Sypris (SYPR) AI Stock Analysis

• Market Cap: $35.62M
• Dividend Yield: N/A
• Average Volume (3M): 16.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 2.90%
• EPS Growth: -5.75%
• Country: US
• Employees: 713
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): <0.01
• Shares Outstanding: 22,983,313
• 10 Day Avg. Volume: 13,920
• 30 Day Avg. Volume: 16,670
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 2.38
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Sypris has shown positive signs in financial performance with revenue growth and improved cash flow, yet struggles with profitability and a negative P/E ratio. Technical indicators suggest a neutral to slightly bullish market sentiment. Overall, while there is potential, significant challenges remain in profitability and valuation, which are critical for future growth.

Sypris Business Overview & Revenue Model

Company Description

Sypris Solutions, Inc. provides truck components, oil and gas pipeline components, and aerospace and defense electronics primarily in North America and Mexico. It operates in two segments, Sypris Technologies and Sypris Electronics. The Sypris Technologies segment supplies forged, machined, welded, and heat-treated steel components for the commercial vehicle, off highway vehicle, recreational vehicle, automotive, industrial, light truck, and energy markets. This segment also offers drive train components, including axle shafts, transmission shafts, gear sets, steer axle knuckles, and other components for automotive, truck, and recreational vehicle manufacturers. In addition, it provides value added operations for drive train assemblies; and manufactures pressure closures and other fabricated products for oil and gas pipelines. The Sypris Electronics segment offers electronic manufacturing services, such as circuit card and full box build manufacturing, high reliability manufacturing, systems assembly and integration, design for manufacturability, and design for specification work for aerospace and defense electronics markets. This segment also provides circuit card assembly services for electronic sensors and systems, including radar systems, tactical ground stations, navigation systems, weapons systems, and targeting and warning systems; and value-added solutions, such as low-volume prototype assembly and high-volume turnkey manufacturing. The company also offers engineering design and repair or inspection services. In addition, it sells its engineered product under the Tube Turns brand. The company was incorporated in 1997 and is headquartered in Louisville, Kentucky.

How the Company Makes Money

Sypris Solutions generates revenue primarily through the sale of manufactured components and the provision of engineering and technical services. The Sypris Technologies segment earns money by manufacturing and selling forged and machined components to customers in the transportation, energy, and industrial markets. On the other hand, Sypris Electronics makes money by providing engineering and manufacturing services, mainly to aerospace and defense customers, focusing on complex electronics and electronic systems. The company's revenue streams are supported by long-term contracts and relationships with key clients in these sectors. Partnerships with major companies in defense and transportation also significantly contribute to its earnings.

Sypris Financial Statement Overview

Summary

Sypris demonstrates a positive trajectory in revenue growth and operational efficiency, with improvements in gross profit and EBITDA margins. Despite these improvements, the company continues to face profitability challenges as evidenced by negative net income and return on equity. The balance sheet shows reduced leverage, enhancing financial stability. Cash flow has notably improved, with positive free cash flow, indicating better financial management. Continued focus on improving profitability and cash generation will be key for future success.

Income Statement

Sypris has shown a consistent growth in revenue over the years, with a revenue growth rate of 2.90% from 2023 to 2024. The gross profit margin improved slightly from 12.67% to 14.19% in the same period, indicating better cost management. However, the net profit margin remains negative, though slightly improved from -1.17% to -1.20%. EBIT and EBITDA margins have shown improvement, indicating better operational efficiency, but the company is still struggling with profitability.

Balance Sheet

The debt-to-equity ratio decreased significantly from 0.70 in 2023 to 0.33 in 2024, indicating a reduction in leverage and a stronger equity base. However, the return on equity remains negative due to net losses, which is a concern. The equity ratio is stable, indicating a reasonable proportion of assets financed by equity, but overall profitability challenges persist.

Cash Flow

Sypris has shown a strong recovery in cash flow, with free cash flow turning positive in 2024 after a significant negative in 2023. The operating cash flow to net income ratio is positive, demonstrating good cash generation capability relative to net income. Free cash flow to net income ratio is also positive, signaling improved cash efficiency. However, sustaining positive cash flow is crucial for future stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
140.18M	136.22M	110.12M	97.43M	82.35M
	Gross Profit
19.89M	17.25M	14.85M	14.51M	11.56M
	EBIT
2.93M	969.00K	-436.00K	1.26M	-330.00K
	EBITDA
2.93M	3.10M	3.54M	8.47M	2.96M
	Net Income Common Stockholders
-1.68M	-1.60M	-2.49M	2.92M	1.67M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.68M	7.88M	21.65M	11.62M	11.61M
	Total Assets
119.38M	129.34M	104.14M	79.50M	60.71M
	Total Debt
6.40M	15.82M	16.14M	16.88M	19.26M
	Net Debt
-3.28M	7.94M	-5.51M	5.26M	7.66M
	Total Liabilities
99.80M	106.88M	84.57M	60.22M	45.93M
	Stockholders Equity
19.58M	22.47M	19.57M	19.29M	14.78M
Cash Flow		Free Cash Flow
921.00K	-13.23M	10.75M	1.41M	2.11M
	Operating Cash Flow
2.00M	-11.09M	13.79M	4.24M	3.65M
	Investing Cash Flow
-1.06M	-2.14M	-3.03M	-2.81M	427.00K
	Financing Cash Flow
820.00K	-614.00K	-1.38M	-1.28M	2.74M

Sypris Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.62
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYPR, the sentiment is Negative. The current price of 1.62 is below the 20-day moving average (MA) of 1.66, below the 50-day MA of 1.64, and below the 200-day MA of 1.70, indicating a neutral trend. The MACD of -0.01 indicates Positive momentum. The RSI at 48.57 is Neutral, neither overbought nor oversold. The STOCH value of 40.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYPR.

Sypris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYPR	66 Neutral	$35.62M	―	-8.06%	―	2.90%	-5.75%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
SRI	55 Neutral	$122.25M	―	-6.63%	―	-8.90%	-346.80%
CVGI	48 Neutral	$31.18M	1.82	-26.02%	―	-23.78%	-179.48%
SUP	48 Neutral	$74.98M	―	-89.61%	―	-8.51%	9.63%
FRSX	48 Neutral	$14.12M	―	-103.81%	―	-12.27%	57.85%
WKSP	48 Neutral	$14.01M	―	-90.82%	―	454.67%	30.11%