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Superior Industries International (SUP)
NYSE:SUP
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Superior Industries International
(NYSE:SUP)
Rating:39Underperform
Price Target:
$0.50
▲( 4.17% Upside)
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.
Operational Efficiency
Superior's low-cost manufacturing footprint with all production consolidated in Mexico and Poland gives the company a distinct advantage over competitors.
Strategic Partnerships
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.
Market Conditions
Superior outperformed the market as key customer production levels were down 6% YOY, while Value-Added Sales for Superior were down 2%.
Superior Industries International (SUP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.24M
Dividend YieldN/A
Average Volume (3M)1.50M
Price to Earnings (P/E)―
Beta (1Y)0.07
Revenue Growth-3.63%
EPS Growth36.19%
CountryUS
Employees6,500
SectorConsumer Cyclical
Sector Strength75
IndustryAuto - Parts
Share Statistics
EPS (TTM)-1.40
Shares Outstanding29,474,394
10 Day Avg. Volume4,375,649
30 Day Avg. Volume1,497,299
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)-0.05
Price to Sales (P/S)0.00
P/FCF Ratio1.46
Enterprise Value/Market Cap-2.32
Enterprise Value/Revenue>-0.01
Enterprise Value/Gross Profit-0.34
Enterprise Value/Ebitda-0.13
Forecast
1Y Price Target
$7.00Price Target Upside1358.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Superior Industries International Business Overview & Revenue Model
Company DescriptionSuperior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers and aftermarket distributors in North America and Europe. The company supplies aluminum wheels to the automobile and light truck manufacturers. It offers its products under the ATS, RIAL, ALUTEC, and ANZIO brand names. The company was founded in 1957 and is headquartered in Southfield, Michigan.
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 financial challenges with declining revenues and consistent net losses. The balance sheet's negative equity poses significant risks, although improvements in cash flow generation provide some optimism. The company needs to address profitability and leverage issues to stabilize its financial health.Income Statement
The company has experienced fluctuating revenue with a recent decline from previous years. Gross profit margins have decreased, and the net profit margin remains negative, indicating ongoing profitability challenges. Although there are improvements in EBIT and EBITDA margins in the TTM, consistent losses are a concern.45
Neutral
Balance Sheet
The balance sheet shows negative stockholders' equity in the TTM, indicating potential solvency issues. The debt-to-equity ratio is unfavorable due to negative equity, and the equity ratio is negative, reflecting high leverage and financial instability.30
Negative
Cash Flow
Operating cash flow has improved slightly, and free cash flow has turned positive in the TTM, indicating some operational efficiency. However, the free cash flow growth is inconsistent across periods, and high financing cash outflows suggest ongoing financial restructuring.50
Neutral
| 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 |
| 96.70M | 110.53M | 115.75M | 166.40M | 114.80M | 65.70M | EBIT |
| 27.77M | 29.25M | -51.45M | 98.00M | 55.40M | 10.30M | EBITDA |
| 81.71M | 105.13M | 43.13M | 189.21M | 157.31M | -85.08M | Net Income Common Stockholders |
| -58.36M | -78.18M | -92.85M | 37.03M | 3.75M | -243.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 54.46M | 39.71M | 201.61M | 213.02M | 113.47M | 152.42M | Total Assets |
| 763.78M | 740.13M | 1.03B | 1.13B | 1.05B | 1.11B | Total Debt |
| 5.81M | 492.26M | 625.94M | 624.15M | 610.81M | 634.47M | Net Debt |
| -48.65M | 452.55M | 424.33M | 411.13M | 497.33M | 482.05M | Total Liabilities |
| 1.05B | 727.40M | 867.40M | 935.10M | 923.50M | 1.13B | Stockholders Equity |
| -288.66M | 12.25M | 162.28M | 197.50M | 129.50M | -21.50M |
| Cash Flow | Free Cash Flow | ||||
| 10.72M | -9.97M | 23.27M | 95.40M | -19.20M | 105.10M | Operating Cash Flow |
| 38.35M | 18.31M | 64.43M | 152.60M | 44.90M | 150.10M | Investing Cash Flow |
| -27.63M | -28.28M | -45.61M | -57.00M | -57.50M | -44.20M | Financing Cash Flow |
| -146.15M | -148.34M | -34.23M | 4.50M | -24.00M | -37.10M |
Superior Industries International Technical Analysis
Negative
0.48
Price Trends
1.99
Negative
1.99
Negative
2.37
Negative
Market Momentum
-0.51
Positive
24.10
Positive
6.79
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SUP, the sentiment is Negative. The current price of 0.48 is below the 20-day moving average (MA) of 1.57, below the 50-day MA of 1.99, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 24.10 is Positive, neither overbought nor oversold. The STOCH value of 6.79 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SUP.
Superior Industries International Risk Analysis
Superior Industries International disclosed 29 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $6.84B | 11.23 | 3.09% | 3.95% | 2.66% | -25.23% | |
56 Neutral | $132.27M | ― | -6.63% | ― | -8.90% | -346.80% | |
55 Neutral | $44.35M | ― | -1.87% | ― | -3.83% | 89.89% | |
51 Neutral | $46.07M | 1.82 | -26.02% | ― | -23.78% | -179.48% | |
41 Neutral | $14.04M | ― | -86.65% | ― | 407.96% | 36.22% | |
39 Underperform | $14.24M | ― | -80.07% | ― | -3.63% | 36.19% | |
37 Underperform | $45.80M | 5.50 | -266.79% | ― | ― | ― |
* Consumer Cyclical Sector Average
Performance Comparison
SUP
Superior Industries International
0.48
-3.17
-86.85%
CVGI
Commercial Vehicle Group
1.33
-3.72
-73.66%
SRI
Stoneridge
4.75
-11.62
-70.98%
SYPR
Sypris
1.93
0.46
31.29%
WKSP
Worksport
2.70
-2.57
-48.77%
MKDW
MKDWELL Tech
0.32
-10.24
-96.97%
Superior Industries International Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -83.28%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Negative
While Superior Industries has shown some positive momentum in terms of net sales and quoting activity, the significant loss of contracts and subsequent financial challenges present major concerns. The company's strategic moves towards refinancing and potential recapitalization highlight efforts to stabilize, but the suspension of guidance and liquidity constraints indicate a challenging outlook.Q1-2025 Updates
Positive Updates
Increase in Net Sales
Net sales for the first quarter reached $322 million, up from $316 million in the prior year period.
Significant Quoting Activity
Year-to-date, Superior has quoted on more than 53 million lifetime wheels, twice the level compared to last year at the same time.
Successful Debt Refinancing in 2024
Superior refinanced its debt in 2024, reducing total debt by $117 million and extending debt maturities to the end of 2028.
Improvement in Cash Flow
Unlevered free cash flow increased to $33 million compared to $8 million in the prior year period, driven by lower working capital.
Negative Updates
Loss of Key Contracts
Superior was notified by certain North American customers of their intent to resource existing contracts, representing 33% of expected revenue in 2025.
Decrease in Adjusted EBITDA
Adjusted EBITDA for the quarter decreased to $25 million from $31 million in the prior year period, with a margin decline from 18% to 15%.
Suspension of Full Year Guidance
Due to uncertainty from recent events and ongoing discussions with lenders, Superior suspended its full year 2025 guidance.
Short-term Liquidity Constraints
The sudden loss of volumes due to contract losses has resulted in short-term liquidity constraints and reductions in earnings generation.
Company Guidance
During the first quarter of fiscal year 2025 earnings call, Superior Industries provided an update on their financial and business performance amidst a challenging macroeconomic environment. The company reported net sales of $322 million, a slight increase from $316 million in the same period last year, and an adjusted EBITDA of $25 million with a 15% margin of value-added sales. However, Superior faced a significant setback when notified by North American OEM customers of their intent to resource existing contracts, impacting 33% of expected 2025 revenue. In response, Superior secured a commitment for up to $70 million in additional term loans and is pursuing a broader recapitalization transaction aimed at deleveraging the balance sheet by eliminating preferred equity and reducing outstanding debt. Despite the challenges, Superior highlighted their competitive advantage in local-for-local manufacturing in Mexico and Poland, quoting on over 53 million lifetime wheels year-to-date. Consequently, the company suspended its full-year 2025 guidance, pending more stable conditions and clarity from ongoing discussions with lenders and preferred shareholders.Superior Industries International Corporate Events
Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Superior Industries Approves Equity Plan Amendment
Neutral
May 23, 2025
On May 21, 2025, Superior Industries International, Inc. held its annual meeting of stockholders where an amendment to the 2018 Equity Incentive Plan was approved, increasing the number of shares authorized for issuance by 1,700,000. The meeting also included the election of directors, approval of executive compensation, and ratification of the appointment of Deloitte & Touche LLP as the independent registered public accounting firm, reflecting the company’s ongoing commitment to robust governance and strategic growth.
The most recent analyst rating on (SUP) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on Superior Industries International stock, see the SUP Stock Forecast page.
Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Superior Industries Secures $70 Million Bridge Facility
Negative
May 12, 2025
On May 12, 2025, Superior Industries International announced a commitment letter with its lenders to secure a $70 million bridge facility, aimed at addressing short-term liquidity constraints caused by a sudden loss of volumes from North American OEM customers. The company is also pursuing a recapitalization transaction to de-leverage its balance sheet and enhance financial flexibility. Superior reported a net loss of $13 million for Q1 2025, with net sales of $322 million, and has withdrawn its fiscal year guidance due to macroeconomic uncertainties and recent events.
The most recent analyst rating on (SUP) stock is a Buy with a $10.5000 price target. To see the full list of analyst forecasts on Superior Industries International stock, see the SUP Stock Forecast page.
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.