SMG Industries

SMGI

Oil & Gas Equipment & Services · Energy

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Sep 30, 2023

How the score breaks down

Quality

Weak

Growth

Strong

Cash Flow

Weak

Stability

Weak

Valuation

Data not available

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Winston Score History

The full picture

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.

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

Insider ownership roughly steady over the past year

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

Profit per sale

Gross Margin

6.9%

Thin — 6.9% gross margin

Profit after running costs

Operating Margin

-8.7%

Losing money on operations — -8.7%

Return on the money invested

ROCE

-4.9%

Weak — -4.9% return on capital

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

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Growth

Sales growth

Sales YoY

+31.4%

Fast-growing sales (+31.4% YoY)

Profit growth

EPS YoY

N/A

—

Data not available

How steady the profit is

EPS Consistency

7/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

—

Data not available

Spare cash per sale

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

What it owes vs what it owns

Debt / Equity

3.10

Heavy debt load (3.10)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

Cheaper or dearer next year

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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