SDI Group (SDI) AI Stock Analysis

• Market Cap: £98.28M
• Dividend Yield: N/A
• Average Volume (3M): 197.31K
• Price to Earnings (P/E): 26.0
• Beta (1Y): 0.79
• Revenue Growth: 0.50%
• EPS Growth: -6.16%
• Country: UK
• Employees: 500
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.04
• Shares Outstanding: 104,551,320
• 10 Day Avg. Volume: 209,819
• 30 Day Avg. Volume: 197,309
• 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: £105.00
• Price Target Upside: 11.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: 105.00p ▲(11.11% Upside)

SDI Group's overall stock score is driven by strong financial performance and positive technical indicators. The company's strategic acquisitions and operational efficiencies contribute to a positive outlook, despite challenges in organic growth and specific market segments. The valuation is moderate, and the absence of a dividend yield may limit appeal to some investors.

SDI Group Business Overview & Revenue Model

Company Description

SDI Group plc, through its subsidiaries, designs and manufactures scientific and technology products based on digital imaging in the United Kingdom, rest of Europe, the United States, Asia, and internationally. It operates in Digital Imaging and Sensors & Control segments. The company offers sensitive cameras for life science and industrial applications under the Atik Camera brand name; cameras for art conservation under the Opus Instruments brand name; and cameras that have applications in astronomy, life sciences, and flat-panel inspection under the Quantum Scientific Imaging brand name. It also designs and manufactures precision re-circulating chillers, coolers, and heat exchangers to control the thermal environment within the scientific instrument support market; and supplies chemical dosing and control systems for manufacturing industries. In addition, it offers off-the-shelf and custom-made electrochemical sensors for water-based applications under the Sentek name; systems and software for automated gel-based DNA and protein fluorescence/chemiluminescence imaging under the G:BOX and NuGenius brands; automated and manual systems for microbiological testing in food, water, pharmaceutical, and clinical applications; and ProReveal, a fluorescence-based patented protein detection test to check for residual protein on surgical instruments. Further, it engages in the design, manufacture, and calibration of pressure, vacuum, and gas flow measurement instruments; and flowmeters, flow alarms, flow indicators, flow-switches, calibration cylinders, and sight glasses for the measurement of liquids and gases; and precision micropattern products, as well as water purification products and vacuum ovens under the Cyclon Water Still and Gallenkamp vacuum ovens brands. The company was formerly known as Scientific Digital Imaging plc and changed its name to SDI Group plc in November 2019. SDI Group plc was incorporated in 2007 and is based in Cambridge, the United Kingdom.

How the Company Makes Money

SDI generates revenue primarily through the sale of software licenses and subscriptions for its cloud-based applications and ERP systems. Additionally, the company earns money from consulting services, where it assists clients in implementing and optimizing its software solutions. Key revenue streams include recurring subscription fees, one-time license fees, and ongoing support and maintenance contracts. Strategic partnerships with leading technology firms also enhance SDI's market reach and generate co-branded offerings, contributing significantly to its overall earnings.

SDI Group Financial Statement Overview

Summary

SDI Group demonstrates solid financial health with strong revenue growth and efficient cash flow management. While profitability margins have slightly declined, the company maintains a stable balance sheet with moderate leverage. Overall, SDI Group is well-positioned in the Hardware, Equipment & Parts industry, though it should monitor profitability closely to sustain investor confidence.

Income Statement

SDI Group has shown consistent revenue growth over the years, with a slight dip in the most recent year. The gross profit margin remains strong at approximately 65%, indicating efficient production and pricing strategies. However, the net profit margin has decreased over the years, suggesting rising costs or increased competition. The EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. The return on equity has decreased, which may concern investors seeking high returns. The equity ratio shows a stable financial structure, with equity making up a significant portion of total assets.

Cash Flow

SDI Group's cash flow metrics are strong, with a significant increase in free cash flow growth in the latest year. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is robust, suggesting good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.18M	66.18M	65.85M	67.58M	49.66M	35.08M
Gross Profit	28.35M	42.93M	41.55M	42.77M	31.66M	22.87M
EBITDA	11.10M	11.10M	11.27M	11.07M	12.95M	8.49M
Net Income	3.98M	3.98M	4.23M	3.87M	7.54M	4.71M
Balance Sheet
Total Assets	88.23M	88.23M	81.66M	84.99M	68.92M	48.70M
Cash, Cash Equivalents and Short-Term Investments	1.31M	1.31M	1.43M	2.71M	5.11M	3.84M
Total Debt	21.98M	21.98M	21.48M	22.74M	11.44M	5.64M
Total Liabilities	38.56M	38.56M	36.23M	43.70M	33.13M	21.93M
Stockholders Equity	49.64M	49.64M	45.42M	41.26M	35.79M	26.77M
Cash Flow
Free Cash Flow	8.06M	7.42M	4.05M	6.33M	11.26M	9.22M
Operating Cash Flow	9.30M	9.30M	5.83M	7.74M	13.10M	10.26M
Investing Cash Flow	-9.03M	-9.03M	-4.99M	-22.38M	-12.77M	-5.02M
Financing Cash Flow	-205.00K	-205.00K	-2.15M	12.10M	982.00K	-6.58M

SDI Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 94.50
• 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 GB:SDI, the sentiment is Neutral. The current price of 94.5 is below the 20-day moving average (MA) of 97.13, above the 50-day MA of 92.36, and above the 200-day MA of 70.21, indicating a neutral trend. The MACD of 1.43 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 21.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:SDI.

SDI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SDI	76 Outperform	£98.28M	25.98	8.38%	―	0.50%	-6.16%
KMK	56 Neutral	43.56M	11.27	―	―	36.61%	―
GHH	55 Neutral	151.84M	26.89	-5.88%	2.36%	1.74%	359.50%
SOLI	55 Neutral	96.33M	191.67	0.83%	1.47%	-23.42%	-94.25%
KETL	52 Neutral	110.79M	-64.27	-3.06%	―	-1.95%	-110.12%
XAR	49 Neutral	95.09M	-8.49	-17.19%	―	-7.35%	-222.10%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

SDI Group Corporate Events

SDI Group Reports Strong Second Half Performance and Strategic Growth Initiatives

SDI Group plc announced a trading update for the fiscal year ended April 30, 2025, reporting strong performance in the second half of the year, aligning with market expectations. The company maintained solid cash generation and has sufficient debt facilities to support its acquisition strategy. Key achievements include increased order intake, successful product launches, and strategic acquisitions, notably InspecVision and Collins Walker. InspecVision received the King’s Award for Enterprise in International Trade, highlighting its success in a niche market. Despite global economic uncertainties, SDI’s diverse portfolio and strategic growth initiatives position it well for continued momentum into FY26.

SDI Group’s InspecVision Wins Prestigious King’s Award for International Trade

SDI Group plc announced that its recently acquired company, InspecVision Ltd, has been awarded the King’s Award for Enterprise in International Trade, recognizing its excellence in international trade. InspecVision, known for its computer vision-based measurement systems, has achieved a 126% growth in overseas sales over the past three years, with 96% of its products exported to over 40 countries. This accolade underscores InspecVision’s success in expanding its market presence and highlights SDI Group’s strategic acquisition approach, enhancing its portfolio’s international footprint.

SDI Group PLC: Shareholder Voting Rights Update

SDI Group PLC has announced a change in the notification process for major holdings in issuers whose shares are traded on UK regulated markets. Shareholder Value Beteiligungen Aktiengesellschaft, based in Frankfurt, Germany, has increased its voting rights in SDI Group to 5.05%, crossing the previous threshold of 3.94%. This change reflects a significant shift in shareholder dynamics, potentially impacting the company’s governance and strategic decisions.

SDI Group Chair Increases Stake with Significant Share Purchase

SDI Group plc announced that Ken Ford, the Non-Executive Chair, has purchased 100,000 ordinary shares of the company, increasing his total holding to approximately 1.15% of the issued share capital. This transaction underscores confidence in the company’s strategic direction and could positively impact stakeholder perception, reinforcing SDI Group’s commitment to growth and market expansion.

SDI Group Expands into Electric Boiler Market with Collins Walker Acquisition

SDI Group plc has acquired Collins Walker Ltd, a designer and manufacturer of electric boilers, for approximately £1.85 million. This acquisition aligns with SDI’s strategy to expand in the regulatory-driven electric boiler market, which is experiencing growth due to net zero regulations. Collins Walker will be integrated into SDI’s Industrial & Scientific Products division, specifically Applied Thermal Control, to enhance manufacturing capacity and operational efficiencies. This strategic move is expected to increase sales and margins, providing SDI with a stronger foothold in the high-growth industrial electric boiler sector.

SDI Group Announces Strategic Innovations and Collaborations in Portfolio Companies

SDI Group plc has announced recent developments within its portfolio companies, highlighting innovations and collaborations that enhance efficiency and sustainability across science, healthcare, and industry. Key updates include Fraser Anti-Static Techniques’ cost-saving static control system for Serialetic, Applied Thermal Control’s environmentally friendly chiller ranges, and Chell Instruments’ contributions to the University of Sheffield’s Formula Student competition. Additionally, Monmouth Scientific and Safelab Systems have partnered to advance biofuel research, while LTE Scientific has secured a position on the NHS Supply Chain framework, reinforcing its role in the UK healthcare sector. These activities underscore SDI Group’s commitment to customer-focused product development and strategic partnerships, driving organic growth and solidifying its industry positioning.

SDI Group Chair Increases Stake with Significant Share Purchase

SDI Group plc announced that Ken Ford, the Non-Executive Chair, has purchased 100,000 ordinary shares in the company, increasing his total shareholding to approximately 1.06% of the issued share capital. This transaction reflects confidence in the company’s strategic direction and may positively influence stakeholder perceptions, potentially enhancing SDI’s market position and investor relations.