SDI Group (SDI) AI Stock Analysis

• Market Cap: £84.70M
• Dividend Yield: N/A
• Average Volume (3M): 331.24K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 0.60
• Revenue Growth: 0.50%
• EPS Growth: -6.16%
• Country: UK
• Employees: 500
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.04
• Shares Outstanding: 104,573,130
• 10 Day Avg. Volume: 197,495
• 30 Day Avg. Volume: 331,242
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 93.00p ▲(16.25% Upside)

SDI Group's overall stock score is driven by strong financial performance and a positive earnings call, highlighting strategic acquisitions and operational efficiencies. However, technical analysis indicates bearish momentum, and valuation metrics suggest moderate attractiveness. The absence of a dividend yield and challenges in organic growth slightly temper the overall outlook.

SDI Group Business Overview & Revenue Model

Company Description

SDI Group plc, through its subsidiaries, designs and manufactures scientific and technology products based on digital imaging in the United Kingdom, rest of Europe, the United States, Asia, and internationally. It operates in Digital Imaging and Sensors & Control segments. The company offers sensitive cameras for life science and industrial applications under the Atik Camera brand name; cameras for art conservation under the Opus Instruments brand name; and cameras that have applications in astronomy, life sciences, and flat-panel inspection under the Quantum Scientific Imaging brand name. It also designs and manufactures precision re-circulating chillers, coolers, and heat exchangers to control the thermal environment within the scientific instrument support market; and supplies chemical dosing and control systems for manufacturing industries. In addition, it offers off-the-shelf and custom-made electrochemical sensors for water-based applications under the Sentek name; systems and software for automated gel-based DNA and protein fluorescence/chemiluminescence imaging under the G:BOX and NuGenius brands; automated and manual systems for microbiological testing in food, water, pharmaceutical, and clinical applications; and ProReveal, a fluorescence-based patented protein detection test to check for residual protein on surgical instruments. Further, it engages in the design, manufacture, and calibration of pressure, vacuum, and gas flow measurement instruments; and flowmeters, flow alarms, flow indicators, flow-switches, calibration cylinders, and sight glasses for the measurement of liquids and gases; and precision micropattern products, as well as water purification products and vacuum ovens under the Cyclon Water Still and Gallenkamp vacuum ovens brands. The company was formerly known as Scientific Digital Imaging plc and changed its name to SDI Group plc in November 2019. SDI Group plc was incorporated in 2007 and is based in Cambridge, the United Kingdom.

How the Company Makes Money

SDI generates revenue primarily through the sale of software licenses and subscriptions for its cloud-based applications and ERP systems. Additionally, the company earns money from consulting services, where it assists clients in implementing and optimizing its software solutions. Key revenue streams include recurring subscription fees, one-time license fees, and ongoing support and maintenance contracts. Strategic partnerships with leading technology firms also enhance SDI's market reach and generate co-branded offerings, contributing significantly to its overall earnings.

SDI Group Financial Statement Overview

Summary

SDI Group demonstrates solid financial health with strong revenue growth and efficient cash flow management. While profitability margins have slightly declined, the company maintains a stable balance sheet with moderate leverage. Overall, SDI Group is well-positioned in the Hardware, Equipment & Parts industry, though it should monitor profitability closely to sustain investor confidence.

Income Statement

SDI Group has shown consistent revenue growth over the years, with a slight dip in the most recent year. The gross profit margin remains strong at approximately 65%, indicating efficient production and pricing strategies. However, the net profit margin has decreased over the years, suggesting rising costs or increased competition. The EBIT and EBITDA margins are stable, reflecting solid operational efficiency.

Balance Sheet

The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. The return on equity has decreased, which may concern investors seeking high returns. The equity ratio shows a stable financial structure, with equity making up a significant portion of total assets.

Cash Flow

SDI Group's cash flow metrics are strong, with a significant increase in free cash flow growth in the latest year. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio is robust, suggesting good cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	66.18M	66.18M	65.85M	67.58M	49.66M	35.08M
Gross Profit	28.35M	42.93M	41.55M	42.77M	31.66M	22.87M
EBITDA	11.10M	11.10M	11.27M	11.07M	12.95M	8.49M
Net Income	3.98M	3.98M	4.23M	3.87M	7.54M	4.71M
Balance Sheet
Total Assets	88.23M	88.23M	81.66M	84.99M	68.92M	48.70M
Cash, Cash Equivalents and Short-Term Investments	1.31M	1.31M	1.43M	2.71M	5.11M	3.84M
Total Debt	21.98M	21.98M	21.48M	22.74M	11.44M	5.64M
Total Liabilities	38.56M	38.56M	36.23M	43.70M	33.13M	21.93M
Stockholders Equity	49.64M	49.64M	45.42M	41.26M	35.79M	26.77M
Cash Flow
Free Cash Flow	8.06M	7.42M	4.05M	6.33M	11.26M	9.22M
Operating Cash Flow	9.30M	9.30M	5.83M	7.74M	13.10M	10.26M
Investing Cash Flow	-9.03M	-9.03M	-4.99M	-22.38M	-12.77M	-5.02M
Financing Cash Flow	-205.00K	-205.00K	-2.15M	12.10M	982.00K	-6.58M

SDI Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 80.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:SDI, the sentiment is Negative. The current price of 80 is below the 20-day moving average (MA) of 84.04, below the 50-day MA of 90.58, and above the 200-day MA of 74.72, indicating a neutral trend. The MACD of -2.55 indicates Negative momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 50.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:SDI.

SDI Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMK	75 Outperform	£44.55M	11.53	7.39%	―	36.61%	―
SDI	67 Neutral	£84.70M	21.26	8.38%	―	0.50%	-6.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GHH	56 Neutral	£155.04M	28.39	4.79%	2.32%	1.74%	359.50%
SOLI	55 Neutral	£79.58M	155.56	0.81%	1.79%	-23.42%	-94.25%
XAR	51 Neutral	£99.67M	-8.91	-16.64%	―	-7.35%	-222.10%
KETL	46 Neutral	£76.57M	―	―	―	-1.95%	-110.12%

SDI Group Corporate Events

SDI Group Updates on Director’s Disclosure Amid Liquidation of Ocean Harvest Technology

SDI Group plc announced an update regarding the disclosure of its Non-Executive Director, David Tilston, following the creditors’ voluntary liquidation of Ocean Harvest Technology Group plc, where he was a director until May 2025. This development may impact SDI Group’s governance and oversight, reflecting the challenges faced by its directors in managing external business interests.

The most recent analyst rating on (GB:SDI) stock is a Hold with a £93.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

SDI Group Announces Share Option Awards and New Share Issuance

SDI Group plc announced the grant of share option awards to its Executive Directors under the Long Term Incentive Plan 2025. These awards include deferred bonus awards and performance-based LTIP awards, both with an exercise price of 1 pence per share. The performance conditions are tied to the company’s growth in EPS and total shareholder return. Additionally, SDI Group has issued 21,800 new ordinary shares following an employee’s exercise of approved options, with trading on AIM expected to commence on 26 September 2025. This move is part of SDI’s strategy to incentivize its leadership and support its growth objectives.

The most recent analyst rating on (GB:SDI) stock is a Buy with a £105.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

SDI Group plc Successfully Passes All AGM Resolutions

SDI Group plc announced that all resolutions at its recent annual general meeting were passed, reflecting shareholder support for the company’s strategic direction. This outcome reinforces SDI Group’s commitment to expanding its portfolio through organic growth and strategic acquisitions, which is expected to enhance its positioning in the industrial and scientific sectors.

The most recent analyst rating on (GB:SDI) stock is a Buy with a £105.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

SDI Group Reports Positive Momentum and Growth Strategy

SDI Group plc has reported continued positive momentum across its portfolio, with an improvement in organic growth compared to the previous year. The company expects to meet market expectations for the financial year 2026, with profits and revenue anticipated to be weighted towards the second half of the year. SDI Group employs a dual strategy of optimizing existing businesses for organic growth and acquiring complementary businesses to leverage synergies and expand its international reach.

The most recent analyst rating on (GB:SDI) stock is a Buy with a £105.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

SDI Group Reports Positive Growth Momentum and Strategic Progress

SDI Group plc has reported positive momentum across its portfolio, with an improvement in organic growth compared to the previous year. The company expects to meet market expectations for the full year, with profits and revenues anticipated to be higher in the second half of the financial year due to the current order book and pipeline. SDI continues to pursue a dual strategy of optimizing existing businesses for organic growth and acquiring complementary businesses to enhance synergies and leverage the benefits of the wider group.

The most recent analyst rating on (GB:SDI) stock is a Buy with a £105.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

SDI Group Announces Annual Report and AGM Details

SDI Group plc has announced the posting of its Annual Report and Accounts for the fiscal year ending April 30, 2025, along with the Notice of its Annual General Meeting (AGM) to shareholders. The AGM is scheduled for September 24, 2025, in London. This announcement marks a significant step in maintaining transparency and engagement with stakeholders, reinforcing SDI’s commitment to its growth strategy through both organic development and strategic acquisitions.

The most recent analyst rating on (GB:SDI) stock is a Buy with a £83.00 price target. To see the full list of analyst forecasts on SDI Group stock, see the GB:SDI Stock Forecast page.

SDI Group Plc’s Earnings Call Highlights Growth and Optimism

The recent earnings call of SDI Group Plc painted a positive picture, underscoring significant achievements such as revenue growth, strategic acquisitions, and robust cash flow. Despite challenges like a minor organic revenue decline and a downturn in the Laboratory Equipment segment, the outlook remains optimistic, supported by a strong order book and ongoing strategic initiatives.

SDI Group Reports Resilient FY25 Performance Amid Economic Challenges

SDI Group plc reported a resilient financial performance for the year ended 30 April 2025, despite a challenging global economic environment. The company continued its strategy of organic and inorganic growth, making significant investments in new product development and operational capabilities. Notable acquisitions included InspecVision Limited and Collins Walker Limited, contributing to a slight revenue increase of 0.5% to £66.2m and improved gross margins. The Group’s strong cash generation supported further acquisitions and investments, positioning SDI well for future growth. With a strong order book and strategic acquisitions like Severn Thermal Solutions, SDI is poised to meet market expectations for FY26, focusing on sustainable, long-term value creation for stakeholders.