John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

Stoneridge Is An Undervalued Turnaround Story

Stoneridge (NYSE:SRI) trades at a mid single-digit EBITDA multiple and discount to its peer group due to weakness in the core North American and European commercial vehicle markets. However recent new product introductions, ongoing restructuring initiatives and overall diversification position SRI to benefit from an expected recovery in 2H13.

Company overview

SRI manufactures highly engineered electrical and electronic components, modules and systems for the commercial vehicle, automotive, agricultural, motorcycle and off-highway vehicle markets. Its primary customers are commercial vehicle and automotive OEMs as well as tier one suppliers. SRI operates through more than 25 locations in 15 countries.

The electronics segment manufactures electronic instrument clusters, electronic control units and driver information systems.

The wiring segment manufactures electrical power...

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