Margin Breakdown
| Pretax Profit Margin | (0.11) | |
| Operating Profit Margin | (0.0845) | |
| Net Profit Margin | (0.11) | |
| Gross Profit Margin | 0.2 |
Our projection for SIFCO Industries (USA Stocks:SIF) in January
 | By Rifka Kats | Macroaxis Story |
Every cloud has a silver lining, but for SIFCO Industries, investors might be wondering if that silver lining is just out of reach. With its stock trading around $3.35, well below the 52-week high of $5.96, the company is struggling to inspire confidence in the Aerospace & Defense sector. Despite a Wall Street target price of $15.50, the analyst consensus remains a strong sell, suggesting skepticism about a near-term recovery. The stock's beta of 1.235 indicates higher volatility compared to the market, which could mean more risk for investors. While the potential for a turnaround exists, the current market sentiment and financial indicators suggest that SIFCO Industries may continue to challenge portfolios rather than bolster them. SIFCO Industries' dividend yield is expected to see a modest rise in the coming years. Meanwhile, the company's price-to-book (P/B) ratio is anticipated to climb to 0.78, and its days sales outstanding (DSO) is projected to drop to 64.63. This brief overview highlights SIFCO Industries as a potential addition to your investment portfolio. We'll explore the company's future prospects and what they might mean for investors.
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Reviewed by Raphi Shpitalnik
SIFCO Industries has a beta of 0.0583, indicating it moves very little in relation to the market. This low beta suggests that SIFCO is less volatile and doesn't add significant risk to a portfolio. However, it also means that SIFCO is unlikely to outperform the market during upswings or underperform during downturns. Essentially, SIFCO's stock price is relatively stable, offering limited potential for high returns but also providing a buffer against market volatility.
Top Findings
Considering SIFCO Industries' current quote of 3.55, which hovers close to its 200-day moving average of 3.55, investors might be cautiously optimistic about a potential turnaround. However, with a Jensen Alpha of -0.62, the stock's performance relative to its risk-adjusted benchmark suggests it might continue to struggle, potentially draining your portfolio further.There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as SIFCO Industries. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for SIFCO Industries
How important is SIFCO Industries's Liquidity
SIFCO Industries financial leverage refers to using borrowed capital as a funding source to finance SIFCO Industries ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. SIFCO Industries financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to SIFCO Industries' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of SIFCO Industries' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between SIFCO Industries's total debt and its cash.
SIFCO Industries Gross Profit
SIFCO Industries Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing SIFCO Industries previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show SIFCO Industries Gross Profit growth over the last 10 years. Please check SIFCO Industries' gross profit and other fundamental indicators for more details.
Breaking down the case for SIFCO Industries
SIFCO Industries exhibits very low volatility with skewness of -1.53 and kurtosis of 7.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure SIFCO Industries' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact SIFCO Industries' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.
Warren Buffett once said, "Price is what you pay. Value is what you get." This sentiment rings true for SIFCO Industries, which is currently trading at a price-to-book ratio of 0.62X, suggesting the stock might be undervalued compared to its book value per share of 4.83X. Despite a challenging operating margin of just 0.04% and a return on equity showing losses of 0.24, the company's market capitalization stands at $22.93 million, indicating a potential for recovery if operational efficiencies improve. However, with a probability of bankruptcy at 40.38%, investors should weigh the risks carefully. The aerospace and defense sector's inherent volatility, combined with SIFCO's financial metrics, suggests that while there is potential for a turnaround, caution is advised for those considering adding this stock to their portfolio..
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