Sigmatron International (SGMA) AI Stock Analysis

• Market Cap: $6.73M
• Dividend Yield: N/A
• Average Volume (3M): 49.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.27
• Revenue Growth: -22.27%
• EPS Growth: -1171.98%
• Country: US
• Employees: 2,750
• Sector: Technology
• Sector Strength: 40
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.01
• Shares Outstanding: 6,119,288
• 10 Day Avg. Volume: 28,308
• 30 Day Avg. Volume: 49,909
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.03
• Price to Cash Flow (P/CF): 2.70
• P/FCF Ratio: 0.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sigmatron International's stock score reflects significant financial challenges, including declining revenues, negative profit margins, and high leverage, which are partially offset by strong cash flow generation. Technical analysis shows a bearish trend with potential downward momentum. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield. Overall, the stock is under pressure due to operational and financial headwinds, requiring improved efficiency and leverage management.

Sigmatron International Business Overview & Revenue Model

Company Description

SigmaTron International, Inc. (SGMA) is a provider of electronic manufacturing services (EMS) primarily serving the industrial, medical, consumer, and automotive sectors. The company offers a comprehensive range of services, including design, manufacturing, and testing of electronic products and components. SigmaTron's core products and services include printed circuit board assemblies, box build assemblies, and value-added services such as engineering support and supply chain management.

How the Company Makes Money

SigmaTron International generates revenue through its electronic manufacturing services, which include the design, prototyping, manufacturing, and testing of electronic components and products. The company earns money by providing these services to a diverse range of industries, such as industrial, medical, consumer, and automotive markets. Key revenue streams include contract manufacturing agreements with clients, where SigmaTron benefits from long-term partnerships and recurring orders. The company also adds value through its supply chain management services, helping clients optimize their production processes and reduce costs. Significant factors contributing to its earnings include its ability to offer end-to-end solutions and maintain strong relationships with its clients.

Sigmatron International Financial Statement Overview

Summary

Sigmatron International faces challenges with declining revenues and profitability, reflected in negative profit margins and high leverage. However, its ability to generate strong operating cash flow is a positive aspect, providing a cushion against financial pressures. The company needs to focus on improving operational efficiency and managing leverage to enhance its financial health.

Income Statement

The company experienced a revenue decline in the TTM period compared to the previous year, with a total revenue of $311.7 million down from $373.9 million. Gross profit margin stands at 7.42%, indicating a challenge in maintaining profitability. The net profit margin is notably negative at -3.93%, showing net losses. EBIT and EBITDA margins are also low at -0.80% and 0.59% respectively, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 3.67, indicating significant leverage, which could pose a financial risk. The ROE is negative, consistent with net losses. However, the equity ratio is adequate at 93.31%, suggesting that a substantial portion of assets is financed by equity.

Cash Flow

Free cash flow has shown a positive growth rate, with a TTM free cash flow of $23.6 million. Operating cash flow is robust compared to net income, with an operating cash flow to net income ratio of -2.01, highlighting strong cash generation capabilities despite net losses. The free cash flow to net income ratio is also favorable.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
311.71M	373.88M	414.44M	378.87M	277.72M	281.04M
	Gross Profit
23.12M	33.53M	51.45M	44.43M	24.95M	25.10M
	EBIT
-2.50M	7.13M	-9.81M	15.68M	-4.28M	-4.59M
	EBITDA
12.08M	13.87M	24.96M	33.19M	3.39M	10.33M
	Net Income Common Stockholders
-12.25M	-2.49M	14.19M	9.86M	1.54M	443.10K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.01M	2.42M	819.13K	3.05M	3.51M	6.78M
	Total Assets
108.59M	223.79M	268.63M	293.63M	194.17M	176.08M
	Total Debt
33.31M	82.69M	105.05M	82.72M	58.60M	52.63M
	Net Debt
30.29M	80.27M	104.23M	79.66M	55.09M	45.85M
	Total Liabilities
59.48M	157.72M	200.54M	205.30M	133.62M	117.20M
	Stockholders Equity
49.11M	66.07M	68.09M	88.33M	60.55M	58.88M
Cash Flow		Free Cash Flow
23.58M	25.96M	-59.63M	-24.98M	3.35M	10.81M
	Operating Cash Flow
24.64M	27.76M	-55.29M	-20.23M	8.10M	15.45M
	Investing Cash Flow
9.15M	117.11K	-5.31M	-9.70M	-10.23M	-5.41M
	Financing Cash Flow
-35.40M	-26.28M	24.16M	29.48M	-1.14M	-4.27M

Sigmatron International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMA, the sentiment is Negative. The current price of 1.1 is below the 20-day moving average (MA) of 1.22, below the 50-day MA of 1.39, and below the 200-day MA of 2.69, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 43.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SGMA.

Sigmatron International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FLEX	78 Outperform	$10.22B	10.80	18.45%	―	-12.94%	47.70%
SANM	74 Outperform	$3.66B	16.45	10.55%	―	-8.92%	-12.11%
PLXS	73 Outperform	$3.03B	26.02	9.27%	―	-3.53%	-3.90%
JBL	63 Neutral	$12.80B	27.96	24.10%	0.27%	-14.45%	-64.32%
TTMI	61 Neutral	$1.81B	32.83	3.66%	―	9.41%	―
Sector *	57 Neutral	$18.54B	9.84	-14.38%	2.71%	5.07%	-23.65%
SGMA	52 Neutral	$6.73M	―	-19.30%	―	-22.27%	-1171.98%

Sigmatron International Corporate Events

SigmaTron International Appoints New CFO Frank Cesario

SigmaTron International, Inc., a NASDAQ-listed electronic manufacturing services company, announced a leadership change with the resignation of CFO James J. Reiman and the appointment of Frank Cesario as the new CFO. Cesario, who brings extensive experience from his previous roles, will receive a base salary of $300,000 and stock options as part of his compensation package, reflecting the company’s strategic focus on strengthening its financial leadership.