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Superior Industries International (SUP)
NYSE:SUP
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Superior Industries International
(NYSE:SUP)
46Neutral
Positive Factors
Financial Performance
Q4/24 results were better than estimates, with net sales of $310 million and adjusted EBITDA of $35 million driven by higher gross profit due to lower material and conversion costs.
Strategic Wins
A new strategic win with a Japanese OEM has begun production, and Superior has been awarded new business from OEMs that were utilizing Chinese production capacity.
Negative Factors
Guidance
Guidance ranges lowered due to sluggish OEM production volumes.
Superior Industries International (SUP) vs. S&P 500 (SPY)
Market Cap
$58.38M
Dividend YieldN/A
Average Volume (3M)107.38K
Price to Earnings (P/E)―
Beta (1Y)0.75
Revenue Growth-8.51%
EPS Growth9.63%
CountryUS
Employees6,600
SectorConsumer Cyclical
Sector Strength49
IndustryVehicles
Share Statistics
EPS (TTM)-4.25
Shares Outstanding28,902,258
10 Day Avg. Volume156,190
30 Day Avg. Volume107,377
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.05
Price to Cash Flow (P/CF)0.60
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.00Price Target Upside227.10% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Superior Industries International Business Overview & Revenue Model
Company DescriptionSuperior Industries International, Inc. is a leading manufacturer of aluminum wheels for the automotive industry. Founded in 1957 and headquartered in Southfield, Michigan, the company operates in the automotive sector, supplying original equipment manufacturers (OEMs) with high-quality, lightweight aluminum wheels that enhance vehicle performance and design aesthetics. Superior Industries serves a global customer base, with manufacturing facilities strategically located in North America and Europe.
How the Company Makes MoneySuperior Industries International generates revenue primarily through the production and sale of aluminum wheels to major automotive OEMs. The company focuses on producing lightweight and durable wheels that meet the specific requirements of its clients, which include several of the world's leading automobile manufacturers. Revenue streams are mainly derived from long-term contracts and orders from these OEMs, ensuring a stable income base. Additionally, Superior Industries benefits from its ability to innovate and develop new wheel technologies, which can lead to increased demand and premium pricing. Strategic partnerships and collaborations with automotive companies also play a role in enhancing its market position and financial performance.
Superior Industries International Financial Statement Overview
Summary
Superior Industries International faces significant financial challenges with declining revenues, persistent net losses, and high leverage. The company must address operational inefficiencies and leverage to improve its financial standing.Income Statement
Superior Industries International has shown a declining revenue trend from 2022 to 2024, with a significant drop in gross profit margin and consistent net losses over the past three years. The EBIT and EBITDA margins have also deteriorated substantially, indicating operational challenges.45
Neutral
Balance Sheet
The company exhibits a weak balance sheet with negative stockholders' equity in 2020 and minimal equity in subsequent years. The debt-to-equity ratio is unfavorable, reflecting high leverage, and there's a lack of asset stability.30
Negative
Cash Flow
Cash flow from operations has been inconsistent, with negative free cash flow in 2024 and substantial declines from previous years. The free cash flow to net income ratio is negative, highlighting cash flow challenges despite some positive operating cash flow.40
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.27B | 1.27B | 1.39B | 1.64B | 1.38B | 1.10B | Gross Profit |
| 78.68M | 110.53M | 115.75M | 166.40M | 114.80M | 65.70M | EBIT |
| -14.73M | 29.25M | -51.45M | 98.00M | 55.40M | 10.30M | EBITDA |
| 67.82M | 29.25M | 43.13M | 189.21M | 157.31M | -85.08M | Net Income Common Stockholders |
| -71.03M | -78.18M | -92.85M | 37.03M | 3.75M | -243.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 201.61M | 0.00 | 201.61M | 213.02M | 113.47M | 152.42M | Total Assets |
| 1.03B | 0.00 | 1.03B | 1.13B | 1.05B | 1.11B | Total Debt |
| 625.94M | 481.45M | 625.94M | 624.15M | 610.81M | 634.47M | Net Debt |
| 424.33M | 481.45M | 424.33M | 411.13M | 497.33M | 482.05M | Total Liabilities |
| 867.40M | 0.00 | 867.40M | 935.10M | 923.50M | 1.13B | Stockholders Equity |
| 162.28M | 0.00 | 162.28M | 197.50M | 129.50M | -21.50M |
| Cash Flow | Free Cash Flow | ||||
| 3.82M | -9.97M | 23.27M | 95.40M | -19.20M | 105.10M | Operating Cash Flow |
| 36.48M | 18.31M | 64.43M | 152.60M | 44.90M | 150.10M | Investing Cash Flow |
| -32.66M | -28.28M | -45.61M | -57.00M | -57.50M | -44.20M | Financing Cash Flow |
| -156.31M | -148.34M | -34.23M | 4.50M | -24.00M | -37.10M |
Superior Industries International Technical Analysis
Positive
2.14
Price Trends
1.99
Positive
2.22
Negative
2.71
Negative
Market Momentum
0.01
Negative
60.20
Neutral
74.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUP, the sentiment is Positive. The current price of 2.14 is above the 20-day moving average (MA) of 1.89, above the 50-day MA of 1.99, and below the 200-day MA of 2.71, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 60.20 is Neutral, neither overbought nor oversold. The STOCH value of 74.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SUP.
Superior Industries International Risk Analysis
Superior Industries International disclosed 31 risk factors in its most recent earnings report. Superior Industries International reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Superior Industries International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $5.16B | 10.72 | 10.81% | 3.25% | -0.70% | -7.27% | |
65 Neutral | $1.20B | 890.45 | -0.10% | ― | -5.42% | -99.08% | |
64 Neutral | $2.02B | ― | -3.92% | 2.88% | -2.57% | -248.28% | |
62 Neutral | $534.99M | 15.65 | 5.79% | ― | 0.75% | ― | |
62 Neutral | $6.39B | 19.45 | 6.46% | 1.54% | -11.10% | -46.32% | |
59 Neutral | $12.50B | 10.40 | 2.26% | 3.63% | 1.65% | -18.81% | |
46 Neutral | $58.38M | ― | -89.61% | ― | -8.51% | 9.63% |
* Consumer Cyclical Sector Average
Performance Comparison
SUP
Superior Industries International
2.14
-0.73
-25.44%
AXL
American Axle
4.43
-2.11
-32.26%
BWA
BorgWarner
27.78
-3.83
-12.12%
DAN
Dana Holding
13.61
2.46
22.06%
LEA
Lear
93.50
-42.62
-31.31%
ADNT
Adient
13.48
-19.04
-58.55%
Superior Industries International Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 28.14% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements in restructuring, refinancing, and operational improvements, positioning Superior Industries for future growth. However, challenges such as a decline in net sales, increased net loss, and working capital issues were also noted. The positive impacts of recent tariffs and future growth expectations outweigh these challenges.Highlights
Successful Restructuring and Refinancing
Superior Industries completed major restructuring initiatives, refinanced all debt, and attracted $520 million in new capital, strengthening its financial foundation and extending debt maturities to 2028.
Margin Stability Despite Industry Decline
Adjusted EBITDA margin remained stable at 21% year-over-year, despite a 4% decline in adjusted value-added sales, showcasing effective cost management and restructuring benefits.
European Manufacturing Consolidation
Completion of European manufacturing transformation with all production consolidated in low-cost, highly automated operations in Poland, providing a competitive advantage.
Positive Impact from Tariffs
Recent U.S. and European tariffs on Chinese imports favor Superior by accelerating demand for localized production, leveraging its local-for-local manufacturing footprint.
Future Growth Outlook
Guidance for 2025 includes a 16% growth in adjusted EBITDA, driven by cost initiatives and improved capacity utilization, with anticipated margin expansion despite an expected 4% decline in industry production.
Lowlights
Decline in Full Year Net Sales
Net sales for the full year 2024 were $1.3 billion, down from $1.4 billion the previous year, due to lower unit sales and reduced aluminum costs passed through to customers.
Increased Net Loss
Net loss for the full year was $78 million, indicating financial challenges despite operational improvements.
Working Capital Challenges
Higher working capital impacted cash provided by operating activities, which decreased to $18 million for the full year compared to $64 million in the prior year.
Company Guidance
During the Superior Industries Fourth Quarter and Full Year 2024 Earnings Call, the company provided guidance for 2025, anticipating a 4% decline in industry production based on IHS estimates. Despite this, Superior expects to outperform the market and achieve a 16% earnings growth with adjusted EBITDA projected at $160 million to $180 million, driven by operational improvements and cost reductions. The company expects value-added sales between $650 million and $700 million and net sales in the range of $1.3 billion to $1.4 billion. Superior also aims to generate $110 million to $130 million in unlevered free cash flow and plans capital expenditures of $35 million, focusing on automation to drive cost reduction. The guidance does not account for potential impacts of recent tariffs, which the company is closely monitoring.Superior Industries International Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Superior Industries Grants Key Executive Retention Bonus
Neutral
Feb 7, 2025
On February 5, 2025, Superior Industries International awarded a one-time retention bonus to Michael Dorah, their Executive Vice President and Chief Operating Officer, to ensure his continued leadership through the company’s operational improvements. Additionally, the company’s CEO, Majdi B. Abulaban, had his employment agreement amended to increase his severance package following a change in control, enhancing his retention and aligning his interests with shareholders.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.