Schmitt Industries

SMIT

Consumer Electronics · Technology

Price

$0.01

+0.00 (+0.00%)

Market Cap

$58,082

Exchange

Other OTC

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 9, 2026 · filings through May 31, 2022

Share count rising — dilution

+10.1% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 3.5M (2018) → 3.8M (2022)

Schmitt Industries is a small industrial technology company that makes precision measurement and balancing equipment. Its core products include vibration sensors, wheel balancing systems, and ultrasonic measurement tools used in manufacturing, automotive, and industrial settings. The company sells to factories, machine shops, and equipment makers that need accurate measurements to keep their machinery running properly.

Schmitt Industries earns revenue by selling hardware and related services to industrial customers, primarily in North America and Europe. It is a very small company with a market cap near zero, meaning it has limited financial resources compared to larger industrial competitors. The company's gross margin above 50% suggests its products carry decent pricing power, but its deeply negative operating margin shows it is spending far more than it earns, which is a serious financial risk. The key challenge going forward is whether Schmitt can cut costs or grow revenue fast enough to reach profitability before its resources run out.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-50.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+1.1% YoY

YoY Growth Rate

Slow EPS growth

R&D Spend

$40,456/ year

↓ Declining (-51% vs prior year)

0.4% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

1.1%ownership

Relatively low insider ownership

Cash Runway

~2 months

$1M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Short runway — potential dilution ahead through share issuance

Cash watch

Schmitt Industries has less than a year of cash at its current burn rate. Growth investors should watch for potential share dilution from future fundraising — that directly reduces your ownership.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin

8.9%

Thin — 8.9% gross margin

Operating Margin

-297.5%

Losing money on operations — -297.5%

ROCE

-109.2%

Weak — -109.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

+25.8%

Fast-growing sales (+25.8% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

-91.4%

Burning cash (-91.4%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity

4.96

Heavy debt load (4.96)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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