(SRI) Stoneridge - Ratings and Ratios

Stoneridge Inc (NYSE:SRI) is a global supplier of engineered electrical and electronic systems for the automotive and commercial vehicle industries, operating across multiple continents and serving a diverse customer base of original equipment manufacturers (OEMs), tier 1 suppliers, and aftermarket distributors.

The companys product portfolio is diversified across three business segments: Control Devices, Electronics, and Stoneridge Brazil. The Control Devices segment focuses on producing actuators, sensors, and switches that are critical for vehicle functionality, while the Electronics segment designs and manufactures advanced driver information systems, vision systems, and telematics solutions that enhance vehicle performance, safety, and connectivity.

Stoneridge Brazil is a key subsidiary that offers a range of vehicle tracking devices, security alarms, and telematics solutions that cater to the specific needs of the Latin American market. The companys products are designed to collect, store, and display critical vehicle data, enabling fleet managers and drivers to optimize vehicle performance, improve safety, and reduce costs.

From a technical analysis perspective, SRIs stock price has been trending downwards, with its 200-day simple moving average (SMA) at $7.68, significantly higher than its current price of $4.77. The stocks average true range (ATR) is 0.38, indicating a relatively high level of volatility. Using the SMA20 and SMA50 as indicators, the stock is showing a bullish crossover signal, suggesting a potential short-term uptrend.

Fundamentally, Stoneridge Inc has a market capitalization of $126.14M and a forward price-to-earnings ratio of 20.41, indicating that the stock may be undervalued relative to its growth prospects. However, the companys return on equity (RoE) is currently negative, at -6.77%, suggesting that it may be facing some operational challenges.

Forecasting the stocks performance using a combination of technical and fundamental data, we can expect SRI to potentially break above its current resistance level and trend towards its 52-week high of $17.85, driven by a recovery in its operational performance and a positive outlook for the automotive industry. However, this is contingent on the company addressing its current operational challenges and improving its RoE. A more conservative estimate would suggest a target price of $6.50-$7.50 in the short to medium term, based on a combination of its SMA200 and forward P/E ratio.