Smith-Midland Corporation (SMID) | Investment Case

1. Company Snapshot

1.a. Company Description

Smith-Midland Corporation, through its subsidiaries, invents, develops, manufactures, markets, leases, licenses, sells, and installs precast concrete products primarily for use in the construction, highway, utilities, and farming industries.It offers SlenderWall, a patented, lightweight, energy efficient concrete and steel exterior wall panel for use in building construction; Sierra Wall that provides sound and sight barrier for use alongside highways around residential, industrial, and commercial properties; J-J Hooks highway safety barriers for use on roadways to separate lanes of traffic in construction work zone or traffic control purposes; and Easi-Set precast building and Easi-Span expandable precast buildings for use in housing communications operations, traffic control systems, and mechanical and electrical stations.The company also provides Easi-Set utility vaults for house equipment, such as cable, telephone, or traffic signal equipment, and for underground storage, as well as custom-built utility vaults for special needs; SoftSound soundwall panels to absorb highway noise; Beach Prisms, an erosion control module for seawalls and jetties; and H2Out secondary drainage systems for panelized exterior cladding.

In addition, it licenses its proprietary products in Canada, Australia, Belgium, Mexico, New Zealand, and Trinidad.The company markets its products through in-house sales force and independent sales representatives to contractors performing public and private construction contracts, such as construction of commercial buildings, public and private roads and highways, airports, and municipal utilities; and federal, state, and local transportation authorities.Smith-Midland Corporation was incorporated in 1960 and is based in Midland, Virginia.

Show Full description

1.b. Last Insights on SMID

The recent 3-month performance of Smith-Midland Corporation was driven by several positive factors. The company reported its highest annual revenue and net income in its history, with a 32% year-over-year increase in revenue to $78.5 million. This growth was fueled by strong product demand and a strategic shift towards higher-margin barrier rentals. Additionally, the company's gross margin increased by 760 basis points to 25.5%, indicating improved operational efficiency. Smith-Midland also received a letter from Nasdaq indicating that it has regained compliance with its listing rules, following the filing of its 2024 Form 10-K. Furthermore, the company announced the appointment of a new Chief Financial Officer, Dominic L. Hunter, who brings extensive experience in financial leadership.

1.c. Company Highlights

Last Price	34.16
Change Percentage	0.26%
Open	34.72
Previous Close	34.07
Market Cap ( Millions)	181
Volume	6118
Year High	50.37
Year Low	25.13
M A 50	36.27
M A 200	34.85

FCF Yield	2.77%
Dividend Yield	0.00%
ROE	25.02%
Debt / Equity	9.00%
Net Debt / EBIDTA	26.52%
Price To Book	3.48
Price Earnings Ratio	15.39
Price To FCF	36.05
Price To sales	2.04
EV / EBITDA	10.51

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

SMID Stock Falls After Reporting Weak Q3 Earnings and Softer Rentals

Nov -19

Source: zacks.com

Intech S&P Mid Cap Diversified Alpha ETF Surpasses $100 Million; Performance Underscores Structural Edge in SMID-Cap Core

Nov -19

Source: prnewswire.com

Smith-Midland Reports Third Quarter 2025 Financial Results

Nov -14

Source: accessnewswire.com

Smith-Midland to Release Third Quarter 2025 Financial Results on November 13

Nov -12

Source: accessnewswire.com

3 Rising Stocks in Active SMID-Cap ETF TMSL

Nov -06

Source: etftrends.com

The London Company SMID Cap Vs. Russell 2500 Q3 2025 Sector Influence And Trades

Nov -05

Source: seekingalpha.com

The London Company SMID Cap Vs. Russell 2500 Q3 2025 Top Contributors And Detractors

Nov -05

Source: seekingalpha.com

Smith-Midland (NASDAQ:SMID) and Yulong Eco-Materials (OTCMKTS:YECO) Critical Review

Oct -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Shipping and Installation

Expected Growth: 4.5%

Growing demand for precast concrete products in construction industry, increasing focus on efficient and safe delivery and setup, and Smith-Midland's expertise in shipping and installation services drive growth.

Barrier

Expected Growth: 4.5%

Growing demand for road safety infrastructure, increasing highway and bridge construction projects, and rising adoption of precast concrete barriers drive the market growth.

Barrier Rentals

Expected Growth: 4.5%

Growing demand for temporary concrete barriers in highway construction, special events, and traffic management, driven by increasing infrastructure development, rising concern for safety and security, and government investments in transportation projects.

Architectural

Expected Growth: 4.5%

Growing demand for sustainable and durable building materials, increasing adoption of precast concrete products in construction, and rising investments in infrastructure development are expected to drive the growth of the architectural products market.

Soundwall

Expected Growth: 4.5%

Growing concerns over environmental noise pollution, increasing highway construction projects, and government regulations to reduce noise pollution are driving the demand for Soundwall from Smith-Midland Corporation, a precast concrete noise barrier wall system.

Easi-set and Easi-span Building

Expected Growth: 4.5%

Growing demand for modular and cost-effective building solutions, increasing adoption in infrastructure development, and rising need for durable structures drive the growth of Easi-Set and Easi-Span precast concrete building systems.

Miscellaneous Wall

Expected Growth: 4.5%

Growing demand for sound barriers and retaining walls in infrastructure development, increasing adoption in highway construction, and rising need for noise reduction in urban areas drive the growth of the precast concrete wall system market.

Royalty Income

Expected Growth: 10.5%

The royalty income from Smith-Midland Corporation's patented products and technologies is expected to grow driven by increasing demand for innovative construction materials and technologies, expansion into new markets, and strategic partnerships with industry leaders.

Utility

Expected Growth: 4.5%

Growing demand for reliable and durable infrastructure, increasing adoption of precast concrete solutions, and rising investments in electrical and telecommunications infrastructure drive the growth of the utility vault market.

Miscellaneous

Expected Growth: 4.5%

The miscellaneous segment of Smith-Midland Corporation is expected to grow driven by increasing demand for used equipment and rental services, as well as the company's strategic expansion into new markets and product offerings.

SlenderWall

Expected Growth: 4.5%

Growing demand for sustainable and energy-efficient buildings, increasing adoption of off-site construction methods, and rising need for durable and low-maintenance building envelopes drive the growth of the precast concrete panel system market.

7. Detailed Products

SlenderWall

A patented, lightweight, composite, insulated, precast concrete wall panel system

SoftSound

A sound-absorbing, precast concrete panel system

Soundwall

A precast concrete sound wall system

Easi-Set

A licensed, precast concrete building system

J-J Hooks

A proprietary, patented, highway safety barrier connection system

Rental Products

A range of precast concrete products for rent, including highway barriers, traffic barriers, and more

8. Smith-Midland Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Smith-Midland Corporation is moderate, as there are some alternative products available in the market, but they are not highly attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers is low, as Smith-Midland Corporation has a diverse customer base and no single customer accounts for a significant portion of its revenue.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Smith-Midland Corporation relies on a few key suppliers for its raw materials, but it also has some alternative sources available.

Threat Of New Entrants

The threat of new entrants is low, as Smith-Midland Corporation has a strong brand presence and significant barriers to entry in the market.

Intensity Of Rivalry

The intensity of rivalry is high, as Smith-Midland Corporation operates in a highly competitive market with several established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	14.45%
Debt Cost	7.35%
Equity Weight	85.55%
Equity Cost	10.20%
WACC	9.79%
Leverage	16.89%

11. Quality Control: Smith-Midland Corporation passed 5 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

US Lime & Minerals

A-Score: 5.3/10

Value: 1.6

Growth: 8.2

Quality: 8.5

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

Ecovys

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.6

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Smith-Midland

A-Score: 4.3/10

Value: 3.1

Growth: 6.8

Quality: 7.1

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

1-Year Total Return ->

Century Aluminum

A-Score: 4.2/10

Value: 5.4

Growth: 4.8

Quality: 4.6

Yield: 0.0

Momentum: 8.5

Volatility: 2.0

1-Year Total Return ->

Mativ

A-Score: 3.9/10

Value: 9.0

Growth: 1.9

Quality: 1.8

Yield: 8.0

Momentum: 1.0

Volatility: 2.0

1-Year Total Return ->

Koppers

A-Score: 3.8/10

Value: 6.7

Growth: 4.8

Quality: 2.7

Yield: 1.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

28.49%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.79%

Smith-Midland Corporation - US8321561032

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SMID

1.c. Company Highlights

Expensive

Strong Momentum

Medium Volatility

More Volatile

Stable Momentum

Average Yield

Lower Growth

Fairly Valued

Average Quality

Better Quality

Higher Growth

Average Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.74%)

6. Segments

Shipping and Installation

Expected Growth: 4.5%

Barrier

Expected Growth: 4.5%

Barrier Rentals

Expected Growth: 4.5%

Architectural

Expected Growth: 4.5%

Soundwall

Expected Growth: 4.5%

Easi-set and Easi-span Building

Expected Growth: 4.5%

Miscellaneous Wall

Expected Growth: 4.5%

Royalty Income

Expected Growth: 10.5%

Utility

Expected Growth: 4.5%

Miscellaneous

Expected Growth: 4.5%

SlenderWall

Expected Growth: 4.5%

7. Detailed Products

SlenderWall

SoftSound

Soundwall

Easi-Set

J-J Hooks

Rental Products

8. Smith-Midland Corporation'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: Smith-Midland Corporation passed 5 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

12.e Scoring ^Insights

12.f DCF ^BETA