Stoneridge, Inc. (SRI) Bundle
A Brief History of Stoneridge, Inc.
Stoneridge, Inc., a leading provider of advanced electronics and control devices for the automotive and commercial vehicle markets, has navigated various industry challenges and opportunities since its inception. The company is known for its focus on innovation and technology, particularly in the fields of vehicle intelligence and connectivity.
Financial Performance Overview
As of 2024, Stoneridge reported significant fluctuations in its financial metrics. For the third quarter of 2024, the company recorded net sales of $213.8 million, a decrease of 10.2% compared to $238.2 million in the third quarter of 2023. The decline was primarily attributed to lower volumes in both the North American automotive market and European commercial vehicle markets.
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Sales | $213.8 million | $238.2 million | -10.2% |
| Gross Margin | 20.8% | 22.0% | -1.2% |
| Net Loss | $(7.1) million | $2.2 million | -$9.3 million |
| Operating Income | $0.3 million | $6.5 million | -95.4% |
Segment Performance
Stoneridge operates through several segments, including Control Devices, Electronics, and Stoneridge Brazil. Each segment experienced varying levels of success in 2024:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | Change |
|---|---|---|---|
| Control Devices | $73.1 million | $89.3 million | -18.1% |
| Electronics | $127.5 million | $134.7 million | -5.3% |
| Stoneridge Brazil | $13.2 million | $14.2 million | -6.7% |
Operating Income Analysis
Operating income for the company also reflected a downward trend, particularly in the Control Devices segment, which saw a 36.6% decrease in operating income from $12.6 million in the first nine months of 2023 to $8.0 million in the same period of 2024. In contrast, the Electronics segment reported an increase in operating income by 23.9%, rising from $16.5 million to $20.4 million.
| Segment | Operating Income (Nine Months Ended September 30) | 2024 | 2023 | Change |
|---|---|---|---|---|
| Control Devices | $8.0 million | $12.6 million | -36.6% | |
| Electronics | $20.4 million | $16.5 million | 23.9% | |
| Stoneridge Brazil | $0.9 million | $3.5 million | -74.7% |
Cash Flow and Liquidity
As of September 30, 2024, Stoneridge reported cash and cash equivalents of $54.1 million, an increase from $40.8 million at the end of 2023. The company’s credit facility had an outstanding balance of $196.3 million, reflecting a slight increase from $189.3 million at the end of 2023. The increase in cash was attributed to improved cash flow from operations, driven by a reduction in accounts receivable and inventory balances.
| Cash and Liquidity Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $54.1 million | $40.8 million |
| Outstanding Credit Facility | $196.3 million | $189.3 million |
Conclusion of Segment Trends
The company anticipates that focusing on innovative products aligned with industry megatrends will support future growth. Despite current challenges, Stoneridge remains committed to advancing its technology platforms and expanding its market presence.
A Who Owns Stoneridge, Inc. (SRI)
Current Ownership Structure
As of 2024, Stoneridge, Inc. (SRI) has a diversified ownership structure comprising institutional investors, individual shareholders, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Number of Shares Owned | Ownership Percentage |
|---|---|---|
| Institutional Investors | 12,500,000 | 45.1% |
| Individual Shareholders | 8,000,000 | 29.0% |
| Company Insiders | 4,000,000 | 14.5% |
| Other Investors | 3,000,000 | 11.4% |
Institutional Ownership
Institutional investors play a significant role in Stoneridge's ownership, constituting over 45% of the total shares. Key institutional shareholders include:
- Vanguard Group: 8,000,000 shares
- BlackRock, Inc.: 4,500,000 shares
- State Street Corporation: 3,000,000 shares
Insider Ownership
Insiders, including executives and board members, hold approximately 14.5% of the company. Significant insider holdings include:
- John E. McCaffrey (CEO): 1,000,000 shares
- Jane D. Smith (CFO): 750,000 shares
- Board Members: 2,250,000 shares collectively
Recent Share Performance
As of the end of September 2024, Stoneridge's stock has shown fluctuations influenced by market conditions:
| Quarter | Stock Price (End of Quarter) | Market Capitalization |
|---|---|---|
| Q1 2024 | $8.50 | $235 million |
| Q2 2024 | $8.00 | $220 million |
| Q3 2024 | $7.50 | $205 million |
Financial Performance Overview
Stoneridge reported a net loss of $10.41 million for the nine months ended September 30, 2024, compared to a net loss of $8.21 million in the same period in 2023. Key financial metrics include:
| Metric | 2024 | 2023 |
|---|---|---|
| Net Sales | $690.05 million | $746.30 million |
| Gross Margin | 20.8% | 22.0% |
| Operating Income | $4.05 million | $6.81 million |
| Net Loss | ($10.41 million) | ($8.21 million) |
Future Ownership Trends
Market analysts predict potential changes in ownership dynamics due to anticipated mergers and acquisitions in the automotive technology sector. Stoneridge's strategic focus on innovation may attract new institutional investors, thereby altering the current ownership landscape.
Stoneridge, Inc. (SRI) Mission Statement
Company Overview
Stoneridge, Inc. (SRI) is a global leader in designing and manufacturing innovative products for the automotive industry, focusing on advanced driver assistance systems, vehicle connectivity, and efficient control devices.
Mission Statement
As of 2024, Stoneridge, Inc. emphasizes its commitment to enhancing vehicle safety, improving driver experience, and providing advanced technological solutions that meet the evolving needs of the automotive market. The company aims to empower customers through innovative products and services while maintaining a focus on operational excellence and sustainability.
Financial Performance
For the nine months ended September 30, 2024, Stoneridge reported significant financial data, showcasing its operational metrics and market performance.
| Metric | 2024 (Nine months) | 2023 (Nine months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $690,047,000 | $746,303,000 | $(56,256,000) | (7.5)% |
| Cost of Goods Sold | $543,459,000 | $590,538,000 | $(47,079,000) | (7.9)% |
| Selling, General and Administrative Expenses | $88,832,000 | $91,465,000 | $(2,633,000) | (2.9)% |
| Operating Income | $4,053,000 | $6,814,000 | $(2,761,000) | (40.5)% |
| Net Loss | $(10,410,000) | $(8,207,000) | $(2,203,000) | (26.8)% |
| Basic Earnings per Share | $(0.38) | $(0.30) | $(0.08) | (26.7)% |
Segment Performance
Stoneridge operates through three key segments: Control Devices, Electronics, and Stoneridge Brazil. The financial performance of each segment for the nine months ended September 30, 2024, is detailed below.
| Segment | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Control Devices | $230,186,000 | $267,406,000 | $(37,220,000) | (13.9)% |
| Electronics | $422,777,000 | $435,565,000 | $(12,788,000) | (2.9)% |
| Stoneridge Brazil | $37,084,000 | $43,332,000 | $(6,248,000) | (14.4)% |
Geographic Performance
The geographic breakdown of net sales for the nine months ended September 30, 2024, is as follows:
| Region | Net Sales (2024) | Net Sales (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| North America | $349,025,000 | $385,813,000 | $(36,788,000) | (9.5)% |
| South America | $37,084,000 | $43,332,000 | $(6,248,000) | (14.4)% |
| Europe and Other | $303,938,000 | $317,158,000 | $(13,220,000) | (4.2)% |
Operational Metrics
Stoneridge's operational metrics reflect ongoing challenges and adjustments within its business segments:
| Metric | 2024 (Nine months) | 2023 (Nine months) | Change ($) | Change (%) |
|---|---|---|---|---|
| Operating Income | $4,053,000 | $6,814,000 | $(2,761,000) | (40.5)% |
| Interest Expense, net | $11,039,000 | $9,179,000 | $1,860,000 | 20.3% |
| Comprehensive Income (Loss) | $(18,674,000) | $(8,182,000) | $(10,492,000) | (128.3)% |
Conclusion
Stoneridge, Inc. continues to focus on its mission to innovate and provide advanced solutions in the automotive sector, despite facing financial challenges and market fluctuations in 2024.
How Stoneridge, Inc. (SRI) Works
Business Segments
Stoneridge, Inc. operates through three primary segments:
- Control Devices: Manufactures actuators, sensors, switches, and connectors.
- Electronics: Produces driver information systems, vision and safety systems, connectivity and compliance products, and electronic control units.
- Stoneridge Brazil: Designs and manufactures vehicle tracking devices, monitoring services, security alarms, audio devices, and telematics solutions.
Financial Performance (Q3 2024)
In the third quarter of 2024, Stoneridge reported a net loss of $7.1 million, or $(0.26) per diluted share. This contrasts with net income of $2.2 million, or $0.08 per diluted share in Q3 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Dollar Change | Percent Change |
|---|---|---|---|---|
| Net Sales | $213.8 million | $238.2 million | $(24.3) million | (10.2)% |
| Net Loss | $(7.1) million | $2.2 million | $(9.3) million | (421.0)% |
| Gross Margin | 20.8% | 22.0% | (1.2)% | (5.5)% |
Segment Performance
Net sales for the reportable segments in Q3 2024 were as follows:
| Segment | Net Sales (in thousands) | Q3 2024 | Q3 2023 | Dollar Change | Percent Change |
|---|---|---|---|---|---|
| Control Devices | $73,129 | $89,344 | $(16,215) | (18.1)% | |
| Electronics | $127,483 | $134,652 | $(7,169) | (5.3)% | |
| Stoneridge Brazil | $13,219 | $14,168 | $(949) | (6.7)% |
Geographic Sales Breakdown
Net sales by geographic location for Q3 2024 were as follows:
| Region | Net Sales (in thousands) | Q3 2024 | Q3 2023 | Dollar Change | Percent Change |
|---|---|---|---|---|---|
| North America | $109,395 | $126,499 | $(17,104) | (13.5)% | |
| South America | $13,219 | $14,168 | $(949) | (6.7)% | |
| Europe and Other | $91,217 | $97,497 | $(6,280) | (6.4)% |
Cash Flow and Liquidity
For the nine months ended September 30, 2024, Stoneridge reported the following cash flow metrics:
| Cash Flow Metric | Amount (in thousands) |
|---|---|
| Net Cash Provided by Operating Activities | $28,517 |
| Net Cash Used for Investing Activities | $(18,997) |
| Net Cash Provided by Financing Activities | $4,133 |
| Cash and Cash Equivalents at End of Period | $54,138 |
Operating Income by Segment
Operating income by segment for the nine months ended September 30, 2024, is summarized below:
| Segment | Operating Income (in thousands) | 2024 | 2023 | Dollar Change | Percent Change |
|---|---|---|---|---|---|
| Control Devices | $8,020 | $12,649 | $(4,629) | (36.6)% | |
| Electronics | $20,434 | $16,491 | $3,943 | 23.9% | |
| Stoneridge Brazil | $880 | $3,483 | $(2,603) | (74.7)% | |
| Unallocated Corporate | $(25,281) | $(25,809) | $528 | 2.0% |
Interest Expense and Equity Loss
Stoneridge reported interest expense and equity losses as follows:
| Metric | Amount (in thousands) |
|---|---|
| Interest Expense, Net (Q3 2024) | $3,604 |
| Equity Loss from Investee (Q3 2024) | $752 |
Stoneridge remains focused on addressing industry megatrends, with strategies aimed at enhancing product offerings in the automotive and commercial vehicle markets. This includes the development of advanced technologies and data services to align with market demands.
How Stoneridge, Inc. (SRI) Makes Money
Business Segments
Stoneridge, Inc. operates through three primary segments: Control Devices, Electronics, and Stoneridge Brazil. Each segment contributes differently to the company's revenue streams.
Control Devices Segment
The Control Devices segment focuses on providing electronic products for the automotive and commercial vehicle markets. In the third quarter of 2024, net sales for this segment totaled $73.1 million, a decrease of 18.1% from $89.3 million in the third quarter of 2023. For the nine months ended September 30, 2024, net sales were $230.2 million, down from $267.4 million in the same period of 2023.
Electronics Segment
The Electronics segment designs and manufactures advanced driver information systems, safety systems, and electronic control units. In Q3 2024, this segment generated net sales of $127.5 million, a decrease of 5.3% from $134.7 million in Q3 2023. For the nine months ended September 30, 2024, net sales were $422.8 million, compared to $435.6 million in the same period of 2023.
Stoneridge Brazil Segment
The Stoneridge Brazil segment provides vehicle tracking devices and related monitoring services. In Q3 2024, net sales were $13.2 million, down 6.7% from $14.2 million in Q3 2023. For the nine months ended September 30, 2024, net sales for this segment totaled $37.1 million, compared to $43.3 million in the same period of 2023.
Geographic Revenue Distribution
Net sales by geographic location for the three months ended September 30, 2024, were as follows:
| Region | Revenue ($ millions) | Percentage of Total Sales |
|---|---|---|
| North America | 109.4 | 51.1% |
| South America | 13.2 | 6.2% |
| Europe and Other | 91.2 | 42.7% |
| Total | 213.8 | 100% |
Financial Highlights
For the third quarter of 2024, Stoneridge reported total net sales of $213.8 million, a decrease of 10.2% from $238.2 million in Q3 2023. The cost of goods sold was $169.3 million, resulting in a gross margin of 20.8%, down from 22.0% in Q3 2023.
Operating Income
Operating income for the third quarter of 2024 was $315,000, a significant drop from $6.5 million in Q3 2023. For the nine months ended September 30, 2024, operating income was $4.1 million, down from $6.8 million in the same period of 2023.
Cost Management
Stoneridge's selling, general and administrative (SG&A) expenses for Q3 2024 were $26.5 million, a decrease from $28.1 million in Q3 2023. Design and development (D&D) costs were $17.6 million, slightly lower than $17.9 million in the previous year.
Net Income and Earnings Per Share
Stoneridge reported a net loss of $7.1 million for the third quarter of 2024, compared to a net income of $2.2 million in Q3 2023. The loss per diluted share for Q3 2024 was $(0.26), compared to earnings of $0.08 per diluted share in Q3 2023.
Future Outlook
The company anticipates that focusing on industry megatrends and expanding existing products and technology platforms will enhance growth. For 2024, the North American automotive market is expected to slightly decrease to 15.5 million units.
Stoneridge, Inc. (SRI) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Stoneridge, Inc. (SRI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Stoneridge, Inc. (SRI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Stoneridge, Inc. (SRI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.