SCI Engineered Materials, Inc. (SCIA)
Technology · OQB
Fundamentals
Valuation and ratings
SCI Engineered Materials, Inc. trades at USD7.10, which is 117% below the USD15.40 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 38 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 17.8 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About SCI Engineered Materials, Inc.
SCI Engineered Materials, Inc. manufactures and supplies materials for physical vapor deposition thin film applications in the United States. The company offers ceramic powders, metal sputtering targets, and backing plates for use in aerospace, automotive, defense, glass, optical coating, photonic, media storage, flat panel display, semiconductor, computer processor, thin film solar, and photovoltaic industries. Its materials are used to produce nano layers of metals and oxides for advanced material systems; and to apply decorative coatings for end uses, such as sink faucets and glasses, as well as to produce various electronic, photonic, and semiconductor products. The company serves domestic and multi-national corporations, universities, and research institutions. The company was formerly known as Superconductive Components, Inc. and changed its name to SCI Engineered Materials, Inc. in August 2007. SCI Engineered Materials, Inc. was incorporated in 1987 and is headquartered in Columbus, Ohio.
SCIA passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is SCI Engineered Materials, Inc. (SCIA) undervalued?
Against our discounted cash flow estimate of USD15.40, SCIA at USD7.10 is 117% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is SCIA's P/E ratio?
SCIA trades at 17.8 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.