Update shared on 12 Dec 2025
Fair value Decreased 7.69%Analysts have trimmed their price target on SFC Energy from EUR 26.00 to EUR 24.00, citing a higher discount rate and lower future P E expectations, even as they acknowledge improving revenue growth and profit margin prospects.
What's in the News
- SFC Energy signs a three year, EUR 3.2 million maintenance contract with FC TecNrgy to support EMILY 3000 and JENNY 600S tactical fuel cell systems for the Indian Ministry of Defence. This expands its service footprint in India and supports the Make in India initiative (Key Developments).
- Management refines 2025 guidance and now expects sales at the lower end of the EUR 146.5 million to EUR 161.0 million target corridor, underscoring a more cautious outlook despite growth projects (Key Developments).
- The company secures a EUR 7.5 million follow up order from a long standing partner in unmanned and AI driven site security and surveillance. This highlights accelerating demand for its off grid EFOY Pro fuel cell solutions and refurbishment program (Key Developments).
- A new channel partnership with SunWize Power & Battery opens additional routes into the US market. EFOY Pro fuel cells are to be integrated into critical infrastructure applications such as telecoms, oil and gas, and environmental monitoring (Key Developments).
- Repeat orders worth about CAD 9.3 million from a major Canadian oil and gas producer validate the performance of SFC's Variable Frequency Drive systems for electric submersible pumps, with revenue and earnings contributions expected in 2025 (Key Developments).
Valuation Changes
- Fair Value: Trimmed slightly from €26.00 to €24.00 per share, reflecting a modest reduction in the base valuation assumption.
- Discount Rate: Risen moderately from 6.54 percent to 7.03 percent, increasing the required return and putting downward pressure on the valuation.
- Revenue Growth: Increased slightly from about 19.8 percent to 21.3 percent, indicating marginally stronger top line expectations.
- Net Profit Margin: Improved from roughly 9.5 percent to 11.4 percent, signaling a meaningful upgrade to medium term profitability assumptions.
- Future P E: Reduced significantly from around 22.2 times to 17.2 times, pointing to more conservative expectations for the company’s longer term earnings multiple.
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