SCI Engineered Materials (SCIA) Stock Analysis & Winston Score

SCI Engineered Materials is a small U.S. company that makes specialty materials used in the manufacturing of semiconductors, solar panels, and other advanced technology products. Its core products are sputtering targets and other thin-film deposition materials, which are used by manufacturers to coat surfaces at the microscopic level. The company sells to research institutions, universities, and industrial customers across the technology and energy sectors.

SCI makes money by selling these engineered materials directly to customers, with revenue tied to order volume rather than subscriptions or recurring contracts. The company operates primarily in the United States and is quite small, with a market cap under $100 million. Its competitive position comes from technical expertise in custom material formulations, which creates some switching costs for specialized customers. The main risk is that demand is closely tied to capital spending cycles in the semiconductor and solar industries, meaning revenue can drop sharply when those industries pull back on investment.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+133.1% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+47.5% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

40.7%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$9M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

SCI Engineered Materials grew revenue 133% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

24.9%

Thin — 24.9% gross margin

Operating Margin

12.9%

Healthy — 12.9% operating margin

ROCE

7.2%

Weak — 7.2% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+35.1%

Fast-growing sales (35.1% YoY)

EPS YoY

+13.6%

Earnings growing (13.6% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Cash Conversion

187%

Turns 187% of profit into real cash

FCF Margin

9.5%

Modest free cash flow (9.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.02

Conservative — low debt load (0.02)

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

16.5x

no trend

Fair value — P/E 16.5

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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