SFS Group (SWX:SFSN) - Share price, News & Analysis

Q: What is the Fair Price of SFSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SFSN (CHF100.8) is trading below our estimate of [[fair value]] (CHF225.3)

SFSN fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	3/6

SFSN Stock Overview

SFS Group AG supplies mechanical fastening systems, assemblies, precision molded parts, and logistics solutions internationally.

Rewards

Trading at 55.3% below our estimate of its fair value

Earnings are forecast to grow 5.77% per year

Earnings have grown 10.9% per year over the past 5 years

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year

SFS Group Competitors

Georg Fischer

SWX:GF

CHF4.0b

Dätwyler Holding

SWX:DAE

CHF3.4b

OC Oerlikon

SWX:OERL

CHF2.2b

Sulzer

SWX:SUN

CHF2.1b

Price History & Performance

Summary of all time highs, changes and price drops for SFS Group
Historical stock prices
Current Share Price	CHF100.80
52 Week High	CHF140.90
52 Week Low	CHF96.90
Beta	1.12
1 Month Change	-7.52%
3 Month Change	-23.11%
1 Year Change	-24.78%
3 Year Change	20.57%
5 Year Change	-7.61%
Change since IPO	60.00%

Recent News & Updates

May 09

SFS Group (VTX:SFSN) Is Experiencing Growth In Returns On Capital

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Apr 07

Is Now The Time To Look At Buying SFS Group AG (VTX:SFSN)?

SFS Group AG ( VTX:SFSN ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Shareholder Returns

	SFSN	CH Machinery	CH Market
7D	0.9%	1.5%	3.8%
1Y	-24.8%	-30.7%	-11.8%

Return vs Industry: SFSN exceeded the Swiss Machinery industry which returned -30.7% over the past year.

Return vs Market: SFSN underperformed the Swiss Market which returned -11.8% over the past year.

Price Volatility

Is SFSN's price volatile compared to industry and market?
SFSN volatility
SFSN Average Weekly Movement	4.2%
Machinery Industry Average Movement	5.1%
Market Average Movement	4.6%
10% most volatile stocks in CH Market	7.6%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: SFSN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SFSN's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1928	10,509	Jens Breu	https://www.sfs.com/ch/en

SFS Group AG supplies mechanical fastening systems, assemblies, precision molded parts, and logistics solutions internationally. It offers airbag restraint systems; automation; bracket logic concept; brake systems; building technologies; clip nuts; communication technologies; components, assemblies, and complete devices; connections and reinforcements for timber construction; and domestic and kitchen appliances. The company also provides fasters for inserts; fastening and hinge technology for doors, windows, and glass facades; fastening system for the façade; furniture fittings; hand driving tools and wrenches; hard disk drives; inserts; interior plastics; life-saving fall protection; lifestyle electronics; mobile devices; sensors; seats and doors; connections and reinforcements for structural timber construction; tools, forest and garden equipment; wire and hypotubing; and window fittings.

SFS Group Fundamentals Summary

How do SFS Group's earnings and revenue compare to its market cap?
SFSN fundamental statistics
Market Cap	CHF3.92b
Earnings (TTM)	CHF243.80m
Revenue (TTM)	CHF1.92b

16.1x

P/E Ratio

2.0x

P/S Ratio

Is SFSN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SFSN income statement (TTM)
Revenue	CHF1.92b
Cost of Revenue	CHF665.50m
Gross Profit	CHF1.25b
Other Expenses	CHF1.01b
Earnings	CHF243.80m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Jul 19, 2022

Earnings per share (EPS)	6.28
Gross Margin	65.29%
Net Profit Margin	12.72%
Debt/Equity Ratio	0.5%

How did SFSN perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

34%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SFSN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SFSN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SFSN. This is calculated by dividing SFSN's market cap by their current preferred multiple.
What is SFSN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF3.92b

SFSN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.9x
Enterprise Value/EBITDA	9.2x
PEG Ratio	2.8x

Price to Earnings Ratio vs Peers

How does SFSN's PE Ratio compare to its peers?

SFSN PE Ratio vs Peers

The above table shows the PE ratio for SFSN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	19x
GF Georg Fischer	18.9x	13.3%	CHF4.0b
DAE Dätwyler Holding	27.8x	16.9%	CHF3.4b
OERL OC Oerlikon	14.2x	9.9%	CHF2.2b
SUN Sulzer	15.2x	13.2%	CHF2.1b
SFSN SFS Group	16.1x	5.8%	CHF3.9b

Forward PE

Price-To-Earnings vs Peers: SFSN is good value based on its Price-To-Earnings Ratio (16.1x) compared to the peer average (19x).

Price to Earnings Ratio vs Industry

How does SFSN's PE Ratio compare vs other companies in the CH Machinery Industry?

Price-To-Earnings vs Industry: SFSN is good value based on its Price-To-Earnings Ratio (16.1x) compared to the Swiss Machinery industry average (18.1x)

Price to Earnings Ratio vs Fair Ratio

What is SFSN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SFSN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	16.1x
Fair PE Ratio	22.9x

Price-To-Earnings vs Fair Ratio: SFSN is good value based on its Price-To-Earnings Ratio (16.1x) compared to the estimated Fair Price-To-Earnings Ratio (22.9x).

Share Price vs Fair Value

What is the Fair Price of SFSN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SFSN (CHF100.8) is trading below our estimate of fair value (CHF225.3)

Significantly Below Fair Value: SFSN is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: SFSN is poor value based on its PEG Ratio (2.8x)

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Future Growth

How is SFS Group forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFSN's forecast earnings growth (5.8% per year) is above the savings rate (-0.3%).

Earnings vs Market: SFSN's earnings (5.8% per year) are forecast to grow slower than the Swiss market (6.1% per year).

High Growth Earnings: SFSN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SFSN's revenue (4.6% per year) is forecast to grow faster than the Swiss market (4.2% per year).

High Growth Revenue: SFSN's revenue (4.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SFSN's Return on Equity is forecast to be low in 3 years time (14.2%).

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Past Performance

How has SFS Group performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

10.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SFSN has high quality earnings.

Growing Profit Margin: SFSN's current net profit margins (12.7%) are higher than last year (10.7%).

Past Earnings Growth Analysis

Earnings Trend: SFSN's earnings have grown by 10.9% per year over the past 5 years.

Accelerating Growth: SFSN's earnings growth over the past year (32.6%) exceeds its 5-year average (10.9% per year).

Earnings vs Industry: SFSN earnings growth over the past year (32.6%) underperformed the Machinery industry 53.4%.

Return on Equity

High ROE: SFSN's Return on Equity (17.1%) is considered low.

Discover strong past performing companies

Financial Health

How is SFS Group's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SFSN's short term assets (CHF1.0B) exceed its short term liabilities (CHF298.7M).

Long Term Liabilities: SFSN's short term assets (CHF1.0B) exceed its long term liabilities (CHF90.0M).

Debt to Equity History and Analysis

Debt Level: SFSN has more cash than its total debt.

Reducing Debt: SFSN's debt to equity ratio has reduced from 16.4% to 0.5% over the past 5 years.

Debt Coverage: SFSN's debt is well covered by operating cash flow (4772.1%).

Interest Coverage: SFSN's interest payments on its debt are well covered by EBIT (370.1x coverage).

Balance Sheet

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Dividend

What is SFS Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.18%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SFSN's dividend (2.18%) is higher than the bottom 25% of dividend payers in the Swiss market (2.02%).

High Dividend: SFSN's dividend (2.18%) is low compared to the top 25% of dividend payers in the Swiss market (4.01%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SFSN has been paying a dividend for less than 10 years.

Growing Dividend: SFSN's dividend payments have increased, but the company has only paid a dividend for 7 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.8%), SFSN's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (41.7%), SFSN's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure

CEO

Jens Breu (49 yo)

6.42yrs

Tenure

CHF1,624,918

Compensation

Mr. Jens Breu has been the Chief Executive Officer of SFS Group AG since January 1, 2016 and serves as its Chairman of the Executive Board. He is Head of Segment Engineered Components since 2014 and is Hea...

CEO Compensation Analysis

Compensation vs Market: Jens's total compensation ($USD1.70M) is about average for companies of similar size in the Swiss market ($USD1.84M).

Compensation vs Earnings: Jens's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SFSN's management team is seasoned and experienced (7.4 years average tenure).

Board Members

Experienced Board: SFSN's board of directors are considered experienced (6.7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/28 00:00
End of Day Share Price	2022/06/28 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31