| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 290.44 | 1191 |
| Intrinsic value (DCF) | 9.40 | -58 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 2.01 | -91 |
Strip Tinning Holdings plc (STG.L) is a UK-based manufacturer specializing in flexible electrical connectors for automotive glazing and electric vehicle (EV) battery packs. Founded in 1957 and headquartered in Birmingham, the company serves both domestic and international markets with its innovative solutions. Strip Tinning's product portfolio includes windshield soldering connectors, heating materials, back-lite soldering connectors, and ST flex products, which cater to battery electronics, smart glass, and antenna applications. Operating in the Auto - Parts sector, the company plays a critical role in the evolving EV and automotive technology landscape. With a focus on high-performance electrical connectivity, Strip Tinning is positioned to benefit from the growing demand for advanced automotive components, particularly as the industry shifts toward electrification and smart vehicle technologies.
Strip Tinning Holdings presents a niche investment opportunity in the automotive electrical components sector, particularly with exposure to the rapidly growing EV market. However, the company's financials reveal challenges, including a net loss of -771,000 GBp and negative diluted EPS of -0.0499 in FY 2023. While operating cash flow was positive at 1,000,000 GBp, capital expenditures (-1,113,000 GBp) and significant total debt (2,908,000 GBp) raise liquidity concerns. The lack of dividends may deter income-focused investors. The company's beta of 0.622 suggests lower volatility compared to the broader market, which could appeal to risk-averse investors. Long-term prospects hinge on the EV market's expansion and Strip Tinning's ability to scale profitability.
Strip Tinning Holdings operates in a specialized segment of the automotive parts industry, focusing on electrical connectors for glazing and EV battery packs. Its competitive advantage lies in its niche expertise and long-standing industry presence since 1957. The company's product diversification—spanning heating systems, smart glass, and battery electronics—positions it well for the EV transition. However, its financial struggles (net losses and high debt) may limit R&D and expansion capabilities compared to larger competitors. The company's UK base provides regional market access but may also expose it to Brexit-related supply chain risks. Its small market cap (~3.46M GBp) suggests limited economies of scale versus multinational peers. Success will depend on securing contracts with major automakers and EV battery producers while improving operational efficiency. The lack of dividend payouts may also affect its attractiveness relative to profitable competitors.