SIFCO Industries (SIF) AI Stock Analysis

• Market Cap: $42.74M
• Dividend Yield: N/A
• Average Volume (3M): 21.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -17.56%
• EPS Growth: 91.53%
• Country: US
• Employees: 244
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.56
• Shares Outstanding: 6,180,388
• 10 Day Avg. Volume: 19,866
• 30 Day Avg. Volume: 21,142
• PEG Ratio: 0.13
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.35
• P/FCF Ratio: -6.01
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.71
• Enterprise Value/Gross Profit: 7.17
• Enterprise Value/Ebitda: 217.71
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $7.00 ▲(9.55% Upside)

SIFCO Industries' stock score is primarily influenced by its strong technical performance, with the stock showing significant bullish momentum. However, financial performance challenges, particularly in profitability and revenue growth, and a weak valuation due to a negative P/E ratio, weigh down the overall score.

Positive Factors

Cash Flow Improvement

The substantial increase in free cash flow indicates enhanced operational efficiency and better financial health, providing the company with more flexibility for investments and debt management.

Leverage Management

Improved leverage management reduces financial risk and interest expenses, enhancing the company's ability to sustain operations and invest in growth opportunities.

Long-term Contracts

Long-term contracts ensure a steady revenue stream, reducing volatility and providing financial stability, which supports strategic planning and investment.

Negative Factors

Revenue Decline

A declining revenue trend can hinder the company's ability to invest in growth and innovation, potentially impacting its competitive position in the long term.

Profitability Challenges

Ongoing profitability issues limit the company's ability to reinvest in the business and reward shareholders, potentially affecting long-term growth prospects.

Low Operating Cash Flow

Low operating cash flow indicates difficulties in converting income into cash, which can strain liquidity and limit the company's ability to fund operations and growth initiatives.

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 precision-engineered components and assemblies to customers in the aerospace, defense, and industrial sectors. The company’s revenue model is based on contract manufacturing, where it enters into agreements with original equipment manufacturers (OEMs) and other companies to supply specialized parts and assemblies. Key revenue streams include the production of machined parts, surface treatment services, and assembly operations. Additionally, SIFCO benefits from long-term contracts with major clients, which provide a stable revenue base. The company may also engage in strategic partnerships with other manufacturers and suppliers to enhance its production capabilities and expand its market reach, further contributing to its earnings.

SIFCO Industries Financial Statement Overview

Summary

SIFCO Industries shows some positive trends in cash flow and leverage management, but continues to face challenges in profitability and revenue growth. The company needs to focus on improving its margins and generating consistent returns to enhance its financial health.

Income Statement

SIFCO Industries has experienced a decline in revenue over the TTM (Trailing-Twelve-Months) period, with a negative revenue growth rate of -9.96%. The gross profit margin improved slightly to 9.85%, but the company still faces challenges with negative net profit and EBIT margins, indicating ongoing profitability issues.

Balance Sheet

The debt-to-equity ratio has improved to 0.69, reflecting better leverage management. However, the return on equity remains negative, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

There has been a significant improvement in free cash flow growth, up by 83.08%, and the free cash flow to net income ratio is strong at 0.84. However, the operating cash flow to net income ratio remains low, indicating potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	64.78M	79.63M	87.02M	83.90M	99.59M	113.57M
Gross Profit	6.38M	5.98M	7.53M	-1.85M	11.21M	19.96M
EBITDA	210.00K	-725.00K	-2.12M	-2.69M	6.33M	9.39M
Net Income	-743.00K	-5.38M	-8.69M	-9.64M	-743.00K	9.19M
Balance Sheet
Total Assets	77.29M	104.62M	96.28M	97.27M	110.67M	121.95M
Cash, Cash Equivalents and Short-Term Investments	1.98M	1.71M	368.00K	1.17M	346.00K	427.00K
Total Debt	24.80M	37.92M	37.45M	34.63M	37.39M	41.80M
Total Liabilities	41.44M	74.20M	61.95M	56.58M	61.05M	76.42M
Stockholders Equity	35.84M	30.43M	34.34M	40.69M	49.62M	45.52M
Cash Flow
Free Cash Flow	1.45M	-4.64M	-3.82M	-2.90M	-1.09M	-8.58M
Operating Cash Flow	1.72M	-2.65M	-1.36M	298.00K	3.89M	449.00K
Investing Cash Flow	14.82M	-1.99M	-2.43M	-3.19M	-878.00K	-1.20M
Financing Cash Flow	-16.85M	6.33M	2.88M	3.73M	-3.11M	822.00K

SIFCO Industries Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 6.39 is below the 20-day moving average (MA) of 6.48, below the 50-day MA of 6.87, and above the 200-day MA of 4.79, indicating a neutral trend. The MACD of -0.19 indicates Positive momentum. The RSI at 41.90 is Neutral, neither overbought nor oversold. The STOCH value of 39.36 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	$1.90B	―	-1.72%	―	6.19%	52.10%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DCO	58 Neutral	$1.35B	―	-5.27%	―	3.16%	-213.56%
SIF	57 Neutral	$42.74M	-57.87	-7.07%	―	-17.56%	91.53%
CVU	46 Neutral	$28.80M	-29.78	-2.26%	―	-13.52%	-103.42%
AIRI	45 Neutral	$14.70M	-4.63	-11.98%	―	-6.77%	-192.82%
XTIA	41 Neutral	$45.32M	-0.03	-640.32%	―	―	―