SigmaTron International, Inc.: Investment Report

Overview

SigmaTron International, Inc. (SGMA) is a leading provider of electronic manufacturing services (EMS) that offers a range of solutions to industrial electronics, consumer electronics, and medical/life sciences industries. With a strong presence in the United States, Mexico, China, Vietnam, and Taiwan, SGMA is well-positioned to capitalize on the growing demand for EMS services. However, the company's recent financial performance has been underwhelming, and the lack of analyst recommendations raises concerns about the stock's prospects. This report provides an in-depth analysis of SGMA's financial performance, growth prospects, and recent news to help investors make an informed decision.

Core Metrics

• Current price: $2.73
• 52-week high: $7.88
• 52-week low: $2.36
• Market Cap: $16.71 million
• P/E Ratio: N/A (due to negative EPS)
• Earnings per Share: -$0.41
• 50-day average: $4.2218
• 200-day average: $3.89385
• Analyst Recommendations: None

Financial Performance

SGMA's recent financial results have been disappointing, with the company reporting a loss per share of $0.41. The company's revenue growth has been stagnant, with a revenue growth rate of 0.034. However, SGMA's gross margins and EBITDA margins are 11.14% and 5.92%, respectively, which suggest that the company has a stable profit margin structure. The company's free cash flow and operating cash flow are $28.89 million and $30.3 million, respectively, indicating that SGMA has a solid cash flow position.

Growth Prospects

SGMA's growth prospects are closely tied to the demand for EMS services, which is expected to grow at a CAGR of 5-7% over the next few years. The company's strong presence in emerging markets, such as Mexico, China, and Vietnam, positions it well to capitalize on the growing demand for EMS services in these regions. However, SGMA faces intense competition from larger EMS providers, which could limit its growth prospects.

News and Updates

Recent news articles suggest that SGMA is facing challenges in its operating environment. A final state report on the Tule Subbasin has raised concerns about the company's water usage, which could impact its operations. However, the company has reported financial results for fiscal 2024, which provides some clarity on its financial performance.

Upgrades and Downgrades

There have been no recent upgrades or downgrades by analysts, which is a concern given the company's recent financial performance.

Summary

SGMA's financial performance has been underwhelming, and the lack of analyst recommendations raises concerns about the stock's prospects. However, the company's strong profit margin structure, solid cash flow position, and growth prospects in emerging markets suggest that it may be worth considering for long-term investors. Investors should carefully evaluate the company's financial performance and growth prospects before making an investment decision.

Disclosures

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