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SDI Group
(LSE:SDI)
Select Model
Select Model
Rating:70Neutral
Price Target:
90.00 p
▲(14.21% Upside)
Action:Reiterated
Date:12/07/25
SDI Group's strong financial performance and positive earnings call are offset by bearish technical indicators and moderate valuation. The company's strategic acquisitions and revenue growth are significant strengths, but market competition and increased debt pose challenges.
Positive Factors
High and improving gross margins
A ~66% gross margin indicates persistent pricing power and efficient production across niche engineered products. Sustained high gross margins support reinvestment, R&D and margin expansion even if operating costs rise, underpinning durable profitability across cycles.
Negative Factors
Rising net debt from acquisitions
Higher net debt from acquisition activity increases leverage and interest exposure. While within target ranges, sustained M&A-funded growth could constrain liquidity or capital allocation flexibility if earnings or cash conversion weaken, raising refinancing sensitivity.
Read all positive and negative factors
Positive Factors
Negative Factors
High and improving gross margins
A ~66% gross margin indicates persistent pricing power and efficient production across niche engineered products. Sustained high gross margins support reinvestment, R&D and margin expansion even if operating costs rise, underpinning durable profitability across cycles.
Read all positive factors
SDI Group (SDI) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£92.55M
Dividend YieldN/A
Average Volume (3M)331.24K
Price to Earnings (P/E)20.2
Beta (1Y)1.08
Revenue Growth7.36%
EPS Growth31.93%
CountryUK
Employees500
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.04
Shares Outstanding104,573,130
10 Day Avg. Volume197,495
30 Day Avg. Volume331,242
Financial Highlights & Ratios
PEG Ratio-2.30
Price to Book (P/B)1.14
Price to Sales (P/S)0.85
P/FCF Ratio7.61
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£145.00Price Target Upside84.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.08
Revenue Forecast (FY)£82.93M
SDI Group Business Overview & Revenue Model
Company Description
SDI Group plc, founded in Cambridge, United Kingdom in 2007 and formerly known as Scientific Digital Imaging plc until November 2019, is a global designer and manufacturer of scientific and technological products, primarily leveraging digital imag...
How the Company Makes Money
SDI makes money primarily through the sale of products and related services delivered by its operating subsidiaries. Its core revenue model is business-to-business (B2B): subsidiaries generate income by (1) manufacturing and selling specialist ins...
SDI Group Earnings Call Summary
Earnings Call Date:Dec 03, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
SDI Group delivered strong financial results with significant revenue growth, successful strategic acquisitions, and record government contracts. However, challenges such as increased net debt, market competition, and geopolitical uncertainties were also highlighted. The acquisition pipeline remains strong, indicating continued growth potential.Positive Updates
Strong Revenue Growth
SDI Group reported a 10% total revenue growth, comprising 3% organic growth and 7% acquisition growth, with net operating margins improving from 12.6% to 13.5%.
Negative Updates
Increased Net Debt
Net debt increased due to acquisitions, reaching GBP 18 million, although leverage remains within the preferred range of 1x to 1.5x net debt to EBITDA.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
SDI Group reported a 10% total revenue growth, comprising 3% organic growth and 7% acquisition growth, with net operating margins improving from 12.6% to 13.5%.
Read all positive updates
Company Guidance
In the call, SDI Group plc provided guidance for fiscal year 2026, projecting a revenue growth to approximately GBP 75 million from the previous fiscal year's GBP 66 million. The company reported a 10% total revenue growth for the first half of FY'26, comprising 3% organic growth and around 7% acquisition growth. Net operating margins improved to 13.5% from 12.6% the prior year, with a gross profit margin increase to 66.3%. The company highlighted significant contract wins, including a GBP 1.3 million government contract for Safelab and a recurring GBP 2 million order for blood gas sensors. Additionally, SDI Group's acquisition strategy remains robust, with a focus on profitable businesses in niche markets, and they have restructured their debt financing with HSBC to support future inorganic growth. The company targets a long-term organic growth rate of 5% to 8% and maintains a strong acquisition pipeline, aiming for accretive acquisitions with a typical size of GBP 1 million EBIT and above.SDI Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2022 | Apr 2021 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 69.29M | 66.18M | 65.85M | 67.58M | 49.66M | 35.08M |
| Gross Profit | 17.20M | 42.93M | 41.55M | 42.77M | 31.66M | 22.87M |
| EBITDA | 12.18M | 11.10M | 11.27M | 11.07M | 12.95M | 8.49M |
| Net Income | 4.58M | 3.98M | 4.23M | 3.87M | 7.54M | 4.71M |
Balance Sheet | ||||||
| Total Assets | 93.83M | 88.23M | 81.66M | 84.99M | 68.92M | 48.70M |
| Cash, Cash Equivalents and Short-Term Investments | 1.51M | 1.31M | 1.43M | 2.71M | 5.11M | 3.84M |
| Total Debt | 26.07M | 21.98M | 21.48M | 22.74M | 11.44M | 5.64M |
| Total Liabilities | 42.38M | 38.56M | 36.23M | 43.70M | 33.13M | 21.93M |
| Stockholders Equity | 51.49M | 49.64M | 45.42M | 41.26M | 35.79M | 26.77M |
Cash Flow | ||||||
| Free Cash Flow | 7.42M | 7.42M | 4.05M | 6.33M | 11.26M | 9.22M |
| Operating Cash Flow | 8.76M | 9.30M | 5.83M | 7.74M | 13.10M | 10.26M |
| Investing Cash Flow | -8.64M | -9.03M | -4.99M | -22.38M | -12.77M | -5.02M |
| Financing Cash Flow | 355.00K | -205.00K | -2.15M | 12.10M | 982.00K | -6.58M |
SDI Group Technical Analysis
Positive
78.80
Price Trends
84.25
Positive
79.82
Positive
79.70
Positive
Market Momentum
1.33
Positive
57.12
Neutral
29.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDI, the sentiment is Positive. The current price of 78.8 is below the 20-day moving average (MA) of 88.12, below the 50-day MA of 84.25, and below the 200-day MA of 79.70, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 29.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDI.
SDI Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £53.08M | 4.18 | 22.93% | ― | 136.76% | ― | |
70 Neutral | £92.55M | 20.16 | 9.07% | ― | 7.36% | 31.93% | |
69 Neutral | £110.63M | 27.08 | 3.91% | 1.56% | 23.25% | 700.00% | |
62 Neutral | £331.19M | 82.03 | 3.33% | 2.19% | 12.73% | -26.74% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | £205.90M | -4.15 | -31.21% | ― | -7.62% | 5.48% | |
54 Neutral | £92.60M | -31.98 | -5.90% | ― | -2.20% | 68.24% |
* Technology Sector Average
GB:SDI
SDI Group
88.50
-5.50
-5.85%
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SDI Group Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
SDI Group Keeps Earnings on Track as Acquisitions and Order Book Bolster Outlook
Positive
May 21, 2026
SDI Group plc, the specialist industrial and scientific instrumentation consolidator, reported that earnings for the year to 30 April 2026 are expected to be in line with market forecasts, as improved operating margins offset revenue at the lower ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
SDI Group Launches Board Succession as Long-Serving Non-Executive Director Prepares to Step Down
Positive
May 11, 2026
SDI Group plc, a buy-and-build specialist in lab equipment and industrial and scientific sensing technologies, has grown from four companies with £10.7 million in revenue and £1.3 million in adjusted operating profit at the start of Non-...
Business Operations and StrategyProduct-Related Announcements
SDI Group Portfolio Companies Secure Major Contracts and Expand into New High-Tech Markets
Positive
Mar 17, 2026
SDI Group has reported a wave of commercial and product milestones across its portfolio, highlighting robust demand in specialist lab equipment, industrial sensors and scientific products. Portfolio companies have secured sizable contracts, launch...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.