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Stoneridge
(NYSE:SRI)
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Rating:45Neutral
Price Target:
$5.50
▼(-22.54% Downside)
Action:Reiterated
Date:10/07/26
The score is held down primarily by weak financial performance (contracting TTM revenue, sharply lower margins, sizable losses, and negative TTM cash flow) and bearish technical signals (below key moving averages with negative MACD). Valuation is only mildly supportive because the negative P/E reflects ongoing losses, while corporate events provide a modest offset via leadership additions and signs of operational improvement in reported results.
Positive Factors
Q2 Revenue and EBITDA Improvement
The latest quarterly improvement indicates stronger demand in North American commercial vehicles and Brazil, while record MirrorEye revenue adds support from higher-value programs. If sustained, better volume and operating leverage could strengthen earnings capacity over the next several quarters.
Negative Factors
Revenue Contraction and Losses
Persistent revenue contraction combined with a sizable net loss signals that current programs are not yet producing sufficient scale or profitability. Continued losses can constrain investment in product development and commercial execution, while weakening the company’s ability to absorb operating setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Q2 Revenue and EBITDA Improvement
The latest quarterly improvement indicates stronger demand in North American commercial vehicles and Brazil, while record MirrorEye revenue adds support from higher-value programs. If sustained, better volume and operating leverage could strengthen earnings capacity over the next several quarters.
Read all positive factors
Stoneridge (SRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$166.57M
Dividend YieldN/A
Average Volume (3M)184.02K
Price to Earnings (P/E)―
Beta (1Y)2.16
Revenue Growth-13.70%
EPS Growth-264.88%
CountryUS
Employees4,200
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)-3.92
Shares Outstanding28,522,875
10 Day Avg. Volume196,664
30 Day Avg. Volume184,022
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.90
Price to Sales (P/S)0.19
P/FCF Ratio13.22
Enterprise Value/Market Cap1.75
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit1.97
Enterprise Value/Ebitda-22.79
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.26
Revenue Forecast (FY)$661.08M
Stoneridge Business Overview & Revenue Model
Company Description
Stoneridge, Inc. engineers and manufactures specialized electrical and electronic components, modules, and integrated systems for a broad spectrum of vehicle markets, including automotive, commercial, off-highway, motorcycle, and agricultural sect...
How the Company Makes Money
Stoneridge primarily makes money by selling engineered vehicle electronics and systems to automotive and commercial vehicle OEMs under supply agreements and production programs. Revenue is largely generated on a per-unit basis as customers build v...
Stoneridge Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational progress: sequential revenue growth (+9.2%), significant margin expansion (+400 bps gross margin), strong product momentum (MirrorEye records and 150k systems produced), major multi-year program awards (~$135M lifetime), and material balance sheet improvement (~$42M net debt reduction). However, material near-term headwinds remain from weak commercial vehicle end markets, modest absolute profitability (Q1 adjusted EBITDA $2M), some reliance on contract manufacturing revenue, and persistent macro/geopolitical risks. On balance, the positives around execution, product wins, margin improvement and cash/debt reduction significantly outweigh the lowlights, though risks remain that will require continued execution.Positive Updates
Quarterly Revenue Growth and Market Outperformance
First quarter revenue of $160.8M grew 9.2% versus Q4 2025 and outperformed the company's weighted average OEM end market, which declined 9.1% over the same period.
Negative Updates
Weak Commercial Vehicle End Markets and Reduced Industry Forecasts
Commercial vehicle production remains at low levels: North America at the bottom of a deep downcycle and Europe normalizing. IHS production forecasts were cut from +7.1% to only +1.8% for the weighted average OEM end market, reflecting continued market softness.
Read all updates
Q1-2026 Updates
Positive
Negative
Quarterly Revenue Growth and Market Outperformance
First quarter revenue of $160.8M grew 9.2% versus Q4 2025 and outperformed the company's weighted average OEM end market, which declined 9.1% over the same period.
Read all positive updates
Company Guidance
Stoneridge reaffirmed its base 2026 outlook but updated guidance to reflect $20 million of incremental contract manufacturing revenue, raising full‑year revenue guidance to $645–$670 million and narrowing adjusted operating margin to approximately breakeven to 0.5%; adjusted EBITDA guidance remains $20–$25 million (3.1%–3.7% of sales). Management noted Q1 sales of $160.8 million (including $3.8 million of Mexico contract manufacturing), expects Q2 revenue to be slightly above Q1, and anticipates EBITDA improvement in H2 versus H1 as material and structural cost benefits ramp. They reiterated a $5 million structural cost‑reduction target for 2026, flagged net debt improvement of roughly $42 million and a ~$16 million year‑over‑year inventory reduction, and cited an updated weighted‑average OEM production forecast of +1.8% for 2026 (versus prior 7.1%).Stoneridge Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 757.65M | 861.26M | 908.29M | 975.82M | 899.92M | 770.46M |
| Gross Profit | 148.52M | 164.04M | 189.25M | 202.10M | 174.93M | 166.86M |
| EBITDA | -12.82M | -8.19M | 35.84M | 45.06M | 31.18M | 52.10M |
| Net Income | -109.32M | -102.83M | -16.52M | -5.18M | -14.06M | 3.41M |
Balance Sheet | ||||||
| Total Assets | 506.73M | 551.19M | 621.56M | 679.90M | 652.11M | 665.40M |
| Cash, Cash Equivalents and Short-Term Investments | 71.51M | 66.25M | 71.83M | 40.84M | 54.80M | 85.55M |
| Total Debt | 156.87M | 189.96M | 212.05M | 203.01M | 179.85M | 184.12M |
| Total Liabilities | 357.60M | 371.41M | 376.30M | 392.18M | 371.16M | 369.45M |
| Stockholders Equity | 149.13M | 179.78M | 245.26M | 287.72M | 280.94M | 295.95M |
Cash Flow | ||||||
| Free Cash Flow | -7.85M | 12.17M | 23.45M | -33.55M | -24.80M | -63.28M |
| Operating Cash Flow | 10.05M | 34.02M | 47.75M | 4.95M | 6.81M | -36.25M |
| Investing Cash Flow | 41.11M | -21.82M | -24.47M | -36.98M | -28.58M | 28.04M |
| Financing Cash Flow | -15.78M | -25.30M | 11.12M | 17.48M | -7.30M | 22.88M |
Stoneridge Technical Analysis
Negative
7.10
Price Trends
6.79
Negative
7.01
Negative
6.91
Negative
Market Momentum
-0.29
Positive
30.90
Neutral
30.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRI, the sentiment is Negative. The current price of 7.1 is above the 20-day moving average (MA) of 6.27, above the 50-day MA of 6.79, and above the 200-day MA of 6.91, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 30.90 is Neutral, neither overbought nor oversold. The STOCH value of 30.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRI.
Stoneridge Risk Analysis
Stoneridge disclosed 27 risk factors in its most recent earnings report. Stoneridge reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stoneridge Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $130.64M | 2.27 | 13.77% | 19.61% | 17.64% | 42.96% | |
63 Neutral | $243.13M | 12.03 | 8.70% | 3.47% | 2.54% | 9.44% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $299.15M | 28.75 | 2.30% | ― | 3.26% | ― | |
48 Neutral | $117.02M | -4.57 | -17.17% | ― | -0.42% | 41.05% | |
48 Neutral | $192.74M | -46.61 | -1.57% | ― | -0.82% | -353.36% | |
45 Neutral | $166.57M | -1.49 | -59.31% | ― | -13.70% | -264.88% |
* Consumer Cyclical Sector Average
SRI
Stoneridge
5.84
-1.43
-19.67%
CAAS
China Automotive Systems
4.33
-0.12
-2.70%
CVGI
Commercial Vehicle Group
2.88
1.23
74.55%
MPAA
Motorcar Parts Of America
10.18
-6.45
-38.79%
STRT
Strattec Security
61.01
-5.56
-8.35%
HLLY
Holley
2.49
-0.37
-12.94%
Stoneridge Corporate Events
Business Operations and StrategyExecutive/Board Changes
Stoneridge Finalizes Key Executive Compensation Agreement
Positive
Oct 7, 2026
On August 27, 2026, Stoneridge announced the appointment of industry veteran Vivek Anand as Vice President, Commercial Strategy Global Sales, with his role becoming effective November 2, 2026. Anand will report directly to President and CEO Natal...
Business Operations and StrategyExecutive/Board Changes
Stoneridge Appoints Global VP to Drive Engineering Innovation
Positive
Sep 23, 2026
On September 17, 2026, Stoneridge, Inc. entered into an employment agreement appointing industry veteran Uwe Brandenburg as Global Vice President, Engineering Innovation, effective November 2, 2026. Brandenburg, based in Germany and reporting to ...
Business Operations and StrategyFinancial Disclosures
Stoneridge Q2 2026 Results Highlight Revenue Growth
Positive
Aug 5, 2026
Stoneridge reported second-quarter 2026 results on August 5, 2026, showing consolidated net sales from continuing operations of $181.4 million, up 15.1% year-on-year, driven mainly by North American commercial vehicle demand and strong growth at S...
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.