Sypris Solutions, Inc. (SYPR) | Investment Case

1. Company Snapshot

1.a. 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.

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1.b. Last Insights on SYPR

Sypris Solutions, Inc. faced challenges in the recent quarter, primarily due to the impact of tariffs, which reduced demand from certain transportation-related customers. The company's revenue declined year-over-year, leading to a net loss per share. Although the company secured significant defense contracts, including a classified missile avionics program and subsea cable systems, these positives were overshadowed by the near-term effects of tariffs. The conversion of shipments from its Mexico facility also affected revenue. These factors contributed to the company's negative performance.

1.c. Company Highlights

Last Price	2.08
Change Percentage	0.82%
Open	2.08
Previous Close	2.08
Market Cap ( Millions)	48
Volume	14558
Year High	3.72
Year Low	1.42
M A 50	2.13
M A 200	1.94

FCF Yield	-15.91%
Dividend Yield	0.00%
ROE	-12.86%
Debt / Equity	28.62%
Net Debt / EBIDTA	-44.12%
Price To Book	2.48
Price Earnings Ratio	-19.11
Price To FCF	-6.28
Price To sales	0.37
EV / EBITDA	20.57

2. Transcript Summary

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3. NewsRoom

Sypris Solutions (NASDAQ:SYPR) Stock Crosses Above Two Hundred Day Moving Average – What’s Next?

Dec -03

Source: defenseworld.net

SYPR's Q3 Earnings Flat Y/Y, Revenues Down Y/Y on Vehicle Market Slowdown

Nov -18

Source: zacks.com

Sypris Reports Third Quarter Results

Nov -12

Source: businesswire.com

Sypris Wins Contract for Classified Missile Avionics Program

Sep -04

Source: businesswire.com

Sypris Incurs Loss in Q2 Due to Tariffs, Secures Major Defense Contracts

Aug -18

Source: zacks.com

Sypris Reports Second Quarter Results

Aug -12

Source: businesswire.com

Sypris Wins Awards to Support Subsea Cable Systems

Jul -29

Source: businesswire.com

Sypris Awarded Long-Term Contract With Global Truck OEM

Jun -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

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

6. Segments

Sypris Technologies

Expected Growth: 4.5%

Growing demand for lightweight materials in aerospace and automotive industries, increasing defense spending, and rising adoption of electric vehicles drive growth for Sypris Technologies' manufacturing and engineering services.

Sypris Electronics

Expected Growth: 4.5%

Growing demand for electronic components in aerospace, defense, and industrial markets, driven by increasing adoption of advanced technologies, such as IoT and AI, and rising need for efficient manufacturing processes.

7. Detailed Products

Aerospace and Defense Electronics

Sypris Solutions provides a range of electronic assemblies and subsystems for the aerospace and defense industries, including communication systems, navigation systems, and electronic warfare systems.

Electronic Manufacturing Services

Sypris Solutions offers electronic manufacturing services, including printed circuit board assembly, cable assembly, and box build services, for a variety of industries.

Cyber Security Solutions

Sypris Solutions provides cyber security solutions, including encryption, secure communication systems, and intrusion detection systems, to protect against cyber threats.

Engineering and Design Services

Sypris Solutions offers engineering and design services, including product design, prototyping, and testing, for a variety of industries.

Metal Forming and Tubing

Sypris Solutions provides metal forming and tubing solutions, including tube bending, tube cutting, and tube forming, for the aerospace, automotive, and industrial markets.

8. Sypris Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Sypris Solutions, Inc. is medium due to the availability of alternative products and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for Sypris Solutions, Inc. is high due to the concentration of customers in the automotive and aerospace industries.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Sypris Solutions, Inc. is low due to the company's ability to negotiate prices and terms with its suppliers.

Threat Of New Entrants

The threat of new entrants for Sypris Solutions, Inc. is low due to the high barriers to entry in the automotive and aerospace industries.

Intensity Of Rivalry

The intensity of rivalry for Sypris Solutions, Inc. is high due to the competitive nature of the automotive and aerospace industries.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	30.79%
Debt Cost	3.95%
Equity Weight	69.21%
Equity Cost	8.68%
WACC	7.22%
Leverage	44.50%

11. Quality Control: Sypris Solutions, 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

Motorcar Parts of America

A-Score: 4.5/10

Value: 6.5

Growth: 4.8

Quality: 3.7

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

Sypris Solutions

A-Score: 4.4/10

Value: 7.1

Growth: 3.8

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 1.7

1-Year Total Return ->

Cooper-Standard

A-Score: 4.0/10

Value: 6.7

Growth: 3.2

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 1.3

1-Year Total Return ->

Gentherm

A-Score: 3.9/10

Value: 5.2

Growth: 4.9

Quality: 5.2

Yield: 0.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

Fox Factory

A-Score: 3.7/10

Value: 8.4

Growth: 5.2

Quality: 3.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

Stoneridge

A-Score: 3.2/10

Value: 7.6

Growth: 4.3

Quality: 2.6

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

36.26%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.22%

Sypris Solutions, Inc. - US8716551069

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SYPR

1.c. Company Highlights

Lower Growth

Lower Quality

Stable Momentum

Revenues Beats

Average Quality

Average Yield

Fairly Valued

Weak Momentum

Medium Volatility

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

Sypris Technologies

Expected Growth: 4.5%

Sypris Electronics

Expected Growth: 4.5%

7. Detailed Products

Aerospace and Defense Electronics

Electronic Manufacturing Services

Cyber Security Solutions

Engineering and Design Services

Metal Forming and Tubing

8. Sypris Solutions, 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: Sypris Solutions, 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

2.08$

Current Price

2.08$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA