SmileDirectClub (SDC) Stock

2023 Update

About SmileDirectClub

SmileDirectClub, Inc. is a healthcare company headquartered in Nashville, TN dedicated to providing high-quality medical solutions through its suite of teledentistry services and direct-to-consumer products. Through its proprietary platform, SmileCheck, SmileDirectClub works in conjunction with a network of orthodontists and general dentists to monitor customer treatment online and provide a customer experience that is both cost-effective and convenient for customers.

The company offers clear aligner therapy treatment, aligners, impression and whitening kits, whitening gels, retainers, toothbrushes, toothpastes, water flossers, SmileSpa, and various ancillary oral care products. It is currently present in the United States, Puerto Rico, Canada, Australia, the United Kingdom, New Zealand, Ireland, Hong Kong, Germany, Singapore, France, Spain, and Austria.

SmileDirectClub was founded in 2014 and currently has 2700 full-time employees. The company’s website can be found at

SmileDirectClub's Performance

SmileDirectClub, Inc. is a leader in direct-to-consumer orthodontics, making it easier and more affordable for people to create a better smile. The company has been growing at a rapid pace over the past few years and has seen some impressive financial progress, including a revenue growth of -21.00% year-over-year.

The company’s gross margins are at an impressive 69.76%, while their operating margin stands at -53.03%. They also have a healthy balance sheet with total debt to equity of 0.00.

Looking at SmileDirectClub’s liquidity, their current ratio stands at 2.24, while their quick ratio sits at 1.74. This means their current assets exceed their current liabilities, giving them sufficient liquidity to continue operations.

Their free cash flow has been a bit weaker, with -91.06M reported in the last quarter. These numbers show that the company needs to focus on improving their free cash flow while expanding their revenue.

SmileDirectClub also has a healthy profit margin, with -19.42% reported in the last quarter. However, their return on equity (ROE) and return on assets (ROA) were not as impressive, with returns of -23.16% and -12.45% respectively.

In terms of analyst recommendations, they are currently rated as a “hold” with five opinions from the analysts that track the company. The target mean price is 0.68, which is above the current price of 0.44, suggesting that analysts believe the stock will continue to rise in the short-term.

Overall, SmileDirectClub has been performing well and is in a strong financial position to continue expanding. The company needs to improve their free cash flow and profitability, while also focusing on driving revenue growth. With the analysts still favorable on the stock, SmileDirectClub has the potential to continue gaining value over the upcoming months.

How does SmileDirectClub Perform During a Recession?

With the changing economic landscape, many companies are facing difficulty operating during a recession. However, in-home dental care and teledentistry is proving to be a bright spot, even during a time of economic downturn. SmileDirectClub has been proactive in finding ways to keep its customers safe and their treatment uninterrupted.

The company has implemented measures to ensure the safety of customers, such as providing plastic wraps for proper hygiene when handling dental molds and providing clear aligner polythene bags for storage when manufacturing aligners. Additionally, SmileDirectClub has increased its online presence and use of its digital platform, SmileCheck, by expanding usage of telehealth visits, virtual follow-ups, and video chat consultations, as well as offering an extensive digital library of videos and articles to support customers through their treatments.

In terms of cost-effectiveness, SmileDirectClub is providing discounts and promotional offers to help reduce the cost of treatment for customers. Additionally, SmileDirectClub has waived certain membership and activation fees for COVID kits and is offering complimentary at home impression taking kits to ensure the safety of both customers and employees. The company also expanded to offer payment installment plans and various other payment options to ease the burden of customers during uncertain times.

Overall, SmileDirectClub is committed to ensuring that its customers have access to affordable and convenient dental care, even during a recession. With a focus on customer safety and cost-efficiency, the company is well-positioned to build on its strong customer base during the recession and come out ahead in the long-term.

How does SmileDirectClub Perform During High Inflation Economy?

When faced with high inflation, SmileDirectClub takes a series of proactive measures to ensure its financial health and the continued satisfaction of its customers. The company uses macroeconomic analysis and forecasting to develop strategies to adapt to changing market conditions, and uses its experience and technological capabilities to plan diligently for future growth.

SmileDirectClub takes a proactive approach to cost management, using both price increases and cost cutting, in order to offset the higher production costs associated with inflation. The company is also constantly on the lookout for innovative ways to become more efficient and reduce costs in the long-term, such as exploring new supplier and production methods.

In addition, the company has implemented different initiatives in order to help customers navigate financial uncertainty. These include the introduction of flexible payment plans, discount programs, and the use of promotions and special offers. SmileDirectClub also ensures that all of its products and services are delivered at competitive prices that are in line with the current market rates.

Ultimately, SmileDirectClub is committed to staying agile and staying ahead of inflation-related risks so that it can continue to provide customers with high-quality dental care products and services at an affordable cost.

What Are the Risks Associated to SmileDirectClub (SDC)?

The risks associated with investing in SmileDirectClub include the potential for competitive pressures, legal risks, potential for product recalls due to quality issues, and financial risks related to their rapid expansion. As a relatively new company, they may be susceptible to legal issues that have yet to be seen or accounted for. Additionally, with their aggressive expansion, there is a risk that their financials could be adversely impacted if they are unable to manage their growth and capital expenditures. Finally, SmileDirectClub could be subject to product recalls or quality issues, which could lead to a substantial financial loss. For these reasons, investors in SmileDirectClub should proceed with caution and be aware of the risks associated with the company before making an investment.