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SCI Engineered Materials

SCIA
66
Semiconductors · Technology
Price
$8.63
-0.01 (-0.12%)
Market Cap
$38.7M
Winston Score
66
Winston is curious
A decent business — some strong pillars, some weaker.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Good
Growth
Good
Cash Flow
Strong
Stability
Exceptional
Valuation
Good

Share count rising — dilution

+1.0% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 4.5M (2021) → 4.6M (2025)

Winston Score History

The full picture

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.

Growth Profile

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

Revenue Growth

+162.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+225.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$434,436/ year

Declining (-23% vs prior year)

2.2% of revenue

Below sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

45.9%ownership

Rising

Insiders increasing their stake — aligned with shareholders

Cash Position

Cash flow positive

$13M 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 163% 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

Profit per sale
Gross Margin
24.0%
Thin — 24.0% gross margin
Profit after running costs
Operating Margin
14.8%
Healthy — 14.8% operating margin
Return on the money invested
ROCE
21.8%
Exceptional — 21.8% return on capital

ROIC between 15% and 25%. Every dollar invested in the business earns 15 to 25 cents back per year.

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Growth

Sales growth
Sales YoY
+87.9%
Fast-growing sales (+87.9% YoY)
Profit growth
EPS YoY
+83.8%
Earnings growing fast (+83.8% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash
Cash Conversion
165%
Turns 165% of profit into real cash
Spare cash per sale
FCF Margin
9.2%
Modest free cash flow (9.2%)

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

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Stability

What it owes vs what it owns
Debt / Equity
0.06
Conservative — low debt load (0.06)
Covers its interest
Interest Cover
100.00x
Comfortably covers interest (100.0x)

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

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Valuation

Price vs profit
P/E Ratio (TTM)
14.6x
Attractive valuation — P/E 14.6

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

Cheaper or dearer next year
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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