SmartRent Profitability Analysis

SMRT Stock  USD 2.72  0.11  4.21%   
Based on SmartRent's profitability indicators, SmartRent may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in April. Profitability indicators assess SmartRent's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
2010-12-31
Previous Quarter
-34.6 M
Current Value
-36.3 M
Quarterly Volatility
29.9 M
 
Credit Downgrade
 
Yuan Drop
 
Covid
Operating Cash Flow Sales Ratio is likely to gain to 0.03 in 2024, whereas Price To Sales Ratio is likely to drop 2.57 in 2024. At this time, SmartRent's Net Interest Income is comparatively stable compared to the past year. Net Income Per E B T is likely to gain to 1.11 in 2024, whereas Accumulated Other Comprehensive Income is likely to drop (226.8 K) in 2024.
For SmartRent profitability analysis, we use financial ratios and fundamental drivers that measure the ability of SmartRent to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well SmartRent utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between SmartRent's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of SmartRent over time as well as its relative position and ranking within its peers.
  
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For more information on how to buy SmartRent Stock please use our How to Invest in SmartRent guide.
Is SmartRent's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of SmartRent. If investors know SmartRent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about SmartRent listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.17)
Revenue Per Share
1.18
Quarterly Revenue Growth
0.486
Return On Assets
(0.04)
Return On Equity
(0.1)
The market value of SmartRent is measured differently than its book value, which is the value of SmartRent that is recorded on the company's balance sheet. Investors also form their own opinion of SmartRent's value that differs from its market value or its book value, called intrinsic value, which is SmartRent's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because SmartRent's market value can be influenced by many factors that don't directly affect SmartRent's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between SmartRent's value and its price as these two are different measures arrived at by different means. Investors typically determine if SmartRent is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, SmartRent's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

SmartRent Current Liabilities vs. Market Capitalization Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining SmartRent's current stock value. Our valuation model uses many indicators to compare SmartRent value to that of its competitors to determine the firm's financial worth.
SmartRent is rated fifth in market capitalization category among related companies. It is rated fifth in current liabilities category among related companies creating about  0.35  of Current Liabilities per Market Capitalization. The ratio of Market Capitalization to Current Liabilities for SmartRent is roughly  2.84 . Non Current Liabilities Total is likely to gain to about 76.7 M in 2024, whereas Total Current Liabilities is likely to drop slightly above 86.1 M in 2024.. Comparative valuation analysis is a catch-all model that can be used if you cannot value SmartRent by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for SmartRent's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the SmartRent's earnings, one of the primary drivers of an investment's value.

SmartRent Market Capitalization vs. Competition

SmartRent is rated fifth in market capitalization category among related companies. Market capitalization of Information Technology industry is at this time estimated at about 5.64 Billion. SmartRent holds roughly 532.1 Million in market capitalization claiming about 9% of equities under Information Technology industry.
Capitalization  Workforce  Total debt  Valuation  Revenue

SmartRent Current Liabilities vs. Market Capitalization

Market Capitalization is the total market value of a company's equity. It is one of many ways to value a company and is calculated by multiplying the price of the stock by the number of shares issued. If a firm has one type of stock its market capitalization will be the current market share price multiplied by the number of shares. However, if a company has multiple types of equities then the market cap will be the total of the market caps of the different types of shares.

SmartRent

Market Cap

 = 

Shares Outstanding

X

Share Price

 = 
532.1 M
In most publications or references market cap is broken down into the mega-cap, large-cap, mid-cap, small-cap, micro-cap, and nano-cap. Market Cap is a measurement of business as total market value of all of the outstanding shares at a given time, and can be used to compare different companies based on their size.
Current Liabilities is the company's short term debt. This usually includes obligations that are due within the next 12 months or within one fiscal year. Current liabilities are very important in analyzing a company's financial health as it requires the company to convert some of its current assets into cash.

SmartRent

Current Liabilities

 = 

Payables

+

Accrued Debt

 = 
187.14 M
Current liabilities appear on the company's balance sheet and include all short term debt accounts, accounts and notes payable, accrued liabilities as well as current payments due on the long-term loans. One of the most useful applications of Current Liabilities is the current ratio which is defined as current assets divided by its current liabilities. High current ratios mean that current assets are more than sufficient to pay off current liabilities.

SmartRent Current Liabilities Comparison

SmartRent is currently under evaluation in current liabilities category among related companies.

SmartRent Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in SmartRent, profitability is also one of the essential criteria for including it into their portfolios because, without profit, SmartRent will eventually generate negative long term returns. The profitability progress is the general direction of SmartRent's change in net profit over the period of time. It can combine multiple indicators of SmartRent, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-216 K-226.8 K
Operating Income-43.2 M-45.3 M
Income Before Tax-34.7 M-36.4 M
Total Other Income Expense Net-116 K-121.8 K
Net Loss-34.6 M-36.3 M
Income Tax Expense-108 K-113.4 K
Net Loss-86.7 M-91 M
Net Interest Income7.3 M7.6 M
Net Loss-52.7 M-55.3 M
Non Operating Income Net Other684.2 K357.5 K
Interest Income7.3 M5.1 M
Change To Netincome15.5 M13.8 M
Net Income Per E B T 1.00  1.11 

SmartRent Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on SmartRent. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of SmartRent position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the SmartRent's important profitability drivers and their relationship over time.

SmartRent Profitability Trends

SmartRent profitability trend refers to the progression of profit or loss within a business. An upward trend means that SmartRent's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is SmartRent's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

SmartRent Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between SmartRent different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards SmartRent in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down SmartRent's future profitability.

Use SmartRent in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if SmartRent position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in SmartRent will appreciate offsetting losses from the drop in the long position's value.

SmartRent Pair Trading

SmartRent Pair Trading Analysis

The ability to find closely correlated positions to SmartRent could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace SmartRent when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back SmartRent - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling SmartRent to buy it.
The correlation of SmartRent is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as SmartRent moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if SmartRent moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for SmartRent can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your SmartRent position

In addition to having SmartRent in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Corona Opportunity
Corona Opportunity Theme
Firms that are involved in some capacity in making products or providing services to the public to buttle the virus directly or indirectly. This also includes some defencive and contrarian stocks and ETFs that are managing to avoid the big market correction coused by coronavirus. The Corona Opportunity theme has 46 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Corona Opportunity Theme or any other thematic opportunities.
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When determining whether SmartRent is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if SmartRent Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Smartrent Stock. Highlighted below are key reports to facilitate an investment decision about Smartrent Stock:
Check out World Market Map.
For more information on how to buy SmartRent Stock please use our How to Invest in SmartRent guide.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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When running SmartRent's price analysis, check to measure SmartRent's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SmartRent is operating at the current time. Most of SmartRent's value examination focuses on studying past and present price action to predict the probability of SmartRent's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SmartRent's price. Additionally, you may evaluate how the addition of SmartRent to your portfolios can decrease your overall portfolio volatility.
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To fully project SmartRent's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of SmartRent at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include SmartRent's income statement, its balance sheet, and the statement of cash flows.
Potential SmartRent investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although SmartRent investors may work on each financial statement separately, they are all related. The changes in SmartRent's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on SmartRent's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.