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In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
Smith Micro Software's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $-0.69.
The industry rank for Smith Micro Software's Net-Net Working Capital or its related term are showing as below:
SMSI's Price-to-Net-Net-Working-Capital is not ranked *
in the Software industry.
Industry Median: 6.96 * Ranked among companies with meaningful Price-to-Net-Net-Working-Capital only.
Smith Micro Software (NAS:SMSI) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
Smith Micro Software Net-Net Working Capital Related Terms
Smith Micro Software Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for Smith Micro Software's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Smith Micro Software Net-Net Working Capital Chart
SMSI vs CINGF, SAGT, NVNI: Net-Net Working Capital Comparison
For the Software - Application subindustry, Smith Micro Software's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Smith Micro Software Price-to-Net-Net-Working-Capital vs Software Industry
For the Software industry and Technology sector, Smith Micro Software's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where Smith Micro Software's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $-0.69 mean?
Smith Micro Software (SMSI) has a Net-Net Working Capital of $-0.69 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Smith Micro Software According to the industry distribution chart, Smith Micro Software ranks #999999 out of 1257 companies in the Software industry.
Is Smith Micro Software's Net-Net Working Capital too high?
Smith Micro Software's current Net-Net Working Capital is $-0.69. Based on the distribution chart, Smith Micro Software ranks #999999 out of 1257 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Smith Micro Software has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Smith Micro Software's Net-Net Working Capital compare to CINGF and SAGT?
According to the Software industry distribution chart, Smith Micro Software ranks #999999 out of 1257 companies for Net-Net Working Capital. This places Smith Micro Software in the lower half of its industry. The industry median Net-Net Working Capital is 6.96. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Software company?
The median Net-Net Working Capital among Software companies is 6.96, based on 1,257 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on Smith Micro Software For the Software industry, the median Net-Net Working Capital is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smith Micro Software's current Net-Net Working Capital is $-0.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smith Micro Software stock overvalued right now?
Based on GuruFocus' analysis, Smith Micro Software (SMSI) is currently considered Fairly Valued. The stock's GF Value™ is $2.37, compared to a current price of $2.59 — trading 9.3% above its estimated fair value. The current Net-Net Working Capital is $-0.69. Smith Micro Software's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For Smith Micro Software (SMSI), the current Net-Net Working Capital is $-0.69 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Smith Micro Software (SMSI) Overvalued in 2026?
Based on GuruFocus' analysis, Smith Micro Software stock appears to be overvalued.
The current stock price of $2.59 is trading 9.3% above its estimated GF Value™ of $2.37.
GuruFocus considers Smith Micro Software to be Fairly Valued.
Key valuation signals for SMSI:
Net-Net Working Capital: $-0.69
GF Value™: $2.37 vs. price of $2.59 (9.3% above fair value)
No single metric tells the full story. See the SMSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smith Micro Software Inc provides software solutions that simplify and enhance the mobile experience to some of the wireless service providers around the globe. The company's solutions include SafePath product suite provides comprehensive and easy-to-use tools to protect family digital lifestyles and manage connected devices both inside and outside the home; CommSuite premium messaging platform helps mobile service providers deliver a next-generation voicemail experience to mobile subscribers, while monetizing a legacy cost-center; and ViewSpot its retail display management platform provided wireless carriers and retailers with a way to bring powerful on-screen, interactive demos to life. It operates in single segment: Wireless.
64GF Score
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