Smith-Midland Corporation Common Stock (SMID)

FairStock Score: 83/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Smith-Midland as a small, cyclical building-materials maker. It invents and sells precast concrete systems—SlenderWall, Sierra Wall, and J-J Hooks barriers—with only 179 employees, so it is nimble but exposed to construction and infrastructure spending. The latest filed figures show fiscal Q2 2026, the quarter ended 2026-06-30, revenue of $23.4M and net income of $1.4M, or diluted EPS $0.26. That compares poorly with fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $26.2M, net income $4.2M, and diluted EPS $0.79. Full-year fiscal 2025, ended 2025-12-31, was stronger: revenue $93.4M, net income $12.5M, and diluted EPS $2.36, up from fiscal 2024 revenue $78.5M, net income $7.7M, and diluted EPS $1.45. So the record is uneven. Financial health looks decent: debt-to-equity 0.07, Altman Z-Score 4.02, and Piotroski F-Score 5/9. But FairStock's return measures show ROCE 8.04% and ROE 14.54% are not exceptional, and trailing free cash flow is only $4.2M, a 3.5% FCF yield. At the close on 2026-10-13, price was $22.37; FairStock calculations show P/E 15.32, P/B 2.13, and EV/EBITDA 7.70. FairStock's Graham Number is $18.79, so the price is about 19% above that cautious asset-based measure. FairStock labels the company CYCLICAL — Building Materials because earnings follow the economic cycle. I see niche products and relationships, but not a wide durable moat. The balance sheet gives staying power, yet current earnings weakness leaves little margin of safety at this price.

In plain English: Smith-Midland makes and installs concrete products such as building panels, highway barriers, and sound walls. In its latest reported quarter, sales and profit fell compared with the same quarter a year earlier, so the business looks weaker than it did then. At $22.37, the stock price looks closer to fair than cheap when measured against its current earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer