … Check out our latest analysis for Smith Micro Software Is Smith Micro Software's ROCE Good? … Do Smith Micro Software's Current Liabilities Skew Its ROCE?

Simply Wall St -

Are Investors Undervaluing Smith Micro Software, Inc. (NASDAQ:SMSI) By 42%?

Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the foreast future cash flows of the company and discounting them back to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $14.1m $18.3m $21.8m $24.9m $27.6m $29.9m $31.9m $33.7m $35.2m $36.7m Growth Rate Estimate Source Analyst x1 Analyst x1 Est @ 19.16% Est @ 14.23% Est @ 10.78% Est @ 8.37% Est @ 6.67% Est @ 5.49% Est @ 4.66% Est @ 4.08% Present Value ($, Millions) Discounted @ 9.27% $12.9 $15.3 $16.7 $17.5 $17.7 $17.6 $17.2 $16.6 $15.9 $15.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $162.4m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$37m × (1 + 2.7%) ÷ (9.3% – 2.7%) = US$576m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$576m ÷ ( 1 + 9.3%)10 = $237.51m The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $399.95m.

Simply Wall St -

Boasting A 18% Return On Equity, Is Smith Micro Software, Inc. (NASDAQ:SMSI) A Top Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Smith Micro Software: 18% = US$5.2m ÷ US$30m (Based on the trailing twelve months to June 2019.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Does Smith Micro Software Have A Good Return On Equity? … Combining Smith Micro Software's Debt And Its 18% Return On Equity Shareholders will be pleased to learn that Smith Micro Software has not one iota of net debt!

Simply Wall St -

Is Smith Micro Software, Inc.'s (NASDAQ:SMSI) CEO Pay Fair?

View our latest analysis for Smith Micro Software How Does William Smith's Compensation Compare With Similar Sized Companies? … As you can see, William Smith is paid more than the median CEO pay at companies of a similar size, in the same market. … We compared total CEO remuneration at Smith Micro Software, Inc.

Simply Wall St -

Imagine Owning Smith Micro Software (NASDAQ:SMSI) And Wondering If The 13% Share Price Slide Is Justified

Check out our latest analysis for Smith Micro Software Smith Micro Software isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … In the last five years Smith Micro Software saw its revenue shrink by 12% per year. … If you would like to research Smith Micro Software in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Simply Wall St -

Could The Smith Micro Software, Inc. (NASDAQ:SMSI) Ownership Structure Tell Us Something Useful?

The big shareholder groups in Smith Micro Software, Inc. … With a market capitalization of US$93m, Smith Micro Software is a small cap stock, so it might not be well known by many institutional investors. … Check out our latest analysis for Smith Micro Software

Simply Wall St -

Imagine Owning Smith Micro Software And Trying To Stomach The 78% Share Price Drop

For example, we sympathize with anyone who was caught holding Smith Micro Software, Inc. … Smith Micro Software isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Over half a decade Smith Micro Software reduced its trailing twelve month revenue by 13% for each year.

Simply Wall St -

Is Smith Micro Software, Inc.'s (NASDAQ:SMSI) Balance Sheet Strong Enough To Weather A Storm?

While small-cap stocks, such as Smith Micro Software, Inc. … (NASDAQ:SMSI) with its market cap of US$56m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn.

Simply Wall St -

How Financially Strong Is Smith Micro Software Inc (NASDAQ:SMSI)?

Smith Micro Software Inc (NASDAQ:SMSI) is a small-cap stock with a market capitalization of US$62.26m. … While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … So, understanding the company's financial health becomes

Simply Wall St -

Want To Invest In Smith Micro Software Inc (NASDAQ:SMSI)? Here's How It Performed Lately

In this article, I will take a look at Smith Micro Software Inc's (NASDAQ:SMSI) most recent earnings update (31 March 2018) and compare these latest figures against its performance over the past few years, along with how the rest of SMSI's industry performed. … See our latest analysis for Smith Micro Software? … SMSI is loss-making, with the most recent trailing twelve-month earnings of -US$6.30m (from 31 March 2018), which compared to last year has become.

Simply Wall St -

Company Info

Description

Smith Micro Software, Inc. develops and sells software to enhance the mobile experience to wireless service providers and cable multiple service operators worldwide. The company’s Wireless segment offers SafePath Family, a platform that provides family real time location, protection, and parental control services; SafePath Internet of Things, a platform that provides connected digital life experience through child and elderly wearable locators, pet trackers, car trackers, and connected home security devices; CommSuite that allows users to manage voice messages, as well as voice-to-text transcription messaging; ViewSpot, a retail platform that provides on-screen and interactive demos to wireless carriers and retailers, as well as offers analytical capabilities; NetWise Optics, a mobile analytics solution; and NetWise Passport, an automated user onboarding and Wi-Fi service provisioning solution. Its Graphics segment develops various software products, including graphic design and animation, compression, and PC/Mac utilities for consumers, professional artists, and educators. This segment offers Poser, a 3D rendering and animation software for photorealistic characters, art, illustration, and digital design; Moho, a 2D animation program for creating movies, cartoons, anime, and cut out animations; PhotoDonut, a software tool for creating artistic effects; Rebelle, a digital painting solution that creates arts through water colors, acrylics, and any wet and dry media; MotionArtist, a solution for creating animatics and interactive presentations; and StuffIt Deluxe, a solution for documents and media. The company provides its products through direct sales on its Websites, as well as through affiliate Websites, resellers, and retail outlets. It also offers technical support and customer services. Smith Micro Software, Inc. was founded in 1982 and is headquartered in Pittsburgh, Pennsylvania.

Details
Name: Smith Micro Software, Inc.
SMSI
Exchange: NasdaqCM
Founded: 1982
$173,646,324
38,502,511
Website: http://www.smithmicro.com
Address: Smith Micro Software, Inc.
5800 Corporate Drive,
Pittsburgh,
Pennsylvania, 15237,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqCM SMSI Common Stock Nasdaq Capital Market US USD 19. Sep 1995
DB SS91 Common Stock Deutsche Boerse AG DE EUR 19. Sep 1995
Number of employees
Current staff
Staff numbers
153
Smith Micro Software employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 23:47
End of day share price update: 2019/11/18 00:00
Last estimates confirmation: 2019/10/25
Last earnings filing: 2019/11/01
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


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.