SHW (HMSE:SW10) - Share price, News & Analysis

SW10 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	0/6
Financial Health	1/6
Dividends	0/6

SW10 Stock Overview

SHW AG engages in the production and sale of hydraulic pumps, powder metallurgy parts, and brake discs in Germany, rest of Europe, the United States, Asia, and internationally.

Risk Analysis

Earnings have declined by 41.5% per year over past 5 years

Interest payments are not well covered by earnings

SHW Competitors

Progress-Werk Oberkirch

XTRA:PWO

€100.3m

hGears

DB:HGEA

€136.2m

Grammer

XTRA:GMM

€158.8m

LEONI

XTRA:LEO

€270.3m

Price History & Performance

Summary of all time highs, changes and price drops for SHW
Historical stock prices
Current Share Price	€16.80
52 Week High	€20.95
52 Week Low	€15.20
Beta	1.06
1 Month Change	4.35%
3 Month Change	-4.00%
1 Year Change	-14.29%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-15.15%

Shareholder Returns

	SW10	DE Auto Components	DE Market
7D	2.4%	1.5%	1.0%
1Y	-14.3%	-29.9%	-20.4%

Return vs Industry: SW10 exceeded the German Auto Components industry which returned -29.9% over the past year.

Return vs Market: SW10 exceeded the German Market which returned -20.4% over the past year.

Price Volatility

Is SW10's price volatile compared to industry and market?
SW10 volatility
SW10 Average Weekly Movement	3.2%
Auto Components Industry Average Movement	6.2%
Market Average Movement	5.7%
10% most volatile stocks in DE Market	10.2%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: SW10 is less volatile than 75% of German stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SW10's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1365	1,700	Wolfgang Plasser	https://www.shw.de

SHW AG engages in the production and sale of hydraulic pumps, powder metallurgy parts, and brake discs in Germany, rest of Europe, the United States, Asia, and internationally. The company’s Pumps and Engine Components segment manufactures engine and transmission oil pumps, electric auxiliary pumps, vacuum pumps, e-pumps for the start-stop function, oil/vacuum pumps with or without balancer shafts, and variable water pumps for passenger vehicles; and engine oil, transmission oil, and fuel pumps for truck and off-highway vehicles. Its Powder Metallurgy segment manufactures high precision sintered parts for engines, transmissions, and chassis, such as gearwheels for pumps, chainwheels, rotors, and other applications.

SHW Fundamentals Summary

How do SHW's earnings and revenue compare to its market cap?
SW10 fundamental statistics
Market Cap	€105.55m
Earnings (TTM)	-€621.00k
Revenue (TTM)	€427.32m

0.3x

P/S Ratio

-174.1x

P/E Ratio

Is SW10 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SW10 income statement (TTM)
Revenue	€427.32m
Cost of Revenue	€377.83m
Gross Profit	€49.50m
Other Expenses	€50.12m
Earnings	-€621.00k

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-0.096
Gross Margin	11.58%
Net Profit Margin	-0.14%
Debt/Equity Ratio	61.2%

How did SW10 perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SW10 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SW10?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SW10. This is calculated by dividing SW10's market cap by their current preferred multiple.
What is SW10's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€105.55m

SW10 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	0.4x
Enterprise Value/EBITDA	6.8x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SW10's PS Ratio compare to its peers?

SW10 PS Ratio vs Peers

The above table shows the PS ratio for SW10 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	0.3x
PWO Progress-Werk Oberkirch	0.2x	4.3%	€100.3m
HGEA hGears	1x	14.5%	€136.2m
GMM Grammer	0.08x	4.6%	€158.8m
LEO LEONI	0.05x	6.0%	€270.3m
SW10 SHW	0.3x	n/a	€105.6m

Price-To-Sales vs Peers: SW10 is good value based on its Price-To-Sales Ratio (0.3x) compared to the peer average (0.3x).

Price to Earnings Ratio vs Industry

How does SW10's PE Ratio compare vs other companies in the European Auto Components Industry?

Price-To-Sales vs Industry: SW10 is good value based on its Price-To-Sales Ratio (0.3x) compared to the German Auto Components industry average (0.3x)

Price to Sales Ratio vs Fair Ratio

What is SW10's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SW10 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.3x
Fair PS Ratio	n/a

Price-To-Sales vs Fair Ratio: Insufficient data to calculate SW10's Price-To-Sales Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of SW10 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate SW10's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate SW10's fair value for valuation analysis.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is SHW forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

39.0%

Forecasted Automobiles industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as SHW has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Take a look at our analysis of SW10’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.

Past Performance

How has SHW performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

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

-41.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SW10 is currently unprofitable.

Growing Profit Margin: SW10 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SW10 is unprofitable, and losses have increased over the past 5 years at a rate of 41.5% per year.

Accelerating Growth: Unable to compare SW10's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SW10 is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (143.9%).

Return on Equity

High ROE: SW10 has a negative Return on Equity (-0.49%), as it is currently unprofitable.

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Financial Health

How is SHW's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

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

Financial Position Analysis

Short Term Liabilities: SW10's short term assets (€125.7M) do not cover its short term liabilities (€130.8M).

Long Term Liabilities: SW10's short term assets (€125.7M) exceed its long term liabilities (€75.9M).

Debt to Equity History and Analysis

Debt Level: SW10's net debt to equity ratio (54.2%) is considered high.

Reducing Debt: SW10's debt to equity ratio has increased from 1.7% to 61.2% over the past 5 years.

Debt Coverage: SW10's debt is not well covered by operating cash flow (4.6%).

Interest Coverage: SW10's interest payments on its debt are not well covered by EBIT (0.2x coverage).

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate SW10's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SW10's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SW10's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SW10's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: SW10 is not paying a notable dividend for the German market.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SW10 has not reported any payouts.

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Management

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

4.3yrs

Average board tenure

CEO

Wolfgang Plasser (60 yo)

4.17yrs

Tenure

€388,066

Compensation

Mr. Wolfgang Plasser serves as Member of Management Board at Pierer Industrie AG since June 28, 2018. Mr. Plasser serves as Chief Executive Officer and Chairman of Management of Board of SHW AG since June...

CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Wolfgang's total compensation is reasonable compared to companies of similar size in the German market.

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

Board Members

Experienced Board: SW10's board of directors are considered experienced (4.3 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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/15 00:00
End of Day Share Price	2022/08/15 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31