On the stock market since 1992, it operates in the world of raw materials. It has 6,900 employees. Now — the numbers.
This is an established company with proven profits.
An average decline of 9% a year over the last 4 years — the most striking risk in this picture. Red columns mark years that ended in a loss.
The gap is $2.3B. In times of high interest rates, a gap like that can squeeze a company.
Executives buying with their own money is usually read as confidence in the company’s future.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
The price looks reasonable next to what the company earns.
Clearly below the class average.
Clearly above the class average — a step short of the very top.
Growth: Sales growth trails the sector average.
Financial Strength: The cash-and-debt balance is thin; the buffer for hard times is slim.
An investor who bought at the very peak is down 61% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
It met or beat analyst expectations in 7 of the last 8 quarters — consistency is a promise kept.
Over the last 12 months, company executives reported 38 buys and 1 sell. Management buying with its own money is usually read as a good sign.
It pays out $2.64 per share each year — regular cash for whoever holds the stock.
Over the last 3 years, sales fell about 5% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The growth engine is running at low revs right now. Report-card grade: 31/100.
The balance sheet offers little cushion against a rough stretch. Report-card grade: 39/100.
On our five-subject report card, SMG sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: SMG is an established business that has proven its profits for years. The real debate here isn’t the price — it’s whether the company can keep up this pace.