Stoneridge Inc (NYSE: SRI)

Sector: Consumer Cyclical Industry: Auto Parts CIK: 0001043337
Market Cap 168.21 Mn
P/B 0.67
P/E -5.25
P/S 0.19
ROIC (Qtr) -3.80
Div Yield % 0.00
Rev 1y % (Qtr) -1.67
Total Debt (Qtr) 180.66 Mn
Debt/Equity (Qtr) 0.72

About

Stoneridge Inc., a global leader in the design and manufacture of highly engineered electrical and electronic systems, components, and modules, operates primarily in the automotive, commercial, off-highway, and agricultural vehicle markets. The company is publicly traded on the NASDAQ stock exchange under the ticker symbol SRI. Stoneridge's products and systems are critical elements in the management of systems to improve overall vehicle performance, convenience, and monitoring in areas such as safety and security, intelligence, efficiency, and...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 53.99M provide 57.01x coverage of short-term debt 947000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 553.81M provides 3.07x coverage of total debt 180.66M, indicating robust asset backing and low credit risk.
  • Tangible assets of 553.81M provide robust 7.17x coverage of other current liabilities 77.29M, indicating strong asset backing.
  • Operating cash flow of 44.42M fully covers other non-current liabilities 21.16M by 2.10x, showing strong long-term stability.
  • Operating cash flow of 44.42M provides strong 12.70x coverage of operating expenses 3.50M, showing operational efficiency.

Bear case

  • Operating cash flow of 44.42M barely covers its investment activities of (21.06M), with a coverage ratio of -2.11, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (21.06M) provide weak support for R&D spending of 69.45M, which is -0.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of (17.12M) show weak coverage of depreciation charges of 24.41M, with a -0.70 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 23.93M represents just -0.88x of debt issuance (27.30M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 24.41M relative to operating cash flow of 44.42M, which is 0.55x suggests significant maintenance capital requirements affecting free cash flow.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Auto Parts
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ORLY O Reilly Automotive Inc 80.07 Bn 32.23 4.59 8.40 Bn
2 AZO Autozone Inc 57.24 Bn 23.23 2.97 12.05 Bn
3 APTV Aptiv PLC 19.67 Bn 66.67 0.98 8.03 Bn
4 GPC Genuine Parts Co 17.83 Bn 22.05 0.74 6.40 Bn
5 MGA Magna International Inc 15.86 Bn 15.36 0.38 7.48 Bn
6 ALV Autoliv Inc 9.72 Bn 12.92 0.92 2.19 Bn
7 MBLY Mobileye Global Inc. 9.47 Bn -28.17 4.88 0.00 Bn
8 BWA Borgwarner Inc 8.87 Bn 66.21 0.63 3.90 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.46 1.16
EV to Cash from Ops. EV/CFO 6.55 9.30
EV to Debt EV to Debt 1.61 34.64
EV to EBIT EV/EBIT -16.98 4.45
EV to EBITDA EV/EBITDA 39.43 7.40
EV to Free Cash Flow [EV/FCF] EV/FCF 12.15 17.25
EV to Market Cap EV to Market Cap 1.73 1.58
EV to Revenue EV/Rev 0.33 3.42
Price to Book Value [P/B] P/B 0.67 -0.33
Price to Earnings [P/E] P/E -5.25 11.70
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 1.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 12.18
Dividend per Basic Share Div per Share (Qtr) 0.00 0.41
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 13.70
Interest Coverage Int. cover (Qtr) -1.27 -110.44
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 28.39 -13.49
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.28 27.17
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 1.96
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -195.13 5.41
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -80.73 -8.06
EBIT Growth (1y) % EBIT 1y % (Qtr) -260.45 -22.36
EBT Growth (1y) % EBT 1y % (Qtr) -631.67 -123.98
EPS Growth (1y) % EPS 1y % (Qtr) -329.63 -110.42
FCF Growth (1y) % FCF 1y % (Qtr) 127.70 24.26
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -5.96 16.01
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.38 0.92
Cash Payout Ratio Cash Payout (Qtr) 0.00 -0.25
Cash Ratio Cash Ratio (Qtr) 0.30 0.69
Current Ratio Curr Ratio (Qtr) 2.14 2.88
Debt to Equity Ratio Debt/Equity (Qtr) 0.72 0.22
Interest Cover Ratio Int Coverage (Qtr) -1.27 -110.44
Times Interest Earned Times Interest Earned (Qtr) -1.27 -110.44
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.80 -952.44
EBIT Margin % EBIT Margin % (Qtr) -1.96 -997.37
EBT Margin % EBT Margin % (Qtr) -3.50 -987.56
Gross Margin % Gross Margin % (Qtr) 20.70 -122.43
Net Profit Margin % Net Margin % (Qtr) -3.70 -979.78