Smart Sand, Inc. (SND) - Comprehensive Stock Analysis & Investment Research
Deep dive into Smart Sand, Inc.'s business profile, financial performance, AI predictions, and competitive positioning to make informed investment decisions.
Smart Sand, Inc. Investment Summary
When evaluating whether Smart Sand, Inc. (SND) represents a compelling investment opportunity, investors must consider multiple factors including the company's financial health, market position, growth prospects, and what our AI-powered predictive models suggest about its near-term price trajectory.
Company Profile
Smart Sand, Inc. (SND) operates within the Energy & Transportation sector, specifically in the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company employs approximately 103 people. With a market capitalization of $150 million, the company is a small-cap stock that may offer higher growth potential but also carries higher volatility.
Financial Performance Analysis
Smart Sand, Inc. generates annual revenues of approximately $335 million. The company currently reports a negative net margin of -2.0%, which investors should monitor closely.
From a profitability standpoint, the company has a Return on Equity (ROE) of -20.2%, suggesting room for improvement in capital efficiency. The Return on Assets (ROA) stands at -13.4%, suggesting potential for operational improvement. The gross margin of 12.1% suggests a competitive or commodity-driven business model.
Balance Sheet Strength
Examining the balance sheet health, the current ratio of 1.16x indicates the company can meet its short-term obligations, though with limited buffer. The debt-to-equity ratio of 0.15x reflects a conservative capital structure with low leverage.
Cash Flow Generation
Smart Sand, Inc. generates $7 million in annual free cash flow, providing financial flexibility for dividends, share buybacks, debt reduction, or strategic investments. Operating cash flow stands at $20 million, demonstrating the company's ability to generate cash from its core business operations. Year-over-year operating cash flow has changed by -42.8%, which merits investor attention.
Valuation Analysis
The P/E ratio of 38.5x indicates the market expects above-average growth from this company. Investors are paying a premium for anticipated future earnings expansion. The price-to-book ratio stands at 0.63x, potentially indicating undervaluation or market concerns about asset quality.
AI-Powered Price Predictions
Investment Considerations
When determining whether Smart Sand, Inc. is a suitable investment, consider your investment objectives, risk tolerance, and time horizon. As a small-cap stock, Smart Sand, Inc. may offer higher growth potential but also carries elevated volatility and risk.
This analysis is generated automatically using our proprietary AI systems and should not be considered personalized investment advice. Past performance does not guarantee future results. Always conduct your own research and consider consulting a financial advisor before making investment decisions.
Corporate Identity
Smart Sand, Inc. (Stock Symbol: SND) is a prominent company operating within the Energy & Transportation sector, with a specific focus on the Mining & Quarrying of Nonmetallic Minerals (No Fuels) industry. The company's shares are publicly traded on the Nasdaq exchange.
Leadership & Workforce
The organization employs approximately 103 professionals, which is characteristic of a lean, focused organization that may emphasize efficiency and specialized expertise.
Market Classification
With a market capitalization of $150 million, Smart Sand, Inc. is classified as a small-cap stock. Small-cap companies often represent emerging businesses with substantial growth potential. While these investments typically carry higher volatility, they can offer significant upside for investors willing to accept greater risk.
Sector & Industry Context
Operating within the Energy & Transportation sector, Smart Sand, Inc. is subject to the unique dynamics, opportunities, and challenges that characterize this segment of the economy.
Revenue & Growth Analysis
Smart Sand, Inc. generates annual revenues of $335 million , representing an emerging company in its growth phase. While smaller in scale, such companies often offer higher growth potential as they capture market share and expand their operations.
Profitability Analysis
The company achieves a -2.0% net profit margin, indicating the company is currently operating at a loss. This could reflect heavy growth investments, restructuring costs, or fundamental business challenges that require careful evaluation.
Gross profit margin stands at 12.1%, a thin margin characteristic of commodity-like businesses, high-volume/low-margin retailers, or intensely competitive markets.
Operating margin is -3.0%, suggesting high operating expenses relative to revenues, which may reflect growth investments or operational inefficiencies.
Market Valuation
Current market capitalization stands at $150 million . This small-cap classification typically represents higher-growth, higher-risk opportunities. Small-cap stocks can be more volatile but may offer substantial returns if the company successfully executes its growth strategy.
Return on Investment Metrics
Return on Equity (ROE) measures -20.2%, indicating negative shareholder returns, typically resulting from operating losses or exceptional write-downs.
Return on Assets (ROA) stands at -13.4%, indicating lower asset efficiency that may reflect industry norms or opportunities for operational improvement.
Return on Invested Capital (ROIC) measures -16.1%, which may indicate returns below the cost of capital, potentially destroying shareholder value over time if sustained.
Cash Flow Generation
Free cash flow generation of $7 million annually indicates positive cash generation, though at a modest level that may limit flexibility for major investments or returns to shareholders.
Operating cash flow reaches $20 million , with year-over-year growth of -42.8%. Operating cash flow represents the cash generated from core business operations before capital investments, providing insight into the sustainability of the company's business model.
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Strategic Market Position
Smart Sand, Inc. strategically competes in the highly dynamic Mining & Quarrying of Nonmetallic Minerals (No Fuels) marketplace. As a small-cap company, it represents an emerging market participant with potentially significant growth opportunities. Small-caps often offer greater growth potential as they capture market share and scale their operations, though this comes with higher risk and volatility. Success at this stage can lead to substantial returns for early investors who identify winning business models.
Industry Competitive Landscape
Smart Sand, Inc. competes within the Energy & Transportation sector, navigating the competitive dynamics and market forces specific to this industry. The company's competitive position depends on its ability to differentiate through product quality, cost efficiency, customer relationships, or other strategic advantages relevant to its specific market segment.
Operational Efficiency
The company shows positive operational efficiency through free cash flow generation of $7 million annually , with year-over-year cash flow growth of -42.8%. Positive free cash flow indicates the business generates more cash than required for operations and capital investments, providing resources for growth initiatives or shareholder returns.
Margin & Pricing Power Analysis
The company maintains a 12.1% gross margin characteristic of commodity-like businesses or high-volume, low-margin operators. Thin gross margins require exceptional operational efficiency and volume to generate meaningful profits. Companies at this margin level are particularly sensitive to cost increases or pricing pressures.
Operating margin of -3.0% demonstrates how efficiently the company converts revenues into operating profits after accounting for all operating expenses including research and development, sales and marketing, and general administrative costs. Operating margin compression relative to gross margin suggests high operating expenses that may warrant efficiency improvements or reflect necessary growth investments.
Asset Utilization Efficiency
Asset turnover ratio of 0.36x indicates lower asset turnover that may reflect the industry's capital-intensive nature or potentially underutilized assets. Companies with low turnover typically depend on strong margins to generate adequate returns on capital.
Financial Strength & Leverage
Current ratio of 1.16 suggests tight liquidity where current assets just cover current liabilities. This may be efficient but leaves limited cushion for unexpected needs.