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On August 14, 2025 Smith-Midland reported Q2 2025 results: revenue rose 33% to $26.2 million, gross margin improved to 29.7%, operating income reached $5.5 million and net income doubled to $4.2 million; management cited a special barrier rental project and stronger SlenderWall and Soundwall sales while backlog stood at roughly $54 million.
Technical Analysis
ADX at 26.62 indicates a strong trend strength; that strength gives the current directional signals greater conviction relative to a flat market and supports a bias for continued price follow-through.
DI+ shows an increasing trend while DI- shows a decreasing trend, a bullish configuration that favors near-term upward pressure on price given the ADX reading.
MACD sits at 0.19 and the MACD signal line at -0.21; MACD has crossed above its signal line, registering a bullish momentum confirmation that aligns with recent gains and supports continuation of the current rally.
MRO reads 12.63 with a peak & reversal pattern; because MRO remains positive this indicates price currently trades above the model target and carries potential for a corrective move from elevated levels.
RSI at 51.54 with a peak & reversal pattern signals a recent top in momentum and raises the probability of a short pullback even though the raw RSI level sits near neutral.
Price sits above the 12-day EMA ($38.21, increasing) and above the 20-day average ($37.55), with the 200-day average at $35.29 providing longer-term support; the super trend lower support at $35.71 and the 20-day band set near $37.55 serve as actionable reference levels for near-term support and standby risk control.
Fundamental Analysis
Revenue for the period registered $26,186,000 with YoY revenue growth recorded at -10.69% and a reported revenue growth figure of 15.37% for the available period metric; net income totaled $4,171,000 and operating income equaled $5,518,000, underlining recent profitability gains.
Gross margin stands at 29.73%, above the industry peer mean of 21.82%, and improved YoY by 13.76 percentage points, supporting stronger operating leverage and higher incremental profit on additional sales.
EBIT margin measures 21.17%, above the industry peer mean of 10.65% and below the industry peer high of 25.6%; EBIT rose QoQ by 9.15% and improved YoY by 55.61%, reinforcing the earnings-quality improvement that underpins the valuation narrative.
Return on equity equals 8.47%, above the industry peer mean of 6.20%, while return on assets reached 5.35%, also above the peer mean of 2.42%; those returns reflect efficient use of capital relative to peers despite the company’s small size.
Balance-sheet liquidity shows cash of $7.1 million and a current ratio of 2.88, above the industry peer mean of 1.62, indicating solid short-term coverage. Receivables totaled $31.6 million and the cash conversion cycle extended to 105.34 days, longer than the industry peer mean of 52.32 days and representing working-capital pressure that contributed to a negative free cash flow of $-1,737,000.
Free cash flow yield equals -0.88%, below the industry peer mean of 1.10%, while debt metrics remain conservative: total debt of $4.86 million, debt-to-assets at 5.99% well below the industry peer mean of 22.75%, and interest coverage near 89x, indicating low leverage and ample capacity to service obligations.
Valuation context: enterprise multiple registers at 31.55 and price-to-sales at 7.53, while price-to-book sits at 4.00 versus an industry peer mean P/B of 5.72. WMDST values the stock as over-valued, reflecting a premium assigned to recent margin gains, record quarterly revenue, and limited free-cash conversion relative to earnings.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-07-24 |
| NEXT REPORT DATE: | 2025-10-23 |
| CASH FLOW | Begin Period Cash Flow | $ 9.0 M |
| Operating Cash Flow | $ 183.0 K | |
| Capital Expenditures | $ -1.92 M | |
| Change In Working Capital | $ -4.73 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ -1.91 M | |
| End Period Cash Flow | $ 7.1 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 26.2 M | |
| Forward Revenue | — | |
| COSTS | ||
| Cost Of Revenue | $ 18.4 M | |
| Depreciation | $ 631.0 K | |
| Depreciation and Amortization | $ 631.0 K | |
| Research and Development | — | |
| Total Operating Expenses | $ 20.7 M | |
| PROFITABILITY | ||
| Gross Profit | $ 7.8 M | |
| EBITDA | $ 6.2 M | |
| EBIT | $ 5.5 M | |
| Operating Income | $ 5.5 M | |
| Interest Income | $ 6.0 K | |
| Interest Expense | $ 62.0 K | |
| Net Interest Income | $ -56.00 K | |
| Income Before Tax | $ 5.5 M | |
| Tax Provision | $ 1.3 M | |
| Tax Rate | 23.915 % | |
| Net Income | $ 4.2 M | |
| Net Income From Continuing Operations | $ 4.2 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | — | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 81.2 M | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 49.2 M | |
| Total Current Assets | $ 47.4 M | |
| Cash and Short-Term Investments | $ 7.1 M | |
| Cash | $ 7.1 M | |
| Net Receivables | $ 31.6 M | |
| Inventory | $ 7.2 M | |
| Long-Term Investments | $ 535.0 K | |
| LIABILITIES | ||
| Accounts Payable | $ 5.8 M | |
| Short-Term Debt | $ 665.0 K | |
| Total Current Liabilities | $ 16.5 M | |
| Net Debt | — | |
| Total Debt | $ 4.9 M | |
| Total Liabilities | $ 31.9 M | |
| EQUITY | ||
| Total Equity | $ 49.2 M | |
| Retained Earnings | $ 41.6 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 9.28 | |
| Shares Outstanding | 5.305 M | |
| Revenue Per-Share | $ 4.94 | |
| VALUATION | Market Capitalization | $ 197.1 M |
| Enterprise Value | $ 194.8 M | |
| Enterprise Multiple | 31.554 | |
| Enterprise Multiple QoQ | -17.093 % | |
| Enterprise Multiple YoY | -36.271 % | |
| Enterprise Multiple IPRWA | high: 95.131 median: 53.696 mean: 51.115 SMID: 31.554 low: -67.628 |
|
| EV/R | 7.441 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.648 | |
| Asset To Liability | 2.542 | |
| Debt To Capital | 0.09 | |
| Debt To Assets | 0.06 | |
| Debt To Assets QoQ | -11.182 % | |
| Debt To Assets YoY | 495.328 % | |
| Debt To Assets IPRWA | high: 0.774 median: 0.249 mean: 0.227 SMID: 0.06 low: 0.002 |
|
| Debt To Equity | 0.099 | |
| Debt To Equity QoQ | -11.604 % | |
| Debt To Equity YoY | 470.035 % | |
| Debt To Equity IPRWA | high: 2.025 median: 0.704 mean: 0.665 SMID: 0.099 low: 0.002 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 4.002 | |
| Price To Book QoQ | -8.478 % | |
| Price To Book YoY | -13.117 % | |
| Price To Book IPRWA | high: 10.918 mean: 5.723 median: 4.996 SMID: 4.002 low: -0.322 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 7.526 | |
| Price To Sales QoQ | -13.32 % | |
| Price To Sales YoY | -13.7 % | |
| Price To Sales IPRWA | high: 23.152 SMID: 7.526 mean: 6.25 median: 5.911 low: 0.284 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | — | |
| Forward PE/G | — | |
| Forward P/S | — | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.686 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.336 | |
| Asset Turnover Ratio QoQ | 5.606 % | |
| Asset Turnover Ratio YoY | 10.291 % | |
| Asset Turnover Ratio IPRWA | high: 0.628 mean: 0.359 median: 0.348 SMID: 0.336 low: 0.014 |
|
| Receivables Turnover | 0.946 | |
| Receivables Turnover Ratio QoQ | -7.141 % | |
| Receivables Turnover Ratio YoY | -6.595 % | |
| Receivables Turnover Ratio IPRWA | high: 3.98 mean: 1.784 median: 1.668 SMID: 0.946 low: 0.173 |
|
| Inventory Turnover | 2.509 | |
| Inventory Turnover Ratio QoQ | 12.973 % | |
| Inventory Turnover Ratio YoY | 17.748 % | |
| Inventory Turnover Ratio IPRWA | high: 34.314 mean: 15.325 median: 7.771 SMID: 2.509 low: 0.368 |
|
| Days Sales Outstanding (DSO) | 96.496 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 105.344 | |
| Cash Conversion Cycle Days QoQ | 4.043 % | |
| Cash Conversion Cycle Days YoY | 11.285 % | |
| Cash Conversion Cycle Days IPRWA | high: 187.155 SMID: 105.344 mean: 52.32 median: 50.272 low: -27.376 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.846 | |
| CapEx To Revenue | -0.073 | |
| CapEx To Depreciation | -3.043 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 53.3 M | |
| Net Invested Capital | $ 54.0 M | |
| Invested Capital | $ 54.0 M | |
| Net Tangible Assets | $ 49.2 M | |
| Net Working Capital | $ 31.0 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.431 | |
| Current Ratio | 2.878 | |
| Current Ratio QoQ | 19.455 % | |
| Current Ratio YoY | 27.034 % | |
| Current Ratio IPRWA | high: 3.952 SMID: 2.878 mean: 1.622 median: 1.395 low: 0.093 |
|
| Quick Ratio | 2.442 | |
| Quick Ratio QoQ | 23.625 % | |
| Quick Ratio YoY | 34.372 % | |
| Quick Ratio IPRWA | high: 2.807 SMID: 2.442 mean: 1.467 median: 1.197 low: 0.088 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 0.787 | |
| Cost Of Debt | 0.953 % | |
| Interest Coverage Ratio | 89.419 | |
| Interest Coverage Ratio QoQ | 11.698 % | |
| Interest Coverage Ratio YoY | 97.445 % | |
| Interest Coverage Ratio IPRWA | SMID: 89.419 high: 49.953 mean: 14.98 median: 8.89 low: -23.759 |
|
| Operating Cash Flow Ratio | -0.159 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 33.722 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 8.732 % | |
| Revenue Growth | 15.367 % | |
| Revenue Growth QoQ | -31.663 % | |
| Revenue Growth YoY | -10.688 % | |
| Revenue Growth IPRWA | high: 83.442 % SMID: 15.367 % mean: 13.852 % median: 11.3 % low: -29.363 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 29.733 % | |
| Gross Margin QoQ | -3.244 % | |
| Gross Margin YoY | 13.758 % | |
| Gross Margin IPRWA | high: 53.284 % SMID: 29.733 % median: 22.54 % mean: 21.821 % low: 1.408 % |
|
| EBIT Margin | 21.172 % | |
| EBIT Margin QoQ | 9.145 % | |
| EBIT Margin YoY | 55.608 % | |
| EBIT Margin IPRWA | high: 25.6 % SMID: 21.172 % mean: 10.65 % median: 9.646 % low: -4.933 % |
|
| Return On Sales (ROS) | 21.072 % | |
| Return On Sales QoQ | 9.023 % | |
| Return On Sales YoY | 54.873 % | |
| Return On Sales IPRWA | high: 25.639 % SMID: 21.072 % mean: 10.298 % median: 9.646 % low: -4.372 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.74 M | |
| Free Cash Flow Yield | -0.881 % | |
| Free Cash Flow Yield QoQ | -207.047 % | |
| Free Cash Flow Yield YoY | -251.115 % | |
| Free Cash Flow Yield IPRWA | high: 10.236 % mean: 1.095 % median: 1.028 % SMID: -0.881 % low: -18.993 % |
|
| Free Cash Growth | -207.09 % | |
| Free Cash Growth QoQ | -7.669 % | |
| Free Cash Growth YoY | 49.198 % | |
| Free Cash Growth IPRWA | high: 289.595 % median: 7.663 % mean: -61.98 % SMID: -207.09 % low: -337.942 % |
|
| Free Cash To Net Income | -0.416 | |
| Cash Flow Margin | -10.005 % | |
| Cash Flow To Earnings | -0.628 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 5.353 % | |
| Return On Assets QoQ | 14.748 % | |
| Return On Assets YoY | 74.138 % | |
| Return On Assets IPRWA | high: 8.275 % SMID: 5.353 % mean: 2.418 % median: 1.947 % low: -8.889 % |
|
| Return On Capital Employed (ROCE) | 8.57 % | |
| Return On Equity (ROE) | 0.085 | |
| Return On Equity QoQ | 14.739 % | |
| Return On Equity YoY | 58.971 % | |
| Return On Equity IPRWA | high: 0.152 SMID: 0.085 mean: 0.062 median: 0.053 low: -0.23 |
|
| DuPont ROE | 8.845 % | |
| Return On Invested Capital (ROIC) | 7.81 % | |
| Return On Invested Capital QoQ | 16.689 % | |
| Return On Invested Capital YoY | -125.552 % | |
| Return On Invested Capital IPRWA | high: 11.354 % SMID: 7.81 % mean: 5.299 % median: 4.144 % low: -5.909 % |
|