Smith-Midland Corporation Isn't Cheap Enough For Another Upgrade
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Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(9min)CommentsSummarySmith-Midland Corporation remains a "Hold" as valuation, backlog decline, and barrier rental volatility offset relative cheapness.SMID's Q3 revenue fell to $21.5 million, driven by a sharp drop in barrier rental business, despite strength in SlenderWall and Easi-Set segments.Profitability and cash flows are improving, with adjusted operating cash flow rising to $9.9 million; major contract wins support growth.Backlog dropped from $62.8 million to $54.8 million, and while SMID trades cheaper than peers, absolute valuation is not compelling for an upgrade. Justin Paget/DigitalVision via Getty Images One company that, I think, is fascinating, but just not attractive enough to invest in, is Smith-Midland Corporation (SMID). In case you aren't familiar with the business, it produces and sells precast concrete products and systems that are used inThis article was written byDaniel Jones35.98K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You