ELK GROVE VILLAGE, Ill. - SigmaTron International, Inc. (NASDAQ: SGMA), a provider of electronic manufacturing services, has regained compliance with Nasdaq's Listing Rule 5250(c)(1). The company achieved this by filing its annual report for the period ending April 30, 2024, with the Securities and Exchange Commission (SEC) on September 3, 2024, and amending it on September 6, 2024.
The notice of regained compliance was received on September 10, 2024, from the Listing Qualifications Department of the Nasdaq Stock Market LLC. This follows a previous notification from Nasdaq on August 16, 2024, which stated that SigmaTron was not in compliance due to a delay in filing its annual Form 10-K report.
SigmaTron International operates in the electronic manufacturing services (EMS) segment, providing services including printed circuit board assemblies, electro-mechanical subassemblies, and fully assembled electronic products. The company, headquartered in Elk Grove Village, Illinois, has manufacturing facilities across multiple locations, including Illinois, Mexico, California, China, and Vietnam, with additional offices for procurement, compliance, and sustainability in Taipei, Taiwan.
This announcement indicates that SigmaTron has resolved the filing delay issues that led to the non-compliance notice from Nasdaq. The information is based on a press release statement from SigmaTron International.
In other recent news, SigmaTron International has made significant changes to its credit agreements and leadership structure. The company has restructured its debt agreements with JPMorgan Chase (NYSE:JPM) Bank and other financial institutions, amending existing credit arrangements and modifying financial ratios. SigmaTron agreed to pursue a Replacement Transaction by September 2025 unless it achieves a specific Total Debt to EBITDA Ratio by the end of August 2025.
The company has also announced the retirement of Executive Vice President and Assistant Secretary Greg A. Fairhead, scheduled for August 2024. Concurrently, John P. Sheehan, currently serving as the company's President, has been appointed as a Class I Director. Sheehan's tenure in this role will extend until the 2024 annual meeting of stockholders.
These recent developments highlight SigmaTron's commitment to maintaining a strong leadership structure and financial stability. Investors may find these changes significant as they could influence the company's future operations and strategies.
InvestingPro Insights
SigmaTron International, Inc. (NASDAQ: SGMA), after regaining compliance with Nasdaq's listing requirements, presents several financial metrics that investors may find noteworthy. According to recent data from InvestingPro, SigmaTron has a market capitalization of $14.32 million, reflecting the size of the company in the competitive electronic manufacturing services market.
An InvestingPro Tip highlights that SigmaTron's stock is currently trading at a low Price/Book multiple of 0.21, which could suggest that the company's stock is undervalued relative to its book value. This may be of particular interest to value investors looking for potential bargains in the market.
In addition, the company has experienced a significant price drop over the last three months, with a 53.86% decrease in its total return. This decline is also reflected in the stock's performance over the last week, with a 12.45% decrease in price total return. Despite these challenges, SigmaTron's revenue for the last twelve months stands at $373.88 million, indicating the company's scale of operations within its sector.
Investors may also note that SigmaTron has not been profitable over the last twelve months, with a P/E ratio of -5.71, which could be a point of concern for those looking at earnings as a measure of financial health. Moreover, the company does not pay a dividend to shareholders, which could influence investment decisions for those seeking income-generating stocks.
For those interested in exploring more about SigmaTron International, additional InvestingPro Tips are available, providing deeper insights into the company's financial health and stock performance. There are a total of 11 tips listed on InvestingPro for SigmaTron, which can be found at https://www.investing.com/pro/SGMA.
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