SDI Limited (SDI) AI Stock Analysis

• Market Cap: AU$99.85M
• Dividend Yield: 3.57%
• Average Volume (3M): 33.24K
• Price to Earnings (P/E): 9.5
• Beta (1Y): 0.12
• Revenue Growth: 0.82%
• EPS Growth: 31.36%
• Country: AU
• Employees: 275
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.03
• Shares Outstanding: 118,865,524
• 10 Day Avg. Volume: 22,715
• 30 Day Avg. Volume: 33,236
• PEG Ratio: 0.49
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.54
• 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: AU$1.30
• Price Target Upside: 58.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: AU$1.00 ▲(21.95%Upside)

SDI Limited's strong financial performance and attractive valuation are key strengths, contributing to a favorable overall score. However, technical analysis reveals weak price momentum which tempers the overall assessment. The absence of earnings call data and notable corporate events limits further insights.

Positive Factors

Market Expansion

The company has appointed an experienced Asia sales agent to draft up a strategy to expand into the region.

Product Innovation

Significant research resources have been deployed in their capsule and syringe designs over the years to entrench SDI’s position in the market.

Product Launch Success

Stela reached $1.3m in sales revenue showing strong adoption by distributors and dentists, positioning the product well as the gold standard for amalgam and traditional composite replacement.

Negative Factors

Regional Performance

Strong growth in Europe and Brazil were offset by weakness in the Middle East and Asia and expected decline from amalgam sales.

Sales Growth

SDI has provided a trading update, with sales growth down 1.5% to $51.5m.

Sales Performance

SDI provided a trading update with 1H25 sales growth down 1.5% to $51.5m, below our expectation of 7% growth.

SDI Limited Business Overview & Revenue Model

Company Description

SDI Limited (SDI) is a leading manufacturer and global distributor in the dental sector, specializing in the development of innovative dental materials and consumables. The company offers a wide range of products, including dental restorative materials, whitening systems, and adhesives, serving dental professionals across multiple markets worldwide.

How the Company Makes Money

SDI Limited generates revenue primarily through the sale of its dental products to dentists, dental clinics, and distributors around the world. The company's revenue streams are largely driven by its core product lines, which include dental restorative materials, whitening systems, and adhesives. SDI also benefits from strategic partnerships and the continuous innovation of its product offerings, which enable it to maintain a competitive edge in the global dental industry. Additionally, the company invests in research and development to enhance product quality and expand its market reach, further contributing to its revenue growth.

SDI Limited Financial Statement Overview

Summary

SDI Limited exhibits a strong financial performance with consistent revenue growth, robust margins, and improved cash flow generation. The company's low leverage and strong equity position provide stability, while there is potential to enhance ROE and convert profits more effectively into free cash flow. Overall, SDI Limited is financially sound with opportunities for further optimization.

Income Statement

SDI Limited's income statement shows a strong revenue growth trend with a 3.11% increase from 2023 to 2024. The gross profit margin is robust at 62.07%, indicating effective cost management. Net profit margin improved to 9.37%, reflecting enhanced profitability. The EBIT and EBITDA margins are healthy at 18.33% and 18.85% respectively, showcasing operational efficiency. Overall, the income statement demonstrates solid growth and profitability, though there is room to improve net margins further.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.26, suggesting conservative use of leverage. The equity ratio is strong at 66.81%, indicating a solid capital structure. However, the return on equity is moderate at 11.09%, suggesting potential for higher efficiency in generating shareholder returns. Overall, SDI Limited has a stable balance sheet with low leverage but could enhance its ROE.

Cash Flow

SDI Limited's cash flow analysis shows a remarkable improvement in free cash flow, reversing from negative to positive in 2024. The operating cash flow to net income ratio of 1.37 indicates strong cash generation relative to earnings. The free cash flow to net income ratio is 0.39, highlighting room for improvement in converting profits to free cash flow. Overall, cash flow management is positive with significant improvements in free cash flow generation.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	110.50M	111.21M	107.86M	95.15M	81.65M	67.37M
Gross Profit	69.66M	69.04M	61.27M	53.11M	50.25M	43.64M
EBITDA	19.73M	20.96M	15.27M	14.37M	17.31M	9.80M
Net Income	10.55M	10.42M	7.06M	7.28M	8.94M	4.24M
Balance Sheet
Total Assets	138.20M	140.66M	133.31M	102.07M	98.40M	84.81M
Cash, Cash Equivalents and Short-Term Investments	4.87M	6.28M	6.02M	7.01M	10.56M	6.15M
Total Debt	22.84M	24.78M	25.60M	2.02M	1.57M	2.63M
Total Liabilities	42.11M	46.69M	45.39M	18.34M	18.62M	11.02M
Stockholders Equity	96.10M	93.97M	87.92M	83.73M	79.78M	73.79M
Cash Flow
Free Cash Flow	7.32M	4.03M	-21.42M	-61.00K	8.64M	2.32M
Operating Cash Flow	14.10M	14.33M	13.06M	4.27M	12.69M	7.03M
Investing Cash Flow	-7.54M	-8.78M	-33.41M	-4.25M	-3.95M	-4.62M
Financing Cash Flow	-8.58M	-5.33M	19.20M	-3.49M	-4.18M	-2.66M

SDI Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SDI, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.84, and below the 200-day MA of 0.93, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.60 is Neutral, neither overbought nor oversold. The STOCH value of 19.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SDI.

SDI Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AHC	76 Outperform	AU$109.22M	10.99	23.38%	―	63.10%	290.00%
SDI	71 Outperform	AU$99.85M	9.46	11.40%	3.57%	0.82%	31.36%
DAI	63 Neutral	AU$91.28M	1.07	137.32%	―	-8.88%	―
CYC	49 Neutral	AU$106.69M	―	-35.20%	―	4.68%	-155.42%
Sector *	49 Neutral	AU$2.49B	4.37	-64.25%	2.83%	36.51%	13.14%
EMV	46 Neutral	AU$149.23M	―	-58.61%	―	―	-74.88%
TRJ	45 Neutral	AU$109.71M	―	-24.66%	―	0.70%	-1600.91%

SDI Limited Corporate Events

SDI Limited Announces 1H FY25 Results Release and Investor Call

SDI Limited is set to release its preliminary financial report for the first half of the fiscal year 2025 on February 27, 2025. The company will host a live investor conference call and webcast on the same day, led by CEO Samantha Cheetham and CFO John Slaviero, to discuss the results and engage with stakeholders. This announcement reflects SDI’s commitment to transparency and stakeholder engagement, potentially impacting its market positioning and investor relations.