AMEX:SVT

Stock Analysis Report

Executive Summary

Servotronics, Inc. designs, manufactures, and markets control components and consumer products in the United States and internationally.

Rewards

PE ratio (8.3x) is below the US market (18.9x)

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($26M)



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.7%

SVT

1.6%

US Electrical

2.0%

US Market


1 Year Return

-2.9%

SVT

23.6%

US Electrical

23.6%

US Market

Return vs Industry: SVT underperformed the US Electrical industry which returned 24.7% over the past year.

Return vs Market: SVT underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SVTIndustryMarket
7 Day2.7%1.6%2.0%
30 Day7.9%1.6%3.9%
90 Day6.3%14.6%12.0%
1 Year-1.3%-2.9%26.2%23.6%26.2%23.6%
3 Year13.2%7.7%41.3%33.1%53.2%43.3%
5 Year84.3%68.0%58.8%42.6%75.7%56.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SVT ($10.5) is trading above our estimate of fair value ($2.12)

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


Price To Earnings Ratio

PE vs Industry: SVT is good value based on its PE Ratio (8.3x) compared to the Electrical industry average (18x).

PE vs Market: SVT is good value based on its PE Ratio (8.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SVT is good value based on its PB Ratio (0.8x) compared to the US Electrical industry average (1.8x).


Next Steps

Future Growth

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

9.3%

Forecasted Capital Goods 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 Servotronics 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 Servotronics performed over the past 5 years?

32.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SVT has high quality earnings.

Growing Profit Margin: SVT's current net profit margins (5.8%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: SVT has become profitable over the past 5 years, growing earnings by 32.9% per year.

Accelerating Growth: SVT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SVT had negative earnings growth (-2.1%) over the past year, making it difficult to compare to the Electrical industry average (4.2%).


Return on Equity

High ROE: SVT's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Servotronics's financial position?


Financial Position Analysis

Short Term Liabilities: SVT's short term assets ($32.4M) exceed its short term liabilities ($7.4M).

Long Term Liabilities: SVT's short term assets ($32.4M) exceed its long term liabilities ($5.2M).


Debt to Equity History and Analysis

Debt Level: SVT's debt to equity ratio (11.1%) is considered satisfactory.

Reducing Debt: SVT's debt to equity ratio has reduced from 17.6% to 11.1% over the past 5 years.

Debt Coverage: SVT's debt is not well covered by operating cash flow (16.1%).

Interest Coverage: SVT's interest payments on its debt are well covered by EBIT (31.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: SVT's debt is covered by short term assets (assets are 8.8x debt).


Next Steps

Dividend

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

1.47%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SVT's dividend (1.52%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SVT's dividend (1.52%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: SVT's dividend payments have been volatile in the past 10 years.

Growing Dividend: SVT's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.6%), SVT's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Ken Trbovich (44yo)

2.2yrs

Tenure

US$602,945

Compensation

Mr. Kenneth D. Trbovich, also known as Ken, has been the Chairman of the Board and Chief Executive Officer of Servotronics, Inc. since November 16, 2017 and serves as its President from September 29, 2012. ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD602.95K) is about average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

3.0yrs

Average Tenure

61yo

Average Age

Experienced Management: SVT's management team is considered experienced (3 years average tenure).


Board Age and Tenure

3.5yrs

Average Tenure

48yo

Average Age

Experienced Board: SVT's board of directors are considered experienced (3.5 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$2,02227 Aug 19
Jason Bear
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares200
Max PriceUS$10.11
SellUS$8,61527 Aug 19
Jason Bear
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares872
Max PriceUS$9.88

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.6%.


Management Team

  • Sam San Filippo (70yo)

    Senior Vice President

    • Tenure: 15yrs
    • Compensation: US$270.83k
  • Bernadine Kucinski

    Corporate Secretary

    • Ken Trbovich (44yo)

      Chairman

      • Tenure: 2.2yrs
      • Compensation: US$602.95k
    • Edward Cosgrove (84yo)

      Director

      • Tenure: 7.2yrs
      • Compensation: US$60.00k
    • Jim Takacs (53yo)

      Chief Operating Officer

      • Tenure: 3.3yrs
      • Compensation: US$215.84k
    • Lisa Bencel (61yo)

      CFO & Treasurer

      • Tenure: 3yrs
      • Compensation: US$299.95k

    Board Members

    • Ken Trbovich (44yo)

      Chairman

      • Tenure: 2.2yrs
      • Compensation: US$602.95k
    • Edward Cosgrove (84yo)

      Director

      • Tenure: 7.2yrs
      • Compensation: US$60.00k
    • Lucion Gygax (48yo)

      Independent Director

      • Tenure: 4.5yrs
      • Compensation: US$70.00k
    • Chris Marks (54yo)

      Independent Director

      • Tenure: 3.5yrs
      • Compensation: US$70.00k
    • Jason Bear (37yo)

      Independent Director

      • Tenure: 2.7yrs
      • Compensation: US$65.83k

    Company Information

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


    Key Information

    • Name: Servotronics, Inc.
    • Ticker: SVT
    • Exchange: AMEX
    • Founded: 1959
    • Industry: Electrical Components and Equipment
    • Sector: Capital Goods
    • Market Cap: US$26.010m
    • Shares outstanding: 2.49m
    • Website: https://www.servotronics.com

    Number of Employees


    Location

    • Servotronics, Inc.
    • 1110 Maple Street
    • Post Office Box 300
    • Elma
    • New York
    • 14059
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    SVTAMEX (NYSE MKT LLC)YesCommon StockUSUSDNov 1981

    Biography

    Servotronics, Inc. designs, manufactures, and markets control components and consumer products in the United States and internationally. The company operates in two segments, Advanced Technology Group (ATG) and Consumer Products Group (CPG). The ATG segment provides servo-control components to the commercial aerospace, aircraft, and government related industries; and medical and industrial markets. This segment’s principal components include torque motors, electromagnetic actuators, hydraulic and pneumatic valves, and related devices that convert an electrical current into a mechanical force or movement, and other products. It also offers metallic seals of various cross-sectional configurations to close tolerances from standard and special alloy steels. This segment markets and sells its products to the United States Government, government prime contractors, government subcontractors, commercial manufacturers, and end-users. The CPG segment provides cutlery products, including steak, carving, bread, butcher, and paring knives for household use, as well as for use in restaurants, institutions, and the private industry; fixed and folding knives for hunting, fishing, and camping; and machetes, bayonets, axes, strap cutters, and other tools primarily for military and rescue/first-responder use, as well as for commercial markets. It also offers various specialty tools, putty knives, linoleum sheet cutters, field knives, scalpels, and micro-spatulas; and plastic and metal fabrication, as well as engineering, design, and OEM/white-label manufacturing services to customers in the consumer and commercial industries. This segment markets its products through its sales resources and independent manufacturers’ representatives to big box, hardware, supermarket, variety, department, discount, gift, drug, outdoor, and sporting stores, as well as various branches; and electronic commerce. Servotronics, Inc. was founded in 1959 and is headquartered in Elma, New York. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:41
    End of Day Share Price2020/01/17 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.