Stoneridge stock plunges to 52-week low at $5.21 amid market challenges

Published 29/01/2025, 15:40
Stoneridge stock plunges to 52-week low at $5.21 amid market challenges

Stoneridge Inc . (NYSE:SRI) shares have tumbled to a 52-week low, touching down at $5.21, as the automotive electronics manufacturer grapples with a challenging market environment. According to InvestingPro data, the stock appears undervalued compared to its Fair Value, with analysts setting price targets between $12 and $16. This latest price level reflects a stark contrast to the company’s performance over the past year, with Stoneridge stock experiencing a precipitous 1-year change, plummeting by an alarming 70.98%. With a current market capitalization of $148.41 million and an EBITDA of $46.73 million, investors are closely monitoring the company’s strategic moves to navigate through the headwinds. InvestingPro subscribers have access to 12 additional key insights about SRI, including detailed analysis of its financial health score and comprehensive valuation metrics in the Pro Research Report.

In other recent news, Stoneridge, Inc. reported its third-quarter earnings, highlighting a decrease in sales and adjusted profits due to macroeconomic pressures and seasonal factors. Despite this, the company showed an improvement in cash generation by $31.3 million and a reduction in inventory by $11.3 million. The company’s MirrorEye system continues to gain traction with a new OEM program and adoption by European OEMs. Furthermore, Stoneridge has revised its revenue guidance for 2024 to approximately $940 million, with MirrorEye revenue projected to increase by 25% to $65-$70 million.

The company anticipates an accelerated market adoption of its MirrorEye technology and maintains a focus on cost control and inventory management. Despite facing reduced production across major markets and lower aftermarket demand, Stoneridge sees strong customer demand for MirrorEye and expects recovery in the commercial vehicle sector in the second half of 2025.

However, the company has revised its revenue and EBITDA projections downward, and MirrorEye revenue is expected to be lower than initially estimated due to challenges in the North American passenger car market. These recent developments underscore Stoneridge’s strategic steps to manage costs and improve cash flow, even amid current market challenges.

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