OTCPK:SCIA

Stock Analysis Report

Executive Summary

SCI Engineered Materials, Inc. manufactures and supplies materials for physical vapor deposition thin film applications.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has SCI Engineered Materials's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SCIA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

SCIA

-0.1%

US Semiconductor

0.9%

US Market


1 Year Return

-59.7%

SCIA

39.4%

US Semiconductor

16.8%

US Market

Return vs Industry: SCIA underperformed the US Semiconductor industry which returned 39.4% over the past year.

Return vs Market: SCIA underperformed the US Market which returned 16.8% over the past year.


Shareholder returns

SCIAIndustryMarket
7 Day0%-0.1%0.9%
30 Day-16.6%8.6%4.5%
90 Day-24.4%13.4%6.2%
1 Year-59.7%-59.7%42.2%39.4%19.4%16.8%
3 Year98.0%98.0%83.6%73.2%47.5%38.0%
5 Year8.0%8.0%135.2%111.4%62.0%44.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is SCI Engineered Materials undervalued compared to its fair value and its price relative to the market?

7.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SCIA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SCIA's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SCIA is good value based on its PE Ratio (7.2x) compared to the Semiconductor industry average (29.8x).

PE vs Market: SCIA is good value based on its PE Ratio (7.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SCIA is good value based on its PB Ratio (1.5x) compared to the US Semiconductor industry average (2.8x).


Next Steps

Future Growth

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

19.8%

Forecasted Semiconductors 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 SCI Engineered Materials 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

  • Examine whether SCI Engineered Materials is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access SCI Engineered Materials's filings and announcements here.
  • Explore growth companies in the Semiconductors industry.

Past Performance

How has SCI Engineered Materials performed over the past 5 years?

53.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SCIA has a high level of non-cash earnings.

Growing Profit Margin: SCIA's current net profit margins (5.1%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: SCIA has become profitable over the past 5 years, growing earnings by 53.7% per year.

Accelerating Growth: SCIA's earnings growth over the past year (39.3%) is below its 5-year average (53.7% per year).

Earnings vs Industry: SCIA earnings growth over the past year (39.3%) exceeded the Semiconductor industry -14.2%.


Return on Equity

High ROE: SCIA's Return on Equity (18.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SCI Engineered Materials's financial position?


Financial Position Analysis

Short Term Liabilities: SCIA's short term assets ($5.2M) exceeds its short term liabilities ($3.2M)

Long Term Liabilities: SCIA's short term assets ($5.2M) exceeds its long term liabilities (561.6K)


Debt to Equity History and Analysis

Debt Level: SCIA is debt free.

Reducing Debt: SCIA has no debt compared to 5 years ago when its debt to equity ratio was 34.2%.

Debt Coverage: SCIA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SCIA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SCIA's debt is covered by short term assets.


Next Steps

Dividend

What is SCI Engineered Materials's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SCIA'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 SCIA'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 SCI Engineered Materials's salary, the management and board of directors tenure and is there insider trading?

12.9yrs

Average management tenure


CEO

Jeremy Young (40yo)

0.4yrs

Tenure

US$234,538

Compensation

Mr. Jeremiah Ray Young, also known as Jeremy, has been the Chief Executive Officer and Director of SCI Engineered Materials, Inc. since June 05, 2019. Mr. Young has been President of SCI Engineered Materia ...


CEO Compensation Analysis

Compensation vs Market: Jeremy's total compensation ($USD234.54K) is below average for companies of similar size in the US market ($USD505.35K).

Compensation vs Earnings: Jeremy's compensation has increased by more than 20% in the past year.


Management Age and Tenure

12.9yrs

Average Tenure

Experienced Management: SCIA's management team is seasoned and experienced (12.9 years average tenure).


Board Age and Tenure

2.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: SCIA's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


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$12,15022 Mar 19
Edward Ungar
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$4.05
BuyUS$12,15022 Mar 19
Laura Shunk
EntityIndividual
Role
Chairman of the Board
Chairperson of the Board
Shares3,000
Max PriceUS$4.05
BuyUS$5,10312 Feb 19
Laura Shunk
EntityIndividual
Role
Chairman of the Board
Chairperson of the Board
Shares1,350
Max PriceUS$3.78

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.3%.


Management Team

  • Gerald Blaskie (61yo)

    CFO, VP & Treasurer

    • Tenure: 18.6yrs
    • Compensation: US$235.10k
  • Michael Smith

    Corporate Secretary

    • Tenure: 12.9yrs
  • Jeremy Young (40yo)

    CEO & President

    • Tenure: 0.4yrs
    • Compensation: US$234.54k

Board Members

  • Charles Wickersham (67yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$30.48k
  • Edward Ungar (83yo)

    Independent Director

    • Tenure: 29.8yrs
    • Compensation: US$30.48k
  • Laura Shunk (61yo)

    Chairperson of the Board

    • Tenure: 0.6yrs
    • Compensation: US$32.98k
  • John Gilliam (64yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$35.48k
  • Emily Lu (69yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$57.47k
  • Jeremy Young (40yo)

    CEO & President

    • Tenure: 0.4yrs
    • Compensation: US$234.54k

Company Information

SCI Engineered Materials, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SCI Engineered Materials, Inc.
  • Ticker: SCIA
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Semiconductor Equipment
  • Sector: Semiconductors
  • Market Cap: US$5.255m
  • Shares outstanding: 4.34m
  • Website: https://www.sciengineeredmaterials.com

Number of Employees


Location

  • SCI Engineered Materials, Inc.
  • 2839 Charter Street
  • Columbus
  • Ohio
  • 43228
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SCIAOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 1990

Biography

SCI Engineered Materials, Inc. manufactures and supplies materials for physical vapor deposition thin film applications. The company offers ceramic targets, metal sputtering targets, and backing plates for ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 00:08
End of Day Share Price2019/11/19 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.