Why Smith-Midland Corp. (SMID) is a Buy

PUBLISHED Sep 19, 2024, 12:31:09 AM        SHARE

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Why Smith-Midland Corp. (SMID) is a Buy

Smith-Midland Corp. (SMID) stands out as a compelling investment opportunity, particularly for those seeking a growth stock. The company has demonstrated robust financial performance, with record revenues of $50.6 million in 2021, up from $43.8 million in 2020. This growth trajectory is supported by their innovative product development, such as the SlenderWall system, which is revolutionizing the precast concrete industry. Additionally, Smith-Midland’s diverse revenue streams from sales, leasing, licensing, shipping, and installation of precast concrete products provide a stable financial foundation.

Smith-Midland specializes in the design, manufacture, and installation of precast concrete products. Their product lineup includes the SlenderWall architectural panel system, Sierra Wall sound barriers, J-J Hooks highway safety barriers, and Easi-Set utility buildings. These products serve a wide range of markets, including commercial construction, transportation infrastructure, and utility sectors. The company’s innovative approach and commitment to quality have positioned it as a leader in the precast concrete industry.

When compared to its competitors, Smith-Midland’s focus on innovation and quality sets it apart. Companies like Oldcastle Infrastructure and Forterra also operate in the precast concrete space, but Smith-Midland’s proprietary products and diverse revenue streams give it a competitive edge. The company’s ability to secure significant contracts, such as a $7.5 million noise wall project for the Georgia Department of Transportation, further underscores its market strength.

Two-Year Outlook

Looking ahead, Smith-Midland’s future earnings and sales are expected to continue their upward trend. The company’s backlog of $64.6 million as of the first quarter of 2024 indicates strong demand for its products. Analysts project that Smith-Midland will maintain its growth momentum, driven by ongoing infrastructure investments and the increasing adoption of its innovative products. The company’s debt levels are manageable, with a debt-to-equity ratio that supports its growth initiatives without compromising financial stability.

Smith-Midland Corp. (SMID) presents a compelling case for investment. Its innovative product offerings, strong financial performance, and diverse revenue streams make it a standout in the precast concrete industry. With a solid backlog and promising growth prospects, Smith-Midland is well-positioned for continued success. Investors looking for a growth stock with a proven track record and strong future outlook should consider adding SMID to their portfolios.

SMID, Buy

Smith-Midland Corp.
Return: 13.63%

SMID, Buy

Return: 13.63%


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