Sypris (SYPR) AI Stock Analysis

• Market Cap: $80.60M
• Dividend Yield: N/A
• Average Volume (3M): 55.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.14
• Revenue Growth: -13.01%
• EPS Growth: 21.49%
• Country: US
• Employees: 713
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.02
• Shares Outstanding: 23,029,970
• 10 Day Avg. Volume: 33,018
• 30 Day Avg. Volume: 55,349
• PEG Ratio: -5.33
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 42.60
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 6.36
• Enterprise Value/Ebitda: 32.89
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $3.50 ▲(41.70% Upside)

The score is held down primarily by weak financial performance (declining revenue, negative profitability/ROE, and deteriorating free cash flow). Technicals are a notable positive with the price trading above key moving averages and positive MACD, but valuation remains challenging due to the negative P/E and lack of dividend support.

Positive Factors

Diversified manufacturing segments

Running both defense/aerospace component manufacturing and electronics assembly gives Sypris revenue diversification across end markets. This reduces single-market cyclicality, permits cross-selling of engineering capabilities, and supports steadier long-term demand versus a single-product firm.

Long-term defense/aerospace contracts

Dependence on long-term government and prime-contractor contracts provides durable revenue visibility and higher switching costs. These contracts often include qualification barriers and recurring procurements, supporting backlog stability and predictable near- to mid-term cash flows for months to years.

Lower leverage with positive EBITDA

Reduced debt levels improve financial flexibility and lower fixed financing costs, while a positive EBITDA margin indicates underlying operational cash generation. Together these traits support capacity to invest in ops, weather revenue variability, and pursue contract-based growth without overreliance on external financing.

Negative Factors

Declining revenue trend

A sustained decline in revenue reduces scale benefits and pressures gross margins as fixed costs are spread over smaller sales. Over time this can erode competitiveness, limit pricing power, and constrain reinvestment in engineering or capacity needed to win larger or higher-margin contracts.

Negative profitability and ROE

Persistently negative net margins and ROE mean the business is not generating returns for shareholders after operating costs and capital deployment. This undermines the ability to self-fund growth or pay down capital, and signals structural issues in pricing, cost base, or product mix that require strategic fixes.

Weak cash generation

A sharp fall in free cash flow and negative operating-cash-to-income ratio indicate cash conversion problems. Over months this reduces runway for capex, R&D or working capital, increases reliance on financing, and raises risk around funding contract fulfilment or absorbing demand shocks.

Sypris Business Overview & Revenue Model

Company Description

Sypris Solutions, Inc. provides truck components, oil and gas pipeline components, and aerospace and defense electronics primarily in North America and Mexico. It operates in two segments, Sypris Technologies and Sypris Electronics. The Sypris Technologies segment supplies forged, machined, welded, and heat-treated steel components for the commercial vehicle, off highway vehicle, recreational vehicle, automotive, industrial, light truck, and energy markets. This segment also offers drive train components, including axle shafts, transmission shafts, gear sets, steer axle knuckles, and other components for automotive, truck, and recreational vehicle manufacturers. In addition, it provides value added operations for drive train assemblies; and manufactures pressure closures and other fabricated products for oil and gas pipelines. The Sypris Electronics segment offers electronic manufacturing services, such as circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability, and design for specification work for aerospace and defense electronics markets. This segment also provides circuit card assembly services for electronic sensors and systems, including radar systems, tactical ground stations, navigation systems, weapons systems, and targeting and warning systems; and value-added solutions, such as low-volume prototype assembly and high-volume turnkey manufacturing. The company also offers engineering design and repair or inspection services. In addition, it sells its engineered product under the Tube Turns brand. The company was incorporated in 1997 and is headquartered in Louisville, Kentucky.

How the Company Makes Money

Sypris generates revenue through multiple streams, primarily from contracts in its two main business segments. In Sypris Technologies, the company earns money by manufacturing critical components for defense and aerospace applications, including parts for military vehicles and aircraft, which are often long-term contracts with government and commercial entities. In Sypris Electronics, revenue comes from producing electronic systems and assemblies for industries such as automotive, telecommunications, and industrial. The company also benefits from strategic partnerships with defense contractors and other industry leaders, enabling it to secure competitive contracts and expand its market reach. Additionally, Sypris may engage in research and development contracts that provide funding for innovative projects, contributing to its overall income.

Sypris Financial Statement Overview

Summary

Financials are pressured by declining TTM revenue (-5.37%), negative net margin and negative ROE, and sharply weaker free cash flow growth (-59.46%). Leverage has improved (debt-to-equity 0.29) and EBITDA margin remains positive, but profitability and cash generation remain key constraints.

Income Statement

Sypris has experienced a decline in revenue over the TTM period, with a negative revenue growth rate of -5.37%. The gross profit margin has decreased slightly compared to the previous year, indicating pressure on cost management. The net profit margin remains negative, reflecting ongoing profitability challenges. Despite these issues, the company has maintained a positive EBITDA margin, suggesting some operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.29 in the TTM, indicating a reduction in leverage. However, the return on equity remains negative, highlighting profitability challenges. The equity ratio suggests a moderate level of financial stability, but the negative ROE indicates that the company is not generating returns for shareholders.

Cash Flow

Sypris has faced significant challenges in cash flow generation, with a substantial decline in free cash flow growth rate of -59.46% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. However, the free cash flow to net income ratio is positive, suggesting that despite the challenges, the company is managing to convert some earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.06M	140.18M	136.22M	110.12M	97.43M	82.35M
Gross Profit	13.39M	19.89M	17.25M	14.85M	14.51M	12.05M
EBITDA	2.59M	5.31M	3.19M	2.89M	8.47M	1.86M
Net Income	-2.30M	-1.68M	-1.60M	-2.49M	2.92M	1.67M
Balance Sheet
Total Assets	112.47M	119.38M	130.47M	104.14M	79.50M	60.71M
Cash, Cash Equivalents and Short-Term Investments	8.44M	9.68M	7.88M	21.65M	11.62M	11.61M
Total Debt	13.05M	17.22M	15.82M	16.14M	18.08M	19.26M
Total Liabilities	92.51M	99.80M	108.00M	84.57M	60.22M	45.93M
Stockholders Equity	19.95M	19.58M	22.47M	19.57M	19.29M	14.78M
Cash Flow
Free Cash Flow	-3.09M	921.00K	-13.23M	10.75M	1.41M	2.11M
Operating Cash Flow	-2.30M	2.00M	-11.09M	13.79M	4.24M	3.65M
Investing Cash Flow	2.15M	-1.06M	-2.14M	-3.03M	-2.81M	427.00K
Financing Cash Flow	892.00K	820.00K	-614.00K	-1.38M	-1.28M	2.74M

Sypris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYPR, the sentiment is Positive. The current price of 2.47 is below the 20-day moving average (MA) of 3.09, below the 50-day MA of 2.56, and above the 200-day MA of 2.14, indicating a bullish trend. The MACD of 0.27 indicates Positive momentum. The RSI at 60.96 is Neutral, neither overbought nor oversold. The STOCH value of 26.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYPR.

Sypris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STRT	80 Outperform	$331.14M	14.49	10.85%	―	6.83%	46.38%
CAAS	73 Outperform	$133.66M	4.05	9.19%	―	16.72%	5.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MPAA	59 Neutral	$243.11M	111.88	0.94%	―	6.72%	―
SRI	56 Neutral	$184.35M	-6.58	-12.26%	―	-4.91%	-331.53%
SYPR	52 Neutral	$80.60M	-34.57	-12.14%	―	-13.01%	21.49%
CVGI	48 Neutral	$55.10M	-0.93	-31.07%	―	-23.26%	-259.03%

Sypris Corporate Events

Sypris Discloses New Direct Financial Obligation in Filing

The filing provides no substantive information about Sypris’s industry, products, operations, or the nature of the disclosed event, instead referring readers to another section of the same report. As a result, the announcement offers no insight into the company’s activities, strategy, or potential impact on stakeholders beyond indicating that additional details exist elsewhere in the regulatory filing.

The most recent analyst rating on (SYPR) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Sypris stock, see the SYPR Stock Forecast page.