SMJ International Holdings Inc. (SMJF)

Consumer Cyclical · ASE

USD5.57-0.36% today

Fundamentals

Market capUSD142.96M
P/E ratio172.0
Revenue growth (YoY)+8.6%
Profit margin5.3%
52-week rangeUSD0.82 to USD7.00

Valuation and ratings

DCF fair valueUSD2.06
Upside to fair value-63.0%
Moat score27/100
Overall rating17/100, Sell

Fair value: USD2.06 (-63.0%), see how we got there

SMJ International Holdings Inc. trades at USD5.57, which is 63% above the USD2.06 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 27 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 172.0 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About SMJ International Holdings Inc.

SMJ International Holdings Inc., through its subsidiaries, engages in the sale and distribution of a range of flooring products. It offers flooring products, such as carpet tiles, broadloom carpets, and vinyl tiles under the proprietary brand, SMJ in Singapore, as well as in Malaysia, Indonesia, Philippines, Hong Kong, the People's Republic of China, Taiwan, Korea, Thailand, Vietnam, Brunei, India, Sri Lanka, the United Arab Emirates, Saudi Arabia, Maldives, Brazil, Uruguay, Chile, Australia, Kuwait, and the United Kingdom. The company sells its flooring products primarily through a distribution network of dealers, importers, and installation companies. SMJ International Holdings Inc. was founded in 1988 and is based in Singapore.

Industry: Textile ManufacturingEmployees: 41HQ: Singapore

Common questions

Is SMJ International Holdings Inc. (SMJF) undervalued?

Against our discounted cash flow estimate of USD2.06, SMJF at USD5.57 is 63% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is SMJF's P/E ratio?

SMJF trades at 172.0 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.