SDI Limited (SDI) AI Stock Analysis

• Market Cap: AU$102.82M
• Dividend Yield: 3.93%
• Average Volume (3M): 28.73K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 0.12
• Revenue Growth: -0.74%
• EPS Growth: 16.65%
• Country: AU
• Employees: 275
• Sector: Healthcare
• Sector Strength: 47
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.07
• Shares Outstanding: 118,865,524
• 10 Day Avg. Volume: 35,272
• 30 Day Avg. Volume: 28,732
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$1.00
• Price Target Upside: 16.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: AU$1.00 ▲(16.28% Upside)

SDI Limited's overall stock score is driven primarily by its strong financial performance and attractive valuation. The stable technical indicators support a neutral market outlook, while the absence of earnings call data and notable corporate events does not detract from its current valuation appeal.

Positive Factors

Strong Financial Performance

SDI's consistent revenue growth and robust margins indicate a strong market position and effective cost management, supporting long-term profitability.

Low Leverage

Low leverage enhances financial stability and flexibility, allowing SDI to invest in growth opportunities without excessive debt burden.

Improved Cash Flow

Positive free cash flow indicates efficient cash management, providing SDI with resources to reinvest in R&D and expand its market presence.

Negative Factors

Moderate Return on Equity

Moderate ROE suggests SDI could improve its efficiency in generating returns, which may impact investor perception and long-term growth potential.

Room for Improvement in Free Cash Flow Conversion

Improving the conversion of profits to free cash flow is crucial for sustaining growth and funding strategic initiatives without external financing.

Potential to Enhance Net Margins

Enhancing net margins would strengthen SDI's profitability, providing more capital for reinvestment and potentially increasing shareholder value.

SDI Limited Business Overview & Revenue Model

Company Description

SDI Limited engages in the research and development, manufacture, and marketing of dental restorative materials, whitening systems, and other dental materials in Australia. It provides adhesives, alloys, cement, composites, etchants, glass ionomers, sealants, and tooth desensitizing agents and whitening products, as well as equipment and accessories. The company sells its products through distributors, dealers, and dentists worldwide. SDI Limited was founded in 1972 and is headquartered in Bayswater, Australia.

How the Company Makes Money

SDI Limited generates revenue primarily through the sale of its dental products to dental professionals, clinics, and distributors globally. The company's revenue streams are diversified across different product lines, including restorative materials such as composite resins and dental amalgams. SDI also engages in significant partnerships with dental industry stakeholders to expand its market reach and enhance its product offerings. The company invests in research and development to innovate and improve its product line, which contributes to sustained demand and revenue growth. Additionally, SDI's strategic presence in various international markets helps it capitalize on the growing demand for dental care solutions.

SDI Limited Financial Statement Overview

Summary

SDI Limited demonstrates strong financial performance with consistent revenue growth, robust margins, and improved cash flow generation. The company maintains low leverage and a strong equity position, providing stability. However, there is potential to enhance ROE and improve the conversion of profits into free cash flow.

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

SDI Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 0.86 is below the 20-day moving average (MA) of 0.87, above the 50-day MA of 0.85, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 48.66 is Neutral, neither overbought nor oversold. The STOCH value of 23.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SDI.

SDI Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDI	76 Outperform	AU$102.82M	8.46	12.37%	3.93%	-0.74%	16.65%
AHC	76 Outperform	AU$137.06M	22.39	12.35%	―	39.98%	-30.04%
TRJ	55 Neutral	AU$122.03M	―	-4.28%	―	7.38%	82.39%
DAI	53 Neutral	AU$189.98M	2.01	127.84%	―	22.67%	―
Sector *	51 Neutral	$8.02B	-0.31	-43.38%	2.24%	22.31%	-2.14%
EMV	46 Neutral	AU$195.83M	―	-70.55%	―	―	-257.32%
CYC	42 Neutral	AU$85.58M	―	-31.98%	―	34.20%	-23.90%

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.