Stoneridge (SRI) AI Stock Analysis

• Market Cap: $220.13M
• Dividend Yield: N/A
• Average Volume (3M): 367.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: -6.99%
• EPS Growth: -1688.02%
• Country: US
• Employees: 4,450
• Sector: Consumer Cyclical
• Sector Strength: 77
• Industry: Auto - Parts
• EPS (TTM): -0.25
• Shares Outstanding: 28,006,495
• 10 Day Avg. Volume: 319,431
• 30 Day Avg. Volume: 367,926
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.36
• Enterprise Value/Gross Profit: 1.74
• Enterprise Value/Ebitda: 23.90
• 1Y Price Target: $16.00
• Price Target Upside: 101.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $8.00 ▲(0.76% Upside)

Stoneridge's stock score is primarily influenced by its financial performance challenges, including consistent net losses and declining revenue. Technical analysis shows positive momentum, which is a favorable sign. However, the valuation is weak due to a negative P/E ratio and lack of dividend yield. The earnings call provided a strong positive outlook, but it was not factored into the score due to the exclusion of this component.

Positive Factors

Market Performance

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

Product Innovation

SRI has solid momentum in the Electronics business segment driven by MirrorEye and the Smart2 Tachograph, with MirrorEye expected to become a 'must have product' for Class 8 trucks.

Negative Factors

Production Challenges

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.

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.

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 through the sale of its electronic systems and components to original equipment manufacturers (OEMs) and aftermarket customers. Key revenue streams include direct sales of vehicle electronics, ADAS products, and telematics solutions. The company benefits from long-term contracts with major automotive manufacturers, which provide a stable income base. Additionally, Stoneridge's focus on innovation and development of connected vehicle technologies allows it to capitalize on the growing demand for smart transportation solutions, further contributing to its financial performance. Strategic partnerships with automotive technology firms and participation in industry collaborations also enhance its market presence and revenue potential.

Stoneridge Financial Statement Overview

Summary

Stoneridge faces challenges in revenue growth and profitability, reflected in negative net income and EBIT margins. The balance sheet is stable with low leverage and strong equity, but the negative ROE indicates struggles in generating shareholder value. Cash flow improvements are a positive sign, but profitability remains a concern.

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	877.92M	908.29M	975.82M	899.92M	770.46M	648.01M
Gross Profit	182.39M	189.25M	202.10M	174.93M	166.86M	154.20M
EBITDA	13.31M	-381.00K	45.06M	30.25M	50.18M	27.68M
Net Income	-29.74M	-16.52M	-5.18M	-14.06M	3.41M	-7.95M
Balance Sheet
Total Assets	639.41M	621.56M	679.90M	652.11M	665.40M	621.41M
Cash, Cash Equivalents and Short-Term Investments	49.77M	71.83M	40.84M	54.80M	85.55M	73.92M
Total Debt	172.36M	208.06M	203.01M	179.85M	184.12M	159.11M
Total Liabilities	378.89M	376.30M	392.18M	371.16M	369.45M	324.77M
Stockholders Equity	260.52M	245.26M	287.72M	280.94M	295.95M	296.63M
Cash Flow
Free Cash Flow	40.39M	23.45M	-33.55M	-24.80M	-63.28M	-3.82M
Operating Cash Flow	51.72M	47.75M	4.95M	6.81M	-36.25M	28.64M
Investing Cash Flow	-20.68M	-24.47M	-36.98M	-28.58M	28.04M	-33.88M
Financing Cash Flow	-35.16M	11.12M	17.48M	-7.30M	22.88M	6.51M

Stoneridge Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 7.94 is above the 20-day moving average (MA) of 7.91, above the 50-day MA of 7.27, and above the 200-day MA of 5.83, indicating a bullish trend. The MACD of 0.19 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 58.82 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	78 Outperform	$316.32M	15.54	8.85%	―	5.08%	12.98%
CAAS	69 Neutral	$122.35M	4.16	8.04%	―	17.08%	-18.03%
MPAA	68 Neutral	$265.90M	175.29	0.63%	―	6.59%	―
Sector *	61 Neutral	$17.51B	12.51	-5.96%	3.09%	1.71%	-15.50%
SRI	55 Neutral	$220.13M	―	-11.20%	―	-6.99%	-1688.02%
CVGI	55 Neutral	$66.28M	1.82	-27.62%	―	-27.36%	-218.40%
SSUP	43 Neutral	$2.55M	―	-80.07%	―	-8.31%	-56.03%

Stoneridge Corporate Events

Stoneridge Reports Q2 2025 Results with Record Sales

Stoneridge reported its second quarter 2025 results with sales of $228 million and a net loss of $9.4 million. Despite challenging market conditions, the company achieved a record quarterly sales for its MirrorEye system and announced its largest business award in history, totaling approximately $775 million in lifetime revenue. Stoneridge is also reviewing strategic alternatives for its Control Devices business to maximize shareholder value and support growth in its core segments.