Smart Sand, Inc. (SND) | Investment Case

1. Company Snapshot

1.a. Company Description

Smart Sand, Inc., an integrated frac sand supply and services company, engages in the excavation, processing, and sale of sands or proppant for use in hydraulic fracturing operations in the oil and gas industry in the United States.It also provides logistics services; and SmartSystems, a wellsite proppant storage solution.The company sells its products primarily to oil and natural gas exploration and production companies, oilfield service companies, and industrial manufacturers.

As of December 31, 2021, it had approximately 250 million tons of proven and probable recoverable sand reserves.Smart Sand, Inc.was incorporated in 2011 and is headquartered in The Woodlands, Texas.

Show Full description

1.b. Last Insights on SND

Smart Sand's recent performance was driven by record Q3 2025 results, with revenue of $92.8 million and net income of $3.0 million. A new supply deal with EQT and raised full-year volume guidance above expectations further boosted prospects. The company's strong free cash flow and ample liquidity support ongoing shareholder returns, including a special dividend of $0.05 per share. With a fortress balance sheet and low valuation, Smart Sand trades at a significant discount to peers, with TEV/EBITDA multiples well below industry averages.

1.c. Company Highlights

Last Price	3.86
Change Percentage	-0.32%
Open	3.89
Previous Close	3.87
Market Cap ( Millions)	168
Volume	623464
Year High	3.94
Year Low	1.76
M A 50	2.4
M A 200	2.14

FCF Yield	0.13%
Dividend Yield	3.89%
ROE	0.34%
Debt / Equity	20.37%
Net Debt / EBIDTA	205.53%
Price To Book	0.63
Price Earnings Ratio	188.36
Price To FCF	797.78
Price To sales	0.55
EV / EBITDA	9.76

2. Transcript Summary

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3. NewsRoom

Smart Sand: Record Quarter, Strong Guidance, And Low Valuation

Nov -19

Source: seekingalpha.com

SMART SAND, INC. DECLARES SPECIAL DIVIDEND OF $0.05 PER SHARE

Nov -18

Source: prnewswire.com

Smart Sand, Inc. Announces Third Quarter 2025 Results

Nov -12

Source: prnewswire.com

SMART SAND, INC. TO PARTICIPATE IN THE LYTHAM PARTNERS FALL 2025 INVESTOR CONFERENCE ON SEPTEMBER 30, 2025

Sep -23

Source: prnewswire.com

Smart Sand, Inc. Announces Second Quarter 2025 Results

Aug -12

Source: prnewswire.com

SMART SAND, INC. ANNOUNCES TIMING OF SECOND QUARTER 2025 EARNINGS RELEASE

Aug -04

Source: prnewswire.com

SMART SAND, INC. DECLARES SPECIAL DIVIDEND OF $0.10 PER SHARE

Jul -23

Source: prnewswire.com

Smart Sand, Inc. Announces First Quarter 2025 Results

May -13

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.18%)

6. Segments

Sand

Expected Growth: 9.33%

Smart Sand's 9.33% growth is driven by increasing demand for frac sand in the oil and gas industry, coupled with the company's strategic expansion into new markets, cost-effective logistics, and high-quality product offerings. Additionally, the company's focus on sustainability and environmental responsibility resonates with ESG-conscious investors, contributing to its growth momentum.

Logistics

Expected Growth: 4.85%

Smart Sand's logistics segment growth of 4.85% is driven by increasing demand for frac sand, expansion of well completion activities, and strategic partnerships. Additionally, the company's focus on operational efficiency, cost savings, and investments in technology have improved its logistics capabilities, enabling it to capitalize on the growing demand for its products.

Shortfall

Expected Growth: 8.5%

Smart Sand, Inc.'s 8.5% growth is driven by increasing demand for frac sand in the oil and gas industry, coupled with the company's strategic expansion into new markets and operational efficiencies. Additionally, the company's focus on sustainability and environmental responsibility has led to increased adoption of its products, contributing to the growth.

7. Detailed Products

Northern White Sand

High-quality frac sand used in hydraulic fracturing operations to enhance oil and gas production.

Brady Brown Sand

A high-quality sand used in various industrial applications, including construction, foundry, and glass manufacturing.

Coated Sand

A specialized sand product used in the oil and gas industry to enhance well productivity and extend well life.

Resin-Coated Sand

A high-strength, resin-coated sand used in various industrial applications, including foundry and construction.

8. Smart Sand, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Smart Sand, Inc. is medium due to the availability of alternative proppants in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of a few large oil and gas companies that dominate the market.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers of raw materials and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is low due to the high capital requirements and regulatory barriers to entry in the proppant industry.

Intensity Of Rivalry

The intensity of rivalry is medium due to the presence of a few established players in the market, but the company's strong brand reputation and quality products help to differentiate it from competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	10.28%
Debt Cost	3.95%
Equity Weight	89.72%
Equity Cost	8.98%
WACC	8.46%
Leverage	11.46%

11. Quality Control: Smart Sand, Inc. passed 2 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

NESR

A-Score: 4.9/10

Value: 6.4

Growth: 6.1

Quality: 5.2

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Dawson Geophysical

A-Score: 4.5/10

Value: 7.2

Growth: 4.6

Quality: 3.2

Yield: 4.0

Momentum: 8.0

Volatility: 0.0

1-Year Total Return ->

Smart Sand

A-Score: 4.5/10

Value: 5.3

Growth: 4.4

Quality: 3.1

Yield: 6.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

Superior Drilling Products

A-Score: 4.3/10

Value: 7.2

Growth: 5.4

Quality: 7.2

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

Newpark Resources

A-Score: 3.8/10

Value: 5.5

Growth: 1.7

Quality: 5.4

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

1-Year Total Return ->

DMC Global

A-Score: 3.4/10

Value: 9.1

Growth: 3.8

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

2.55%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.46%

Smart Sand, Inc. - US83191H1077

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SND

1.c. Company Highlights

Lower Yield

Average Growth

Medium Volatility

Earnings Miss

Revenues Beats

Average Quality

Earnings Beats

Lower Growth

Stable Momentum

Revenues Miss

Lower Quality

Cheaper

Average Yield

Fairly Valued

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.18%)

6. Segments

Sand

Expected Growth: 9.33%

Logistics

Expected Growth: 4.85%

Shortfall

Expected Growth: 8.5%

7. Detailed Products

Northern White Sand

Brady Brown Sand

Coated Sand

Resin-Coated Sand

8. Smart Sand, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Smart Sand, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.86$

Current Price

3.86$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA