SIFCO Industries (SIF) AI Stock Analysis

• Market Cap: $21.11M
• Dividend Yield: N/A
• Average Volume (3M): 16.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -3.45%
• EPS Growth: 54.42%
• Country: US
• Employees: 244
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): -0.22
• Shares Outstanding: 6,190,388
• 10 Day Avg. Volume: 16,197
• 30 Day Avg. Volume: 16,411
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -6.17
• Enterprise Value/Market Cap: 2.43
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 10.24
• Enterprise Value/Ebitda: -25.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 52 Neutral
• Price Target: $3.50 ▲(2.34%Upside)

The overall score is primarily influenced by financial performance challenges and valuation concerns, with some support from technical indicators suggesting potential momentum. The negative P/E ratio and limited improvement in free cash flow are significant risks to investor returns.

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 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 facing financial challenges with declining revenue trends and negative profitability margins. The balance sheet shows high leverage with a debt-to-equity ratio of 0.51, and negative return on equity. While there are improvements in operating cash flow, free cash flow remains limited, highlighting ongoing financial constraints.

Income Statement

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

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

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	71.95M	79.63M	87.02M	83.90M	99.59M	113.57M
Gross Profit	5.02M	5.98M	7.53M	-1.85M	11.21M	19.96M
EBITDA	-2.36M	-725.00K	-782.00K	-2.69M	6.33M	9.39M
Net Income	-4.08M	-5.38M	-8.69M	-9.64M	-743.00K	9.19M
Balance Sheet
Total Assets	78.83M	104.62M	96.28M	97.27M	110.67M	121.95M
Cash, Cash Equivalents and Short-Term Investments	1.92M	1.71M	368.00K	1.17M	346.00K	427.00K
Total Debt	16.61M	37.92M	37.45M	34.63M	37.39M	41.80M
Total Liabilities	46.46M	74.20M	61.95M	56.58M	61.05M	76.42M
Stockholders Equity	32.37M	30.43M	34.34M	40.69M	49.62M	45.52M
Cash Flow
Free Cash Flow	792.00K	-4.64M	-3.82M	-2.90M	-1.09M	-8.58M
Operating Cash Flow	1.73M	-2.65M	-1.36M	298.00K	3.89M	449.00K
Investing Cash Flow	809.00K	-3.40M	-2.43M	-3.19M	-878.00K	-1.20M
Financing Cash Flow	-13.98M	6.33M	2.88M	3.73M	-3.11M	822.00K

SIFCO Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SIF, the sentiment is Negative. The current price of 3.42 is below the 20-day moving average (MA) of 3.55, above the 50-day MA of 3.11, and below the 200-day MA of 3.52, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 24.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SIF.

SIFCO Industries Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATRO	68 Neutral	$1.17B	―	-1.35%	―	13.73%	86.81%
Sector *	63 Neutral	kr63.91B	12.69	1.54%	13.28%	0.04%	-3.90%
CVU	62 Neutral	$44.46M	24.08	7.62%	―	-7.34%	-88.84%
SIF	52 Neutral	$21.11M	―	-17.90%	―	-3.45%	54.42%
XTIA	51 Neutral	$16.06M	―	-327.59%	―	―	―
AIRI	44 Neutral	$12.69M	―	-11.05%	―	0.29%	31.48%
HOVR		$47.39M	5.26		―	―	―

SIFCO Industries Corporate Events

SIFCO Industries Secures New Credit Facility Agreement

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.