Sigmatron International (SGMA) AI Stock Analysis

• Market Cap: $7.34M
• Dividend Yield: N/A
• Average Volume (3M): 115.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: -22.27%
• EPS Growth: -1171.98%
• Country: US
• Employees: 2,750
• Sector: Technology
• Sector Strength: 76
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -2.01
• Shares Outstanding: 6,119,288
• 10 Day Avg. Volume: 213,682
• 30 Day Avg. Volume: 115,301
• PEG Ratio: -0.04
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.40
• Enterprise Value/Market Cap: 10.32
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 1.78
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 61 Neutral
• Price Target: $1.50 ▼( -49.49% Downside)

Sigmatron International's overall stock score is primarily influenced by the significant corporate event of the merger with Transom Capital, which provides a positive outlook despite financial challenges. The strong technical indicators support the score, though the poor valuation due to negative earnings detracts from the overall attractiveness.

Sigmatron International Business Overview & Revenue Model

Company Description

SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS). Its EMS services include printed circuit board assemblies and completely assembled (box-build) electronic products. The company also offers automatic and manual assembly and testing of products; material sourcing and procurement services; manufacturing and test engineering support services; design services; warehousing and distribution services; and assistance in obtaining product approval from governmental and other regulatory bodies. In addition, the company offers electronic and electromechanical manufacturing solutions. It primarily serves industrial electronics, consumer electronics, and medical/life sciences industries in the United States, Mexico, China, Vietnam, and Taiwan. The company markets its services through independent manufacturers' representative organizations. SigmaTron International, Inc. was incorporated in 1993 and is headquartered in Elk Grove Village, Illinois.

How the Company Makes Money

SigmaTron International makes money through its electronic manufacturing services (EMS) by providing end-to-end solutions to its clients, from design and prototyping to full-scale production and assembly of electronic products. The company's key revenue streams include contract manufacturing fees, engineering services, and supply chain management services. SigmaTron's ability to customize its services to meet specific client needs and its global manufacturing footprint are significant factors contributing to its earnings. The company often enters into long-term contracts with its clients, which provide a stable and recurring revenue base. Additionally, SigmaTron engages in strategic partnerships with suppliers and technology partners to enhance its service offerings and optimize costs.

Sigmatron International Financial Statement Overview

Summary

Sigmatron International faces challenges with declining revenues and profitability, reflected in negative profit margins and high leverage. However, its ability to generate strong operating cash flow is a positive aspect, providing a cushion against financial pressures. The company needs to focus on improving operational efficiency and managing leverage to enhance its financial health.

Income Statement

The company experienced a revenue decline in the TTM period compared to the previous year, with a total revenue of $311.7 million down from $373.9 million. Gross profit margin stands at 7.42%, indicating a challenge in maintaining profitability. The net profit margin is notably negative at -3.93%, showing net losses. EBIT and EBITDA margins are also low at -0.80% and 0.59% respectively, reflecting operational challenges.

Balance Sheet

The company's balance sheet shows a high debt-to-equity ratio of 3.67, indicating significant leverage, which could pose a financial risk. The ROE is negative, consistent with net losses. However, the equity ratio is adequate at 93.31%, suggesting that a substantial portion of assets is financed by equity.

Cash Flow

Free cash flow has shown a positive growth rate, with a TTM free cash flow of $23.6 million. Operating cash flow is robust compared to net income, with an operating cash flow to net income ratio of -2.01, highlighting strong cash generation capabilities despite net losses. The free cash flow to net income ratio is also favorable.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
311.71M	373.88M	414.44M	378.87M	277.72M	281.04M
	Gross Profit
23.12M	33.53M	51.45M	44.43M	24.95M	25.10M
	EBIT
-2.50M	7.13M	-9.81M	15.68M	-4.28M	-4.59M
	EBITDA
12.08M	13.87M	24.96M	33.19M	3.39M	10.33M
	Net Income Common Stockholders
-12.25M	-2.49M	14.19M	9.86M	1.54M	443.10K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.10M	2.42M	819.13K	3.05M	3.51M	6.78M
	Total Assets
192.99M	223.79M	268.63M	293.63M	194.17M	176.08M
	Total Debt
68.38M	82.69M	105.05M	82.72M	58.60M	52.63M
	Net Debt
66.28M	80.27M	104.23M	79.66M	55.09M	45.85M
	Total Liabilities
135.43M	157.72M	200.54M	205.30M	133.62M	117.20M
	Stockholders Equity
57.55M	66.07M	68.09M	88.33M	60.55M	58.88M
Cash Flow		Free Cash Flow
23.58M	25.96M	-59.63M	-24.98M	3.35M	10.81M
	Operating Cash Flow
24.64M	27.76M	-55.29M	-20.23M	8.10M	15.45M
	Investing Cash Flow
9.15M	117.11K	-5.31M	-9.70M	-10.23M	-5.41M
	Financing Cash Flow
-35.40M	-26.28M	24.16M	29.48M	-1.14M	-4.27M

Sigmatron International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SGMA, the sentiment is Positive. The current price of 2.97 is above the 20-day moving average (MA) of 1.47, above the 50-day MA of 1.28, and above the 200-day MA of 2.08, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 79.94 is Negative, neither overbought nor oversold. The STOCH value of 45.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SGMA.

Sigmatron International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SGMA	61 Neutral	$7.34M	―	-19.30%	―	-22.27%	-1171.98%
Sector *	60 Neutral	$11.56B	10.24	-7.04%	2.94%	7.46%	-10.54%
REFR	57 Neutral	$54.29M	―	-37.98%	―	62.28%	44.68%
DAIO	52 Neutral	$22.82M	―	-14.35%	―	-18.88%	-534.79%
MLAB	51 Neutral	$626.60M	―	-89.38%	0.55%	11.68%	-26360.70%
LPTH	48 Neutral	$94.81M	―	-24.86%	―	2.59%	-48.02%
LINK	46 Neutral	$49.62M	―	-18.75%	―	-18.62%	-112.68%

Sigmatron International Corporate Events

SigmaTron International Announces Merger with Transom Capital

On May 21, 2025, SigmaTron International entered into a merger agreement with Transom Capital Group, a private equity firm, where Transom will acquire SigmaTron for $3.02 per share, valuing the company at approximately $83 million. This transaction, approved by SigmaTron’s Board of Directors, represents a significant premium over the company’s market price and is expected to close in the third quarter of 2025, after which SigmaTron will be delisted from Nasdaq, impacting its stakeholders by transitioning to private ownership under Transom.

SigmaTron International Announces Merger with Transom Axis

On May 20, 2025, SigmaTron International entered into a merger agreement with Transom Axis AcquireCo, LLC, an affiliate of Transom Capital Group. The agreement involves a tender offer for all outstanding shares of SigmaTron at $3.02 per share, representing a significant premium over the market price. The transaction, expected to close in the third quarter of 2025, will result in SigmaTron becoming a wholly owned subsidiary of Transom, with its shares no longer listed on Nasdaq. The merger aims to leverage SigmaTron’s electronic manufacturing expertise and enhance its growth prospects under Transom’s ownership.