Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mobile software specialist Smith Micro Software
With that in mind, let's take a closer look at Smith Micro's business and see what CAPS investors are saying about the stock right now.
Smith Micro facts
|Headquarters (Founded)||Aliso Viejo, Calif. (1982)|
|Market Cap||$339.2 million|
|Trailing-12-Month Revenue||$118.7 million|
Co-Founder/CEO William Smith, Jr.
CFO Andrew Schmidt
|Return on Equity (Average, Past 3 Years)||1.6%|
|Cash/Debt||$54.85 million / $0|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
In August, TheBlindCat tapped Smith Micro as a way to get exposure to a pair of tasty tech tailwinds: "A good play on Mobile and Cloud Computing. Explosive growth in both areas and Smith Micro has been in the thick of it from the beginning."
Smith Micro's smallish size, rock-solid balance sheet, and exposure to exciting sources of growth continue to support its five-star CAPS status. In fact, Smith Micro's compound revenue growth over the past five years (55.5%) easily tops that of behemoth rivals Microsoft (9.4%) and Cisco (10.1%), as well as other high-profile cloud-computing plays like IBM
Last month, CAPS member CraigMiles seemed baffled over Smith Micro's cheapish valuation:
I can find no reason for it. [Smith Micro] has ...
1) Cash Flow and growth to be valued at $10 per share with an 11% discount rate.
(I can't imagine a software company having a high weighted average cost of capital)
2) No debt
3) [19%] insider ownership
4) Revenue is still growing per year
5) [Free cash flow] is growing per year
What's the big deal?!
What do you think about Smith Micro, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Microsoft is a Motley Fool Inside Value pick, and Motley Fool Options has recommended a diagonal call position on it. The Fool owns shares of Microsoft and has written calls (bull call spread) on Cisco. Try any of our Foolish newsletter services free for 30 days.
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