SMG Industries (SMGI) Stock Analysis & Winston Score

SMG Industries Inc. is a small oilfield services company based in Texas. It provides equipment and services that help oil and gas companies drill and complete wells, primarily in the Permian Basin and other onshore U.S. shale regions. Its customers are exploration and production companies that need specialized support to extract oil and natural gas from the ground.

The company earns revenue by renting equipment and providing labor-intensive field services, which means its income rises and falls with drilling activity levels across the industry. SMG Industries is a very small operator with a market cap near zero, giving it little pricing power compared to larger rivals like Halliburton or ProPetro. Its thin gross margin of around 8% and negative operating margin signal that costs are currently outpacing revenue, and the main risk the business faces is that any slowdown in U.S. drilling activity — driven by lower oil prices or reduced operator spending — could make it very difficult to reach profitability.

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

+72.2% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+96.4% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

21.2%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~17 months

$4M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Adequate runway but may need to raise capital within 2 years

Strong grower

SMG Industries is growing revenue at 72% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

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

Every number that matters to educated investors.

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Quality

Gross Margin

6.9%

Thin — 6.9% gross margin

Operating Margin

-8.7%

Losing money on operations — -8.7%

ROCE

-4.7%

Weak — -4.7% return on capital

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

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Growth

Sales YoY

+31.4%

Fast-growing sales (31.4% YoY)

EPS YoY

N/A

—

Data not available

EPS Consistency

0/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

—

Data not available

FCF Margin

-0.2%

Burning cash (-0.2%)

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

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Stability

Debt / Equity

3.10

Heavy debt load (3.10)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

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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