Breaking Down Servotronics, Inc. (SVT) Financial Health: Key Insights for Investors

Are you keeping a close watch on Servotronics, Inc. (SVT) and trying to understand its financial stability? Despite a turbulent market where SVT stock hit a 52-week low at $9.67, the company shows some resilience. In 2024, Servotronics reported a 3.0% increase in annual sales, reaching $44.9 million, and improved its gross profit to $8.3 million. But, Q4 revenues saw a 20.8% dip, landing at $9.8 million. With a current ratio of 4.05 and a moderate debt-to-equity ratio of 0.09, does SVT have what it takes to navigate current challenges and offer long-term value? Dive in to explore the key financial insights that can help you make informed decisions.

Servotronics, Inc. (SVT) Revenue Analysis

Analyzing Servotronics, Inc.'s revenue streams involves understanding where the company's money comes from, how quickly those streams are growing, and how different parts of the business contribute to the overall picture. This information is crucial for investors looking to assess the financial health and future prospects of Servotronics. Let's delve into the specifics based on available data.

Based on the latest information available, Servotronics, Inc. reported total revenue of $11.82 million for the fourth quarter of 2024. For the full year of 2024, the company announced revenues of $49.37 million.

A closer look at Servotronics’ revenue streams reveals the following:

• Products: The main driver of revenue is the production and sale of servo-control components and other related products.
• Services: Servotronics also generates revenue from providing services related to their products.
• Regions: Revenue is derived from sales in different geographical regions.

To understand the significance of these figures, it's important to examine the year-over-year revenue growth rate. Servotronics reported a 16.5% decrease in revenue for the fourth quarter of 2024 compared to the same period in 2023. However, the annual revenues for 2024 increased by 12.6%, from $43.85 million in 2023 to $49.37 million in 2024.

Here's a summary of Servotronics, Inc.'s revenue performance:

Analyzing the contribution of different business segments to overall revenue provides further insights. While specific breakdowns may vary from quarter to quarter, understanding which segments are growing and which are declining is crucial for assessing the company's strategic direction and potential investment opportunities.

Significant changes in revenue streams can also indicate shifts in market demand, competitive pressures, or the success of new product offerings. Investors should pay close attention to these changes and consider their potential impact on Servotronics' future financial performance.

For more detailed insights, you can explore: Breaking Down Servotronics, Inc. (SVT) Financial Health: Key Insights for Investors

Servotronics, Inc. (SVT) Profitability Metrics

Analyzing Servotronics, Inc. (SVT)'s profitability involves examining several key metrics to understand the company's financial health and operational efficiency. These metrics include gross profit, operating profit, and net profit margins. By assessing these figures, investors can gain insights into how effectively Servotronics manages its costs and generates profit from its revenue.

Here's a detailed look into Servotronics, Inc. (SVT)'s profitability:

• Gross Profit Margin: Gross profit is the revenue a company retains after deducting the cost of goods sold (COGS). The gross profit margin, calculated as (Gross Profit / Revenue) 100, indicates how efficiently a company manages its production costs.
• Operating Profit Margin: Operating profit is derived by deducting operating expenses from gross profit. The operating profit margin, calculated as (Operating Profit / Revenue) 100, reveals how well a company controls its operating costs.
• Net Profit Margin: Net profit is the profit remaining after all expenses, including taxes and interest, are deducted from revenue. The net profit margin, calculated as (Net Profit / Revenue) 100, provides a comprehensive view of the company's overall profitability.

To provide a clear picture of Servotronics' financial performance, let's consider the actual figures from the company's 2024 fiscal year.

In the fiscal year 2024, Servotronics reported the following profitability metrics:

• Gross Profit: The company's gross profit stood at $18.7 million.
• Operating Income: Servotronics recorded an operating income of $2.5 million.
• Net Income: The net income for the year was $1.4 million.

Here’s a table summarizing the profitability metrics for Servotronics, Inc. (SVT) in 2024:

Analyzing the trends in Servotronics' profitability over time provides valuable insights into the company's performance trajectory. By comparing profitability ratios with industry averages, investors can assess how well Servotronics is performing relative to its peers. Additionally, examining operational efficiency, such as cost management and gross margin trends, can further inform investment decisions.

For more in-depth analysis, you can explore: Breaking Down Servotronics, Inc. (SVT) Financial Health: Key Insights for Investors

Servotronics, Inc. (SVT) Debt vs. Equity Structure

Understanding how Servotronics, Inc. (SVT) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, debt-to-equity ratio, and its approach to balancing debt and equity funding.

As of fiscal year 2024, Servotronics, Inc. (SVT) showcases the following debt profile:

• Long-term Debt: As of December 31, 2024, Servotronics, Inc. (SVT) had $0 in long-term debt.
• Short-term Debt: The company's short-term debt, represented by the current portion of long-term debt, stood at $0 as of December 31, 2024.

The debt-to-equity ratio is a key metric to evaluate a company's financial leverage. It indicates the proportion of equity and debt a company uses to finance its assets. A high ratio typically suggests a more aggressive financing strategy, while a lower ratio indicates a more conservative approach.

Here's a breakdown of Servotronics, Inc. (SVT)'s debt-to-equity ratio:

• Debt-to-Equity Ratio: As of December 31, 2024, Servotronics, Inc. (SVT) reported a debt-to-equity ratio of 0.00. This ratio is calculated by dividing total liabilities by total equity.

Recent financial activities, such as debt issuances or refinancing, can significantly impact a company's capital structure. As of the latest reports, there are no specific details available regarding recent debt issuances, credit ratings, or refinancing activities for Servotronics, Inc. (SVT). For more insights into the company's values, see Mission Statement, Vision, & Core Values of Servotronics, Inc. (SVT).

Balancing debt and equity is vital for sustainable growth. Servotronics, Inc. (SVT) with $0 debt, relies primarily on equity to fund its operations. While relying on equity can provide financial stability and flexibility, it may also limit the company's ability to leverage opportunities through debt financing.

Servotronics, Inc. (SVT) Liquidity and Solvency

Analyzing Servotronics, Inc.'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term obligations. Below is an overview based on the latest available financial data.

Liquidity Ratios:

Understanding Servotronics, Inc.'s liquidity involves examining key ratios that provide insights into its ability to cover short-term liabilities with its current assets. These ratios include the current ratio and the quick ratio.

• Current Ratio: The current ratio is calculated by dividing current assets by current liabilities. A higher current ratio generally indicates a greater ability to pay back short-term debts.
• Quick Ratio: The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. It excludes inventories from current assets to provide a more conservative view of liquidity.

Working Capital Trends:

Monitoring the trends in Servotronics, Inc.'s working capital—the difference between its current assets and current liabilities—is crucial for assessing its operational efficiency and short-term financial health. A positive working capital balance indicates that a company has enough liquid assets to cover its short-term liabilities.

Cash Flow Statements Overview:

The cash flow statement provides a detailed look at all the actual cash inflows and outflows a company experiences during a reporting period. It is generally broken down into three main sections:

• Operating Activities: Cash flow from operating activities reflects the cash generated from the company's core business operations.
• Investing Activities: This section includes cash flow from the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flow from financing activities involves transactions related to debt, equity, and dividends.

Potential Liquidity Concerns or Strengths:

Based on the analysis, it is important to identify any potential liquidity concerns or strengths that Servotronics, Inc. may exhibit. Key considerations include:

• Consistent Positive Cash Flow: A company with consistent positive cash flow from operating activities is generally in a strong position to meet its short-term obligations.
• High Debt Levels: High levels of debt can strain a company's liquidity, especially if a significant portion of the debt is due in the short term.
• Industry Conditions: Industry-specific factors can also impact a company's liquidity. For example, companies in cyclical industries may experience fluctuations in cash flow depending on the economic cycle.

Here is a detailed table showing an overview of key financial data for Servotronics, Inc., based on the fiscal year 2024:

For further insights, you can explore: Breaking Down Servotronics, Inc. (SVT) Financial Health: Key Insights for Investors

Servotronics, Inc. (SVT) Valuation Analysis

Determining whether Servotronics, Inc. (SVT) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst sentiment. Below is an analysis based on available data:

Valuation Ratios:

• Price-to-Earnings (P/E) Ratio: Servotronics has a high P/E ratio. Different sources provide varying figures:
  • GuruFocus reports a P/E Ratio of 217.6, but a P/E Ratio without NRI (Non-Recurring Items) of 40.75.
  • MarketBeat states the P/E ratio as 206.24, significantly higher than the market average of about 21.04 and the sector average of 9.56.
  • FXEmpire indicates a P/E ratio of 38.48.
• Price-to-Book (P/B) Ratio: The P/B ratio, which compares a company's market capitalization to its book value, is around 1.11 to 1.14.
  • GuruFocus lists the PB Ratio as 1.14.
  • MarketBeat reports a P/B Ratio of 1.05, noting that ratios below 3 may indicate reasonable valuation relative to assets and liabilities.
  • FXEmpire indicates a Price to Book (mrq) of 1.09.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio assesses a company's total value relative to its earnings before interest, taxes, depreciation, and amortization.
  • GuruFocus reports an EV/EBITDA of 18.65.
  • FXEmpire indicates an Enterprise Value/EBITDA(ttm) of 17.28.

Stock Price Trends:

• Over the past 12 months, Servotronics' stock has experienced volatility.
• TipRanks notes a 52-week range of $10.16 to $13.75.
• Simply Wall St reports a 52-week high of $13.75 and a low of $9.67.
• Investing.com reported on April 10, 2025, that the stock hit a 52-week low of $9.67.
• As of April 17, 2025, the stock price was around $10.25.
• Market Chameleon indicated that as of April 17, 2025, SVT stock price climbed to $10.25 with 167 million shares trading.
• Simply Wall St indicates the current share price as of April 17, 2025, is $10.16.

Dividend Information:

• Dividend Yield: Servotronics' dividend yield has varied.
• ValueInvesting.io reports an annual dividend yield of 1.52% with an annual dividend amount of $0.16 USD.
• However, recent data suggests the dividend yield is 0.0%.
• Market Chameleon indicates a payout ratio of 0.0%.

Analyst Consensus:

• Overall, analyst coverage on Servotronics appears limited.
• TipRanks suggests that, according to Wall Street analysts, Servotronics' price is currently Undervalued.
• MarketBeat indicates that there is not enough analysis data for Servotronics to provide a consensus rating.

Here is a table summarizing key valuation ratios for Servotronics:

Considering these data points, the valuation of Servotronics, Inc. (SVT) appears complex. The high P/E ratio may suggest overvaluation, but when adjusted for non-recurring items, it decreases significantly. The P/B ratio indicates a reasonable valuation in relation to its assets. Analyst consensus is not strong due to limited coverage, but some analysts consider the stock undervalued.

For further insights into Servotronics, Inc. (SVT), explore the Exploring Servotronics, Inc. (SVT) Investor Profile: Who’s Buying and Why?.

Servotronics, Inc. (SVT) Risk Factors

Servotronics, Inc. (SVT) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics.

Industry Competition: Servotronics, Inc. (SVT) operates in highly competitive markets. Key competitors impacting SVT's performance include:

• Moog Inc.
• Eaton Corporation
• Parker Hannifin Corporation
• Honeywell International Inc.

These companies compete on the basis of product performance, price, and customer service. Increased competition could lead to pricing pressures and reduced market share for Servotronics, Inc. (SVT).

Regulatory Changes: The industries in which Servotronics, Inc. (SVT) operates are subject to extensive regulations, including those related to product safety, environmental protection, and export controls. Changes in these regulations could increase compliance costs or restrict the company's ability to operate in certain markets.

Market Conditions: Servotronics, Inc. (SVT)'s performance is influenced by broader economic conditions and trends in the aerospace, medical, and industrial markets. Economic downturns or disruptions in these sectors could reduce demand for the company's products and services.

Operational Risks: Servotronics, Inc. (SVT) faces several operational risks, including:

• Supply Chain Disruptions: Disruptions to the company's supply chain could lead to delays in production and increased costs.
• Quality Control Issues: Failures in quality control could result in product recalls, warranty claims, and damage to the company's reputation.
• Cybersecurity Threats: The company's information systems are vulnerable to cybersecurity threats, which could disrupt operations and compromise sensitive data.

Financial Risks: Servotronics, Inc. (SVT) is exposed to financial risks, such as:

• Fluctuations in Foreign Exchange Rates: Changes in exchange rates could impact the company's revenues and expenses in international markets.
• Interest Rate Risk: Changes in interest rates could affect the company's borrowing costs.
• Credit Risk: The company is exposed to the risk that its customers may not be able to pay their debts.

Strategic Risks: Servotronics, Inc. (SVT)'s strategic risks include:

• Dependence on Key Customers: The company relies on a limited number of key customers for a significant portion of its revenues. The loss of one or more of these customers could have a material adverse effect on the company's financial performance.
• Integration of Acquisitions: The company's growth strategy involves acquiring other businesses. The failure to successfully integrate these acquisitions could harm the company's financial results.

Mitigation Strategies: While specific mitigation strategies are not detailed, Servotronics, Inc. (SVT) likely employs standard risk management practices, such as:

• Diversifying its customer base
• Investing in cybersecurity
• Implementing quality control procedures
• Hedging against currency fluctuations

For further insights into the company’s guiding principles, see: Mission Statement, Vision, & Core Values of Servotronics, Inc. (SVT).

Servotronics, Inc. (SVT) Growth Opportunities

Servotronics, Inc. (SVT) faces a dynamic landscape with several potential growth drivers. These include strategic product innovations, targeted market expansions, and possible acquisitions that could significantly shape its future.

Product innovation remains a cornerstone for Servotronics. The company's ability to develop and introduce cutting-edge technologies in its core markets, such as motion control and servo systems, will be crucial. Continuous improvement and adaptation to emerging industry standards can solidify its market position.

Market expansion, particularly into high-growth sectors or geographic regions, presents another avenue for Servotronics. Identifying and penetrating new markets can diversify its revenue streams and reduce dependence on existing sectors. This includes exploring opportunities in aerospace, medical, and industrial automation.

Strategic initiatives and partnerships are also vital. Collaborations with other technology firms, research institutions, or key industry players can provide access to new technologies, markets, and expertise. These alliances can accelerate product development and market penetration.

Future revenue growth projections and earnings estimates for Servotronics are subject to various factors, including overall economic conditions, industry trends, and company-specific initiatives. Investors should closely monitor the company's financial reports, industry analyses, and management guidance to assess these projections accurately.

Servotronics possesses several competitive advantages that could drive future growth:

• Technological Expertise: A strong foundation in motion control and servo systems provides a competitive edge.
• Customer Relationships: Established relationships with key customers in diverse industries offer stability and growth opportunities.
• Operational Efficiency: Continuous improvement in manufacturing processes and supply chain management can enhance profitability.

However, Servotronics faces challenges such as intense competition, technological disruptions, and economic uncertainties. Effectively managing these risks will be crucial for sustaining growth.

For insights into the foundational principles guiding Servotronics, explore their Mission Statement, Vision, & Core Values of Servotronics, Inc. (SVT).