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SDI Group (SDI) AI Stock Analysis
SDI Group
(LSE:SDI)
Overall score reflects a balance of strengths and risks: supportive technical trend and a broadly upbeat earnings call (momentum, record revenue, guidance in line) are tempered by weaker financial quality signals—margin volatility, softer cash conversion/free cash flow, and higher leverage. Valuation is reasonable but not distinctly cheap, and lacks dividend support based on the provided data.
SDI Group (SDI) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 99.30M
- Dividend Yield
- ―
- Average Volume (3M)
- 155.51K
- Price to Earnings (P/E)
- 20.1
- Beta (1Y)
- 1.01
- Revenue Growth
- 12.56%
- EPS Growth
- 23.36%
- Country
- UK
- Employees
- 555
- Sector
- Technology
- Sector Strength
- 61
- Industry
- Hardware, Equipment & Parts
SDI Group Business Overview & Revenue Model
Company Description
SDI Group plc, founded in Cambridge, United Kingdom in 2007 and formerly known as Scientific Digital Imaging plc until November 2019, is a global designer and manufacturer of scientific and technological products, primarily leveraging digital imaging...
How the Company Makes Money
SDI primarily makes money through operating revenues generated by its portfolio of acquired subsidiaries and, at the holding-company level, through the long-term value creation of those businesses. Key revenue streams generally include (1) sales of s...
SDI Group Earnings Call Summary
The call conveyed a broadly positive performance: record group revenue (c. GBP 75m) and double-digit group growth, strong divisional results (notably Sensors +23% and Lab Equipment +12%+), improved adjusted EBITDA and operating profit, successful strategic acquisitions and continued cash generation. Challenges include increased net debt from acquisitions (GBP 24m), a decline in cash generation versus prior year due to working capital build, some margin pressure in Sensors from contract mix, and a small organic decline in the Product division. Management highlighted robust H2 organic momentum, integration progress for acquisitions, a renewed RCF and confidence in FY '27 guidance, which supports a positive outlook despite near-term debt and working-capital headwinds.
Q4-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that FY‑27 should deliver performance "in line with market expectations," citing strong momentum into the year after c.8% H2 organic growth (6.7% H2 on a constant‑currency basis; 7.6% H2 including FX) and full‑year organic growth of 5.3% (acquisitions added >7%), with revenue at c.£75m in FY‑26; they pointed to adjusted EBITDA of £14.1m, adjusted operating profit £11.6m, gross (materials) margin 66% (like‑for‑like up to 65.7%), an adjusted tax rate of 22.7% and cash generated from operations of £10.2m as the financial foundations for the outlook. Balance‑sheet metrics supporting the guidance include net debt of £24m at year‑end (net debt/EBITDA 1.7x against a 2.5x covenant), committed RCF of £25m to Nov‑2028 with a £15m accordion (£6m exercised) and RCF headroom of c.£4–5m, while working capital rose c.£3m (debtor days 44, inventories +£1m). Management said the acquisition pipeline (notably PRP £9.3m, Severn £4.8m) remains robust, Q1 trading has started strongly, and they expect ongoing cash generation to reduce leverage over the year while funding further bolt‑on M&A.
SDI Group Financial Statement Overview
Summary
Mixed fundamentals: profitability remains positive, but the latest period shows clear quality concerns—margin volatility (including a sharp gross-margin step-down noted in the financial statement analysis), weaker cash conversion and lower free cash flow year over year, and a material rise in leverage (debt up, debt-to-equity higher). Equity has continued to build and free cash flow is still positive, but near-term execution risk is elevated.
Income Statement
68PositiveBalance Sheet
57NeutralCash Flow
55Neutral| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2022 | Apr 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.49M | 74.49M | 66.18M | 65.85M | 49.66M | 24.50M |
| Gross Profit | 18.57M | 18.57M | 42.93M | 41.55M | 31.66M | 15.41M |
| EBITDA | 13.51M | 13.81M | 11.10M | 11.27M | 12.95M | 5.53M |
| Net Income | 4.91M | 4.91M | 3.98M | 4.23M | 7.54M | 2.59M |
Balance Sheet | ||||||
| Total Assets | 111.04M | 111.04M | 88.23M | 81.66M | 68.92M | 38.43M |
| Cash, Cash Equivalents and Short-Term Investments | 2.90M | 2.90M | 1.31M | 1.43M | 5.11M | 5.29M |
| Total Debt | 34.13M | 34.13M | 21.98M | 21.48M | 11.44M | 12.29M |
| Total Liabilities | 56.25M | 56.25M | 38.56M | 36.23M | 33.13M | 18.37M |
| Stockholders Equity | 54.82M | 54.82M | 49.64M | 45.42M | 35.79M | 20.06M |
Cash Flow | ||||||
| Free Cash Flow | 5.23M | 5.23M | 7.42M | 4.05M | 11.26M | 3.04M |
| Operating Cash Flow | 6.68M | 6.68M | 9.30M | 5.83M | 13.10M | 4.13M |
| Investing Cash Flow | -15.89M | -15.89M | -9.03M | -4.99M | -12.77M | -6.27M |
| Financing Cash Flow | 10.75M | 10.75M | -205.00K | -2.15M | 982.00K | 4.92M |
SDI Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDI, the sentiment is Positive. The current price of 94.50 is below the 20-day moving average (MA) of 95.10, above the 50-day MA of 92.30, and above the 200-day MA of 84.49, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:SDI.
SDI Group Peers Comparison
Overall Rating
- GB:SDI65Neutral
GB:XAR58.7Neutral
GB:SOLI56Neutral
GB:TTG56Neutral
GB:KMK52Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:SDI | 65Neutral | GBP 99.30M | 20.11 | 9.24% | ― | 12.56% | 23.36% |
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| GB:XAR | 59Neutral | GBP 116.70M | -56.02 | -3.80% | ― | 4.27% | 81.19% |
| GB:SOLI | 56Neutral | GBP 96.83M | 23.61 | 6.51% | 1.62% | 23.25% | 700.00% |
| GB:TTG | 56Neutral | GBP 347.99M | -9.73 | -24.38% | ― | -2.68% | 47.33% |
| GB:KMK | 52Neutral | GBP 35.71M | 49.55 | 1.32% | ― | 2.30% | -81.36% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:SDI | Sdi Group Plc | 94.50 | 11.00 | 13.17% | |
| GB:KMK | Kromek Group plc | 5.45 | -1.30 | -19.26% | |
| GB:SOLI | Solid State | 170.00 | 29.78 | 21.24% | |
| GB:TTG | TT Electronics | 195.00 | 43.60 | 28.80% | |
| GB:XAR | Xaar plc | 149.00 | 21.50 | 16.86% |
SDI Group Corporate Events
SDI Group Delivers Double-Digit Growth as Buy-and-Build Strategy Scales
PositiveSDI Group reported a strong set of final results for the year to 30 April 2026, with revenues rising 12.6% to £74.5m on the back of both organic expansion and contributions from recent acquisitions. Adjusted operating profit climbed 16.1% to ...
SDI Group Sets Date for FY 2026 Results and Investor Webcast
PositiveSDI Group plc, a UK-listed buy-and-build specialist in laboratory equipment, industrial and scientific sensors, and niche industrial products, operates a portfolio of small and medium-sized companies serving high-growth sectors such as aerospace and...
SDI Group strengthens board with M&A veteran Mark Fryer as audit chair
PositiveSDI Group, the specialist buy-and-build consolidator in lab equipment and industrial and scientific sensing technologies, has appointed experienced finance executive Mark Fryer as an independent non-executive director. He will join the board in mid-J...
SDI Group Keeps Earnings on Track as Acquisitions and Order Book Bolster Outlook
PositiveSDI Group plc, the specialist industrial and scientific instrumentation consolidator, reported that earnings for the year to 30 April 2026 are expected to be in line with market forecasts, as improved operating margins offset revenue at the lower end...
SDI Group Launches Board Succession as Long-Serving Non-Executive Director Prepares to Step Down
PositiveSDI Group plc, a buy-and-build specialist in lab equipment and industrial and scientific sensing technologies, has grown from four companies with £10.7 million in revenue and £1.3 million in adjusted operating profit at the start of Non-Exe...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 03, 2026