SDI Group (SDI) AI Stock Analysis

• Market Cap: £78.43M
• Dividend Yield: N/A
• Average Volume (3M): 331.24K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.44
• Revenue Growth: 7.36%
• EPS Growth: 31.93%
• Country: UK
• Employees: 500
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.03
• Shares Outstanding: 104,573,130
• 10 Day Avg. Volume: 197,495
• 30 Day Avg. Volume: 331,242
• PEG Ratio: 1.74
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.86
• P/FCF Ratio: 14.02
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: 78.00p ▼(-1.89% Downside)

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

Revenue Growth

Consistent revenue growth through organic and acquisition channels indicates strong market demand and effective expansion strategies.

Acquisition Strategy

Successful acquisitions enhance product offerings and market reach, supporting long-term growth and competitive positioning.

Cash Flow Management

Efficient cash generation supports operational flexibility and investment in growth opportunities, ensuring financial stability.

Negative Factors

Increased Net Debt

Rising net debt levels can strain financial resources and limit future investment capacity, posing a risk to financial health.

Market Competition

Intense competition may pressure margins and require strategic adjustments to maintain market share and profitability.

Geopolitical Uncertainty

Geopolitical risks can disrupt operations and planning, impacting long-term strategic decisions and market stability.

SDI Group Business Overview & Revenue Model

Company Description

SDI Group (SDI) is a global leader in the manufacturing and distribution of high-quality packaging solutions, specializing in sustainable and innovative materials. Operating across multiple sectors, including food and beverage, pharmaceuticals, and consumer goods, SDI offers a diverse range of products such as flexible packaging, labels, and specialty films. The company is committed to environmental stewardship, providing eco-friendly packaging options that meet the evolving needs of its customers while maintaining exceptional quality and performance.

How the Company Makes Money

SDI Group generates revenue primarily through the sale of its packaging products to various industries. The company's revenue model is based on direct sales to manufacturers and retailers, as well as long-term contracts with major clients that ensure a steady stream of income. Key revenue streams include custom packaging solutions tailored to specific client needs, standard product lines, and the sale of raw materials used in packaging production. Additionally, SDI has established significant partnerships with key players in the food and beverage sector, which enhance its market presence and contribute to its earnings. The company's focus on sustainability and innovation also attracts premium pricing for its eco-friendly products, further boosting its revenue potential.

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.

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 2024	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	69.29M	65.85M	66.18M	67.58M	49.66M	24.50M
Gross Profit	17.20M	41.55M	42.93M	42.77M	31.66M	15.41M
EBITDA	12.18M	11.27M	11.10M	11.07M	12.95M	5.53M
Net Income	4.58M	4.23M	3.98M	3.87M	7.54M	2.59M
Balance Sheet
Total Assets	93.83M	81.66M	88.23M	84.99M	68.92M	38.43M
Cash, Cash Equivalents and Short-Term Investments	1.51M	1.43M	1.31M	2.71M	5.11M	5.29M
Total Debt	26.07M	21.48M	21.98M	22.74M	11.44M	12.29M
Total Liabilities	42.38M	36.23M	38.56M	43.70M	33.13M	18.37M
Stockholders Equity	51.49M	45.42M	49.64M	41.26M	35.79M	20.06M
Cash Flow
Free Cash Flow	7.42M	4.05M	7.42M	6.33M	11.26M	3.04M
Operating Cash Flow	8.76M	5.83M	9.30M	7.74M	13.10M	4.13M
Investing Cash Flow	-8.64M	-4.99M	-9.03M	-22.38M	-12.77M	-6.27M
Financing Cash Flow	355.00K	-2.15M	-205.00K	12.10M	982.00K	4.92M

SDI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.50
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 79.5 is above the 20-day moving average (MA) of 73.29, above the 50-day MA of 76.87, and above the 200-day MA of 77.03, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 63.32 is Neutral, neither overbought nor oversold. The STOCH value of 80.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDI.

SDI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMK	76 Outperform	£55.68M	14.41	7.39%	―	36.61%	―
SDI	70 Neutral	£78.43M	18.15	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£92.35M	38.15	3.88%	1.54%	8.75%	-54.73%
GHH	67 Neutral	£168.09M	45.27	3.13%	2.13%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£80.60M	-7.11	-16.64%	―	-7.35%	-222.10%
KETL	46 Neutral	£94.27M	12.24	18.63%	―	-3.41%	58.10%

SDI Group Corporate Events

SDI Group Reports Strong Interim Results with Strategic Progress

SDI Group plc reported strong interim results for the first half of fiscal year 2026, with significant contract wins and a successful acquisition enhancing earnings. The company achieved a 10.1% increase in revenue, driven by both organic growth and acquisitions, and improved gross margins. The strategic focus on innovation and collaboration among portfolio businesses has led to new product launches and expanded market reach. The group has strengthened its management team to support sustainable growth and remains confident in its strategy to achieve long-term objectives despite challenging market conditions. The acquisition pipeline remains active, and the company is well-positioned for future growth with a stable strategy and diverse portfolio.

SDI Group to Announce Half-Year Results and Host Investor Presentation

SDI Group plc has announced that it will release its unaudited half-year results for the period ending 31 October 2025 on 3 December 2025. The company will also host a webcast for retail investors on the same day, providing an opportunity for existing and potential shareholders to engage with the company’s leadership. This announcement underscores SDI Group’s commitment to transparency and investor engagement, potentially strengthening its market position and stakeholder relations.

SDI Group Updates on Director’s Disclosure Amid Liquidation of Ocean Harvest Technology

SDI Group plc announced an update regarding the disclosure of its Non-Executive Director, David Tilston, following the creditors’ voluntary liquidation of Ocean Harvest Technology Group plc, where he was a director until May 2025. This development may impact SDI Group’s governance and oversight, reflecting the challenges faced by its directors in managing external business interests.

SDI Group Announces Share Option Awards and New Share Issuance

SDI Group plc announced the grant of share option awards to its Executive Directors under the Long Term Incentive Plan 2025. These awards include deferred bonus awards and performance-based LTIP awards, both with an exercise price of 1 pence per share. The performance conditions are tied to the company’s growth in EPS and total shareholder return. Additionally, SDI Group has issued 21,800 new ordinary shares following an employee’s exercise of approved options, with trading on AIM expected to commence on 26 September 2025. This move is part of SDI’s strategy to incentivize its leadership and support its growth objectives.

SDI Group plc Successfully Passes All AGM Resolutions

SDI Group plc announced that all resolutions at its recent annual general meeting were passed, reflecting shareholder support for the company’s strategic direction. This outcome reinforces SDI Group’s commitment to expanding its portfolio through organic growth and strategic acquisitions, which is expected to enhance its positioning in the industrial and scientific sectors.

SDI Group Reports Positive Momentum and Growth Strategy

SDI Group plc has reported continued positive momentum across its portfolio, with an improvement in organic growth compared to the previous year. The company expects to meet market expectations for the financial year 2026, with profits and revenue anticipated to be weighted towards the second half of the year. SDI Group employs a dual strategy of optimizing existing businesses for organic growth and acquiring complementary businesses to leverage synergies and expand its international reach.

SDI Group Reports Positive Growth Momentum and Strategic Progress

SDI Group plc has reported positive momentum across its portfolio, with an improvement in organic growth compared to the previous year. The company expects to meet market expectations for the full year, with profits and revenues anticipated to be higher in the second half of the financial year due to the current order book and pipeline. SDI continues to pursue a dual strategy of optimizing existing businesses for organic growth and acquiring complementary businesses to enhance synergies and leverage the benefits of the wider group.