Smart Sand Partners LP focuses on the excavation, processing, and sale of industrial sand for use in hydraulic fracturing operations for the oil and gas industry. It produces Northern White frac sand, which is a preferred propant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The company owns and operates a sand mine and related processing facility on 1,168 contiguous acres near Oakdale, Wisconsin. Smart Sand GP LLC operates as a general partner of the company. Smart Sand Partners LP was founded in 2010 and is based in The Woodlands, Texas.
SND Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Smart Sand Inc. To summarize, we found that Smart Sand Inc ranked in the 100th percentile in terms of potential gain offered. As the table below shows, the model suggests the stock is dramatically undervalued -- investors should note, though, that such returns are always unlikely and not to be expected. The most interesting components of our discounted cash flow analysis for Smart Sand Inc ended up being:
SND's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than just 1.51% of tickers in our DCF set.
The weighted average cost of capital for the company is 5. This value is greater than only 0% stocks in the Basic Materials sector that generate free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Basic Materials that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as SND, try ZKIN, CCJ, FRD, TMST, and VEDL.
Smart Sand, Inc. (SND) (the “Company”) announced today that it will release its first quarter financial results after the market closes on Tuesday, May 5, 2020. The Company will hold a conference call for investors on Wednesday, May 6, 2020 at 10:00 a.m. Eastern Time to discuss the results. Chuck Young, the Company’s chief executive officer, Lee Beckelman, the Company’s chief financial officer and John Young, the Company’s chief operating officer, will host the call.
Smart Sand, Inc. (SND) (the “Company”) provided an update on the current market environment. The recent decline in oil prices resulting from a combination of oversupply from Russia and Saudi Arabia and reduced demand related to the COVID-19 pandemic has led many exploration and production companies and oilfield service companies to announce plans to slow or stop well completions activity. In response, Smart Sand has reduced its total capital expenditure budget by up to $20 million, including a significant reduction in its SmartSystems™ manufacturing plans.