1. Is the company undervalued?

$SMG is trading at near historic lows in regards to earnings and sales, with management forecasting growth across the board in 2023. Having said that $SMG is up to their eyeballs

in debt and don’t anticipate the situation getting better until the back half of 2023. In fact $SMG is dangerously close to breaking their debt covenant, which almost surely will cause pain for shareholders. On the other hand $SMG is a well know brand with pricing power and has shown the ability to generate impressive FCF. If earnings normalize and $SMG is able to pay down debt, investors could see above market returns.

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