SCI Engineered Materials (SCIA) AI Stock Analysis

• Market Cap: $21.74M
• Dividend Yield: N/A
• Average Volume (3M): 9.44K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.04
• Revenue Growth: -29.77%
• EPS Growth: -19.84%
• Country: US
• Employees: 23
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.12
• Shares Outstanding: 4,483,407
• 10 Day Avg. Volume: 1,629
• 30 Day Avg. Volume: 9,442
• PEG Ratio: -1.91
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 1.24
• P/FCF Ratio: 10.62
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.80
• Enterprise Value/Gross Profit: 3.12
• Enterprise Value/Ebitda: 6.88
• 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: 66 Neutral
• Price Target: $5.50 ▲(0.00% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by solid underlying financial health (notably low leverage and positive cash generation) but is held back by inconsistent recent revenue trends and margin compression. Technical indicators remain weak with negative momentum, while valuation appears reasonable based on the P/E. Corporate events are net mixed due to the fraud incident despite constructive commercial leadership changes.

Positive Factors

Strong balance sheet

Low leverage and growing equity provide durable financial flexibility, enabling SCI to fund working capital, absorb shocks, and invest in production or product development without immediate external financing. This underpins stability over the next several quarters.

Healthy cash generation

Operating cash flows exceeding net income and positive free cash flow, even if variable, indicate the business converts earnings into cash. That cash generation supports capex, working capital and strategic initiatives, improving long-term sustainability.

Strengthened commercial leadership

Promoting an experienced internal leader to VP of Sales can materially improve customer retention, commercial execution, and go-to-market consistency. Better sales leadership supports durable revenue recovery and long-term customer relationships.

Negative Factors

Revenue volatility

Inconsistent top-line performance undermines visibility and planning. Repeated declines in successive years suggest demand or execution issues that could persist absent clear structural recovery, pressuring investment and strategic initiatives over months.

Margin compression

Sustained margin erosion reduces free cash flow and limits reinvestment capacity. If cost structure or pricing power have weakened, margin recovery may require structural changes to product mix, pricing, or efficiency, constraining durable profitability.

Operational/control risk from fraud

A large fraud loss and ongoing internal-control review create lasting reputational and operational risk. Remediation may require process changes and increased costs; lingering control weaknesses could affect customer and partner trust over the medium term.

SCI Engineered Materials Business Overview & Revenue Model

Company Description

SCI Engineered Materials, Inc. manufactures and supplies materials for physical vapor deposition thin film applications. The company offers ceramic targets, metal sputtering targets, and backing plates for use in semiconductors, solar, flat panel displays, defense, aerospace, and photonics. Its materials are used to produce nano layers of metals and oxides for advanced material systems; and in applying decorative coatings for end uses, such as sink faucets to produce various electronic, photonic, and semiconductor products. The company serves domestic and multi-national corporations, universities, and research institutions. SCI Engineered Materials, Inc. distributes its products directly, as well as through independent distributors and manufacturers' representatives internationally. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in 2007. The company was incorporated in 1987 and is headquartered in Columbus, Ohio.

How the Company Makes Money

SCIA generates revenue through the sale of its engineered materials and advanced products to a diverse range of industries. The company’s primary revenue streams include direct sales of its specialty materials, contract manufacturing services, and long-term supply agreements with key clients in sectors like aerospace and defense. Additionally, SCIA engages in research and development partnerships with other firms and academic institutions, allowing them to innovate and create new products that cater to market demands. This collaborative approach not only enhances their product offerings but also helps secure funding and resources that contribute to the company's overall earnings. The company's focus on high-performance and niche materials allows it to maintain competitive pricing and margins in the market.

SCI Engineered Materials Financial Statement Overview

Summary

Overall financial quality is solid, led by a strong balance sheet (low leverage, growing equity) and generally positive cash generation. However, revenue has been inconsistent with declines in 2024–2025, and operating/EBITDA margins have compressed from 2021 levels, which tempers the score.

Income Statement

Revenue has been volatile: strong growth in 2021–2023, a sharp decline in 2024, and another decline in 2025 despite the reported positive growth rate. Profitability remains positive, with net margins generally in the high-single to low-double digits, but operating and EBITDA margins have compressed from 2021 levels. Overall, the company is profitable but growth consistency and margin trajectory are key weaknesses.

Balance Sheet

The balance sheet is a clear strength with low leverage (debt-to-equity staying in the low-to-mid single digits most years, and still low in 2025). Equity has grown over time and returns on equity remain solid, though down from earlier peaks. Main watch-out is that debt has risen versus the 2022–2023 base, but it remains very manageable relative to equity.

Cash Flow

Cash generation is healthy: operating cash flow exceeds net income in recent years, supporting earnings quality, and free cash flow remains positive. However, free cash flow has been choppy, including a meaningful decline in 2025 and uneven coverage in earlier years. The business produces cash, but the variability lowers confidence versus more stable cash-flow profiles.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.61M	22.87M	27.98M	23.47M	13.45M
Gross Profit	5.03M	5.07M	5.25M	4.79M	3.53M
EBITDA	2.28M	2.52M	2.96M	3.02M	2.29M
Net Income	1.75M	1.86M	2.19M	1.96M	1.68M
Balance Sheet
Total Assets	17.27M	15.53M	17.49M	11.83M	9.61M
Cash, Cash Equivalents and Short-Term Investments	8.24M	7.26M	6.67M	4.94M	4.14M
Total Debt	1.91M	1.24M	652.42K	352.14K	546.13K
Total Liabilities	3.09M	2.65M	6.51M	3.08M	2.87M
Stockholders Equity	14.18M	12.89M	10.98M	8.75M	6.74M
Cash Flow
Free Cash Flow	2.29M	1.87M	1.83M	1.86M	1.90M
Operating Cash Flow	3.30M	2.37M	2.28M	2.40M	2.61M
Investing Cash Flow	-1.61M	-1.24M	-457.88K	-2.49M	-688.15K
Financing Cash Flow	-500.00K	-49.15K	-97.37K	-96.70K	-699.01K

SCI Engineered Materials Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCIA, the sentiment is Negative. The current price of 5.5 is above the 20-day moving average (MA) of 5.50, below the 50-day MA of 5.50, and above the 200-day MA of 4.64, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 31.33 is Neutral, neither overbought nor oversold. The STOCH value of 4.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SCIA.

SCI Engineered Materials Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCIA	66 Neutral	$21.74M	12.70	12.14%	―	-29.77%	-19.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRSO	54 Neutral	$7.99M	-0.91	-180.20%	―	2.15%	94.29%
TRT	54 Neutral	$41.21M	-227.54	0.84%	―	0.10%	-54.98%
PXLW	49 Neutral	$40.34M	-1.36	―	―	-38.72%	16.01%
LEDS	47 Neutral	$11.93M	-9.62	-45.37%	―	729.81%	61.92%
SMTK	42 Neutral	$1.85M	-0.05	―	―	345.00%	-13.31%

SCI Engineered Materials Corporate Events

SCI Engineered Materials Appoints Eric Massey Vice President

On February 23, 2026, SCI Engineered Materials, Inc. announced that its Board of Directors elected Eric Massey as Vice President of Sales, effective that day. Massey joined SCI in 2011 as a bonding technician and has progressed through roles in inside sales, outside sales, and sales management, reflecting deep familiarity with the company’s products, processes, and customer base.

Under Massey’s leadership as Sales Manager, SCI built an integrated commercial team spanning inside sales, outside sales, and digital marketing that maintains close customer contact and provides tailored support services. He also expanded SCI’s participation in key industry trade shows and social media, moves that have enhanced the company’s market visibility and are likely to strengthen its commercial execution and customer engagement going forward.

The most recent analyst rating on (SCIA) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on SCI Engineered Materials stock, see the SCIA Stock Forecast page.

SCI Engineered Materials reports imposter scam and mitigation efforts

On February 10, 2026, SCI Engineered Materials, Inc. disclosed that it had been the victim of an imposter scam involving $898,325 carried out in conjunction with bank fraud, prompting the company to immediately contact its financial institution, notify the U.S. Federal Bureau of Investigation, and engage its insurance carrier. The company is actively pursuing recovery of the stolen funds and reviewing the incident’s impact on its internal controls, while reporting no evidence so far of additional fraud, no apparent unauthorized access to its data or systems, and no disruption to its business operations.

Management stated that its investigation into the fraud remains ongoing, with particular focus on safeguarding financial processes and reinforcing controls, a move intended to reassure customers, partners, and investors about the resilience of SCI’s operations. The absence of operational impact and the swift involvement of law enforcement and insurers suggest that, despite the sizeable financial hit, the incident is being contained in a way that seeks to limit longer-term repercussions for the company’s standing in its niche materials market.

The most recent analyst rating on (SCIA) stock is a Buy with a $6.50 price target. To see the full list of analyst forecasts on SCI Engineered Materials stock, see the SCIA Stock Forecast page.