SIFCO Industries, Inc. (SIF) | Investment Case

1. Company Snapshot

1.a. Company Description

SIFCO Industries, Inc.produces and sells forgings and machined components primarily for the aerospace and energy markets in North America and Europe.The company's processes and services include forging, heat-treating, and machining.

It offers original equipment manufacturer and aftermarket components for aircraft and industrial gas turbine engines; steam turbine blades; structural airframe components; aircraft landing gear components; aircraft wheels and brakes; rotating components for helicopters; and commercial/industrial products.The company also provides heat-treatment, surface-treatment, non-destructive testing, and select machining and sub-assembly of forged components.SIFCO Industries, Inc.

was founded in 1913 and is based in Cleveland, Ohio.

Show Full description

1.b. Last Insights on SIF

Recent earnings results have been a drag on SIFCO Industries, Inc. as the company reported a net loss from continuing operations of $2.4 million, or $(0.40) per diluted share, for the first quarter of fiscal 2025. Despite a 35% increase in net sales to $20.9 million, the company's bottom line was negatively impacted by rising costs and expenses. This marks the second consecutive quarter of net loss, following a net loss of $1.9 million in the fourth quarter of fiscal 2024.

1.c. Company Highlights

Last Price	6.58
Change Percentage	1.39%
Open	6.68
Previous Close	6.49
Market Cap ( Millions)	41
Volume	1558
Year High	7.88
Year Low	2.33
M A 50	6.8
M A 200	4.85

FCF Yield	3.57%
Dividend Yield	0.00%
ROE	-2.25%
Debt / Equity	69.19%
Net Debt / EBIDTA	10868.57%
Price To Book	1.11
Price Earnings Ratio	-53.74
Price To FCF	28.05
Price To sales	0.63
EV / EBITDA	302.36

2. Transcript Summary

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3. NewsRoom

SIFCO Stock Surges 77% in Six Months: What's Behind the Rally?

Dec -04

Source: zacks.com

SIFCO Industries (NYSE:SIF) versus Solstice Advanced Mat (NASDAQ:SOLS) Critical Contrast

Dec -04

Source: defenseworld.net

Financial Analysis: Solstice Advanced Mat (NASDAQ:SOLS) & SIFCO Industries (NYSE:SIF)

Dec -02

Source: defenseworld.net

Solstice Advanced Mat (NASDAQ:SOLS) vs. SIFCO Industries (NYSE:SIF) Head to Head Contrast

Dec -02

Source: defenseworld.net

Comparing SIFCO Industries (NYSE:SIF) and Solstice Advanced Mat (NASDAQ:SOLS)

Dec -02

Source: defenseworld.net

Comparing SIFCO Industries (NYSE:SIF) & Solstice Advanced Mat (NASDAQ:SOLS)

Dec -01

Source: defenseworld.net

Analyzing Solstice Advanced Mat (NASDAQ:SOLS) & SIFCO Industries (NYSE:SIF)

Nov -29

Source: defenseworld.net

SIFCO Industries (NYSE:SIF) versus Solstice Advanced Mat (NASDAQ:SOLS) Financial Analysis

Nov -27

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Aerospace Components for Fixed Wing Aircraft

Expected Growth: 4.5%

Growing demand for fuel-efficient aircraft, increasing production rates of next-generation aircraft, and rising aftermarket demand for replacement parts drive growth in the aerospace component market.

Energy Components for Power Generation Units

Expected Growth: 4.5%

Growing demand for efficient power generation, increasing adoption of renewable energy sources, and rising investments in energy infrastructure drive the growth of energy components for power generation units.

Aerospace Components for Rotorcraft

Expected Growth: 4.5%

Growing demand for helicopters and tiltrotor aircraft, driven by increasing military and commercial usage, will fuel SIFCO Industries' growth. The company's focus on innovative, high-performance components will also contribute to its expansion.

Commercial Product and Other

Expected Growth: 4.5%

Growing demand for aerospace and industrial products, increasing adoption of advanced materials, and rising investments in research and development are expected to drive the growth of SIFCO Industries' Commercial Product segment.

7. Detailed Products

Aerospace Components

SIFCO Industries, Inc. manufactures and supplies a range of aerospace components, including aircraft landing gear, engine components, and other structural components.

Turbine Engine Components

The company produces turbine engine components, including turbine blades, vanes, and other engine components.

Aircraft Fasteners

SIFCO Industries, Inc. manufactures and supplies a range of aircraft fasteners, including bolts, nuts, and screws.

Forged Products

The company produces forged products, including engine mounts, landing gear components, and other structural components.

3D Printed Products

SIFCO Industries, Inc. offers 3D printed products, including aircraft components, engine components, and other custom parts.

Engineering and Design Services

The company provides engineering and design services, including design, analysis, and testing of aircraft components and systems.

8. SIFCO Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for SIFCO Industries, Inc. is medium due to the availability of alternative products and services in the aerospace and defense industries.

Bargaining Power Of Customers

The bargaining power of customers for SIFCO Industries, Inc. is low due to the company's strong relationships with its customers and the lack of buyer concentration in the industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers for SIFCO Industries, Inc. is medium due to the presence of multiple suppliers in the industry and the company's moderate dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for SIFCO Industries, Inc. is low due to the high barriers to entry in the aerospace and defense industries, including the need for significant capital investment and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for SIFCO Industries, Inc. is high due to the competitive nature of the aerospace and defense industries, with multiple players competing for market share and contracts.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	52.17%
Debt Cost	3.95%
Equity Weight	47.83%
Equity Cost	9.55%
WACC	6.63%
Leverage	109.09%

11. Quality Control: SIFCO Industries, Inc. passed 1 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Intevac

A-Score: 4.7/10

Value: 7.6

Growth: 4.3

Quality: 3.1

Yield: 3.0

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

Triumph Group

A-Score: 4.6/10

Value: 4.2

Growth: 3.4

Quality: 4.4

Yield: 0.0

Momentum: 9.0

Volatility: 6.3

1-Year Total Return ->

Ducommun

A-Score: 4.4/10

Value: 2.9

Growth: 3.0

Quality: 4.9

Yield: 0.0

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

SIFCO

A-Score: 3.3/10

Value: 5.1

Growth: 1.1

Quality: 2.3

Yield: 0.0

Momentum: 9.0

Volatility: 2.0

1-Year Total Return ->

Astrotech

A-Score: 3.2/10

Value: 8.0

Growth: 3.3

Quality: 4.4

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

CPI Aerostructures

A-Score: 3.0/10

Value: 5.2

Growth: 5.2

Quality: 2.4

Yield: 0.0

Momentum: 2.0

Volatility: 3.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

30.40%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

6.63%

SIFCO Industries, Inc. - US8265461033

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SIF

1.c. Company Highlights

Lower Growth

Cheaper

Average Quality

Medium Volatility

Lower Quality

More Volatile

Strong Momentum

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Aerospace Components for Fixed Wing Aircraft

Expected Growth: 4.5%

Energy Components for Power Generation Units

Expected Growth: 4.5%

Aerospace Components for Rotorcraft

Expected Growth: 4.5%

Commercial Product and Other

Expected Growth: 4.5%

7. Detailed Products

Aerospace Components

Turbine Engine Components

Aircraft Fasteners

Forged Products

3D Printed Products

Engineering and Design Services

8. SIFCO Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: SIFCO Industries, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.58$

Current Price

6.58$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA