Why Are Sypris Solutions (SYPR) Stocks Rising?

2 min read | February 25, 2021 07:31 AM EST | By Anuj

Why Are Sypris Solutions (SYPR) Stocks Rising?

Sypris Solutions Inc. (SYPR:US or NASDAQ: SYPR)

The US-based consumer cyclical firm provides contract services. It operates through two business segments – Sypris Electronics and Sypris Technologies.

The warfighter vehicle producer’s stock is up 233 per cent year-to-date (YTD). Its share price has scaled up to US$ 5.06 per piece, returning almost 840 per cent as compared to its 52-week low of US$ 0.5385 on 26 March 2020.

It has a one-year return of over 405 per cent and earnings per share of US$ 0.10. The return on equity is 13.78 per cent, and a price-to-book ratio is 7.127.

Image Source Kalkine Group @2021

In the third quarter of 2020, the company’s gross profit rose 47 per cent quarter-over-quarter (QoQ), led by a rise in contracts. The revenue from Sypris Electronics segment soared 52.6 per cent year-over-year (YoY). Sypris Technologies revenue went up 62.1 per cent QoQ.

Outlook 2021

For the current year’s outlook, Sypris CEO Jeffrey T. Gill commented that the company already has strong backlog of contracts and remains concentrated on achieving more contracts from the defense, communications, transportation, and energy industries.

The recovering economy sets a stage for a potential outlook for this year. The management hopes to maintain positive revenue growth for the current year. It is also planning for further margin expansion in 2021.

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