SCI Engineered Materials (SCIA) AI Stock Analysis

• Market Cap: $20.09M
• Dividend Yield: N/A
• Average Volume (3M): 9.44K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.08
• 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: 0.67
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 5.87
• 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: $5.00 ▼(-9.09% Downside)
• 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

Balance sheet strength

SCIA's low leverage and growing equity provide durable financial flexibility: capacity to fund working capital, respond to customer-specific manufacturing needs, and absorb shocks without forced asset sales. This supports long-term contract fulfilment, capital investment, and strategic optionality for 2–6+ months.

Positive cash generation

Consistent operating cash generation (OCF > net income) underpins earnings quality and funds operations and capex without reliance on new debt. While FCF is uneven, net positive generation supports sustainable reinvestment in processing capability and stabilizes supplier/customer relationships over the medium term.

Strengthened commercial leadership

Promoting an experienced internal commercial leader who has rebuilt integrated sales, digital marketing and trade-show presence is a structural improvement. Better commercial execution should deepen customer relationships, improve order capture and pricing negotiation, and help stabilize revenue trends over multiple quarters.

Negative Factors

Revenue volatility and recent declines

Inconsistent top-line performance and sequential declines through 2024–2025 reduce visibility and weaken economies of scale for specialized manufacturing. That unpredictability hampers capacity planning, pricing leverage and long-term customer contract negotiation, increasing execution risk over the coming quarters.

Margin compression

Sustained margin pressure erodes cash available for reinvestment and reduces buffer for pricing or input-cost shocks. Compression from prior peaks signals either cost structure or pricing challenges in end markets; if persistent, it will constrain returns and limit ability to scale commercial initiatives.

Operational / control risk from fraud

A material fraud event exposes governance and control weaknesses that can raise compliance costs, insurance premiums and customer concerns. Even if operational impact is contained, remediation and tighter controls demand management time and spending, potentially diverting resources from growth initiatives over months.

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

SCI Engineered Materials makes money primarily by selling engineered materials (including specialty ceramic and inorganic powder materials) to commercial and industrial customers. Revenue is generated through (1) product sales of manufactured materials—typically priced based on material specifications, purity/grade, form factor, and order volume—and (2) customer-specific manufacturing work where the company produces materials to a client’s required formulation and physical form (for example, custom powder processing or ceramic manufacturing), which is billed via per-unit pricing and/or contract manufacturing arrangements depending on the engagement. Information on specific revenue mix by product line, named major customers, or disclosed strategic partnerships is null.

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: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

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 4.92, above the 50-day MA of 5.36, and above the 200-day MA of 4.68, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 28.41 is Positive, neither overbought nor oversold. The STOCH value of 48.99 is Neutral, 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	$20.09M	13.96	12.67%	―	-29.77%	-19.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
PRSO	54 Neutral	$11.34M	-1.29	-128.31%	―	2.15%	94.29%
TRT	54 Neutral	$50.92M	113.30	-0.33%	―	0.10%	-54.98%
PXLW	48 Neutral	$35.94M	-1.56	109.22%	―	-38.72%	16.01%
LEDS	46 Neutral	$9.13M	-4.79	-45.37%	―	729.81%	61.92%
SMTK	42 Neutral	$1.86M	-0.94	-610.88%	―	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.