Servotronics (SVT) AI Stock Analysis

• Market Cap: $27.12M
• Dividend Yield: N/A
• Average Volume (3M): 1.31K
• Price to Earnings (P/E): 191.8
• Beta (1Y): 0.44
• Revenue Growth: -1.00%
• EPS Growth: 79.07%
• Country: US
• Employees: 254
• Sector: Industrials
• Sector Strength: 70
• Industry: Electrical Equipment & Parts
• EPS (TTM): -0.65
• Shares Outstanding: 2,553,539
• 10 Day Avg. Volume: 1,152
• 30 Day Avg. Volume: 1,306
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.63
• Price to Cash Flow (P/CF): 5.70
• P/FCF Ratio: 5.70
• 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: $39.48
• Price Target Upside: 271.75% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Servotronics' overall stock score reflects significant challenges in profitability and revenue decline, balanced by a strong balance sheet with low debt levels. While technical indicators show moderate upward momentum, the high P/E ratio suggests overvaluation, posing a risk. The absence of a dividend yield further affects the stock's attractiveness.

Servotronics Business Overview & Revenue Model

Company Description

Servotronics, Inc. (SVT) is a company primarily engaged in the design, manufacture, and marketing of advanced technology products. The company operates in two main sectors: Advanced Technology Group and Consumer Products Group. The Advanced Technology Group focuses on producing high-precision control components, such as servomechanisms, which are used in the aerospace and defense industries. Meanwhile, the Consumer Products Group offers a range of cutlery and other edged products for both commercial and consumer markets.

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 shows modest recovery in revenue growth and maintains low leverage, yet profitability and cash flow generation are concerns. The company must improve margins and cash flow efficiency for stable growth.

Income Statement

Servotronics shows modest recovery in its income statement with a revenue growth of 8.83% TTM (Trailing-Twelve-Months) compared to the previous year. However, profitability remains a challenge as evidenced by low gross profit margins of 20.71% TTM and net profit margins of 0.28% TTM. The company's EBIT and EBITDA margins demonstrate improvement, but historical losses indicate ongoing struggles. Continuous improvement in revenue and margins is necessary to enhance financial health.

Balance Sheet

The balance sheet reflects a stable financial structure with a debt-to-equity ratio of 0.13 TTM, indicating low leverage. The equity ratio of 64.77% TTM suggests a solid equity base. However, the return on equity is low at 0.55% TTM, highlighting underperformance in generating returns on shareholder investments. Maintaining low debt levels and improving returns is crucial for financial resilience.

Cash Flow

Servotronics' cash flow statement reveals challenges in cash generation, with negative free cash flow growth TTM and an operating cash flow to net income ratio of 0.25 TTM. The free cash flow to net income ratio is negative, indicating cash flow issues affecting liquidity. The company needs to focus on enhancing operating cash flows to sustain business operations and invest in growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
47.49M	43.63M	43.82M	40.56M	49.84M	55.27M
	Gross Profit
9.83M	7.80M	5.94M	5.99M	8.24M	12.13M
	EBIT
613.00K	-2.11M	-2.48M	2.19M	242.00K	2.81M
	EBITDA
11.61M	-1.03M	-1.51M	5.57M	1.68M	4.51M
	Net Income Common Stockholders
134.00K	-10.79M	-2.12M	4.05M	100.00K	2.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.15M	95.00K	4.00M	9.55M	5.93M	2.03M
	Total Assets
42.65M	36.59M	45.29M	50.09M	50.33M	49.47M
	Total Debt
2.95M	2.10M	501.00K	5.03M	9.93M	6.02M
	Net Debt
800.00K	2.01M	-3.50M	-4.52M	3.99M	3.99M
	Total Liabilities
11.11M	12.09M	10.18M	14.73M	16.59M	15.94M
	Stockholders Equity
31.54M	24.49M	35.11M	35.37M	33.74M	33.53M
Cash Flow		Free Cash Flow
-982.00K	-7.33M	-1.05M	4.32M	97.00K	-2.89M
	Operating Cash Flow
34.00K	-6.64M	264.00K	4.59M	826.00K	-620.00K
	Investing Cash Flow
-958.00K	1.47M	-1.28M	3.00K	-729.00K	-2.27M
	Financing Cash Flow
984.00K	1.60M	-4.53M	-983.00K	3.81M	2.32M

Servotronics Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.62
• 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 SVT, the sentiment is Negative. The current price of 10.62 is below the 20-day moving average (MA) of 10.75, below the 50-day MA of 10.74, and below the 200-day MA of 11.36, indicating a bearish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 47.80 is Neutral, neither overbought nor oversold. The STOCH value of 58.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SVT.

Servotronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDY	78 Outperform	$23.78B	29.74	8.73%	―	0.53%	-7.18%
HEI	78 Outperform	$32.63B	64.69	16.18%	0.08%	23.06%	32.43%
CW	74 Outperform	$12.66B	31.86	16.95%	0.25%	9.69%	14.65%
MOG.A	70 Neutral	$5.73B	27.61	12.07%	0.62%	7.22%	22.61%
TDG	68 Neutral	$75.50B	48.70	-29.16%	―	16.89%	20.33%
Sector *	62 Neutral	$8.36B	14.28	2.39%	3.06%	3.99%	-14.45%
SVT	61 Neutral	$27.12M	191.79	-6.30%	―	-1.00%	79.07%