SMID - Smith-Midland: Good 2024 Is Not Enough For Its High Stock Price, Remains A Hold
2025-03-05 10:29:20 ET
Summary
- I maintain a Hold rating on Smith-Midland due to overly optimistic stock prices despite improved margins and revenue growth.
- SMID's revenue grew 60% YoY, driven by barrier rentals and utility vault sales, but the sustainability of these trends is uncertain.
- Higher operating margins of 13-16% were achieved, but future margins are questionable due to lumpiness in revenue and increased CAPEX.
- Even under optimistic scenarios, SMID's current valuation requires tripling revenues to justify a moderate return, making it a risky investment.
Smith-Midland ( SMID ) is a pre-cast concrete and cement product company, offering architectural walls, sound barriers, highway barriers, utility vaults, and related products....
Smith-Midland: Good 2024 Is Not Enough For Its High Stock Price, Remains A Hold