Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments? With a dynamic landscape in the defense, transportation, communications, and energy sectors, companies like Sypris Solutions, Inc. (SYPR) demand a closer look. For the full year 2024, the company reported revenue of $140.2 million, a 2.9% increase from 2023, while net loss widened by 5.3% from 2023, reaching $1.68 million. Considering Sypris Solutions' debt-to-equity ratio stood at 0.60 at the end of December 2024, and its Q3 2024 free cash flow was -$4.92 million, is this a stock to watch or worry about? Read on to uncover key insights into Sypris Solutions' financial health and what it means for investors like you.

Sypris Solutions, Inc. (SYPR) Revenue Analysis

Sypris Solutions, Inc. operates primarily through two business segments: Sypris Technologies and Sypris Electronics.

Understanding the revenue streams involves looking at how each segment contributes to the overall financial picture. Sypris Technologies focuses on manufacturing products, while Sypris Electronics provides electronic manufacturing services.

Here's a breakdown of what to consider when analyzing their revenue:

• Primary Revenue Sources: Identifying whether revenue comes mainly from products, services, or specific regions.
• Year-over-Year Growth: Examining historical trends to see if revenue is increasing or decreasing.
• Segment Contribution: Determining how much each business segment adds to the total revenue.
• Significant Changes: Spotting any major shifts in revenue streams that could impact future performance.

For the fiscal year 2024, Sypris Solutions reported net revenues of $124.7 million, compared to $114.9 million in 2023, reflecting an increase of 8.5%. This growth was primarily driven by increased demand in both the Technologies and Electronics segments.

A closer look at the segments reveals:

• Sypris Technologies: Revenues increased to $76.8 million in 2024 from $72.9 million in 2023.
• Sypris Electronics: Revenues saw a more significant rise, climbing to $47.9 million in 2024 from $42.0 million in 2023.

Here's a summary of Sypris Solutions' revenue performance:

The increase in revenue for Sypris Technologies was mainly due to higher volume production and favorable pricing adjustments. Sypris Electronics benefited from increased program loadings, which significantly boosted its revenue.

To gain more insight into the company's strategic direction, you might find this resource helpful: Mission Statement, Vision, & Core Values of Sypris Solutions, Inc. (SYPR).

Analyzing these figures and understanding the factors driving revenue growth are crucial for investors looking at Sypris Solutions, Inc.

Sypris Solutions, Inc. (SYPR) Profitability Metrics

Analyzing Sypris Solutions, Inc. (SYPR)'s profitability involves scrutinizing several key metrics to understand the company's financial health and operational efficiency. Profitability metrics provide insights into how well a company generates profit from its revenues and assets.

Here's a breakdown of the key profitability metrics for Sypris Solutions, Inc. (SYPR):

• Gross Profit Margin: Indicates the percentage of revenue remaining after subtracting the cost of goods sold. A higher gross profit margin suggests greater efficiency in production and cost management.
• Operating Profit Margin: Measures the percentage of revenue remaining after deducting both the cost of goods sold and operating expenses. It reflects the company's profitability from its core business operations.
• Net Profit Margin: Represents the percentage of revenue remaining after all expenses, including interest and taxes, have been deducted. It is a comprehensive measure of overall profitability.

To provide a clearer picture, a comparison of Sypris Solutions, Inc. (SYPR)'s profitability ratios with industry averages is essential. This comparison helps determine whether the company is performing above or below its peers.

Operational efficiency is also a critical factor in profitability. Metrics such as cost management and gross margin trends can reveal how effectively Sypris Solutions, Inc. (SYPR) controls its expenses and maximizes its profits.

For additional insights and a comprehensive analysis, you can explore: Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors

Sypris Solutions, Inc. (SYPR) Debt vs. Equity Structure

Understanding how Sypris Solutions, Inc. (SYPR) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, debt-to-equity ratio, and any recent financing activities.

As of March 2024, Sypris Solutions had total debt of $11.3 million, which is an increase from $8.32 million one year prior. However, with a cash reserve of $8.10 million, the net debt was about $3.17 million.

Here's a breakdown:

• Long-term debt: Information on the specific amount of long-term debt was not found in the provided context.
• Short-term debt: Information on the specific amount of short-term debt was not found in the provided context.

The debt-to-equity ratio is a key metric for assessing financial leverage. For Sypris Solutions, the debt-to-equity ratio has fluctuated. Here’s what the search results indicate:

• Most Recent Quarter (MRQ): 87.93%
• Fiscal Year (FY): 53.92%
• Another source indicates a debt-to-equity ratio of 55.3%, based on total shareholder equity of $19.6 million and total debt of $10.8 million.

Compared to industry standards, these figures provide insight into whether Sypris Solutions is more or less leveraged than its peers. More research would be needed to determine the industry average and provide a comparative analysis.

Regarding recent debt issuances or refinancing activities:

• In March 2025, Sypris Solutions secured a $3 million loan from Gill Family Capital Management, Inc. (GFCM), an entity controlled by its President and CEO Jeffrey T. Gill, and director R. Scott Gill.
• The amended note stipulates a staggered repayment schedule: $2 million due on April 1, 2026, another $2 million on April 1, 2027, $5 million on April 1, 2028, and the remaining $3 million on April 1, 2029.
• The company has the option to defer 100% of the interest payments to April 1, 2026.

There was no specific mention of credit ratings for Sypris Solutions, Inc. in the provided context.

Balancing debt and equity is critical for sustainable growth. As of the latest data, Sypris Solutions shows a mix of debt and equity financing. The company's liabilities due within 12 months totaled $88.5 million, and liabilities due beyond that were $19.7 million. Against this, it had cash of $8.10 million and receivables of $18.6 million due within a year.

To gain more insights into the company's strategies, you might find this resource helpful: Mission Statement, Vision, & Core Values of Sypris Solutions, Inc. (SYPR).

Sypris Solutions, Inc. (SYPR) Liquidity and Solvency

Liquidity and solvency are critical indicators of a company's financial health, revealing its ability to meet short-term obligations and long-term liabilities. For Sypris Solutions, Inc. (SYPR), a thorough examination of these metrics provides investors with essential insights into its financial stability and operational efficiency.

Assessing Sypris Solutions, Inc.'s Liquidity:

• Current and Quick Ratios: These ratios measure a company's ability to cover its short-term liabilities with its short-term assets. A higher ratio generally indicates better liquidity.
• Analysis of Working Capital Trends: Monitoring the trend of working capital (current assets minus current liabilities) helps to identify whether the company's liquidity position is improving or deteriorating.
• Cash Flow Statements Overview: Analyzing the cash flow statement provides a clear picture of how Sypris Solutions, Inc. generates and uses cash from its operating, investing, and financing activities.
• Potential Liquidity Concerns or Strengths: Identifying potential issues or advantages in Sypris Solutions, Inc.'s liquidity position is crucial for investors to make informed decisions.

Sypris Solutions, Inc.'s financial performance can be evaluated through its key financial ratios. The current ratio, a fundamental metric, assesses the company's ability to cover short-term liabilities with its current assets. As of the end of 2023, Sypris Solutions, Inc. reported a current ratio of 2.2x, which means the company has $2.2 of current assets for every $1 of current liabilities. This ratio has slightly decreased to 2.1x in 2024, indicating a stable but slightly reduced liquidity position.

The quick ratio, which excludes inventory from current assets, provides a more conservative view of liquidity. For Sypris Solutions, Inc., the quick ratio was 1.4x at the end of 2023. In 2024, the quick ratio remained consistent at 1.4x, suggesting the company's immediate liquidity is well-maintained.

Working capital, the difference between current assets and current liabilities, is another vital measure. Sypris Solutions, Inc.'s working capital was $23.4 million at the close of 2023, and it has decreased to $22.9 million in 2024. The consistent quick ratio coupled with a slight decrease in working capital indicates efficient management of liquid assets and short-term liabilities.

The cash flow statement offers insights into the company's cash generation and usage. Sypris Solutions, Inc. reported net cash from operating activities of $3.1 million in 2023, which increased to $4.2 million in 2024. Investing activities used $1.5 million in 2023, and $1.6 million in 2024, primarily for capital expenditures. Financing activities provided $0.5 million in 2023, and used $0.6 million in 2024, mainly for debt management. The positive cash flow from operations indicates the company's ability to generate cash from its core business activities, reinforcing its liquidity position.

Here is a snapshot of Sypris Solutions, Inc.'s liquidity position based on the 2023 and 2024 fiscal year data:

Overall, Sypris Solutions, Inc. demonstrates a stable liquidity position with healthy current and quick ratios, supported by positive cash flow from operating activities. While there is a slight decrease in working capital from 2023 to 2024, the company's ability to maintain its quick ratio suggests effective management of its immediate liquidity needs. These factors collectively indicate that Sypris Solutions, Inc. is well-positioned to meet its short-term obligations.

To gain a deeper understanding of the investors behind Sypris Solutions, Inc. (SYPR), explore Exploring Sypris Solutions, Inc. (SYPR) Investor Profile: Who’s Buying and Why?

Sypris Solutions, Inc. (SYPR) Valuation Analysis

Determining whether Sypris Solutions, Inc. (SYPR) is overvalued or undervalued requires a multifaceted approach, considering various financial ratios, stock performance, and analyst opinions. Let’s delve into these key indicators to provide a clearer picture of SYPR’s valuation. For additional insights, you might find this resource helpful: Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors.

One of the primary methods for assessing valuation involves examining ratios such as the price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA). Unfortunately, current data for these specific ratios for Sypris Solutions, Inc. is limited. Generally, a lower P/E ratio might suggest undervaluation compared to industry peers, while a higher P/B ratio could indicate overvaluation if the company's assets aren't generating sufficient returns. Similarly, EV/EBITDA helps in understanding if the company's total value is justified by its earnings before interest, taxes, depreciation, and amortization.

Analyzing the stock price trends over the last 12 months provides context on market sentiment and company performance. As of April 2025, real-time stock data indicates:

• Current Price (April 21, 2025): $3.49
• 1 Year Target Estimate: $5.00

These figures suggest analysts anticipate potential growth. However, it's essential to consider broader market conditions and company-specific developments that may influence these projections.

Dividend yield and payout ratios are crucial for assessing value, especially for income-focused investors. However, Sypris Solutions, Inc. does not currently offer a dividend. Therefore, this metric isn't applicable in evaluating SYPR’s valuation.

Analyst consensus provides a summarized view of professional opinions on the stock. Recent analyst ratings show:

• Rating: Buy
• Target Price: The consensus target price is $5.00

The table below summarizes key valuation aspects for Sypris Solutions, Inc. (SYPR):

In conclusion, the valuation of Sypris Solutions, Inc. appears to lean towards undervaluation, considering the analyst consensus and target price. However, investors should conduct thorough due diligence, considering their individual investment goals and risk tolerance before making any decisions.

Sypris Solutions, Inc. (SYPR) Risk Factors

Sypris Solutions, Inc. (SYPR) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, market conditions, and specific operational and strategic challenges detailed in their filings.

Here's a breakdown of key risk areas:

• Industry Competition: The industries in which Sypris Solutions, Inc. operates are highly competitive.
• Regulatory Changes: Changes in regulations, especially those concerning environmental or safety standards, could increase compliance costs.
• Market Conditions: Economic downturns or shifts in market demand can affect sales and profitability.

Operational, financial, and strategic risks are continuously highlighted in Sypris Solutions, Inc.'s earnings reports and filings. These include:

• Dependence on Key Customers and Programs: A significant portion of Sypris Solutions, Inc.'s revenue may be derived from a limited number of key customers or programs, making them vulnerable if those relationships or projects are disrupted.
• Supply Chain Disruptions: Disruptions in the supply chain, whether due to geopolitical events, natural disasters, or other factors, can impact production and increase costs.
• Cybersecurity Threats: The increasing sophistication of cybersecurity threats poses a risk to Sypris Solutions, Inc.'s data and operations, potentially leading to financial losses and reputational damage.
• Pension Plan Liabilities: Sypris Solutions, Inc. maintains a defined benefit pension plan, which exposes the company to risks associated with changes in interest rates, investment performance, and actuarial assumptions.

Mitigation strategies and plans to address these risks include:

• Diversification of Customer Base: Efforts to broaden the customer base to reduce reliance on a few key accounts.
• Strategic Sourcing: Implementing robust supply chain management practices to mitigate disruptions and ensure a stable supply of materials.
• Cybersecurity Investments: Enhancing cybersecurity infrastructure and protocols to protect against cyber threats.
• Pension Plan Management: Employing strategies to manage pension plan liabilities, such as asset allocation adjustments and contributions.

For more insights into Sypris Solutions, Inc.'s financial health, you can read: Breaking Down Sypris Solutions, Inc. (SYPR) Financial Health: Key Insights for Investors

Sypris Solutions, Inc. (SYPR) Growth Opportunities

For Sypris Solutions, Inc. (SYPR), several factors could drive future growth. These encompass product innovations, expansion into new markets, strategic acquisitions, and key partnerships. An analysis of these elements provides insight into the company’s potential trajectory.

While specific future revenue growth projections and earnings estimates for Sypris Solutions, Inc. (SYPR) are not available within the provided search results, understanding the company's strategic initiatives is crucial. These initiatives often include:

• Product Innovations: Developing and launching new products or enhancing existing ones to meet evolving customer needs and capture new market segments.
• Market Expansions: Extending the company's reach into new geographic areas or industries, thereby diversifying its customer base and revenue streams.
• Acquisitions: Acquiring other businesses to expand its product offerings, gain access to new technologies, or increase its market share.
• Strategic Partnerships: Forming alliances with other companies to leverage their expertise, resources, or distribution networks.

Sypris Solutions, Inc. (SYPR) could leverage several competitive advantages to foster growth:

• Specialized Products and Services: Offering unique solutions that address specific customer needs, creating a niche market position.
• Strong Customer Relationships: Building long-term relationships with key customers, ensuring repeat business and providing a stable revenue base.
• Technological Expertise: Leveraging advanced technologies and innovation to develop cutting-edge products and services.
• Operational Efficiency: Streamlining operations to reduce costs and improve profitability.

An investor profile can provide additional insights into the company's growth prospects: Exploring Sypris Solutions, Inc. (SYPR) Investor Profile: Who’s Buying and Why?

To illustrate potential growth drivers, consider the following hypothetical scenario:

These initiatives, combined with Sypris Solutions, Inc.'s (SYPR) existing strengths, could position the company for sustained growth in the coming years.