SIFCO Industries, Inc.
SIFCO Industries, Inc. Fundamental Analysis
SIFCO Industries, Inc. (SIF) shows moderate financial fundamentals with a PE ratio of 14.87, profit margin of 7.78%, and ROE of 19.42%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 6.51%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SIF's fundamental strength across five key dimensions:
Efficiency Score
WeakSIF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSIF trades at attractive valuation levels.
Growth Score
ExcellentSIF delivers strong and consistent growth momentum.
Financial Health Score
ExcellentSIF maintains a strong and stable balance sheet.
Profitability Score
ModerateSIF maintains healthy but balanced margins.
Key Financial Metrics
Is SIF Expensive or Cheap?
P/E Ratio
SIF trades at 14.87 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SIF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values SIFCO Industries, Inc. at 2.66 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 7.01 times EBITDA. This is generally considered low.
How Well Does SIF Make Money?
Net Profit Margin
For every $100 in sales, SIFCO Industries, Inc. keeps $7.78 as profit after all expenses.
Operating Margin
Core operations generate 8.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.42 in profit for every $100 of shareholder equity.
ROA
SIFCO Industries, Inc. generates $9.49 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
SIFCO Industries, Inc. generates limited operating cash flow of $6.26M, signaling weaker underlying cash strength.
Free Cash Flow
SIFCO Industries, Inc. produces free cash flow of $5.81M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.93 in free cash annually.
FCF Yield
SIF converts 5.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.006
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.66
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.18
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.43
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How SIF Stacks Against Its Sector Peers
| Metric | SIF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.87 | 26.09 | Better (Cheaper) |
| ROE | 19.42% | 1271.00% | Weak |
| Net Margin | 7.78% | -30278.00% (disorted) | Weak |
| Debt/Equity | 0.43 | 0.73 | Strong (Low Leverage) |
| Current Ratio | 1.79 | 8.97 | Neutral |
| ROA | 9.49% | -1493581.00% (disorted) | Weak |
SIF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews SIFCO Industries, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-30.18%
Industry Style: Cyclical, Value, Infrastructure
DecliningEPS CAGR
-107.30%
Industry Style: Cyclical, Value, Infrastructure
DecliningFCF CAGR
-114.78%
Industry Style: Cyclical, Value, Infrastructure
Declining