Servotronics (SVT) AI Stock Analysis

• Market Cap: $120.00M
• Dividend Yield: N/A
• Average Volume (3M): 58.58K
• Price to Earnings (P/E): 191.8
• Beta (1Y): -1.34
• Revenue Growth: 2.57%
• EPS Growth: 83.28%
• Country: US
• Employees: 254
• Sector: Industrials
• Sector Strength: 95
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.05
• Shares Outstanding: 2,557,000
• 10 Day Avg. Volume: 39,566
• 30 Day Avg. Volume: 58,583
• PEG Ratio: 0.08
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -24.24
• Enterprise Value/Market Cap: 0.18
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 2.48
• Enterprise Value/Ebitda: 0.65
• 1Y Price Target: $39.90
• Price Target Upside: -15.00% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: $48.00 ▲(2.26%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. (SVT) is a U.S.-based company that designs, manufactures, and sells advanced technology products. It operates in two primary sectors: Advanced Technology Group and Consumer Products Group. The Advanced Technology Group focuses on producing high-performance servo-control components, systems, and sub-systems for various applications in the aerospace and defense industries. The Consumer Products Group, on the other hand, specializes in designing and manufacturing cutlery and other edged products for commercial and consumer markets.

How the Company Makes Money

Servotronics generates revenue through its two main business segments. The Advanced Technology Group makes money by supplying servo-control systems and components to aerospace and defense contractors, as well as various government agencies. These products are crucial for precision control in aircraft and military systems, making them indispensable in these industries. The Consumer Products Group adds to the company's revenue by selling cutlery and other edged tools under various brand names to both retail and commercial customers. Significant partnerships and long-term contracts with defense contractors and commercial retail chains also contribute to the company's earnings, providing stable and recurring revenue streams.

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
EBITDA	10.15M	-37.00K	-1.03M	-1.51M	5.57M	1.68M
Net Income	-1.11M	-1.62M	-10.79M	-2.12M	4.05M	100.00K
Balance Sheet
Total Assets	36.71M	34.83M	36.59M	45.29M	50.09M	50.33M
Cash, Cash Equivalents and Short-Term Investments	37.00K	111.00K	95.00K	4.00M	9.55M	5.93M
Total Debt	3.73M	2.13M	2.10M	501.00K	5.03M	9.93M
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: 46.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

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 46.94 is above the 20-day moving average (MA) of 46.90, above the 50-day MA of 32.53, and above the 200-day MA of 16.45, indicating a bullish trend. The MACD of 3.41 indicates Positive momentum. The RSI at 94.73 is Negative, neither overbought nor oversold. The STOCH value of 26.03 is Neutral, 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	$147.91M	19.49	16.59%	1.91%	18.62%	34.63%
POWL	77 Outperform	$3.00B	17.46	37.08%	0.43%	27.43%	67.93%
Sector *	65 Neutral	$11.18B	15.79	5.49%	1.92%	3.14%	-24.90%
RFIL	58 Neutral	$87.27M	―	-4.17%	―	20.14%	82.63%
SVT	55 Neutral	$120.00M	191.79	-4.18%	―	2.57%	83.28%
SKYX	44 Neutral	$121.88M	―	-395.45%	―	12.42%	23.63%

Servotronics Corporate Events

Servotronics Completes Merger and Delists Shares

On July 1, 2025, Servotronics terminated its financing agreement with Rosenthal & Rosenthal, Inc., repaying all outstanding obligations, and ended its 2022 Equity Incentive Plan. The company also notified NYSE American of its merger completion, leading to the halting and delisting of its shares. As a result of the merger, Servotronics underwent a change in control, becoming a wholly owned subsidiary of Parent. The company’s board and officers were replaced, and its certificate of incorporation and bylaws were amended and restated.

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 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.