SmartRent, Inc. (NYSE: SMRT)

Sector: Technology Industry: Software - Application CIK: 0001837014
Market Cap 345.59 Mn
P/B 1.47
P/E -5.03
P/S 2.29
ROIC (Qtr) -31.11
Div Yield % 0.00
Rev 1y % (Qtr) -10.63
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

SmartRent, Inc. (SMRT), a prominent player in the real estate technology industry, offers a comprehensive management platform designed for property owners, managers, and residents. The company's primary business activities revolve around providing smart building hardware and cloud-based software-as-a-service (SaaS) solutions, which offer seamless visibility and control over real estate assets. These solutions are particularly tailored for the multifamily residential and single-family rental home sectors. SmartRent's revenue generation is primarily...

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Price action

Investment thesis

Bull case

  • Operating cash flow of (41.25M) fully covers other non-current liabilities (29.99M) by 1.38x, showing strong long-term stability.
  • Strong cash position of 100.02M provides 1.62x coverage of other current liabilities 61.81M, indicating excellent liquidity.
  • Cash reserves of 100.02M provide robust 1.38x coverage of current liabilities 72.62M, indicating strong short-term solvency.
  • R&D investment of 27.80M represents healthy 0.47x of deferred revenue 58.76M, indicating strong future innovation pipeline.
  • Cash position of 100.02M represents healthy 0.78x of working capital 128.84M, demonstrating strong operational liquidity.

Bear case

  • Investment activities of (9.52M) provide weak support for R&D spending of 27.80M, which is -0.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (41.25M) provides insufficient coverage of deferred revenue obligations of 58.76M, which is -0.70x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (41.25M) shows concerning coverage of stock compensation expenses of 9.63M, with a -4.28 ratio indicating potential earnings quality issues.
  • Operating cash flow of (41.25M) provides minimal -154.48x coverage of tax expenses of 267000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (50.76M) provides weak coverage of capital expenditures of 9.52M, with a -5.33 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Software - Application
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SAP Sap Se 288.31 Bn 34.60 6.72 10.73 Bn
2 CRM Salesforce, Inc. 248.32 Bn 34.38 6.16 11.14 Bn
3 SHOP Shopify Inc. 212.27 Bn 119.19 19.85 1.12 Bn
4 INTU Intuit Inc. 180.73 Bn 43.89 9.30 6.78 Bn
5 UBER Uber Technologies, Inc 178.38 Bn 10.72 3.60 12.19 Bn
6 NOW ServiceNow, Inc. 146.98 Bn 84.91 11.60 2.40 Bn
7 ADBE Adobe Inc. 144.48 Bn 20.77 6.23 6.64 Bn
8 ADP Automatic Data Processing Inc 108.20 Bn 26.16 5.18 9.77 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.72 2.65
EV to Cash from Ops. EV/CFO -5.83 13.37
EV to Debt EV to Debt 0.00 57.69
EV to EBIT EV/EBIT -3.51 19.12
EV to EBITDA EV/EBITDA -3.76 15.00
EV to Free Cash Flow [EV/FCF] EV/FCF -4.74 14.69
EV to Market Cap EV to Market Cap 0.70 -92.28
EV to Revenue EV/Rev 1.59 4.60
Price to Book Value [P/B] P/B 1.47 4.26
Price to Earnings [P/E] P/E -5.03 -136.90
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -3.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.25
Dividend per Basic Share Div per Share (Qtr) 0.00 0.15
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.52
Interest Coverage Int. cover (Qtr) 0.00 -52.32
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -73.47 -259.78
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -38.88 9,763.58
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.61
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -169.35 -263.15
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -137.79 56.46
EBIT Growth (1y) % EBIT 1y % (Qtr) -168.77 -225.15
EBT Growth (1y) % EBT 1y % (Qtr) -168.77 -86.10
EPS Growth (1y) % EPS 1y % (Qtr) -200.00 123.84
FCF Growth (1y) % FCF 1y % (Qtr) -166.66 -36.82
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -31.60 95.08
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.58
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.38 3.75
Current Ratio Curr Ratio (Qtr) 2.77 8.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.17
Interest Cover Ratio Int Coverage (Qtr) 0.00 -52.32
Times Interest Earned Times Interest Earned (Qtr) 0.00 -52.32
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -39.40 -100.06
EBIT Margin % EBIT Margin % (Qtr) -45.28 -164.24
EBT Margin % EBT Margin % (Qtr) -45.28 -116.94
Gross Margin % Gross Margin % (Qtr) 30.40 58.20
Net Profit Margin % Net Margin % (Qtr) -45.50 -121.65