SIFCO Industries (SIF) AI Stock Analysis

• Market Cap: $86.95M
• Dividend Yield: N/A
• Average Volume (3M): 21.14K
• Price to Earnings (P/E): 25.0
• Beta (1Y): 0.72
• Revenue Growth: -13.90%
• EPS Growth: 87.70%
• Country: US
• Employees: 244
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.29
• Shares Outstanding: 6,215,128
• 10 Day Avg. Volume: 19,866
• 30 Day Avg. Volume: 21,142
• PEG Ratio: 0.67
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 0.50
• P/FCF Ratio: -76.81
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 1.15
• Enterprise Value/Gross Profit: 6.82
• Enterprise Value/Ebitda: 9.78
• 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: 61 Neutral
• Price Target: $15.50 ▲(138.46% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is driven primarily by improving financial performance (profitability, cash flow, and reduced leverage) and strong technical strength. These positives are tempered by a relatively high P/E for a still-volatile turnaround and overbought technical signals that elevate near-term downside risk.

Positive Factors

Improving Profitability

Recording positive operating profit and a ~3.8% net margin marks a material turnaround from prior losses. This durable improvement indicates better cost control and pricing power in core aerospace contracts, supporting ongoing reinvestment, contract competitiveness, and slower reliance on external financing.

Stronger Cash Generation

Recent solid operating cash flow and positive free cash flow aligned with net income suggest the business is converting earnings to cash. Durable cash generation improves the firm's ability to fund capex, pay down leverage, and invest in manufacturing upgrades critical for long-term aerospace supply contracts.

Reduced Leverage

Material reductions in leverage and a meaningful equity base versus assets strengthen balance-sheet resilience. Lower debt levels enhance financial flexibility to bid on long-term aerospace programs, absorb contract timing variability, and pursue strategic investments without jeopardizing liquidity.

Negative Factors

Thin & Volatile Margins

The company has a documented history of volatile earnings and thin margins even after recent improvement. Persistently slim margins limit downside protection from raw-material or labor cost shocks and make sustained profitability sensitive to aerospace demand cycles and contract pricing pressures.

Negative Return on Equity

Despite operational gains, returns on equity remain negative, indicating capital has not translated into shareholder returns. This suggests capital allocation or scale issues persist, and until ROE turns positive consistently, investor interests and access to capital could be constrained over the medium term.

Uneven Cash Conversion History

Although recent free cash flow is positive, the annual history includes periods of negative FCF and weak operating cash flow (notably FY2024 and FY2025). Such inconsistency raises durability risk for funding recurring investments, debt reduction, and stable supplier/customer commitments.

SIFCO Industries Business Overview & Revenue Model

Company Description

SIFCO 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 Money

SIFCO Industries generates revenue primarily through the sale of its precision machined components and assemblies to customers in the aerospace and defense industries. The company's revenue model is centered around long-term contracts and agreements with major aerospace manufacturers and defense contractors, which provide a stable income stream. Key revenue streams include the direct sale of manufactured parts, as well as services related to assembly and engineering support. Additionally, SIFCO benefits from strategic partnerships with leading industry players, which enhance its market presence and contribute to its financial performance. The company's ability to innovate in manufacturing processes and expand its product offerings also plays a significant role in driving revenue growth.

SIFCO Industries Financial Statement Overview

Summary

Financials show a clear TTM recovery with improved profitability (positive operating profit and ~3.8% net margin), stronger operating cash flow and positive free cash flow, and materially reduced leverage versus FY2023–FY2024. The score is held back by historically volatile earnings/cash flow, still-thin margins, and negative return on equity.

Income Statement

Profitability has improved meaningfully versus the prior few years, culminating in positive results in TTM (Trailing-Twelve-Months) with ~3.8% net margin and positive operating profit. Revenue growth in TTM is strong (as provided), and margins expanded versus FY2024 and FY2023 when the company posted sizable losses. Offsetting this, the business has a track record of volatile earnings and thin profitability even in the latest period, which leaves limited cushion if costs rise or demand softens.

Balance Sheet

Leverage has come down materially over the last two annual periods, with debt-to-equity improving from elevated levels in FY2023–FY2024 to a more moderate level in TTM (Trailing-Twelve-Months). Equity remains meaningful relative to assets, which supports balance-sheet resilience. The key weakness is returns on equity remain negative in the latest data, indicating the company has not yet translated the improved operating environment into consistently attractive shareholder returns.

Cash Flow

Cash generation strengthened sharply in TTM (Trailing-Twelve-Months), with solid operating cash flow and positive free cash flow, and free cash flow broadly aligned with reported net income. However, the annual history shows uneven conversion, including periods of negative free cash flow and very weak operating cash flow generation (notably FY2024 and FY2025 annual), which raises confidence risk around the durability of the recent improvement.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	87.91M	84.81M	79.63M	66.07M	83.90M	99.59M
Gross Profit	14.85M	10.59M	5.98M	3.35M	-1.85M	11.21M
EBITDA	10.36M	5.96M	-725.00K	-4.44M	-2.69M	6.33M
Net Income	3.38M	-729.00K	-5.38M	-8.69M	-9.64M	-743.00K
Balance Sheet
Total Assets	74.94M	73.39M	104.62M	96.28M	97.27M	110.67M
Cash, Cash Equivalents and Short-Term Investments	1.11M	2.04M	1.71M	368.00K	1.17M	346.00K
Total Debt	15.42M	23.80M	37.92M	37.45M	34.63M	37.39M
Total Liabilities	36.24M	36.51M	74.20M	61.95M	56.58M	61.05M
Stockholders Equity	38.70M	36.88M	30.43M	34.34M	40.69M	49.62M
Cash Flow
Free Cash Flow	11.40M	-555.00K	-4.64M	-3.82M	-2.90M	-1.09M
Operating Cash Flow	11.87M	-71.00K	-2.65M	-1.36M	298.00K	3.89M
Investing Cash Flow	594.00K	13.87M	-1.99M	-2.43M	-3.19M	-878.00K
Financing Cash Flow	-12.41M	-13.44M	6.33M	2.88M	3.73M	-3.11M

SIFCO Industries Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.50
• 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 SIF, the sentiment is Positive. The current price of 6.5 is below the 20-day moving average (MA) of 9.54, below the 50-day MA of 7.47, and above the 200-day MA of 6.12, indicating a bullish trend. The MACD of 2.07 indicates Negative momentum. The RSI at 78.77 is Negative, neither overbought nor oversold. The STOCH value of 92.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SIF.

SIFCO Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ATRO	63 Neutral	$2.86B	111.26	14.82%	―	6.19%	52.10%
SIF	61 Neutral	$86.95M	25.04	-2.77%	―	-13.90%	87.70%
DCO	59 Neutral	$1.85B	-53.68	-5.05%	―	3.16%	-213.56%
CVU	50 Neutral	$54.46M	-89.98	-2.26%	―	-13.52%	-103.42%
AIRI	48 Neutral	$16.16M	-10.99	-11.98%	―	-6.77%	-192.82%
XTIA	41 Neutral	$64.53M	-0.12	-640.32%	―	―	―

SIFCO Industries Corporate Events

SIFCO Industries Shareholders Reaffirm Governance and Compensation Policies

At its 2026 Annual Meeting of Shareholders held on January 28, 2026, SIFCO Industries, Inc. elected four directors—Robert D. Johnson, Donald C. Molten, Jr., Alayne L. Reitman, and Mark J. Silk—to serve on the Board until the 2027 annual meeting. Shareholders also approved the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending September 30, 2026, endorsed the company’s executive compensation on an advisory basis, and voted to hold future advisory say-on-pay votes every three years, decisions that collectively reaffirmed the existing governance framework and executive pay structure while setting the cadence for future shareholder oversight on compensation.

The most recent analyst rating on (SIF) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on SIFCO Industries stock, see the SIF Stock Forecast page.