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SIFCO Industries (SIF)
:SIF

SIFCO Industries (SIF) AI Stock Analysis

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SIFCO Industries

(NYSE MKT:SIF)

Rating:50Neutral
Price Target:
$3.50
▼(-2.23%Downside)
SIFCO Industries faces significant financial challenges, with negative profitability and high leverage being the most pressing issues. While there is some positive technical momentum, the stock's overbought condition may lead to volatility. The negative P/E ratio reflects ongoing losses, further impacting the overall valuation score.

SIFCO Industries (SIF) vs. SPDR S&P 500 ETF (SPY)

SIFCO Industries Business Overview & Revenue Model

Company DescriptionSIFCO Industries, Inc. produces and sells forgings and machined components primarily for the aerospace and energy markets in North America and Europe. The company's processes and services include forging, heat-treating, and machining. It offers original equipment manufacturer and aftermarket components for aircraft and industrial gas turbine engines; steam turbine blades; structural airframe components; aircraft landing gear components; aircraft wheels and brakes; rotating components for helicopters; and commercial/industrial products. The company also provides heat-treatment, surface-treatment, non-destructive testing, and select machining and sub-assembly of forged components. SIFCO Industries, Inc. was founded in 1913 and is based in Cleveland, Ohio.
How the Company Makes MoneySIFCO Industries generates revenue through its specialized manufacturing services, focusing on the aerospace and energy sectors. The company earns income by producing forged and machined components that meet the precise specifications of its clients. Key revenue streams include long-term contracts with major aerospace companies and energy providers, as well as custom orders for specialized components. SIFCO's expertise in producing high-quality, durable parts ensures sustained demand from its clients, driving its business growth. Strategic partnerships and adherence to industry standards are significant factors contributing to its earnings.

SIFCO Industries Financial Statement Overview

Summary
SIFCO Industries is experiencing financial challenges with declining revenue trends and negative profitability margins. Despite moderate equity, the high leverage poses risks. Cash flow improvements are noted, but free cash flow is limited.
Income Statement
45
Neutral
SIFCO Industries has experienced declining revenues, with a notable decrease in revenue over the TTM (Trailing-Twelve-Months). The gross profit margin for the TTM is 6.97%, which is lower compared to prior periods, indicating reduced profitability. Additionally, the company has had negative EBIT and EBITDA margins, signifying ongoing operational challenges. The net profit margin remains negative due to continued net losses.
Balance Sheet
50
Neutral
The balance sheet shows a high debt-to-equity ratio of 0.51 for the TTM, reflecting significant leverage. However, the company maintains an equity ratio of 41.06%, suggesting a moderate level of equity financing. The return on equity is negative, driven by net losses, indicating poor profitability for shareholders.
Cash Flow
55
Neutral
Cash flow analysis reveals that SIFCO Industries has improved its operating cash flow in the TTM, turning positive. The operating cash flow to net income ratio indicates better cash generation relative to net losses. However, free cash flow remains constrained, with a modest free cash flow to net income ratio, reflecting limited liquidity improvements.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
71.95M79.63M87.02M83.90M99.59M113.57M
Gross Profit
5.02M5.98M7.53M-1.85M11.21M19.96M
EBIT
-4.97M-5.15M-6.73M-14.07M-3.49M4.22M
EBITDA
-2.36M-725.00K-782.00K-2.69M6.33M9.39M
Net Income Common Stockholders
-4.08M-5.38M-8.69M-9.64M-743.00K9.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.92M1.71M368.00K1.17M346.00K427.00K
Total Assets
78.83M104.62M96.28M97.27M110.67M121.95M
Total Debt
16.61M37.92M37.45M34.63M37.39M41.80M
Net Debt
14.68M36.20M37.09M33.45M37.05M41.37M
Total Liabilities
46.46M74.20M61.95M56.58M61.05M76.42M
Stockholders Equity
32.37M30.43M34.34M40.69M49.62M45.52M
Cash FlowFree Cash Flow
792.00K-4.64M-3.82M-2.90M-1.09M-8.58M
Operating Cash Flow
1.73M-2.65M-1.36M298.00K3.89M449.00K
Investing Cash Flow
809.00K-3.40M-2.43M-3.19M-878.00K-1.20M
Financing Cash Flow
-13.98M6.33M2.88M3.73M-3.11M822.00K

SIFCO Industries Technical Analysis

Technical Analysis Sentiment
Positive
Last Price3.58
Price Trends
50DMA
2.86
Positive
100DMA
3.09
Positive
200DMA
3.58
Positive
Market Momentum
MACD
0.20
Negative
RSI
66.45
Neutral
STOCH
69.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIF, the sentiment is Positive. The current price of 3.58 is above the 20-day moving average (MA) of 3.20, above the 50-day MA of 2.86, and above the 200-day MA of 3.58, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 69.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIF.

SIFCO Industries Risk Analysis

SIFCO Industries disclosed 30 risk factors in its most recent earnings report. SIFCO Industries reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
Significant tariffs and other trade measures, including recently announced U.S. tariffs on aluminum and steel, could adversely affect our business, results of operations, financial position and cash flows. Q1, 2025

SIFCO Industries Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
68
Neutral
$1.14B-1.35%13.73%86.81%
66
Neutral
$4.48B12.265.32%248.53%4.10%-12.36%
CVCVU
56
Neutral
$39.00M21.137.62%-7.34%-88.84%
56
Neutral
$12.95M-11.05%0.29%31.48%
52
Neutral
$10.81M-327.59%
SISIF
50
Neutral
$23.21M-17.90%-3.45%54.42%
$30.44M3.13
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SIF
SIFCO Industries
3.58
0.21
6.23%
ATRO
Astronics
33.44
14.81
79.50%
CVU
CPI Aerostructures
2.97
0.66
28.57%
XTIA
XTI Aerospace
1.86
-152.96
-98.80%
AIRI
Air Industries Group
3.38
-0.35
-9.38%
HOVR
New Horizon Aircraft
0.94
-0.06
-6.00%

SIFCO Industries Corporate Events

Private Placements and Financing
SIFCO Industries Secures New Credit Facility Agreement
Positive
Oct 23, 2024

On October 17, 2024, SIFCO Industries, Inc. and its subsidiary Quality Aluminum Forge secured a new three-year, $20 million revolving credit facility and a $3 million term loan from Siena Lending Group. This new agreement, which also includes a $2.5 million letter of credit subfacility, replaces the previous credit facility with JP Morgan Chase Bank, streamlining the company’s financial structure.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.