SMRI Bushido Capital US Equity ETF

Bushido Capital US Equity ETF (SMRI) currently reports 52 stock positions (subject to change), placing it in the moderately broad range by holdings breadth. The top line-up is NEM (2.27%), ZM (2.14%), CNC (2.13%), with NEM as the largest single weight at 2.27%. Together, the top three holdings account for 6.54%, which suggests the fund is not overly reliant on its largest positions to generate returns. The fund's architecture positions it to benefit from strength in its top holdings while the broader basket provides a degree of insulation against single-name shocks.

Looking at how effectively the underlying holdings deploy capital, ROIC is 26.35%, WACC is 8.50%, and the economic spread is 17.85%. On balance, returns on invested capital exceed the cost of funding by a comfortable margin, which over time compounds favorably for long-term holders. Supporting metrics show ROE at 23.44% and ROA at 8.30%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a portfolio with credible compounding capacity if current operating execution persists.

From a pricing standpoint, the portfolio sits at trailing P/E of 18.66, forward P/E of 13.05, PEG of 1.61. The gap between trailing and forward multiples is meaningful but not wide — the market appears to be pricing a constructive but controlled earnings trajectory. The growth-adjusted multiple is neither a strong buy signal nor a clear warning — it sits in the range where execution quality will determine whether the price is ultimately justified. A current ratio reading of 2.18 points to holdings that are managing short-term obligations without apparent stress. In total, the multiple and liquidity readings describe a portfolio where valuation is a secondary risk relative to earnings delivery — the numbers are defensible if estimates hold.

Across the three margin layers, gross margin sits at 50.47%, operating margin at 20.06%, and free cash flow margin at 19.66%. Gross margins sit in a healthy range, consistent with businesses that manage input costs effectively. Operating margins are in good shape, consistent with businesses that maintain reasonable earnings conversion after overhead. At this level, free cash flow margins suggest businesses that are building financial strength alongside revenue growth. Read together, these margins describe businesses that have earned their profitability rather than manufactured it through accounting — a meaningful quality signal.

Two key indicators frame the near-term view: TTM revenue growth of 15.35% a signal of steady demand without the volatility of high-growth names, while the estimated 12-month price change of 24.05%, where the target distribution indicates incremental upside rather than outsized repricing. The near-term return case is built on whether reported trends and analyst projections can remain close enough to make current prices look justified. Whether the setup resolves positively or negatively will depend as much on the macro backdrop as on the capacity of the underlying businesses to deliver against current estimates. The estimated 12-month price change is a weighted composite of analyst price target estimates adjusted by each holding's ETF weight, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

The full scorecard here is hard to argue with: capital efficiency is strong, margins are healthy, and growth is being priced constructively.

These findings are based solely on the metrics presented and do not constitute an investment recommendation. Always perform your own due diligence before committing capital.