Stoneridge (SRI) AI Stock Analysis

• Market Cap: $153.53M
• Dividend Yield: N/A
• Average Volume (3M): 140.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.72
• Revenue Growth: -4.91%
• EPS Growth: -331.53%
• Country: US
• Employees: 4,450
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.53
• Shares Outstanding: 28,016,932
• 10 Day Avg. Volume: 150,599
• 30 Day Avg. Volume: 140,758
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.90
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 13.22
• Enterprise Value/Market Cap: 1.81
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.60
• Enterprise Value/Ebitda: 16.61
• 1Y Price Target: $5.76
• Price Target Upside: 5.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.26
• Revenue Forecast (FY): $844.55M

• Rating: 46 Neutral
• Price Target: $6.00 ▲(9.49% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held down primarily by deteriorating profitability and weak technicals (price below key moving averages with negative MACD). Balance-sheet de-risking and positive recent free cash flow provide some support, and the earnings call outlines a credible growth/cost roadmap led by MirrorEye, but guidance implies a weaker near-term EBITDA profile and execution risk remains elevated.

Positive Factors

High-growth product momentum (MirrorEye)

Sustained, high-single-digit to high-double-digit growth in MirrorEye represents a structural shift toward advanced safety and camera content per vehicle. Large OEM wins and rising take-rates create recurring revenue streams and higher content value, supporting durable revenue and margin expansion as programs scale.

Material balance-sheet de-risking

Dramatic reduction in debt meaningfully lowers financial risk, interest burden and covenant pressure, giving management flexibility to fund product commercialization, R&D and targeted capex. This improves resilience through cyclical OEM markets and supports multi-year execution of growth initiatives.

Strategic divestiture and cost improvements

The divestiture simplifies the portfolio and frees capital to invest in higher-return businesses like MirrorEye and Brazil operations. Combined with material cost reductions and lower quality costs, this structural refocus should improve capital allocation, margins and managerial attention on core growth drivers.

Negative Factors

Severe profitability erosion

Large, recurring net losses and impairment-related charges have driven deeply negative ROE and eroded retained earnings. Even with gross margins steady, operating losses in 2024–2025 show cost structure and volume deleverage issues that must be resolved for sustained equity value creation.

Revenue volatility and production declines

Sharp, program-timing-driven revenue swings undermine predictability for OEM supply contracts where content timing matters. Volatile top-line and sensitivity to build rates complicate capacity planning and margin recovery, increasing execution risk during multi-year product ramp cycles.

Quality, warranty, tariff and FX headwinds

Recurring quality/warranty costs and tariff/FX exposures are structural margin drags and can damage OEM relationships. These issues consume cash and management bandwidth, and persistent geopolitical or supply-chain pressures could keep margins and customer confidence under strain across multiple reporting periods.

Stoneridge Business Overview & Revenue Model

Company Description

Stoneridge, Inc., together with its subsidiaries, designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets in North America, South America, Europe, and internationally. It operates in three segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment offers sensors, switches, actuators, and connectors that monitor, measure, or activate specific functions within a vehicle. The Electronics segment designs and manufactures driver information systems, camera-based vision systems, connectivity, and compliance products. Its products collect, store, and display vehicle information, such as speed, pressure, maintenance data, trip information, operator performance, temperature, distance traveled, and driver messages related to vehicle performance. This segment's electronic control units regulate, coordinate, monitor, and direct the operation of the electrical system within a vehicle. The Stoneridge Brazil segment designs, manufactures, and sells vehicle tracking devices and monitoring services; vehicle security alarms and convenience accessories; in-vehicle audio and infotainment devices; and telematics solutions. It provides its products and systems to various original equipment manufacturers and Tier 1 customers, as well as aftermarket distributors and mass merchandisers for use in various vehicle platforms. Stoneridge, Inc. was founded in 1965 and is headquartered in Novi, Michigan.

How the Company Makes Money

Stoneridge primarily makes money by selling engineered electronic/vision/telematics and control-system products to vehicle manufacturers and, in some cases, to other tier suppliers and aftermarket channels. Revenue is largely generated under supply agreements tied to OEM vehicle production programs, where Stoneridge is paid per unit shipped (e.g., per vehicle or per installed module/system). Key revenue streams typically include (i) hardware sales of vehicle electronics such as connectivity/telematics devices, sensors, and control modules, (ii) sales of vision-based safety and driver-assistance camera systems and related components, and (iii) instrumentation products (e.g., driver information displays, gauges, and related electronics) for commercial and specialty vehicles. The company’s earnings are therefore influenced by OEM build rates, platform wins and content-per-vehicle, product mix (higher-value systems vs. simpler components), and the ability to execute on multi-year production contracts. Information on specific recurring software/service subscriptions, major named partnerships, or customer-level revenue concentration is null.

Stoneridge Financial Statement Overview

Summary

Fundamentals are mixed and overall weak: the income statement is the main drag with sharply negative revenue growth in 2025 and a large net loss (net margin -11.9%). Offsetting factors include a materially de-risked balance sheet from major debt reduction in 2025 and recently positive operating/free cash flow, though FCF declined in 2025 and cash generation remains volatile.

Income Statement

Revenue has been inconsistent, with growth turning negative in 2024 (-6.9%) and sharply down in 2025 (-149.8%), pointing to a meaningful demand and/or reporting disruption. Profitability deteriorated materially: after modest operating profitability in 2023, 2024/2025 moved back into operating losses (EBIT margin ~0.1% in 2024 to -2.0% in 2025) and net losses widened significantly in 2025 (net margin -11.9%). A positive offset is that gross margin has stayed relatively steady around ~19–21% across most years, suggesting the core product economics are not collapsing—but operating costs, charges, or volume deleverage are overwhelming it.

Balance Sheet

Leverage improved dramatically in 2025, with total debt falling to ~$9M and debt-to-equity dropping to ~0.05x versus ~0.85x in 2024, which meaningfully reduces financial risk. However, equity returns are weak and volatile, with return on equity deeply negative in 2025 (-57.2%) due to the large net loss, highlighting earnings quality and sustainability concerns. Overall, the balance sheet looks less leveraged, but profitability must stabilize for the equity base to compound.

Cash Flow

Cash generation improved versus earlier weak years: operating cash flow is positive in both 2024 (~$47.7M) and 2025 (~$34.0M), and free cash flow is also positive (~$23.4M in 2024; ~$12.2M in 2025). The key weakness is volatility and recent deceleration—free cash flow fell sharply in 2025 (growth -48.2%) and historically was negative in multiple years (2021–2023). Cash flow also does not fully keep pace with the earnings profile, as operating cash flow remains modest relative to reported losses in 2025 (coverage ~0.22x), implying the turnaround is not yet firmly established.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	861.26M	908.29M	975.82M	899.92M	770.46M
Gross Profit	171.15M	189.25M	202.10M	174.93M	166.86M
EBITDA	16.71M	-381.00K	45.06M	31.18M	52.10M
Net Income	-102.83M	-16.52M	-5.18M	-14.06M	3.41M
Balance Sheet
Total Assets	551.19M	621.56M	679.90M	652.11M	665.40M
Cash, Cash Equivalents and Short-Term Investments	66.25M	71.83M	40.84M	54.80M	85.55M
Total Debt	189.96M	208.06M	203.01M	179.85M	184.12M
Total Liabilities	371.41M	376.30M	392.18M	371.16M	369.45M
Stockholders Equity	179.78M	245.26M	287.72M	280.94M	295.95M
Cash Flow
Free Cash Flow	12.17M	23.45M	-33.55M	-24.80M	-63.28M
Operating Cash Flow	34.02M	47.75M	4.95M	6.81M	-36.25M
Investing Cash Flow	-21.82M	-24.47M	-36.98M	-28.58M	28.04M
Financing Cash Flow	-25.30M	11.12M	17.48M	-7.30M	22.88M

Stoneridge Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRI, the sentiment is Negative. The current price of 5.48 is below the 20-day moving average (MA) of 7.30, below the 50-day MA of 7.19, and below the 200-day MA of 7.00, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 25.98 is Positive, neither overbought nor oversold. The STOCH value of 7.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRI.

Stoneridge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	79 Outperform	$306.92M	15.92	12.07%	―	6.83%	46.38%
CAAS	73 Outperform	$128.53M	3.67	9.22%	―	16.72%	5.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HLLY	55 Neutral	$379.61M	25.68	-5.54%	―	-3.20%	-257.73%
MPAA	51 Neutral	$197.10M	33.64	0.75%	―	6.72%	―
CVGI	50 Neutral	$123.10M	-1.84	-16.59%	―	-23.26%	-259.03%
SRI	46 Neutral	$153.53M	-0.52	-43.54%	―	-4.91%	-331.53%

Stoneridge Corporate Events

Stoneridge Details 2025 Results and Strategic Refocus Plan

On March 11, 2026, Stoneridge reported fourth-quarter 2025 sales of $205.2 million and a net loss of $76.9 million, heavily impacted by a $21.6 million impairment of its Control Devices assets and $44.5 million in tax valuation allowances, while adjusted EBITDA for the quarter was $3.4 million. For full-year 2025, sales reached $861.3 million with a net loss of $102.8 million and adjusted EBITDA of $25 million as the company outperformed its end markets by 150 basis points, driven by 69% growth in MirrorEye sales to $111 million, material cost improvements, lower quality-related costs and a $19 million adjusted free cash flow boost from inventory reductions.

Stoneridge has completed the sale of its Control Devices segment and plans to concentrate on higher-growth, higher-return businesses, particularly MirrorEye and its Brazilian operations, which posted a 29.9% sales increase and an 8.6% operating margin for 2025. Incoming CEO Natalia Noblet, effective April 1, will pursue a strategy centered on advanced safety and connected-vehicle technologies, operational efficiency and cost discipline, as the company targets 2026 revenue of about $638 million with adjusted EBITDA of $20–25 million and 2027 revenue of at least $715 million with EBITDA of at least $44 million.

The most recent analyst rating on (SRI) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.

Stoneridge Amends Credit Agreement to Extend Facility

On March 6, 2026, Stoneridge, Inc. executed Amendment No. 3 to its Fifth Amended and Restated Credit Agreement, which amends and restates the credit facility from December 31, 2025 through a new termination date of July 1, 2027 and extends the facility’s expiration from November 2, 2026 to July 1, 2027. The amendment provides covenant relief by temporarily lowering minimum interest coverage ratios, raising maximum leverage ratios through late 2026, reducing borrowing capacity to the lesser of $157.5 million or the then-current commitment as of December 31, 2026, and modifying the definition of Consolidated EBITDA and affirmative covenants, thereby giving Stoneridge greater financial flexibility while gradually tightening terms over time.

The most recent analyst rating on (SRI) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.

Stoneridge Signs Cooperation Agreement, Adds 22NW Board Member

On February 26, 2026, Stoneridge, Inc. entered into a cooperation agreement with investment firm 22NW, LP and its affiliates, which hold about 8.2% of Stoneridge’s shares, and agreed to expand its board from seven to eight directors. Under the deal, 22NW founder Aron R. English will join the board effective March 16, 2026, be nominated for election at the 2026 annual meeting, and receive the same pay and equity awards as other non-employee directors.

The cooperation agreement includes a standstill period during which 22NW is restricted from increasing its stake above 12.9%, running proxy contests, or pushing alternative board slates, while committing to vote with the board’s recommendations in most matters. The pact, backed by mutual non-disparagement and detailed resignation and confidentiality terms, effectively secures boardroom peace with a significant shareholder and brings additional capital markets expertise to Stoneridge as it pursues its long-term strategy and shareholder value objectives.

The most recent analyst rating on (SRI) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.

Stoneridge Announces CEO Transition to Natalia Noblet

On February 19, 2026, Stoneridge’s board received notice that President and CEO James Zizelman will retire from the company on May 20, 2026, after nearly seven years of service. He will step down as president and CEO at 12:01 a.m. on April 1, 2026, transition to strategic advisor through May 20, 2026, and remain on the board, where he will be nominated for re-election at the 2026 annual shareholders’ meeting; the company emphasized that his retirement does not stem from any disagreement over operations or policies.

As part of a planned succession following the sale of its Control Devices segment, the board on February 19, 2026, appointed current Electronics president Natalia Noblet as president and CEO and elected her to the board effective April 1, 2026, highlighting her leadership of the Electronics segment and experience at WABCO and ZF. The move consolidates operational and board leadership under Noblet without additional director compensation, signaling a continuity-focused governance approach aimed at sustaining Stoneridge’s technology-driven growth and reinforcing its competitive position in vehicle electronics and safety systems.

The most recent analyst rating on (SRI) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.

Stoneridge Announces CFO Transition and Leadership Succession Plan

On February 2, 2026, Stoneridge, Inc. announced that Chief Financial Officer and Treasurer Matt Horvath will resign effective March 31, 2026, to pursue an opportunity in a different industry sector, after nine years in which he helped drive the company’s strategic transformation, portfolio strategy, key divestitures such as the sale of the Control Devices segment, and improvements in capital allocation, margins and cash generation. The company has begun a search for a new CFO, while Chief Accounting Officer Robert Hartman, a 27-year Stoneridge veteran with extensive leadership experience in accounting, financial planning and analysis, and internal audit, will work closely with Horvath to ensure a smooth transition, underscoring the company’s intent to maintain operational continuity and its strategic focus on delivering shareholder value as a global leader in transportation electronics.

The most recent analyst rating on (SRI) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.

Stoneridge Completes Control Devices Divestiture to Refocus Strategy

On January 30, 2026, Stoneridge, Inc. completed the sale of its Control Devices business segment, including related subsidiaries and facilities, to Control Devices Acquisition, LLC, an affiliate of Center Rock Capital Partners, for a base purchase price of $59 million, subject to customary adjustments. In connection with the transaction, Stoneridge executed pre-closing reorganizations, agreed to five-year non-compete and other customary covenants, and entered into Mexico and China manufacturing agreements that allow continued production of certain products for both the divested Control Devices business and Stoneridge’s remaining Electronics segment, helping to smooth the operational transition. The company plans to use the net cash proceeds, after tax and transaction expenses, to repay debt and strengthen its balance sheet, and it expects to amend its credit facility following release of full-year 2025 results. Management positioned the divestiture as the conclusion of a strategic review and a “critical step” in simplifying the company and sharpening its focus on higher-growth electronics and Brazil platforms, with the aim of de-risking the business, improving capital allocation and enhancing long-term shareholder returns, while giving the Control Devices business dedicated ownership under Center Rock. As part of the deal, Control Devices President Rajaey Kased resigned his officer roles at Stoneridge on January 30, 2026 to continue in a similar capacity with the divested business, and the company scheduled investor webcasts on February 2 and March 12, 2026 to discuss the sale and its 2025 financial performance.

The most recent analyst rating on (SRI) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.