Stoneridge (SRI) AI Stock Analysis

• Market Cap: $212.65M
• Dividend Yield: N/A
• Average Volume (3M): 140.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -4.91%
• EPS Growth: -331.53%
• Country: US
• Employees: 4,450
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.18
• Shares Outstanding: 28,016,932
• 10 Day Avg. Volume: 150,599
• 30 Day Avg. Volume: 140,758
• PEG Ratio: -0.05
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 0.19
• P/FCF Ratio: 7.38
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 1.86
• Enterprise Value/Ebitda: 41.38
• 1Y Price Target: $14.50
• Price Target Upside: 90.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $8.00 ▲(5.26% Upside)

The score is held back primarily by weak financial performance (sharp revenue decline, negative margins, and negative ROE). Technicals are supportive with price above major moving averages and a positive MACD, but the RSI indicates overbought risk. Valuation remains challenging due to losses (negative P/E), while the recent divestiture is a positive step toward simplification and balance-sheet improvement.

Positive Factors

Strategic Portfolio Simplification

Divesting the Control Devices unit for $59M is a durable strategic move that sharpens focus on higher-growth Electronics and Brazil platforms. Proceeds are earmarked to repay debt and strengthen the balance sheet, reducing complexity and improving long-term capital allocation and execution.

Conservative Leverage

A very low debt-to-equity ratio provides durable financial flexibility, lowering insolvency risk and enabling the company to fund R&D, product program ramps, or weather cyclical auto demand without heavy refinancing stress, supporting sustainable strategic initiatives.

Product Wins & Program Backlog

Significant program awards and growth in the MirrorEye line reflect durable, multi-year revenue streams tied to vehicle programs. Lifetime-program revenue provides a stable backlog that supports steady production, unit economics improvement, and higher long-term topline visibility.

Negative Factors

Steep Revenue Decline and Negative Margins

A sharp 40.6% TTM revenue drop combined with negative gross and net margins indicates structural demand or execution issues. Persistently negative margins undermine reinvestment capacity and raise the bar for operational fixes needed to restore scalable profitability over the medium term.

Negative Return on Equity

Negative ROE signals the company is not generating returns on invested capital, reflecting either persistent losses or capital misallocation. This hinders trust in management’s capital deployment and limits ability to attract investment for long-term growth initiatives.

Senior Finance Leadership Transition Risk

The imminent CFO departure creates execution risk during a critical restructuring and divestiture period. Even with an internal interim, replacing a finance leader who drove prior strategic actions can disrupt capital allocation, covenant negotiations, and reporting continuity over the coming months.

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 generates revenue primarily through the sale of its electronic products and systems to automotive manufacturers and commercial vehicle companies. The company's revenue model is based on direct sales of its sophisticated technologies, which are integrated into vehicles for improved functionality and safety. Key revenue streams include design contracts, manufacturing agreements, and aftermarket sales for replacement parts and upgrades. Stoneridge also benefits from partnerships with major automotive manufacturers, which provide a steady demand for its innovative solutions. Additionally, the company may receive revenue from joint ventures and collaborations that expand its market reach and enhance its product offerings.

Stoneridge Financial Statement Overview

Summary

Weak profitability and a steep TTM revenue decline (down 40.6%) weigh heavily on the score, with negative gross and net margins and negative ROE. Offsetting factors include low leverage (debt-to-equity ~0.04) and improved TTM free cash flow growth (+35.68%), though cash flow has been volatile historically.

Income Statement

Stoneridge's income statement shows significant challenges with declining revenue and negative profit margins. The TTM data indicates a sharp revenue decline of 40.6%, and both gross and net profit margins are negative, reflecting operational inefficiencies. Historical data shows fluctuating revenue growth, but profitability remains a concern with consistent net losses.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.0416 in the TTM, indicating manageable leverage. However, the return on equity is negative, suggesting the company is not generating sufficient returns on shareholder investments. The equity ratio remains stable, but the negative ROE highlights profitability issues.

Cash Flow

Cash flow analysis shows improvement in free cash flow growth, with a positive growth rate of 35.68% in the TTM. The operating cash flow to net income ratio is positive, indicating some efficiency in cash generation relative to net income. However, historical volatility in free cash flow suggests potential instability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	874.36M	908.29M	975.82M	899.92M	770.46M	648.01M
Gross Profit	182.57M	189.25M	202.10M	174.93M	166.86M	154.20M
EBITDA	8.21M	-381.00K	45.06M	31.18M	52.10M	28.64M
Net Income	-32.04M	-16.52M	-5.18M	-14.06M	3.41M	-7.95M
Balance Sheet
Total Assets	632.08M	621.56M	679.90M	652.11M	665.40M	621.41M
Cash, Cash Equivalents and Short-Term Investments	53.99M	71.83M	40.84M	54.80M	85.55M	73.92M
Total Debt	180.66M	208.06M	203.01M	179.85M	184.12M	159.11M
Total Liabilities	380.88M	376.30M	392.18M	371.16M	369.45M	324.77M
Stockholders Equity	251.19M	245.26M	287.72M	280.94M	295.95M	296.63M
Cash Flow
Free Cash Flow	23.52M	23.45M	-33.55M	-24.80M	-63.28M	-3.82M
Operating Cash Flow	44.42M	47.75M	4.95M	6.81M	-36.25M	28.64M
Investing Cash Flow	-21.06M	-24.47M	-36.98M	-28.58M	28.04M	-33.88M
Financing Cash Flow	-27.65M	11.12M	17.48M	-7.30M	22.88M	6.51M

Stoneridge Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 7.6 is above the 20-day moving average (MA) of 6.33, above the 50-day MA of 6.02, and above the 200-day MA of 6.52, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 73.44 is Negative, neither overbought nor oversold. The STOCH value of 77.95 is Neutral, 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	80 Outperform	$347.21M	14.65	10.85%	―	6.83%	46.38%
CAAS	73 Outperform	$135.47M	4.02	9.19%	―	16.72%	5.35%
HLLY	64 Neutral	$488.07M	-19.74	-5.54%	―	-3.20%	-257.73%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	59 Neutral	$256.01M	113.85	0.94%	―	6.72%	―
SRI	56 Neutral	$212.65M	-6.59	-12.26%	―	-4.91%	-331.53%
CVGI	48 Neutral	$55.83M	-0.89	-31.07%	―	-23.26%	-259.03%

Stoneridge Corporate Events

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.

Stoneridge Amends Credit Agreement for Financial Relief

On November 5, 2025, Stoneridge announced an amendment to its credit agreement, providing covenant relief and reducing borrowing capacity as part of its strategic financial management. The company reported third-quarter 2025 results with sales of $210.3 million and a net loss of $9.4 million, while highlighting significant growth in its MirrorEye product line and new program awards totaling over $185 million in estimated lifetime revenue. Despite macroeconomic challenges, Stoneridge continues to focus on long-term growth through strategic initiatives and product innovations.

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.