SDI Limited (SDI) AI Stock Analysis

• Market Cap: AU$112.92M
• Dividend Yield: 3.58%
• Average Volume (3M): 69.13K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.30
• Revenue Growth: -0.74%
• EPS Growth: 16.65%
• Country: AU
• Employees: 275
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.07
• Shares Outstanding: 118,865,524
• 10 Day Avg. Volume: 9,034
• 30 Day Avg. Volume: 69,131
• PEG Ratio: 0.59
• Price to Book (P/B): 0.97
• Price to Sales (P/S): 0.90
• P/FCF Ratio: 6.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.16
• Revenue Forecast (FY): AU$178.89M

• Rating: 72 Outperform
• Price Target: AU$1.00 ▲(5.26% Upside)

SDI Limited's overall stock score is driven by its strong financial performance and attractive valuation. The company's low leverage and solid equity base provide financial stability, while its low P/E ratio and high dividend yield enhance its appeal. Technical analysis shows mixed signals, with some positive momentum but limited bullish indicators.

Positive Factors

Cash Flow Improvement

The substantial improvement in free cash flow indicates enhanced cash generation ability, providing SDI Limited with more resources for reinvestment and debt reduction, supporting long-term financial health.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing SDI Limited to navigate economic fluctuations and invest in growth opportunities without significant debt burden.

Strong Gross Profit Margin

A strong gross profit margin reflects efficient cost management and pricing power, enabling SDI Limited to sustain profitability and invest in innovation and market expansion.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth can hinder long-term strategic planning and market positioning, potentially affecting SDI Limited's ability to capitalize on industry trends and expand its market share.

Decreased Net Profit Margin

A declining net profit margin may signal rising costs or pricing pressures, which could impact SDI Limited's ability to maintain profitability and invest in future growth initiatives.

Room for Improvement in Free Cash Flow Conversion

Improving free cash flow conversion is crucial for SDI Limited to enhance liquidity and financial flexibility, ensuring sustainable growth and resilience against economic downturns.

SDI Limited Business Overview & Revenue Model

Company Description

SDI Limited (SDI) is an Australian company operating primarily in the dental and medical sectors. The company focuses on the development, manufacturing, and marketing of a wide range of dental products, including dental materials, equipment, and consumables. With a strong presence in both domestic and international markets, SDI is known for its innovative solutions that cater to the needs of dental professionals, enhancing patient outcomes and operational efficiency.

How the Company Makes Money

SDI generates revenue through the sale of its dental products, which include dental adhesives, restorative materials, and preventative care products. The company's revenue model is primarily driven by the direct sales of these products to dental practitioners and distributors. SDI strategically invests in research and development to create innovative and high-quality products, which helps maintain its competitive edge and supports premium pricing strategies. Additionally, the company may engage in partnerships with dental clinics and institutions, providing tailored solutions that further enhance its sales channels. Key factors contributing to its earnings include brand recognition, a diversified product range, growing global demand for dental care, and effective marketing strategies that expand its market reach.

SDI Limited Financial Statement Overview

Summary

SDI Limited demonstrates a strong financial foundation with effective operational management and low leverage. While revenue growth has been inconsistent, the company maintains healthy profit margins and a solid equity base. Cash flow improvements are notable, though there is potential for further enhancement in free cash flow conversion.

Income Statement

SDI Limited's income statement shows a mixed performance. The company has maintained a healthy gross profit margin over the years, with the latest at 62.85%. However, the net profit margin has slightly decreased to 11.02% in the most recent year. Revenue growth has been inconsistent, with a decline of 10.8% in the latest period. Despite this, the EBIT and EBITDA margins remain strong, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.17, indicating low leverage. The return on equity is stable at 11.84%, showcasing effective use of equity to generate profits. The equity ratio stands at 72.72%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Cash flow analysis reveals significant improvement in free cash flow, with a growth rate of 106.63% in the latest year. The operating cash flow to net income ratio is robust at 0.94, indicating good cash generation relative to net income. However, the free cash flow to net income ratio of 0.79 suggests some room for improvement in converting profits into free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	110.38M	110.38M	111.21M	107.86M	95.15M	81.65M
Gross Profit	69.38M	69.38M	69.04M	61.27M	53.11M	50.25M
EBITDA	18.36M	18.36M	20.96M	15.73M	14.76M	16.84M
Net Income	12.16M	12.16M	10.42M	7.06M	7.28M	8.94M
Balance Sheet
Total Assets	141.20M	141.20M	140.66M	133.31M	102.07M	98.40M
Cash, Cash Equivalents and Short-Term Investments	8.98M	8.98M	6.28M	6.02M	7.01M	10.56M
Total Debt	17.38M	17.38M	24.78M	25.60M	2.02M	1.57M
Total Liabilities	38.52M	38.52M	46.69M	45.39M	18.34M	18.62M
Stockholders Equity	102.67M	102.67M	93.97M	87.92M	83.73M	79.78M
Cash Flow
Free Cash Flow	15.12M	15.12M	4.03M	-21.42M	-61.00K	8.64M
Operating Cash Flow	19.19M	19.19M	14.33M	13.06M	4.27M	12.69M
Investing Cash Flow	-4.17M	-4.17M	-8.78M	-33.41M	-4.25M	-3.95M
Financing Cash Flow	-12.05M	-12.05M	-5.33M	19.20M	-3.49M	-4.18M

SDI Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.95
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SDI, the sentiment is Positive. The current price of 0.95 is above the 20-day moving average (MA) of 0.95, above the 50-day MA of 0.95, and above the 200-day MA of 0.87, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.24 is Neutral, neither overbought nor oversold. The STOCH value of 37.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:SDI.

SDI Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDI	72 Outperform	AU$112.92M	9.29	12.37%	3.58%	-0.74%	16.65%
AHC	67 Neutral	AU$146.15M	23.62	12.35%	―	39.98%	-30.04%
DAI	53 Neutral	AU$170.01M	1.07	132.68%	―	22.67%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CYC	50 Neutral	AU$110.58M	-8.11	-31.98%	―	34.20%	-23.90%
TRJ	47 Neutral	AU$97.63M	-21.67	-4.28%	―	7.38%	82.39%
EMV	44 Neutral	AU$164.04M	-15.61	-70.55%	―	―	-257.32%

SDI Limited Corporate Events

SDI Limited Shareholders Approve Key Resolutions at AGM

SDI Limited held its Annual General Meeting on November 27, 2025, where shareholders voted on several key resolutions. The re-election of Mr. Gerald Bullon and Dr. Geoffrey Knight to the board was approved by a significant majority, with over 95% of votes in favor. Additionally, the remuneration report was carried with nearly 99% approval, indicating strong shareholder support for the company’s executive compensation policies.

SDI Limited Reports Stable 2025 Financial Performance and Strategic Growth Plans

SDI Limited reported a stable financial performance in 2025 despite challenges in European product registration and market instability in the Middle East and Asia. The company achieved a normalized after-tax profit of $10.5 million, with significant sales growth in aesthetic and whitening products, particularly in Europe. SDI is focusing on transitioning customers to its new product, Stela, and is planning to enhance production capacity with a new factory in Montrose. The company is also committed to adhering to the European Union Medical Device Regulation and following its ESG roadmap for sustainable growth.

SDI Limited Unveils Online Meeting Guide for Shareholders

SDI Limited has released an online meeting guide for shareholders and proxies to participate in their upcoming meeting. The guide provides detailed instructions on how to access the meeting, register to vote, and submit votes on resolutions. This development is crucial for ensuring shareholder engagement and participation, as it streamlines the process of attending and voting in the meeting, potentially impacting the company’s governance and decision-making processes.

SDI Limited Announces Virtual AGM for November 2025

SDI Limited announced its upcoming Annual General Meeting (AGM) to be held virtually on November 27, 2025. The meeting will allow shareholders to participate, vote, and ask questions online. Key agenda items include the consideration of financial reports, re-election of directors, and an advisory vote on the remuneration report. The AGM provides an opportunity for shareholders to engage with the company’s management and auditors, potentially impacting company governance and stakeholder relations.

SDI Limited Reinforces Governance Standards and Diversity Goals

SDI Limited has released its Corporate Governance Statement for the year ending June 30, 2025, highlighting its commitment to high standards of governance. The company has implemented measures to ensure effective board management, oversight, and diversity, with a notable increase in female representation among senior executives. This announcement underscores SDI’s dedication to aligning with ASX recommendations and enhancing shareholder interests.

SDI Limited Releases 2025 Corporate Governance Statement

SDI Limited has released its corporate governance statement for the financial year ending June 30, 2025, which has been approved by its board as of September 25, 2025. The statement, available on their website, outlines the company’s adherence to the ASX Corporate Governance Council’s principles and recommendations, detailing the extent of compliance and any deviations along with reasons and alternative practices adopted.