Smart Sand, Inc. (SND) stock analysis

P/E below its 5-year median

Smart Sand's P/E of 11.8 is below its own 5-year median of 20.9.

P/E below the industry

Smart Sand's P/E of 11.8 is below the Mining & quarrying of nonmetallic minerals (no fuels) median of 25.1.

EV/EBITDA above its 5-year median

Smart Sand's EV/EBITDA of 6.6 is above its 5-year median of 6.1.

P/B below the industry

Smart Sand's price-to-book of 0.78 is below the Mining & quarrying of nonmetallic minerals (no fuels) median of 1.80.

Trading below fair value

The share price of $4.49 is below our fair value estimate of $6.51.

Margin of safety over 20%

The price is 31.0% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 8.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings growth accelerating

Net income grew 306% over the last twelve months, against a 5-year average of -48.7% a year.

Growing faster than the industry

Revenue grew 21.2% over the last twelve months; the Mining & quarrying of nonmetallic minerals (no fuels) median is 8.3%.

Guidance raised

Smart Sand raised its 2026 sales volumes outlook on Aug 11, 2026.

Gross margin improving

Gross margin was 13.9% over the last twelve months, against 12.0% a year earlier.

Return on equity under 15%

Return on equity was 6.6% over the last twelve months and averaged -3.1% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was 4.8%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

Smart Sand's return on equity of 6.6% is above the Mining & quarrying of nonmetallic minerals (no fuels) median of 4.8%.

Earnings shrank over 5 years

Net income shrank 48.7% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 3.9% over the last twelve months, against a 5-year average of -7.5%.

Net margin below the industry

Smart Sand's net margin of 3.9% is below the Mining & quarrying of nonmetallic minerals (no fuels) median of 4.2%.

Low debt

Debt is 5.4% of shareholders' equity, under the 40% we consider low.

Debt falling against equity

Debt to equity fell from 10.2% five years ago to 5.4%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 378% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 1.81 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.74; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Smart Sand paid dividends worth 5.6% of the share price over the last twelve months.

Yield above Treasuries

The 5.6% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; Smart Sand yields 5.6%.

Dividend stability

Fewer than five years of dividend history.

Covered by earnings

Dividends take 64.0% of net income.

Covered by free cash flow

Dividends take 27.3% of free cash flow.