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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#468
Positioning
Market Dominance
Manufacturing
Aircraft
$44M
Peter W. Knapper
SIFCO Industries, Inc. produces and sells forgings and machined components primarily for the aerospace and energy markets in North America and Europe. The company's processes and services include forging, heat-treating, and machining. It offers original equipment manufacturer and aftermarket components for aircraft and industrial gas turbine engines.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = SIF ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$SIF SIFCO INDUSTRIES INC | 62 | 60 | 61 | 83 | 20.1x | 12.2x | 10.0% | 5.2% | 17.2% | 6.9% | 4.0% | 16.9% | 0.0% | 94.0x | $44M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
SIFCO INDUSTRIES INC (SIF) receives a "Hold" rating with a composite score of 62.4/100. It ranks #468 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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YOY expansion rate
Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Peter W. Knapper
Chief Executive Officer
Labor Force
350
60
37
50
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for SIF
Outperforming peers — winners tend to keep winning over 3-12 months
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for SIF.
View All RatingsMaterial decline in asset turnover efficiency detected
High margin volatility — erratic forensic earnings quality
ROE proxy 10.0% (sector -2.5%)
GM 17% vs sector 43%, OM 7% vs sector 1%
Capital turnover N/A
Rev growth 17%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
Our model assigns SIFCO INDUSTRIES INC a Hold rating, with a composite score of 62.4/100 and 3 out of 5 stars. Ranked #468 of 7,333 stocks, SIF presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 60/100, SIF shows adequate but unremarkable business quality. The company reports a return on equity of 10.0% (sector avg: -2.5%), gross margins of 17.2% (sector avg: 42.5%), net margins of 4.0% (sector avg: -0.2%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
SIF's value score of 61/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 20.13x, an EV/EBITDA of 12.22x, a P/B ratio of 2.02x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
SIFCO INDUSTRIES INC's investment score of 37/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 16.9% vs. a sector average of 5.9% and a return on assets of 5.2% (sector: -0.1%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
SIF shows strong momentum characteristics with a score of 83/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 16.9% year-over-year, while a beta of 0.59 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 50/100, SIF exhibits average financial resilience. Key stability metrics include a beta of 0.59 and a debt-to-equity ratio of 94.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
The short interest score of 54/100 for SIF suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 94.00x), micro-cap liquidity risk. With a $44M market cap (micro-cap), SIFCO INDUSTRIES INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
SIFCO INDUSTRIES INC is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #468 of 7,333 overall (94th percentile). Key comparisons include ROE of 10.0% exceeding the -2.5% sector median and operating margins of 6.9% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SIF currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Momentum (83) vs Investment (37) — closing this gap could shift the rating.
EV/EBITDA 7% ABOVE SECTOR MEDIAN
ROE 504% BELOW SECTOR MEDIAN
Gross Margin 59% BELOW SECTOR MEDIAN
AUDIT DATA AS OF DEC 31, 2025 (Q3 FY2025)
We rate SIFCO INDUSTRIES INC (SIF) as a Hold with a composite score of 62.4/100 at a current price of $14.63. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling for existing holders. Our factors are split, and the overall profile suggests patience is warranted.
The rating is primarily driven by strength in momentum (83th percentile) and value (61th percentile), which together account for the majority of the composite score. Offsetting weakness in investment (37th percentile) and stability (50th percentile) tempers our overall conviction. We assign a No Moat rating (32/100), Low uncertainty, and Poor capital allocation.
Key items to watch: quarterly earnings execution and sector-level competitive dynamics. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
SIFCO INDUSTRIES INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 62.4/100 places it at rank #468 in our full 7,333-stock universe. At $44M in market capitalization, SIFCO INDUSTRIES INC is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
The near-term outlook is constructive, with revenue growing at 17% and momentum in the 83th percentile confirming positive market sentiment and institutional accumulation. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy. Investment factor at the 37th percentile indicates reinvestment patterns that investors should monitor for sustainability.
The margin cascade tells an important story: gross margins of 17% (-25.3pp vs sector) narrow to operating margins of 7% (+5.6pp vs sector) and net margins of 4.0%, yielding a gross-to-net conversion rate of 23%. This conversion rate is typical for the sector, suggesting a standard cost structure without notable efficiency advantages or disadvantages.
At a current price of $14.63, SIFCO INDUSTRIES INC is trading near fair value based on current fundamentals. Our value factor score of 61/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 20.1x (roughly in line with the sector median of 22.3x), EV/EBITDA of 12.2x (near the sector median), P/B of 2.0x, P/S of 0.9x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
Revenue growth of 17% confirms the business is expanding its addressable market — growth at this level typically supports multiple expansion and attracts institutional capital.
Positive momentum (83th percentile) indicates institutional accumulation and favorable technical dynamics that tend to persist in the intermediate term.
Even high-quality stocks face risks from valuation compression, competitive disruption, or macro shocks that are difficult to quantify in advance.
We assign a Low uncertainty rating to SIFCO INDUSTRIES INC. The company exhibits strong financial stability with a beta of 0.59, and a stability factor in the 50th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: low beta of 0.59 — while defensive, this may indicate limited upside participation in bull markets; the combination of leverage (94% D/E) and thin margins (4.0% net) amplifies downside risk. Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 50th percentile and quality factor at the 60th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our low uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate SIFCO INDUSTRIES INC's capital allocation as Poor. Key concerns include suboptimal returns on capital. Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — SIFCO INDUSTRIES INC significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, SIFCO INDUSTRIES INC receives a Hold rating with a composite score of 62.4/100 (rank #468 of 7,333). Our quantitative framework assigns a No Moat (32/100, trend: stable), Low uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 58/100.
Our analysis supports a neutral stance on SIFCO INDUSTRIES INC. While the quantitative profile is not weak enough to warrant selling, it lacks the multi-factor strength required for a buy recommendation. Existing holders should maintain positions and monitor for catalysts — either fundamental improvement or valuation compression — that would shift the risk-reward balance.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign SIFCO INDUSTRIES INC a meaningful economic moat, scoring 32/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, growth durability, reached only 15.2/20.
The strongest moat sources are growth durability (15.2/20) and financial resilience (7/20). Rev growth 17%, 11yr history. Interest coverage N/A. These pillars form the core of SIFCO INDUSTRIES INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and economic value creation (4.1/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect SIFCO INDUSTRIES INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include robust top-line growth of 17% expanding the revenue base. The margin cascade from 17% gross to 7% operating to 4.0% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 60th percentile.
The margin profile shows gross margins of 17%, operating margins of 7%, net margins of 4.0%. Return metrics include ROE of 10.0% and ROA of 5.2%. Relative to the Manufacturing sector, gross margins are 25.3 percentage points below the sector median of 43%, and ROE of 10.0% compares to a sector median of -2.5%.
The balance sheet reflects above-average leverage with D/E of 94%, revenue growth of 17%. The sector median D/E is 0%, putting SIFCO INDUSTRIES INC at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
Above 50MA
37.18%
Net New Highs
+51081
Sifco Industries reported a significant turnaround in Q3 fiscal 2025, with earnings per share jumping to $0.54 from a loss of $0.16 in the previous year. Revenue remained nearly flat at $22.1 million, but the company saw substantial improvements in operational profitability and margins.
SIF is riding a sharp rally as a return to profitability, stronger margins and rising aerospace demand lift investor sentiment.
SIF delivers a return to profitability in first-quarter fiscal 2026 as military demand strengthens, margins expand and backlog growth points to sustained momentum.
CLEVELAND, February 11, 2026--SIFCO Industries, Inc. (NYSE American: SIF) today announced financial results for its first quarter of fiscal 2026, which ended December 31, 2025.