DB:SG3

Stock Analysis Report

SigmaTron International

Executive Summary

SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS).


Snowflake Analysis

Undervalued with mediocre balance sheet.


Similar Companies

Share Price & News

How has SigmaTron International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SG3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

SG3

-2.4%

DE Electronic

-0.2%

DE Market


1 Year Return

25.3%

SG3

8.1%

DE Electronic

13.7%

DE Market

Return vs Industry: SG3 exceeded the German Electronic industry which returned 8.1% over the past year.

Return vs Market: SG3 exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

SG3IndustryMarket
7 Day-1.7%-2.4%-0.2%
30 Day-1.1%9.1%0.3%
90 Day-8.8%6.8%3.7%
1 Year25.3%25.3%10.5%8.1%17.2%13.7%
3 Year-13.6%-13.6%48.0%43.1%15.4%5.3%
5 Year-38.9%-38.9%113.5%98.2%21.3%4.7%

Price Volatility Vs. Market

How volatile is SigmaTron International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SigmaTron International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SG3 (€3.52) is trading below our estimate of fair value (€106.75)

Significantly Below Fair Value: SG3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SG3 is good value based on its PE Ratio (11.2x) compared to the Electronic industry average (30.7x).

PE vs Market: SG3 is good value based on its PE Ratio (11.2x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SG3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SG3 is good value based on its PB Ratio (0.3x) compared to the DE Electronic industry average (1.9x).


Next Steps

Future Growth

How is SigmaTron International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

16.5%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SigmaTron International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has SigmaTron International performed over the past 5 years?

-43.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SG3 has high quality earnings.

Growing Profit Margin: SG3 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SG3's earnings have declined by -43.5% per year over the past 5 years.

Accelerating Growth: SG3 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SG3 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (-3.9%).


Return on Equity

High ROE: SG3's Return on Equity (2.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SigmaTron International's financial position?


Financial Position Analysis

Short Term Liabilities: SG3's short term assets ($108.7M) exceed its short term liabilities ($47.9M).

Long Term Liabilities: SG3's short term assets ($108.7M) exceed its long term liabilities ($44.4M).


Debt to Equity History and Analysis

Debt Level: SG3's debt to equity ratio (61.3%) is considered high.

Reducing Debt: SG3's debt to equity ratio has increased from 46.3% to 61.3% over the past 5 years.

Debt Coverage: SG3's debt is well covered by operating cash flow (37.6%).

Interest Coverage: SG3's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet

Inventory Level: SG3 has a high level of physical assets or inventory.

Debt Coverage by Assets: SG3's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is SigmaTron International's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SG3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SG3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SG3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SG3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SG3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

23.0yrs

Average management tenure


CEO

Gary Fairhead (67yo)

26.3yrs

Tenure

US$325,851

Compensation

Mr. Gary R. Fairhead has been the Chairman of Sigmatron International Inc. since August 17, 2011 and has been the Chief Executive Officer and President since January 1990. Mr. Fairhead has been a Director  ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD325.85K) is about average for companies of similar size in the German market ($USD412.50K).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Fairhead
Chairman26.3yrsUS$325.85k2.08% $303.2k
Linda Frauendorfer
CFO, VP of Finance8.5yrsUS$249.04kno data
Rajesh Upadhyaya
Executive Vice President of West Coast Operations15.1yrsUS$270.91kno data
Gregory Fairhead
Executive VP & Assistant Secretary20yrsUS$233.59kno data
James Barnes
Executive Vice President of Acuna & Elk Grove Village Operations2yrsno datano data
John Sheehan
VP, Director of Supply Chain & Assistant Secretary26yrsUS$143.21k0.63% $91.3k

23.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: SG3's management team is seasoned and experienced (23 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Fairhead
Chairman26.3yrsUS$325.85k2.08% $303.2k
Linda Frauendorfer
CFO, VP of Finance8.5yrsUS$249.04kno data
Paul Plante
Independent Director8.5yrsUS$73.78k0.37% $53.3k
Thomas Rieck
Independent Director26.3yrsUS$80.38k0.63% $91.8k
Dilip Vyas
Lead Independent Director8.4yrsUS$77.14k0.37% $53.3k
Barry Horek
Independent Director8.5yrsUS$73.78k0.37% $53.3k
Bruce Mantia
Independent Director8.5yrsUS$77.08k0.47% $68.8k

8.5yrs

Average Tenure

67yo

Average Age

Experienced Board: SG3's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SigmaTron International, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SigmaTron International, Inc.
  • Ticker: SG3
  • Exchange: DB
  • Founded: 1993
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$15.740m
  • Listing Market Cap: US$14.584m
  • Shares outstanding: 4.24m
  • Website: https://www.sigmatronintl.com

Number of Employees


Location

  • SigmaTron International, Inc.
  • 2201 Landmeier Road
  • Elk Grove Village
  • Illinois
  • 60007
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGMANasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDFeb 1994
SG3DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1994

Biography

SigmaTron International, Inc. operates as an independent provider of electronic manufacturing services (EMS). Its EMS services include the production of printed circuit board assemblies and completely assembled (box-build) electronic products. The company also offers automatic and manual assembly, and testing of products; material sourcing and procurement services; manufacturing and test engineering support services; design services; warehousing and distribution services; and assistance in obtaining product approval from governmental and other regulatory bodies. It primarily serves customers operating in the industrial electronics, consumer electronics, and medical/life sciences industries in the United States, Mexico, China, Vietnam, and Taiwan. The company markets its services through independent manufacturers’ representative organizations. SigmaTron International, Inc. was founded in 1993 and is headquartered in Elk Grove Village, Illinois. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 23:14
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.