SDI Group (SDI) AI Stock Analysis

• Market Cap: £81.03M
• Dividend Yield: N/A
• Average Volume (3M): 298.93K
• Price to Earnings (P/E): 23.3
• Beta (1Y): 0.66
• Revenue Growth: -5.19%
• EPS Growth: 115.58%
• Country: UK
• Employees: 500
• Sector: Technology
• Sector Strength: 82
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.02
• Shares Outstanding: 104,551,320
• 10 Day Avg. Volume: 326,693
• 30 Day Avg. Volume: 298,931
• PEG Ratio: -0.93
• Price to Book (P/B): 1.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.55
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 72 Outperform
• Price Target: 83.00p ▲(6.41%Upside)

SDI Group's strong balance sheet and strategic acquisitions drive a positive outlook, despite challenges of declining revenue and overbought technical indicators. Reasonable valuation and supportive corporate actions further enhance the stock's appeal.

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 Group makes money primarily through the sale and integration of its automated systems and solutions. The company's revenue streams include project-based sales for system design and installation, ongoing maintenance and support contracts, and the licensing of its proprietary software solutions. Key partnerships with technology providers and logistics companies also contribute to its earnings by enabling SDI to offer comprehensive, cutting-edge solutions to its clients. Additionally, SDI generates revenue through consultancy services, helping businesses optimize their supply chain operations.

SDI Group Financial Statement Overview

Summary

SDI Group demonstrates solid financial stability with manageable leverage and consistent profitability. While the company maintains strong operating cash flows, the decline in revenue and free cash flow growth poses potential challenges. Continued focus on cost control and revenue generation will be crucial for future financial performance.

Income Statement

The company's gross profit margin for 2024 was 24.9%, reflecting a decrease from 63.3% in 2023, indicating a significant reduction in cost control or pricing power. The net profit margin was 6.4% in 2024, slightly improving from 5.7% in 2023. EBIT margin was 12.0%, showing stability compared to 10.1% previously. However, revenue contracted by 2.6% compared to the previous year, raising concerns about growth prospects.

Balance Sheet

The company's debt-to-equity ratio in 2024 was 0.47, representing a stronger leverage position compared to 0.55 in 2023. The equity ratio was 55.6%, maintaining a stable capital structure. Return on equity stood at 9.3%, consistent with the previous year, indicating steady profitability. The balance sheet shows strength in equity positioning and manageable debt levels.

Cash Flow

Operating cash flow to net income ratio was 1.38, suggesting robust cash generation relative to profits, though free cash flow declined by 36.1% year-over-year, pointing to potential challenges in cash flow management. The free cash flow to net income ratio was 0.96, indicating the company is generating adequate free cash flow relative to profits, albeit on a downward trajectory.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
64.54M	65.85M	67.58M	49.66M	35.08M	24.50M
	Gross Profit
40.42M	41.55M	42.77M	31.66M	22.87M	15.41M
	EBIT
7.37M	7.89M	6.81M	10.18M	5.93M	3.67M
	EBITDA
10.34M	11.27M	11.07M	12.95M	8.49M	5.69M
	Net Income Common Stockholders
3.47M	4.23M	3.87M	7.54M	4.71M	2.59M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.20M	1.43M	2.71M	5.11M	3.84M	5.29M
	Total Assets
86.33M	81.66M	84.99M	68.92M	48.70M	38.43M
	Total Debt
25.13M	21.48M	22.74M	11.44M	5.64M	12.29M
	Net Debt
23.93M	20.05M	20.03M	6.33M	1.81M	7.00M
	Total Liabilities
39.59M	36.23M	43.70M	33.13M	21.93M	18.37M
	Stockholders Equity
46.70M	45.42M	41.26M	35.79M	26.77M	20.06M
Cash Flow		Free Cash Flow
6.13M	4.05M	6.33M	11.26M	9.22M	3.04M
	Operating Cash Flow
7.72M	5.83M	7.74M	13.10M	10.26M	4.13M
	Investing Cash Flow
-10.72M	-4.99M	-22.38M	-12.77M	-5.02M	-6.27M
	Financing Cash Flow
2.80M	-2.15M	12.10M	982.00K	-6.58M	4.92M

SDI Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 78 is above the 20-day moving average (MA) of 71.36, above the 50-day MA of 59.89, and above the 200-day MA of 57.63, indicating a bullish trend. The MACD of 4.62 indicates Negative momentum. The RSI at 72.15 is Negative, neither overbought nor oversold. The STOCH value of 80.91 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
SOLI	78 Outperform	£110.49M	20.72	8.61%	1.91%	-11.80%	-32.11%
SDI	72 Outperform	£81.03M	23.34	7.69%	―	-5.19%	115.58%
GHH	70 Outperform	£153.17M	29.58	4.79%	2.22%	1.74%	359.50%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
XAR	60 Neutral	£106.61M	―	-15.96%	―	-13.04%	-387.05%
KETL	57 Neutral	£106.77M	22.36	4.44%	9.43%	-1.95%	-110.12%
KMK	56 Neutral	£38.17M	―	-13.12%	―	-9.28%	-19.48%

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.