NasdaqCM:SGMA

Stock Analysis Report

SigmaTron International

Executive Summary

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

Snowflake

Fundamentals

Fair value with moderate growth potential.


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


Market Performance


7 Day Return

-0.6%

SGMA

2.4%

US Electronic

0.07%

US Market


1 Year Return

-9.6%

SGMA

16.3%

US Electronic

8.9%

US Market

Return vs Industry: SGMA underperformed the US Electronic industry which returned 16.3% over the past year.

Return vs Market: SGMA underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

SGMAIndustryMarket
7 Day-0.6%2.4%0.07%
30 Day-5.1%3.7%-0.3%
90 Day11.7%2.3%-1.6%
1 Year-9.6%-9.6%17.5%16.3%11.3%8.9%
3 Year-23.0%-23.0%55.8%51.4%46.3%36.8%
5 Year-43.1%-43.1%83.7%74.7%62.1%44.3%

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

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: SGMA ($4.12) is trading below our estimate of fair value ($9.39)

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


Price To Earnings Ratio

PE vs Industry: SGMA is poor value based on its PE Ratio (774.6x) compared to the Electronic industry average (19.6x).

PE vs Market: SGMA is poor value based on its PE Ratio (774.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SGMA is good value based on its PB Ratio (0.3x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

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

42.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SGMA's forecast earnings growth (42.3% per year) is above the savings rate (2.7%).

Earnings vs Market: SGMA's earnings (42.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if SGMA's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if SGMA's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has SigmaTron International performed over the past 5 years?

-50.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SGMA's earnings have declined by -50.9% per year over the past 5 years.

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

Earnings vs Industry: SGMA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (58.6%).


Return on Equity

High ROE: SGMA's Return on Equity (0.04%) is considered low.


Return on Assets

ROA vs Industry: SGMA's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: SGMA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is SigmaTron International's financial position?


Financial Position Analysis

Short Term Liabilities: SGMA's short term assets ($113.1M) exceeds its short term liabilities ($48.8M)

Long Term Liabilities: SGMA's short term assets (113.1M) exceeds its long term liabilities (48.4M)


Debt to Equity History and Analysis

Debt Level: SGMA's debt to equity ratio (70.2%) is considered high

Reducing Debt: SGMA's debt to equity ratio has increased from 47.2% to 70.2% over the past 5 years.

Debt Coverage: SGMA's debt is not well covered by operating cash flow (14.3%).

Interest Coverage: SGMA's interest payments on its debt are not well covered by EBIT (1.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: SGMA's debt is covered by short term assets (assets are 2.745920x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if SGMA'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 SGMA'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 SigmaTron International's salary, the management and board of directors tenure and is there insider trading?

22.7yrs

Average management tenure


CEO

Gary Fairhead (67yo)

25.9yrs

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 ($USD325.85K) is about average for companies of similar size in the US market ($USD509.30K).

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


Management Age and Tenure

22.7yrs

Average Tenure

60.5yo

Average Age

Experienced Management: SGMA's management team is seasoned and experienced (22.7 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

67yo

Average Age

Experienced Board: SGMA's board of directors are considered experienced (8.2 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

BuyUS$26,10018 Dec 18
Thomas Rieck
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$2.61
BuyUS$25,95717 Dec 18
Gary Fairhead
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares10,000
Max PriceUS$2.60

Ownership Breakdown


Management Team

  • Gary Fairhead (67yo)

    Chairman

    • Tenure: 25.9yrs
    • Compensation: US$325.85k
  • Linda Frauendorfer (58yo)

    CFO, VP of Finance

    • Tenure: 8.2yrs
    • Compensation: US$249.04k
  • Gregory Fairhead (63yo)

    Executive VP & Assistant Secretary

    • Tenure: 19.7yrs
    • Compensation: US$233.59k
  • John Sheehan (58yo)

    VP, Director of Supply Chain & Assistant Secretary

    • Tenure: 25.7yrs
    • Compensation: US$143.21k
  • Rajesh Upadhyaya (64yo)

    Executive Vice President of West Coast Operations

    • Tenure: 14.8yrs
    • Compensation: US$270.91k
  • Jim Barnes (37yo)

    Executive Vice President of Acuna & Elk Grove Village Operations

    • Tenure: 1.7yrs

Board Members

  • Paul Plante (61yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$73.78k
  • Gary Fairhead (67yo)

    Chairman

    • Tenure: 25.9yrs
    • Compensation: US$325.85k
  • Linda Frauendorfer (58yo)

    CFO, VP of Finance

    • Tenure: 8.2yrs
    • Compensation: US$249.04k
  • Thomas Rieck (74yo)

    Independent Director

    • Tenure: 25.9yrs
    • Compensation: US$80.38k
  • Dilip Vyas (71yo)

    Lead Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$77.14k
  • Barry Horek (67yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$73.78k
  • Bruce Mantia (72yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$77.08k

Company Information

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


Key Information

  • Name: SigmaTron International, Inc.
  • Ticker: SGMA
  • Exchange: NasdaqCM
  • Founded: 1993
  • Industry: Electronic Manufacturing Services
  • Sector: Tech
  • Market Cap: US$17.479m
  • 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 asse ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:40
End of Day Share Price2019/10/22 00:00
Earnings2019/07/31
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.