XTRA:SW1

Stock Analysis Report

Executive Summary

SHW AG develops and manufactures products to reduce fuel consumption and CO2 emissions in the automotive industry in Germany, rest of Europe, the United States, Asia, and internationally.


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has SHW's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SW1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.6%

SW1

-7.1%

DE Auto Components

-5.7%

DE Market


1 Year Return

-1.4%

SW1

-20.9%

DE Auto Components

6.1%

DE Market

Return vs Industry: SW1 exceeded the German Auto Components industry which returned -20.9% over the past year.

Return vs Market: SW1 underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

SW1IndustryMarket
7 Day-2.6%-7.1%-5.7%
30 Day-4.0%-3.1%-5.7%
90 Day-5.2%-15.0%-3.6%
1 Year-1.2%-1.4%-17.7%-20.9%9.3%6.1%
3 Year-33.9%-37.0%-37.0%-42.3%8.9%-0.7%
5 Year-54.3%-59.1%-41.4%-47.7%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is SHW undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SW1 (€19.05) is trading below our estimate of fair value (€144.54)

Significantly Below Fair Value: SW1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SW1 is poor value based on its PE Ratio (14.6x) compared to the Auto Components industry average (12.5x).

PE vs Market: SW1 is good value based on its PE Ratio (14.6x) compared to the German market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: SW1 is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: SW1 is good value based on its PB Ratio (1x) compared to the DE Auto Components industry average (1.1x).


Next Steps

Future Growth

How is SHW forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

3.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SW1's forecast earnings growth (3% per year) is above the savings rate (-0.4%).

Earnings vs Market: SW1's earnings (3% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: SW1's earnings are forecast to grow, but not significantly.

Revenue vs Market: SW1's revenue (3.7% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: SW1's revenue (3.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SW1's Return on Equity is forecast to be low in 3 years time (5.5%).


Next Steps

Past Performance

How has SHW performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SW1 has a large one-off loss of €8.8M impacting its June 30 2019 financial results.

Growing Profit Margin: SW1's current net profit margins (2%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: SW1's earnings have declined by -17.3% per year over the past 5 years.

Accelerating Growth: SW1's earnings growth over the past year (104.1%) exceeds its 5-year average (-17.3% per year).

Earnings vs Industry: SW1 earnings growth over the past year (104.1%) exceeded the Auto Components industry -29.1%.


Return on Equity

High ROE: SW1's Return on Equity (6.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SHW's financial position?


Financial Position Analysis

Short Term Liabilities: SW1's short term assets (€133.4M) exceed its short term liabilities (€131.6M).

Long Term Liabilities: SW1's short term assets (€133.4M) exceed its long term liabilities (€52.4M).


Debt to Equity History and Analysis

Debt Level: SW1's debt to equity ratio (46.9%) is considered high.

Reducing Debt: SW1's debt to equity ratio has increased from 22.1% to 46.9% over the past 5 years.

Debt Coverage: SW1's debt is well covered by operating cash flow (41.2%).

Interest Coverage: SW1's interest payments on its debt are well covered by EBIT (20.3x coverage).


Balance Sheet

Inventory Level: SW1 has a high level of physical assets or inventory.

Debt Coverage by Assets: SW1's debt is covered by short term assets (assets are 2.2x debt).


Next Steps

Dividend

What is SHW's current dividend yield, its reliability and sustainability?

0.21%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%1.4%markettop25%3.8%industryaverage4.5%forecastin3Years0.2%

Current dividend yield vs market & industry

Notable Dividend: SW1's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.43%).

High Dividend: SW1's dividend (0.21%) is low compared to the top 25% of dividend payers in the German market (3.8%).


Stability and Growth of Payments

Stable Dividend: SW1 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: SW1 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SW1 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SW1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Wolfgang Plasser (57yo)

1.7yrs

Tenure

€388,066

Compensation

Mr. Wolfgang Plasser serve as Chief Executive Officer and Chairman of Management of Board of SHW AG since June 12, 2018. He serves as the Chairman of the Management Board at Pankl Racing Systems AG and has ...


CEO Compensation Analysis

Compensation vs Market: Wolfgang's total compensation ($USD422.18K) is about average for companies of similar size in the German market ($USD415.76K).

Compensation vs Earnings: Insufficient data to compare Wolfgang's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Stefan Pierer
Member of the Supervisory Board2.1yrsno datano data
Josef Blazicek
Member of the Supervisory Board1.3yrs€5.00kno data
Alfred Hörtenhuber
Deputy Chairman of Supervisory Board1.8yrs€26.00kno data
Klaus Rinnerberger
Chairman of the Supervisory Board1.8yrs€40.00kno data
Friedrich Roithner
Member of Supervisory Board1.3yrs€5.00kno data
Edgar Kühn
Member of Supervisory Board9yrs€20.00kno data
Jörg Franke
Member of Supervisory Board5.8yrs€21.00kno data
Frank-Michael Meißner
Member of Supervisory Board1.8yrs€20.00kno data
Eugen Maucher
Member of Supervisory Board3.8yrs€20.00kno data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Board: SW1's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SHW AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SHW AG
  • Ticker: SW1
  • Exchange: XTRA
  • Founded: 1365
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €121.966m
  • Shares outstanding: 6.44m
  • Website: https://www.shw.de

Number of Employees


Location

  • SHW AG
  • Wilhelmstrasse 67
  • Aalen
  • Baden-Württemberg
  • 73433
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SW1DB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURJul 2011
SW1XTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEURJul 2011
0P5FLSE (London Stock Exchange)YesOrdinary Bearer SharesGBEURJul 2011
SW1SWX (SIX Swiss Exchange)YesOrdinary Bearer SharesCHCHFJul 2011

Biography

SHW AG develops and manufactures products to reduce fuel consumption and CO2 emissions in the automotive industry in Germany, rest of Europe, the United States, Asia, and internationally. It operates in two segments, Pumps and Engine Compliments, and Brake Discs. The Pumps and Engine Compliments segment offers variable oil pumps/map-controlled oil pumps, e-pumps, primary transmission oil pumps, oil/vacuum pumps with or without balancer shafts, and camshaft phasers for passenger vehicles; and transmission oil, fuel, engine oil, and industrial pumps for truck and off-highway applications, as well as provides powder metallurgy products comprising sintered adjustment rings and rotors for variable oil pumps offering reduced consumption, camshaft phaser components of steel and aluminum powder, and backlash-free gearwheel systems. The Brake Discs segment develops and produces monobloc ventilated brake discs and composite brake discs. The company serves manufacturers of automobiles, commercial vehicles, agricultural machines, and construction machines, as well as other automotive suppliers. SHW AG was founded in 1365 and is headquartered in Aalen, Germany. SHW AG is a subsidiary of SHW Beteiligungs GmbH.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:13
End of Day Share Price2020/02/25 00:00
Earnings2019/06/30
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.