SDI Group (SDI) AI Stock Analysis

• Market Cap: £78.43M
• Dividend Yield: N/A
• Average Volume (3M): 331.24K
• Price to Earnings (P/E): 17.1
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: 86.00p ▲(9.14% Upside)

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 & Guidance

Sustained top-line growth and explicit medium-term guidance reflect a scalable business model combining organic expansion and M&A. Recurring contract wins and a stated 5–8% organic target improve revenue visibility, supporting investment planning and long-term capacity utilization.

High Gross Margins

Persistently high gross margins indicate structural pricing power and efficient manufacturing across specialty films, labels and custom packaging. Durable margin strength supports reinvestment, cushions net profit variability, and underpins sustainable cash generation even with mix shifts.

Strong Cash Generation

Robust free cash flow and efficient conversion of income into operating cash provide a durable funding source for acquisitions, capex and debt service. Strong cash generation reduces refinancing risk and supports a repeatable inorganic growth strategy over the medium term.

Negative Factors

Increased Net Debt

Acquisition-driven debt raises leverage and reduces financial flexibility. While still within target range, higher net debt exposes the company to interest costs and refinancing risk, constraining capital allocation if organic growth underperforms or margins compress.

Rising Central Costs

Permanent increases in central overhead can structurally depress net margins unless matched by sustained revenue scaling. If acquisitions or organic growth slow, higher fixed central costs amplify earnings volatility and reduce incremental profitability from new revenues.

Competitive & Regulatory Headwinds

Intense competition and regulatory constraints in key segments create structural pressure on pricing, margins and market share. Regulatory-driven product changes (e.g., refrigerant rules) require R&D or retooling, raising ongoing capex and complicating long-term margin and growth predictability.

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 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: Negative
• Last Price: 78.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDI, the sentiment is Negative. The current price of 78.8 is below the 20-day moving average (MA) of 79.40, above the 50-day MA of 76.09, and below the 200-day MA of 78.83, indicating a bearish trend. The MACD of 0.58 indicates Positive momentum. The RSI at 43.31 is Neutral, neither overbought nor oversold. The STOCH value of 12.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£68.79M	17.80	7.39%	―	36.61%	―
SDI	70 Neutral	£78.43M	17.12	9.34%	―	7.36%	31.93%
SOLI	68 Neutral	£99.43M	41.08	3.88%	1.56%	8.75%	-54.73%
GHH	67 Neutral	£167.55M	45.13	3.13%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
XAR	56 Neutral	£80.86M	-7.25	-16.64%	―	-7.35%	-222.10%
TTG	54 Neutral	£199.43M	-2.85	-31.42%	―	-16.33%	-448.12%

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.

The most recent analyst rating on (GB:SDI) stock is a Hold with a £93.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

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.

The most recent analyst rating on (GB:SDI) stock is a Hold with a £93.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.