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Introduction SCI Engineered Materials, Inc. ( SCI , our , we or the Company ), an Ohio corporation, was incorporated in 1987. We operate in one segment as a global supplier and manufacturer of advanced materials for Physical Vapor Deposition ( PVD ) thin film applications.
Operating margin is thin at 9.33%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue declined 14.3% YoY. The question is whether this is cyclical or a structural shift.
ROIC dropped from 11.40% to 8.83%, capital efficiency is deteriorating.
Profitability & Returns
Revenue (TTM)
$24M
▼ -14.3% YoY
Net Income (TTM)
$2M
▼ -6.2% YoY
Op. Margin
8.31%
▲ +0.4pp YoY
ROIC
9.47%
▼ -2.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$2M
▲ +22.7% YoY
Op. Cash Flow (TTM)
$4M
▲ +39.2% YoY
Net Debt
-$8M
Net Cash Position
Cash & Equiv.
$9M
5Y CAGR: +12.5%
5Y CAGR: +20.3%
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