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Servotronics (SVT)
:SVT

Servotronics (SVT) AI Stock Analysis

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Servotronics

(NYSE MKT:SVT)

Rating:55Neutral
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 (SVT) vs. SPDR S&P 500 ETF (SPY)

Servotronics Business Overview & Revenue Model

Company DescriptionServotronics, 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 MoneyServotronics 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 relatively 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
55
Neutral
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
60
Neutral
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
65
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
46.17M44.92M43.63M43.82M40.56M49.84M
Gross Profit
8.89M8.27M7.80M5.94M5.99M8.24M
EBIT
-484.00K-1.01M-2.11M-2.48M2.19M242.00K
EBITDA
10.15M-37.00K-1.03M-1.51M5.57M1.68M
Net Income Common Stockholders
-1.11M-1.62M-10.79M-2.12M4.05M100.00K
Balance SheetCash, Cash Equivalents and Short-Term Investments
37.00K111.00K95.00K4.00M9.55M5.93M
Total Assets
36.71M34.83M36.59M45.29M50.09M50.33M
Total Debt
3.73M2.13M2.10M501.00K5.03M9.93M
Net Debt
3.69M2.02M2.01M-3.50M-4.52M3.99M
Total Liabilities
4.46M12.25M12.09M10.18M14.73M16.59M
Stockholders Equity
23.70M23.50M24.49M35.11M35.37M33.74M
Cash FlowFree Cash Flow
-1.58M215.00K-7.33M-1.05M4.32M97.00K
Operating Cash Flow
-623.00K1.25M-6.64M264.00K4.59M826.00K
Investing Cash Flow
-952.00K-1.03M1.47M-1.28M3.00K-729.00K
Financing Cash Flow
77.00K-17.00K1.60M-4.53M-983.00K3.81M

Servotronics Technical Analysis

Technical Analysis Sentiment
Positive
Last Price46.76
Price Trends
50DMA
19.39
Positive
100DMA
15.06
Positive
200DMA
13.30
Positive
Market Momentum
MACD
9.09
Negative
RSI
96.52
Negative
STOCH
97.89
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 32.73, above the 50-day MA of 19.39, and above the 200-day MA of 13.30, indicating a bullish trend. The MACD of 9.09 indicates Negative momentum. The RSI at 96.52 is Negative, neither overbought nor oversold. The STOCH value of 97.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SVT.

Servotronics Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
ESESP
82
Outperform
$106.80M14.0716.59%2.52%18.62%34.63%
80
Outperform
$2.30B13.4337.08%0.56%27.43%67.93%
66
Neutral
$4.51B12.295.40%248.53%4.14%-12.41%
SVSVT
55
Neutral
$119.54M191.79-4.18%2.57%83.28%
54
Neutral
$43.11M-15.05%4.93%-64.91%
48
Neutral
$132.26M-395.45%12.42%23.63%
$44.33M4.402.78%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SVT
Servotronics
46.76
34.66
286.45%
ESP
Espey Mfg & Electronics
40.04
19.34
93.43%
POWL
Powell Industries
190.24
20.28
11.93%
RFIL
RF Industries
4.14
0.99
31.43%
SKYX
SQL Technologies
1.29
0.43
50.00%
ELPW
Elong Power Holding
1.04
-9.85
-90.45%

Servotronics Corporate Events

Executive/Board ChangesShareholder Meetings
Servotronics Holds Annual Stockholders Meeting on June 3
Neutral
Jun 6, 2025

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.

M&A Transactions
Servotronics Amends Merger Agreement with TransDigm
Positive
May 29, 2025

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.

M&A Transactions
Servotronics Announces Merger Agreement with TransDigm
Positive
May 19, 2025

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.

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.