NYSE:SRI

Stock Analysis Report

Executive Summary

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets.

Rewards

PE ratio (12.8x) is below the US market (18.5x)

Earnings grew by 12.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -1.4% per year for the next 3 years

Has a high level of debt

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.9%

SRI

1.3%

US Auto Components

0.03%

US Market


1 Year Return

25.9%

SRI

9.6%

US Auto Components

18.6%

US Market

Return vs Industry: SRI exceeded the US Auto Components industry which returned 9.6% over the past year.

Return vs Market: SRI exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

SRIIndustryMarket
7 Day2.9%1.3%0.03%
30 Day0.6%-3.6%1.7%
90 Day-1.4%7.5%5.7%
1 Year25.9%25.9%11.2%9.6%21.1%18.6%
3 Year73.2%73.2%1.1%-9.1%45.6%36.2%
5 Year178.0%178.0%22.1%4.7%71.1%52.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.77x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SRI ($31) is trading above our estimate of fair value ($24.14)

Significantly Below Fair Value: SRI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SRI is good value based on its PE Ratio (12.8x) compared to the Auto Components industry average (17.1x).

PE vs Market: SRI is good value based on its PE Ratio (12.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SRI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SRI is overvalued based on its PB Ratio (3.1x) compared to the US Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Stoneridge forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-1.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRI's earnings are forecast to decline over the next 3 years (-1.4% per year).

Earnings vs Market: SRI's earnings are forecast to decline over the next 3 years (-1.4% per year).

High Growth Earnings: SRI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SRI's revenue (2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: SRI's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SRI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Stoneridge performed over the past 5 years?

40.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRI has a large one-off gain of $19.4M impacting its September 30 2019 financial results.

Growing Profit Margin: SRI's current net profit margins (8%) are higher than last year (7%).


Past Earnings Growth Analysis

Earnings Trend: SRI has become profitable over the past 5 years, growing earnings by 40.9% per year.

Accelerating Growth: SRI's earnings growth over the past year (12.3%) is below its 5-year average (40.9% per year).

Earnings vs Industry: SRI earnings growth over the past year (12.3%) exceeded the Auto Components industry 4.1%.


Return on Equity

High ROE: SRI's Return on Equity (24.6%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Stoneridge's financial position?


Financial Position Analysis

Short Term Liabilities: SRI's short term assets ($331.2M) exceed its short term liabilities ($160.6M).

Long Term Liabilities: SRI's short term assets ($331.2M) exceed its long term liabilities ($156.8M).


Debt to Equity History and Analysis

Debt Level: SRI's debt to equity ratio (40.4%) is considered high.

Reducing Debt: SRI's debt to equity ratio has reduced from 117% to 40.4% over the past 5 years.

Debt Coverage: SRI's debt is well covered by operating cash flow (48%).

Interest Coverage: SRI's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SRI'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 SRI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SRI'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 SRI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Stoneridge's salary, the management and board of directors tenure and is there insider trading?

2.8yrs

Average management tenure


CEO

Jon DeGaynor (52yo)

4.8yrs

Tenure

US$3,142,035

Compensation

Mr. Jonathan B. DeGaynor, also known as Jon, has been the Chief Executive Officer and President of Stoneridge Inc. since March 30, 2015. Mr. DeGaynor served as the Vice President of Strategic Planning and  ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD3.14M) is about average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

2.8yrs

Average Tenure

50yo

Average Age

Experienced Management: SRI's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

12.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: SRI's board of directors are seasoned and experienced ( 12 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$161,02913 Jun 19
Robert Hartman
EntityIndividual
Role
Chief Accounting Officer
Chief Accounting Officer
Shares5,601
Max PriceUS$28.75
SellUS$432,00012 Jun 19
Anthony Moore
EntityIndividual
Shares15,022
Max PriceUS$28.76
SellUS$558,75431 May 19
Thomas Beaver
EntityIndividual
Shares21,093
Max PriceUS$26.49
SellUS$185,50028 May 19
Anthony Moore
EntityIndividual
Shares7,000
Max PriceUS$26.50

Ownership Breakdown

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


Management Team

  • Jon DeGaynor (52yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$3.14m
  • Bob Krakowiak (48yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$1.21m
  • Bob Willig (56yo)

    President of the Control Devices Division

    • Tenure: 2.2yrs
    • Compensation: US$837.08k
  • Tom Dono (46yo)

    Chief Legal Officer & Secretary

    • Tenure: 1.9yrs
    • Compensation: US$885.73k
  • Theresa Mitchell

    Chief Information Officer

    • Tenure: 3.9yrs
  • Robert Hartman (52yo)

    Chief Accounting Officer

    • Tenure: 3.4yrs
  • Matthew Horvath

    Director of Investor Relations and M&A

    • Tenure: 0yrs
  • Laurent Borne (43yo)

    CTO & President of Electronics Division

    • Tenure: 1.3yrs
  • Regan Grant

    Director of Global Strategic Marketing & Communications

    • Tenure: 0yrs
  • Susan Benedict

    Chief Human Resources Officer and Assistant General Counsel of Labor & Employment

    • Tenure: 0.5yrs

Board Members

  • Bill Lasky (71yo)

    Non-Executive Chairman & Lead Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$262.50k
  • Douglas Jacobs (77yo)

    Independent Director

    • Tenure: 15.4yrs
    • Compensation: US$197.50k
  • Mary Kim Korth (64yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$195.00k
  • Ira Kaplan (65yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$185.00k
  • George Mayes (60yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$185.00k
  • Jeffrey Draime (52yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$185.00k
  • Jon DeGaynor (52yo)

    CEO, President & Director

    • Tenure: 4.8yrs
    • Compensation: US$3.14m
  • Paul Schlather (66yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$185.00k

Company Information

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


Key Information

  • Name: Stoneridge, Inc.
  • Ticker: SRI
  • Exchange: NYSE
  • Founded: 1965
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: US$814.113m
  • Shares outstanding: 27.40m
  • Website: https://www.stoneridge.com

Number of Employees


Location

  • Stoneridge, Inc.
  • 39675 MacKenzie Drive
  • Suite 400
  • Novi
  • Michigan
  • 48377
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRINYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1997
2GXDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1997

Biography

Stoneridge, Inc. designs and manufactures engineered electrical and electronic components, modules, and systems for the automotive, commercial, off-highway, motorcycle, and agricultural vehicle markets. Th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:47
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.