SIFCO INDUSTRIES INC

Sub-scale aerospace/defense forging micro-cap with a loss year and a near-empty cash balance.

Strengths

• Backlog grew to $119.2M and military fixed-wing sales rebounded; revenue +6.5%
• Gross margin improved to 12.5%, aided by a $3.0M one-time ERC benefit

Risks

• Net margin -0.86%, ROA -1.0%, ROE -2.0%; net income down 86.5%
• Cash of just $0.5M (7.3rd pct), heavy customer concentration (two customers ~34%), high-cost revolver at ~9.8%

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -0.9%)
• Customer concentration~92% of revenue from one customer/distributor — 7 million, or 92