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SCI Engineered Materials (SCIA) AI Stock Analysis

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SCIA

SCI Engineered Materials

(Other OTC:SCIA)

Select Model
Rating:71Outperform
Price Target:$10.50â–²(7.91% Upside)
Action:reiterated
Date:10/30/26

SCIA scores well primarily due to strong financial quality—especially a very conservative balance sheet (low leverage) and strong ROE—alongside solid TTM growth and profitability. The score is tempered by softer cash-flow trends (declining TTM FCF and less robust cash conversion) and only moderate near-term technical momentum, while valuation appears reasonable at a mid-teens P/E.

Positive Factors
Conservative Balance SheetMinimal leverage gives SCI Engineered Materials substantial financial flexibility to withstand business volatility, fund operations, and pursue opportunities without heavy interest burdens. The strong balance sheet also supports resilience if demand softens, while TTM ROE of about 18.5% indicates effective use of shareholder capital.
Negative Factors
Declining Free Cash FlowAlthough cash generation remains positive, the recent free-cash-flow decline and partial conversion of earnings into cash indicate less consistent cash economics. Persistent volatility could constrain internally funded investment or make reported profitability less dependable for capital allocation over the next several quarters.

SCI Engineered Materials (SCIA) vs. SPDR S&P 500 ETF (SPY)

-25%0%25%50%75%100%125%150%SCIA+112.91%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
$43.62M
Dividend Yield
―
Average Volume (3M)
7,834
Price to Earnings (P/E)
14.5
Beta (1Y)
0.35
Revenue Growth
88.59%
EPS Growth
93.68%
Country
US
Employees
25
Sector
Technology
Sector Strength
61
Industry
Semiconductors

SCI Engineered Materials Business Overview & Revenue Model

Company Description

SCI Engineered Materials, Inc. specializes in creating and providing essential components for thin-film applications utilizing physical vapor deposition (PVD) technology. Their product portfolio includes ceramic targets, metal sputtering targets, and...

How the Company Makes Money

SCIA makes money primarily by selling engineered ceramic and specialty inorganic materials to customers, generating revenue from the manufacture and delivery of these materials (typically as powders and/or ceramic products) for use in customers’ indu...

SCI Engineered Materials Financial Statement Overview

Summary

Financials are solid overall: TTM revenue growth is healthy (+9.2%) with good profitability (net margin ~9%, EBIT margin ~11.6%). Balance-sheet strength is a key positive (very low leverage with debt-to-equity ~0.06 and strong ROE ~18.5%). The main offsets are margin compression versus 2021 peaks and weaker cash-flow quality recently (FCF down -14.5% TTM and ~62% of net income), pointing to some cash conversion volatility.

Income Statement

74Positive

Balance Sheet

86Very Positive

Cash Flow

63Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue32.91M19.61M22.87M27.98M23.47M13.45M
Gross Profit7.47M5.03M5.07M5.25M4.79M3.53M
EBITDA4.10M2.28M2.52M2.96M3.02M2.29M
Net Income3.06M1.75M1.86M2.19M1.96M1.68M
Balance Sheet
Total Assets24.51M17.27M15.53M17.49M11.83M9.61M
Cash, Cash Equivalents and Short-Term Investments11.84M8.24M7.26M6.67M4.94M4.14M
Total Debt905.52K1.06M1.24M652.42K352.14K546.13K
Total Liabilities8.02M3.09M2.65M6.51M3.08M2.87M
Stockholders Equity16.49M14.18M12.89M10.98M8.75M6.74M
Cash Flow
Free Cash Flow2.38M2.29M1.87M1.83M1.86M1.90M
Operating Cash Flow3.97M3.30M2.37M2.28M2.40M2.61M
Investing Cash Flow-1.64M-1.61M-1.24M-457.88K-2.49M-688.15K
Financing Cash Flow-767.50K-500.00K-49.15K-97.37K-96.70K-699.01K

SCI Engineered Materials Technical Analysis

Technical Analysis SentimentPositive
Last Price9.73

Price Trends

50DMA9.28Positive
100DMA8.56Positive
200DMA7.23Positive

Market Momentum

MACD0.32Positive
RSI50.81Neutral
STOCH47.04Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SCIA, the sentiment is Positive. The current price of 9.73 is above the 20-day moving average (MA) of 9.71, above the 50-day MA of 9.28, and above the 200-day MA of 7.23, indicating a bullish trend. The MACD of 0.32 indicates Positive momentum. The RSI at 50.81 is Neutral, neither overbought nor oversold. The STOCH value of 47.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SCIA.

SCI Engineered Materials Risk Analysis

SCI Engineered Materials disclosed 29 risk factors in its most recent earnings report. SCI Engineered Materials reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

SCI Engineered Materials Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

SCIA against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
SCIASCIA71Outperform$43.30M14.5220.12%―88.59%93.68%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
LEDSLEDS49Neutral$16.96M-15.77-43.09%―-16.64%-79.86%
PXLWPXLW48Neutral$30.85M0.47434.73%―――
TRTTRT45Neutral$50.35M-4870.00-0.09%―71.65%-72.92%
PRSOPRSO42Neutral$5.99M-0.58-161.43%―-38.47%61.35%
SMTKSMTK42Neutral$287.54K-0.00-1395.00%―582.47%55.33%

* Technology Sector Average

Performance Comparison

0%200%400%SCIAPRSOPXLWLEDSTRTSMTKDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
SCIA and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
SCIASCI Engineered Materials 9.734.93102.71%
PRSOPeraso, Inc.0.40-0.93-70.23%
PXLWPixelworks5.10-1.24-19.56%
LEDSSemiLEDs Corporation2.05-1.25-37.88%
TRTTrio-tech International4.871.2735.47%
SMTKSmartkem, Inc.0.28-99.72-99.72%

SCI Engineered Materials Corporate Events

Executive/Board Changes

SCI Engineered Materials Initiates CFO Transition and Search

Neutral
Aug 13, 2026

On August 13, 2026, SCI Engineered Materials, Inc. announced a management transition following the resignation of Shelby Yohn as Chief Financial Officer, a role she had held since April 2, 2026. Yohn will remain with the company as Director of Accoun...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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: Oct 30, 2026