SDI Limited (SDI) AI Stock Analysis

• Market Cap: AU$102.22M
• Dividend Yield: 3.98%
• Average Volume (3M): 65.35K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.11
• Revenue Growth: 0.82%
• EPS Growth: 31.36%
• Country: AU
• Employees: 275
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 0.03
• Shares Outstanding: 118,865,524
• 10 Day Avg. Volume: 94,171
• 30 Day Avg. Volume: 65,354
• PEG Ratio: 7.68
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.89
• 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: 77 Outperform
• Price Target: AU$1.00 ▲(16.28%Upside)

SDI Limited's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust margins and cash flow improvements enhance financial stability. However, technical analysis suggests caution as the stock approaches potential resistance levels. The absence of recent earnings call data or significant corporate events means these factors did not influence the score.

Positive Factors

Market Share

SDI's growth rate exceeding the broader industry rate suggests the company is continuing to gain market share across different cycles.

New Facility Potential

Begin production at new facility which has potential to double the top-line.

Negative Factors

Amalgam Impact

Decline of amalgam continued impacting performance in North America.

Sales Performance

Sales of $111m for FY25 down 0.2% and NPAT expected to be in the range of $10m-$10.4m slightly below expectation of $11.2m.

SDI Limited Business Overview & Revenue Model

Company Description

SDI Limited (SDI) is a global leader in the dental products industry, specializing in the research, development, manufacturing, and distribution of innovative dental materials. The company's core products include dental amalgams, composite resins, and other restorative materials used by dental professionals worldwide. SDI operates across various sectors within the dental industry, focusing on delivering high-quality and reliable solutions that enhance dental care practices.

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 exhibits 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.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 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: Positive
• Last Price: 0.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 0.86 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.84, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.84 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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	77 Outperform	AU$102.22M	9.68	11.40%	3.98%	0.82%	31.36%
AHC	76 Outperform	AU$138.44M	13.92	23.38%	―	63.10%	290.00%
DAI	59 Neutral	AU$87.83M	1.01	137.32%	―	-8.88%	―
EMV	51 Neutral	AU$147.94M	―	-58.61%	―	―	-74.88%
Sector *	50 Neutral	AU$2.63B	2.90	-57.47%	2.40%	36.37%	14.48%
TRJ	47 Neutral	AU$114.28M	―	-24.66%	―	0.70%	-1600.91%
CYC	45 Neutral	AU$120.03M	―	-35.20%	―	4.68%	-155.42%

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.