SMSM
US • —
$26.10
P/E
11.07
PEG
—
FCF Yield
—
Rev Growth YoY
+27.4% YoY
Gross Margin
71.3%
Health Score
4/10
D/E Ratio
0.56
Confidence
LOW
Business Snapshot
The company operates with a gross margin of 71.3%, suggesting a high-margin business model likely in a technology or intellectual property-driven industry. It competes in a sector where revenue grew 27.4% year-over-year, though earnings declined sharply by 67.0%. The market capitalisation is not available from the data payload, preventing a clear size classification. A notable characteristic is the extremely thin net margin of 3.5%, which combined with the high gross margin points to significant operating or interest expenses that compress profitability.
Financial Health
The gross margin of 71.3% is strong, but the net margin of 3.5% reveals that most revenue is consumed by operating costs, interest, or taxes, leaving minimal bottom-line profitability. The debt/equity ratio of 0.56x is manageable and indicates the company is not overly leveraged...
Risk Assessment
- LIQUIDITY — Current ratio of 0.69x is below the 1.0x threshold, indicating that current liabilities exceed current assets and the company may face near-term liquidity pressure.
- EARNINGS QUALITY — Net margin of 3.5% is extremely thin relative to the gross margin of 71.3%, suggesting that operating or interest expenses are consuming nearly all gross profit.
- PROFITABILITY — Return on equity of 2.5% is very low, meaning the company generates minimal profit relative to shareholder equity.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DEBT — Debt/equity of 0.56x is manageable but the low current ratio offsets this, as high short-term obligations relative to current assets create refinancing risk....
The gross margin of 71.3% is strong, but the net margin of 3.5% reveals that most revenue is consumed by operating costs, interest, or taxes, leaving minimal bottom-line profitability. The debt/equity ratio of 0.56x is manageable and indicates the company is not overly leveraged. However, the current ratio of 0.69x is below 1.0, signalling potential liquidity risk as current liabilities exceed current assets. Return on equity is a thin 2.5%, which is low and suggests inefficient use of shareholder capital. Free cash flow is not available in the data, making it impossible to assess whether operations are self-funding or require external financing. Overall, the company has a fragile financial profile with limited earnings power and tight liquidity.
- LIQUIDITY — Current ratio of 0.69x is below the 1.0x threshold, indicating that current liabilities exceed current assets and the company may face near-term liquidity pressure. - EARNINGS QUALITY — Net margin of 3.5% is extremely thin relative to the gross margin of 71.3%, suggesting that operating or interest expenses are consuming nearly all gross profit. - PROFITABILITY — Return on equity of 2.5% is very low, meaning the company generates minimal profit relative to shareholder equity. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DEBT — Debt/equity of 0.56x is manageable but the low current ratio offsets this, as high short-term obligations relative to current assets create refinancing risk.
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