Servotronics (SVT) AI Stock Analysis

• Market Cap: $119.54M
• Dividend Yield: N/A
• Average Volume (3M): 47.05K
• Price to Earnings (P/E): 191.8
• Beta (1Y): -1.24
• Revenue Growth: 2.57%
• EPS Growth: 83.28%
• Country: US
• Employees: 254
• Sector: Industrials
• Sector Strength: 90
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 2,556,502
• 10 Day Avg. Volume: 69,074
• 30 Day Avg. Volume: 47,055
• PEG Ratio: -3.40
• Price to Book (P/B): 5.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -75.76
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 13.86
• Enterprise Value/Ebitda: 3.63
• 1Y Price Target: $39.90
• Price Target Upside: -14.67% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $48.00 ▲(2.65%Upside)

The overall stock score reflects strong corporate events providing a potential upside through the merger with TransDigm. However, financial performance challenges, including profitability issues and negative valuation metrics, weigh heavily on the score. Despite positive technical momentum, the risk of being overbought adds caution.

Servotronics Business Overview & Revenue Model

Company Description

Servotronics, Inc. designs, manufactures, and markets control components and consumer products in the United States and internationally. It operates in two segments, Advanced Technology Group (ATG) and Consumer Products Group (CPG). The ATG segment provides servo-control components to the commercial aerospace, aircraft, and government related industries; and medical and industrial markets. This segment's principal components include torque motors, electromagnetic actuators, hydraulic and pneumatic valves, and related devices that convert an electrical current into a mechanical force or movement, and other products. It also offers metallic seals of various cross-sectional configurations to close tolerances from standard and special alloy steels. This segment markets and sells its products to the United States Government, government prime contractors, government subcontractors, commercial manufacturers, and end-users. The CPG segment provides cutlery products, including steak, carving, bread, butcher, and paring knives for household use, as well as for use in restaurants, institutions, and the private industry; fixed and folding knives for hunting, fishing, and camping; and machetes, bayonets, axes, strap cutters, and other tools primarily for military and rescue/first-responder use, as well as for commercial markets. It also offers various specialty tools, putty knives, linoleum sheet cutters, field knives, scalpels, and micro-spatulas; and plastic and metal fabrication, as well as engineering, design, and OEM/white-label manufacturing services to customers in the consumer and commercial industries. This segment markets its products through its sales resources and independent manufacturers' representatives to big box, hardware, supermarket, variety, department, discount, gift, drug, outdoor, and sporting stores, as well as through electronic commerce. The company was incorporated in 1959 and is headquartered in Elma, New York.

How the Company Makes Money

Servotronics generates revenue through the sale of its high-precision control components and cutlery products. The Advanced Technology Group supplies servomechanisms and related products to aerospace and defense contractors, which is a significant revenue stream due to the specialized nature of these components. The Consumer Products Group contributes to earnings by providing cutlery and edged products to a variety of markets, including culinary professionals and retail consumers. The company may also benefit from strategic partnerships with larger aerospace and defense firms, which can provide stable, long-term contracts and opportunities for growth in these specialized sectors.

Servotronics Financial Statement Overview

Summary

Servotronics faces profitability challenges with consistent net losses and negative EBIT/EBITDA margins. However, its balance sheet is strong with low debt levels compared to equity. The recent improvement in cash flow is a positive indicator, but the company needs to address revenue declines and profitability issues for sustainable growth.

Income Statement

Servotronics has experienced a decline in revenue over recent years. The gross profit margin for the most recent year is 18.4%, which is moderate. The company has faced losses, as indicated by the negative net profit margin of -3.6% and negative EBIT and EBITDA margins, showing challenges in profitability and operational efficiency.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.09, indicating a strong equity base relative to its debt. The equity ratio is 67.5%, suggesting a stable financial structure. However, declining total assets and equity could be a concern for future stability.

Cash Flow

Servotronics improved its free cash flow situation in the most recent year, transitioning from negative to positive free cash flow. The operating cash flow to net income ratio reflects a positive cash flow, despite losses. Nonetheless, consistency in generating positive cash flow remains key for long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
46.17M	44.92M	43.63M	43.82M	40.56M	49.84M
	Gross Profit
8.89M	8.27M	7.80M	5.94M	5.99M	8.24M
	EBIT
-484.00K	-1.01M	-2.11M	-2.48M	2.19M	242.00K
	EBITDA
10.15M	-37.00K	-1.03M	-1.51M	5.57M	1.68M
	Net Income Common Stockholders
-1.11M	-1.62M	-10.79M	-2.12M	4.05M	100.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.00K	111.00K	95.00K	4.00M	9.55M	5.93M
	Total Assets
36.71M	34.83M	36.59M	45.29M	50.09M	50.33M
	Total Debt
3.73M	2.13M	2.10M	501.00K	5.03M	9.93M
	Net Debt
3.69M	2.02M	2.01M	-3.50M	-4.52M	3.99M
	Total Liabilities
4.46M	12.25M	12.09M	10.18M	14.73M	16.59M
	Stockholders Equity
23.70M	23.50M	24.49M	35.11M	35.37M	33.74M
Cash Flow		Free Cash Flow
-1.58M	215.00K	-7.33M	-1.05M	4.32M	97.00K
	Operating Cash Flow
-623.00K	1.25M	-6.64M	264.00K	4.59M	826.00K
	Investing Cash Flow
-952.00K	-1.03M	1.47M	-1.28M	3.00K	-729.00K
	Financing Cash Flow
77.00K	-17.00K	1.60M	-4.53M	-983.00K	3.81M

Servotronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.76
• 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 SVT, the sentiment is Positive. The current price of 46.76 is above the 20-day moving average (MA) of 34.55, above the 50-day MA of 20.11, and above the 200-day MA of 13.48, indicating a bullish trend. The MACD of 8.85 indicates Negative momentum. The RSI at 96.52 is Negative, neither overbought nor oversold. The STOCH value of 97.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVT.

Servotronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ESP	82 Outperform	$106.80M	14.07	16.59%	2.52%	18.62%	34.63%
POWL	80 Outperform	$2.30B	13.43	37.08%	0.56%	27.43%	67.93%
Sector *	66 Neutral	$4.50B	12.29	5.40%	248.66%	4.13%	-12.33%
SVT	55 Neutral	$119.54M	191.79	-4.18%	―	2.57%	83.28%
RFIL	55 Neutral	$43.11M	―	-15.05%	―	4.93%	-64.91%
SKYX	48 Neutral	$132.26M	―	-395.45%	―	12.42%	23.63%
ELPW		$44.33M	4.40	2.78%	―	―	―

Servotronics Corporate Events

Servotronics Holds Annual Stockholders Meeting on June 3

On June 3, 2025, Servotronics held its Annual Meeting of stockholders, where 84.59% of common shares were represented. During the meeting, directors were elected, and the advisory approval of executive compensation for 2024 was affirmed by a majority. Additionally, it was decided that future advisory votes on executive compensation will occur annually.

The most recent analyst rating on (SVT) stock is a Buy with a $3050.00 price target. To see the full list of analyst forecasts on Servotronics stock, see the SVT Stock Forecast page.

Servotronics Amends Merger Agreement with TransDigm

On May 28, 2025, Servotronics, Inc. amended its merger agreement with TransDigm Inc., increasing the tender offer price from $38.50 to $47.00 per share in cash. This amendment followed an unsolicited acquisition proposal from a third party, which the company’s Board of Directors determined was not superior to the existing agreement. The amendment also raised the termination fee from $5 million to $12.5 million, with a reverse termination fee of $25 million payable by TransDigm if the agreement is terminated under certain conditions.

The most recent analyst rating on (SVT) stock is a Buy with a $3050.00 price target. To see the full list of analyst forecasts on Servotronics stock, see the SVT Stock Forecast page.

Servotronics Announces Merger Agreement with TransDigm

On May 18, 2025, Servotronics, Inc. entered into a merger agreement with TransDigm Inc., whereby TransDigm will acquire Servotronics through a tender offer valued at approximately $110 million. This acquisition, approved by Servotronics’ Board of Directors, offers a 274% premium on Servotronics’ share price and will be funded by TransDigm’s cash reserves. The merger aims to integrate Servotronics’ highly engineered products into TransDigm’s portfolio, enhancing growth opportunities and providing resources for further development. The transaction is expected to provide immediate value to Servotronics’ shareholders and strengthen its market position in aerospace and defense.

The most recent analyst rating on (SVT) stock is a Buy with a $3050.00 price target. To see the full list of analyst forecasts on Servotronics stock, see the SVT Stock Forecast page.