Stoneridge (SRI) AI Stock Analysis

• Market Cap: $221.93M
• Dividend Yield: N/A
• Average Volume (3M): 387.16K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.33
• Revenue Growth: -8.90%
• EPS Growth: -346.80%
• Country: US
• Employees: 4,450
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Auto - Parts
• EPS (TTM): -0.19
• Shares Outstanding: 27,846,292
• 10 Day Avg. Volume: 741,576
• 30 Day Avg. Volume: 387,157
• PEG Ratio: 1.42
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.71
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 0.03
• Enterprise Value/Gross Profit: 0.50
• Enterprise Value/Ebitda: 0.66
• 1Y Price Target: $16.00
• Price Target Upside: 100.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $6.50 ▼(-18.44%Downside)

Stoneridge's overall stock score is primarily influenced by financial performance and earnings call insights. Financial challenges, particularly negative profitability metrics, weigh heavily on the score. However, strong segment growth and positive earnings call sentiment provide some upside potential. Technical analysis suggests caution due to overbought conditions, and valuation metrics remain unattractive.

Positive Factors

Financial Performance

SRI's Q1/25 results were better than expectations with sales of $217.9 million and adjusted EBITDA of $7.6 million.

Investment Rating

Analyst has an OUTPERFORM investment rating on the shares with a price target of $16, reflecting confidence in the company's future performance.

Product Adoption

MirrorEye has experienced solid market adoption with launches in several major brands and is anticipated to see significant revenue growth in the coming years.

Negative Factors

Quality-related Issues

Q4/24 was impacted by one-time quality-related items and incremental engineering costs that negatively affected adjusted EBITDA by $3.1 million and $2.1 million, respectively.

Sales Decline

Electronics Q1/25 sales of $140.5 million decreased by 6.0% relative to Q4/24 driven by lower production volumes in the commercial vehicle end market and lower off-highway sales.

Sales Reduction

Control Devices sales decreased 16.3% to $63.2 million versus Q4/23 due to lower customer production volumes in the North American passenger vehicle end market, as well as the expected wind-down of end-of-life programs and lower sales in China.

Stoneridge Business Overview & Revenue Model

Company Description

Stoneridge, Inc. (SRI) is a global designer and manufacturer of highly engineered electrical and electronic components, modules, and systems for the automotive, commercial vehicle, motorcycle, agricultural, and off-highway vehicle markets. With a focus on innovation and technology, Stoneridge provides advanced solutions that enhance vehicle performance, safety, and efficiency. The company's core products include driver information systems, electronic control units, sensors, and actuators.

How the Company Makes Money

Stoneridge makes money primarily through the sale of its engineered electrical and electronic components to original equipment manufacturers (OEMs) and tier-one suppliers in the automotive and commercial vehicle industries. The company's revenue streams are derived from its various product segments, including control devices, electronics, and PST (a Brazilian-based operation focusing on the automotive and commercial vehicle markets). Stoneridge's earnings are significantly influenced by the demand in the global automotive market, technological advancements, and regulatory requirements for vehicle safety and efficiency. Additionally, the company may enter strategic partnerships and collaborations to enhance its product offerings and market reach.

Stoneridge Financial Statement Overview

Summary

The company's financial performance shows mixed results. While there is a significant improvement in gross profit margin, the net profit margin remains negative, indicating ongoing challenges with profitability. The balance sheet is stable with low leverage, and cash flow has improved. However, negative revenue growth and ROE highlight the company's struggles in generating shareholder value.

Income Statement

The company shows a declining revenue trend with inconsistent profitability. Gross profit margin improved significantly in TTM at 40.44% compared to the previous year, but net profit margin remains negative at -1.98%. Revenue growth is negative, indicating a decrease in sales. The EBIT margin is also negative, showing challenges in operational profitability.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio of 0.02, indicating low leverage, but the company holds a strong equity position relative to assets, with an equity ratio of 105.74%. Return on equity is negative, showing challenges in generating returns for shareholders.

Cash Flow

The company has shown improvement in free cash flow, with a positive growth rate compared to previous periods. The operating cash flow to net income ratio is positive, indicating good cash generation relative to net income. However, the free cash flow to net income ratio is negative, highlighting ongoing financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	887.03M	908.29M	975.82M	899.92M	770.46M	648.01M
Gross Profit	187.19M	189.25M	202.10M	174.93M	166.86M	154.20M
EBITDA	25.18M	-381.00K	45.06M	30.25M	50.18M	27.68M
Net Income	-17.59M	-16.52M	-5.18M	-14.06M	3.41M	-7.95M
Balance Sheet
Total Assets	670.74M	621.56M	679.90M	652.11M	665.40M	621.41M
Cash, Cash Equivalents and Short-Term Investments	35.16M	71.83M	40.84M	54.80M	85.55M	73.92M
Total Debt	178.89M	208.06M	203.01M	179.85M	184.12M	159.11M
Total Liabilities	394.50M	376.30M	392.18M	371.16M	369.45M	324.77M
Stockholders Equity	276.24M	245.26M	287.72M	280.94M	295.95M	296.63M
Cash Flow
Free Cash Flow	24.96M	23.45M	-33.55M	-24.80M	-63.28M	-3.82M
Operating Cash Flow	49.54M	47.75M	4.95M	6.81M	-36.25M	28.64M
Investing Cash Flow	-24.74M	-24.47M	-36.98M	-28.58M	28.04M	-33.88M
Financing Cash Flow	4.95M	11.12M	17.48M	-7.30M	22.88M	6.51M

Stoneridge Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.97
• 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 SRI, the sentiment is Positive. The current price of 7.97 is above the 20-day moving average (MA) of 6.37, above the 50-day MA of 5.34, and above the 200-day MA of 6.27, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 80.66 is Negative, neither overbought nor oversold. The STOCH value of 96.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRI.

Stoneridge Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	78 Outperform	$291.68M	14.14	9.91%	―	5.54%	398.82%
MPAA	65 Neutral	$240.81M	―	-7.17%	―	5.53%	60.54%
Sector *	64 Neutral	kr11.54B	16.57	10.84%	9.89%	2.66%	5.01%
CAAS	60 Neutral	$126.11M	4.38	8.05%	―	18.33%	-26.25%
CAAS	60 Neutral	$126.11M	4.38	8.05%	―	18.33%	-26.25%
SRI	58 Neutral	$221.93M	―	-6.63%	―	-8.90%	-346.80%
CVGI	52 Neutral	$68.58M	1.82	-26.02%	―	-23.78%	-179.48%
SSUP	41 Neutral	$4.57M	―	-80.07%	―	-3.63%	36.19%

Stoneridge Corporate Events

Stoneridge Shareholders Approve 2025 Incentive Plan

Stoneridge held its Annual Meeting of Shareholders on May 13, 2025, where shareholders approved the 2025 Long-Term Incentive Plan, authorizing 726,000 common shares for eligible participants. Additionally, seven nominees were elected to the Board of Directors for one-year terms, Ernst & Young LLP was ratified as the independent public accounting firm for 2025, and a non-binding advisory resolution on 2024 executive compensation was approved.

The most recent analyst rating on (SRI) stock is a Buy with a $27.50 price target. To see the full list of analyst forecasts on Stoneridge stock, see the SRI Stock Forecast page.

Stoneridge Reports Q1 2025 Financial Results

Stoneridge reported its financial results for the first quarter of 2025, with sales of $217.9 million and a net loss of $7.2 million. The company achieved record sales for its MirrorEye and SMART 2 products, despite challenges in production volumes in certain markets. The company maintained its full-year 2025 guidance, highlighting improvements in operating margins and cash flow management. Stoneridge continues to address tariff impacts and supply chain complexities, ensuring compliance with financial leverage ratios.