XTRA:SFQ

Stock Analysis Report

Executive Summary

SAF-Holland S.A. manufactures and supplies chassis-related systems and components for trucks, trailers, semi-trailers, buses, and recreational vehicles.

Rewards

PE ratio (12x) is below the German market (20.4x)

Earnings are forecast to grow 28.19% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has SAF-Holland's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFQ's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.7%

SFQ

-0.2%

DE Auto Components

-0.3%

DE Market


1 Year Return

-40.2%

SFQ

2.4%

DE Auto Components

14.9%

DE Market

Return vs Industry: SFQ underperformed the German Auto Components industry which returned 2.4% over the past year.

Return vs Market: SFQ underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

SFQIndustryMarket
7 Day-1.7%-0.2%-0.3%
30 Day-8.3%-6.8%-0.6%
90 Day-16.4%9.2%7.5%
1 Year-37.7%-40.2%6.6%2.4%18.5%14.9%
3 Year-41.5%-46.8%-22.0%-28.5%20.0%9.5%
5 Year-23.3%-34.4%-16.1%-25.0%38.0%19.3%

Price Volatility Vs. Market

How volatile is SAF-Holland's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SAF-Holland undervalued compared to its fair value and its price relative to the market?

12.02x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SFQ (€7.14) is trading above our estimate of fair value (€3.56)

Significantly Below Fair Value: SFQ is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SFQ is good value based on its PE Ratio (12x) compared to the Auto Components industry average (12.4x).

PE vs Market: SFQ is good value based on its PE Ratio (12x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: SFQ is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SFQ is good value based on its PB Ratio (1x) compared to the DE Auto Components industry average (1.3x).


Next Steps

Future Growth

How is SAF-Holland forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

28.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFQ's forecast earnings growth (28.2% per year) is above the savings rate (-0.4%).

Earnings vs Market: SFQ's earnings (28.2% per year) are forecast to grow faster than the German market (13% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SFQ's revenue (0.6% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: SFQ's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFQ's Return on Equity is forecast to be low in 3 years time (12.4%).


Next Steps

Past Performance

How has SAF-Holland performed over the past 5 years?

0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFQ has a large one-off loss of €17.2M impacting its September 30 2019 financial results.

Growing Profit Margin: SFQ's current net profit margins (2%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: SFQ's earnings have grown by 0.5% per year over the past 5 years.

Accelerating Growth: SFQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFQ had negative earnings growth (-44.9%) over the past year, making it difficult to compare to the Auto Components industry average (-6.6%).


Return on Equity

High ROE: SFQ's Return on Equity (8.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SAF-Holland's financial position?


Financial Position Analysis

Short Term Liabilities: SFQ's short term assets (€512.9M) exceed its short term liabilities (€296.2M).

Long Term Liabilities: SFQ's short term assets (€512.9M) exceed its long term liabilities (€394.4M).


Debt to Equity History and Analysis

Debt Level: SFQ's debt to equity ratio (106.4%) is considered high.

Reducing Debt: SFQ's debt to equity ratio has increased from 71.6% to 106.4% over the past 5 years.

Debt Coverage: SFQ's debt is well covered by operating cash flow (32.3%).

Interest Coverage: SFQ's interest payments on its debt are well covered by EBIT (7.5x coverage).


Balance Sheet

Inventory Level: SFQ has a high level of physical assets or inventory.

Debt Coverage by Assets: SFQ's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is SAF-Holland's current dividend yield, its reliability and sustainability?

6.31%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.4%markettop25%3.6%industryaverage3.9%forecastin3Years5.3%

Current dividend yield vs market & industry

Notable Dividend: SFQ's dividend (6.31%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: SFQ's dividend (6.31%) is in the top 25% of dividend payers in the German market (3.57%)


Stability and Growth of Payments

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

Growing Dividend: SFQ's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.8%), SFQ's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFQ's dividends in 3 years are forecast to be well covered by earnings (31.3% payout ratio).


Next Steps

Management

What is the CEO of SAF-Holland's salary, the management and board of directors tenure and is there insider trading?

0.9yrs

Average management tenure


CEO

Alexander Geis 0

0.8yrs

Tenure

€730,000

Compensation

Mr. Alexander Geis has been Member of Management Board at Saf-Holland SA since July 1, 2011. Mr. Geis serves as Chief Executive Officer of SAF-Holland S.A. since February 25, 2019 and as its Chairman of Ma ...


CEO Compensation Analysis

Compensation vs Market: Alexander's total compensation ($USD809.49K) is about average for companies of similar size in the German market ($USD814.48K).

Compensation vs Earnings: Alexander's compensation has been consistent with company performance over the past year.


Management Age and Tenure

0.9yrs

Average Tenure

Experienced Management: SFQ's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

56yo

Average Age

Experienced Board: SFQ's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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 not been meaningfully diluted in the past year.


Management Team

  • Kent Jones

    President Americas

    • Tenure: 0.3yrs
  • Ivan Radinov

    Managing Director of SAF Trade BG

    • Tenure: 0yrs
  • Cristóbal Pérez

    Managing Director of SAF ESPAÑA

    • Tenure: 0yrs
  • Alexander Nikitan

    Managing Director of SAF UKRAINE

    • Tenure: 0yrs
  • Marek Modrak

    Managing Director of SAF Polska

    • Tenure: 0yrs
  • Michael Schickling (56yo)

    Head of Investor Relations and Corporate Communications

    • Tenure: 0.8yrs
  • Alexander Geis

    CEO & Chairman of Management Board

    • Tenure: 0.8yrs
    • Compensation: €730.00k
  • Matthias Heiden (45yo)

    CFO & Member of Management Board

    • Tenure: 2.8yrs
    • Compensation: €733.00k
  • André Philipp

    COO & Member of Management Board

    • Tenure: 0.9yrs
  • Mike Ginocchio

    President APAC region & Member of Management Board

    • Tenure: 0.9yrs

Board Members

  • Carsten Reinhardt (52yo)

    Independent Director

    • Tenure: 2.7yrs
  • Martin Kleinschmitt (58yo)

    Chairman

    • Tenure: 0.3yrs
  • Martina Merz (56yo)

    Vice Chair

    • Tenure: 0.08yrs
  • Jack Gisinger (71yo)

    Director

    • Tenure: 2.7yrs
  • Anja Kleyboldt

    Director

    • Tenure: 7.7yrs
  • Ingrid Jägering (53yo)

    Independent Director

    • Tenure: 0.08yrs

Company Information

SAF-Holland S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SAF-Holland S.A.
  • Ticker: SFQ
  • Exchange: XTRA
  • Founded: 1881
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €328.428m
  • Shares outstanding: 45.39m
  • Website: https://www.safholland.com

Number of Employees


Location

  • SAF-Holland S.A.
  • 68-70, Boulevard de la Petrusse
  • Luxembourg City
  • 2320
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SFQDB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURJul 2007
0O4NLSE (London Stock Exchange)YesOrdinary Bearer SharesGBEURJul 2007
SFQXTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEURJul 2007
SFHL.FOTCPK (Pink Sheets LLC)YesOrdinary Bearer SharesUSUSDJul 2007
SFQDBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary Bearer SharesGBEURJul 2007
SFQSWX (SIX Swiss Exchange)YesOrdinary Bearer SharesCHCHFJul 2007
SFQWBAG (Wiener Boerse AG)YesOrdinary Bearer SharesATEURJul 2007
SFQETLX (Eurotlx)YesOrdinary Bearer SharesITEURJul 2007

Biography

SAF-Holland S.A. manufactures and supplies chassis-related systems and components for trucks, trailers, semi-trailers, buses, and recreational vehicles. It offers axle and suspension systems, fifth wheels, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 21:02
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.