Announcement • Aug 02
SMT Scharf AG Announces Change of Chief Financial Officer SMT Scharf AG announced that its Supervisory Board has appointed Mr. Ingo Stober as the Company’s new Chief Financial Officer (CFO). Mr. Stober will assume his position on the Managing Board for a three-year term, effective 1 September 2026. Prior to joining SMT Scharf AG, Mr. Stober served as Group CFO and COO of the Eickhoff Group, where he was responsible for the Group’s global commercial and operational management. He brings extensive experience in the financial management and transformation of companies in the mechanical engineering industry as well as other industrial sectors. He began his professional career as a Senior Consultant in Restructuring & Corporate Finance at Roland Berger. Mr. Stober studied International Business Administration with a focus on Asia and Finance & Controlling at Furtwangen University. Mr. Stober succeeds Mr. Volker Weiss as CFO, who stepped down from the Managing Board ahead of the end of his term. Until Mr. Stober assumes office, the responsibilities of the CFO have been carried out on an interim basis by COO Mr. Reinhard Reinartz. Effective 1 September 2026, the Managing Board of SMT Scharf AG will once again consist of three members: Mr. Longjiao Wang (CEO), Mr. Reinhard Reinartz (COO) and Mr. Ingo Stober (CFO). Buy Or Sell Opportunity • Jul 14
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 29% to €6.25. The fair value is estimated to be €7.89, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.3% over the last 3 years. Meanwhile, the company became loss making. Announcement • Apr 13
SMT Scharf AG, Annual General Meeting, May 19, 2026 SMT Scharf AG, Annual General Meeting, May 19, 2026, at 10:00 W. Europe Standard Time. Announcement • Mar 31
SMT Scharf AG to Report Fiscal Year 2025 Final Results on Apr 10, 2026 SMT Scharf AG announced that they will report fiscal year 2025 final results on Apr 10, 2026 Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment improves as stock rises 21% After last week's 21% share price gain to €6.90, the stock trades at a forward P/E ratio of 54x. Average forward P/E is 16x in the Machinery industry in Germany. Total loss to shareholders of 37% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €9.14 per share. New Risk • Nov 15
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.1% per year for the foreseeable future. Minor Risk Market cap is less than US$100m (€33.4m market cap, or US$38.8m). Major Estimate Revision • Nov 14
Consensus EPS estimates upgraded to €0.05 loss, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from €102.7m to €100.3m. 2025 losses expected to reduce from -€0.10 to -€0.05 per share. Machinery industry in Germany expected to see average net income growth of 24% next year. Consensus price target down from €10.50 to €10.00. Share price fell 9.6% to €6.10 over the past week. Reported Earnings • Nov 02
Third quarter 2025 earnings released: €0.38 loss per share (vs €0.051 loss in 3Q 2024) Third quarter 2025 results: €0.38 loss per share (further deteriorated from €0.051 loss in 3Q 2024). Revenue: €21.3m (up 8.9% from 3Q 2024). Net loss: €2.07m (loss widened €1.79m from 3Q 2024). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 5.6% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has fallen by 47% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. New Risk • Sep 01
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 3.2% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.1% net profit margin). Market cap is less than US$100m (€41.6m market cap, or US$48.7m). Major Estimate Revision • Aug 29
Consensus EPS estimates fall by 66% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from €121.0m to €109.5m. EPS estimate also fell from €0.597 per share to €0.20 per share. Net income forecast to shrink 57% next year vs 20% growth forecast for Machinery industry in Germany . Consensus price target of €11.50 unchanged from last update. Share price was steady at €7.60 over the past week. New Risk • Aug 25
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 4.1% Last year net profit margin: 8.5% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 2.7% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Profit margins are more than 30% lower than last year (4.1% net profit margin). Market cap is less than US$100m (€42.4m market cap, or US$49.7m). Reported Earnings • Aug 25
Second quarter 2025 earnings released: €0.073 loss per share (vs €0.20 profit in 2Q 2024) Second quarter 2025 results: €0.073 loss per share (down from €0.20 profit in 2Q 2024). Revenue: €27.2m (up 71% from 2Q 2024). Net loss: €398.0k (down 136% from profit in 2Q 2024). Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has fallen by 55% per year but the company’s share price has only fallen by 12% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Aug 03
Investor sentiment improves as stock rises 25% After last week's 25% share price gain to €9.10, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 14x in the Machinery industry in Germany. Total loss to shareholders of 25% over the past three years. Valuation Update With 7 Day Price Move • Jul 18
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €7.60, the stock trades at a forward P/E ratio of 12x. Average forward P/E is 14x in the Machinery industry in Germany. Total loss to shareholders of 38% over the past three years. Major Estimate Revision • May 27
Consensus EPS estimates fall by 33% The consensus outlook for fiscal year 2025 has been updated. 2025 EPS estimate fell from €0.894 to €0.597 per share. Revenue forecast steady at €121.0m. Net income forecast to shrink 45% next year vs 14% growth forecast for Machinery industry in Germany . Consensus price target down from €14.00 to €13.00. Share price fell 6.2% to €6.80 over the past week. Upcoming Dividend • May 14
Upcoming dividend of €0.21 per share Eligible shareholders must have bought the stock before 21 May 2025. Payment date: 23 May 2025. Payout ratio is a comfortable 18% but the company is not cash flow positive. Trailing yield: 3.0%. Lower than top quartile of German dividend payers (4.3%). In line with average of industry peers (3.3%). Reported Earnings • May 02
First quarter 2025 earnings released: EPS: €0.085 (vs €0.054 loss in 1Q 2024) First quarter 2025 results: EPS: €0.085 (up from €0.054 loss in 1Q 2024). Revenue: €24.2m (up 94% from 1Q 2024). Net income: €464.0k (up €762.0k from 1Q 2024). Profit margin: 1.9% (up from net loss in 1Q 2024). The move to profitability was driven by higher revenue. Revenue is forecast to grow 7.3% p.a. on average during the next 3 years, compared to a 5.2% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has fallen by 57% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. Announcement • Apr 11
SMT Scharf AG, Annual General Meeting, May 20, 2025 SMT Scharf AG, Annual General Meeting, May 20, 2025, at 10:00 W. Europe Standard Time. New Risk • Apr 09
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 7.7% per year for the foreseeable future. Minor Risks Paying a dividend despite having no free cash flows. Market cap is less than US$100m (€35.6m market cap, or US$39.2m). New Risk • Apr 03
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. Cash payout ratio: null Dividend yield: 3.0% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Dividend is not well covered by cash flows (null cash payout ratio). Market cap is less than US$100m (€38.3m market cap, or US$42.2m). Reported Earnings • Mar 28
Full year 2024 earnings released: EPS: €1.02 (vs €0.89 in FY 2023) Full year 2024 results: EPS: €1.02 (up from €0.89 in FY 2023). Revenue: €101.5m (up 34% from FY 2023). Net income: €5.60m (up 15% from FY 2023). Profit margin: 5.5% (down from 6.4% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 5.0% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 13% per year, which means it has not declined as severely as earnings. Announcement • Mar 21
SMT Scharf AG announces Annual dividend, payable on May 23, 2025 SMT Scharf AG announced Annual dividend of EUR 0.2100 per share payable on May 23, 2025, ex-date on May 21, 2025 and record date on May 22, 2025. Buy Or Sell Opportunity • Dec 17
Now 22% overvalued after recent price rise Over the last 90 days, the stock has risen 8.5% to €7.70. The fair value is estimated to be €6.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.8% over the last 3 years. Earnings per share has declined by 48%. Revenue is forecast to grow by 73% in 2 years. Earnings are forecast to grow by 6,502% in the next 2 years. Major Estimate Revision • Dec 03
Consensus EPS estimates increase by 27% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from €82.2m to €89.9m. EPS estimate increased from €0.475 to €0.601 per share. Net income forecast to grow 5,157% next year vs 16% growth forecast for Machinery industry in Germany. Consensus price target of €13.00 unchanged from last update. Share price was steady at €7.35 over the past week. Major Estimate Revision • Nov 22
Consensus revenue estimates increase by 21% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from €74.5m to €89.9m. EPS estimate increased from €0.465 to €0.601 per share. Net income forecast to grow 4,797% next year vs 19% growth forecast for Machinery industry in Germany. Consensus price target up from €11.00 to €13.00. Share price was steady at €7.50 over the past week. Price Target Changed • Nov 21
Price target increased by 18% to €13.00 Up from €11.00, the current price target is an average from 2 analysts. New target price is 66% above last closing price of €7.85. The company is forecast to post earnings per share of €0.60 for next year compared to €0.89 last year. Buy Or Sell Opportunity • Nov 21
Now 24% overvalued after recent price rise Over the last 90 days, the stock has risen 8.3% to €7.85. The fair value is estimated to be €6.31, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has declined by 4.4% over the last 3 years. Earnings per share has declined by 48%. Revenue is forecast to grow by 68% in 2 years. Earnings are forecast to grow by 6,502% in the next 2 years. Major Estimate Revision • Nov 20
Consensus revenue estimates increase by 10% The consensus outlook for revenues in fiscal year 2024 has improved. 2024 revenue forecast increased from €74.5m to €82.2m. EPS estimate increased from €0.465 to €0.591 per share. Net income forecast to grow 5,094% next year vs 21% growth forecast for Machinery industry in Germany. Consensus price target up from €11.00 to €11.50. Share price fell 4.5% to €7.45 over the past week. Reported Earnings • Nov 15
Third quarter 2024 earnings released: €0.051 loss per share (vs €0.89 profit in 3Q 2023) Third quarter 2024 results: €0.051 loss per share (down from €0.89 profit in 3Q 2023). Revenue: €19.9m (down 11% from 3Q 2023). Net loss: €277.0k (down 106% from profit in 3Q 2023). Revenue is forecast to grow 2.1% p.a. on average during the next 3 years, compared to a 4.5% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has fallen by 48% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Reported Earnings • Aug 30
Second quarter 2024 earnings released: EPS: €0.20 (vs €0.003 loss in 2Q 2023) Second quarter 2024 results: EPS: €0.20 (up from €0.003 loss in 2Q 2023). Revenue: €16.8m (down 11% from 2Q 2023). Net income: €1.12m (up €1.13m from 2Q 2023). Profit margin: 6.6% (up from net loss in 2Q 2023). The move to profitability was driven by lower expenses. Revenue is forecast to grow 6.5% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 18% per year. Announcement • May 29
SMT Scharf AG to Report First Half, 2024 Results on Aug 28, 2024 SMT Scharf AG announced that they will report first half, 2024 results on Aug 28, 2024 Reported Earnings • May 17
First quarter 2024 earnings released: €0.054 loss per share (vs €0.049 loss in 1Q 2023) First quarter 2024 results: €0.054 loss per share (further deteriorated from €0.049 loss in 1Q 2023). Revenue: €13.6m (up 6.1% from 1Q 2023). Net loss: €298.0k (loss widened 11% from 1Q 2023). Revenue is forecast to grow 5.7% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Major Estimate Revision • Apr 17
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from €78.3m to €72.4m. EPS estimate also fell from €0.765 per share to €0.65 per share. Net income forecast to shrink 26% next year vs 7.0% growth forecast for Machinery industry in Germany . Consensus price target of €11.25 unchanged from last update. Share price fell 3.8% to €6.40 over the past week. Reported Earnings • Apr 11
Full year 2023 earnings: EPS exceeds analyst expectations while revenues lag behind Full year 2023 results: EPS: €0.89 (down from €2.66 in FY 2022). Revenue: €77.8m (down 18% from FY 2022). Net income: €4.88m (down 66% from FY 2022). Profit margin: 6.3% (down from 15% in FY 2022). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 1.6%. Earnings per share (EPS) exceeded analyst estimates by 31%. Revenue is forecast to grow 2.6% p.a. on average during the next 2 years, compared to a 4.0% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 40% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Major Estimate Revision • Mar 08
Consensus EPS estimates fall by 15% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from €75.8m to €74.4m. EPS estimate also fell from €0.798 per share to €0.678 per share. Net income forecast to shrink 38% next year vs 5.1% growth forecast for Machinery industry in Germany . Consensus price target down from €11.75 to €11.25. Share price was steady at €7.00 over the past week. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to €6.65, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 12x in the Machinery industry in Germany. Total loss to shareholders of 21% over the past three years. Announcement • Mar 04
Yankuang Energy Group Company Limited (SEHK:1171) agreed to acquire 51% stake in SMT Scharf AG (XTRA:S4AA) from a group of shareholders for €31.2 million. Yankuang Energy Group Company Limited (SEHK:1171) agreed to acquire 51% stake in SMT Scharf AG (XTRA:S4AA) from a group of shareholders for €31.2 million on March 1, 2024. As per the transaction, Yankuang Energy Group Company Limited will acquire 2.8 million shares at €11.1 per share. New Risk • Mar 02
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 8.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 9.9% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (8.4% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (7.4% net profit margin). Market cap is less than US$100m (€37.8m market cap, or US$40.9m). Announcement • Feb 29
SMT Scharf AG to Report Fiscal Year 2023 Final Results on Apr 10, 2024 SMT Scharf AG announced that they will report fiscal year 2023 final results at 9:00 AM, Central European Standard Time on Apr 10, 2024 Reported Earnings • Nov 16
Third quarter 2023 earnings released: EPS: €0.89 (vs €0.62 in 3Q 2022) Third quarter 2023 results: EPS: €0.89 (up from €0.62 in 3Q 2022). Revenue: €23.7m (up 7.3% from 3Q 2022). Net income: €4.85m (up 44% from 3Q 2022). Profit margin: 20% (up from 15% in 3Q 2022). Revenue is forecast to grow 4.8% p.a. on average during the next 3 years, compared to a 3.4% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 61% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. New Risk • Nov 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.7% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.7% per year for the foreseeable future. Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.7% net profit margin). Market cap is less than US$100m (€34.5m market cap, or US$36.8m). Major Estimate Revision • Nov 01
Consensus EPS estimates have been upgraded. The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from €72.6m to €76.0m. Forecast to become profitable, with EPS estimate increasing from -€0.357 to €0.165 per share. Machinery industry in Germany expected to see average net income growth of 3.6% next year. Consensus price target of €11.25 unchanged from last update. Share price rose 6.6% to €6.45 over the past week. Announcement • Oct 31
SMT Scharf AG Updates Earnings Guidance for the Year 2023 SMT Scharf AG updated earnings guidance for the year 2023. For the period, the company anticipates consolidated revenue EUR 76.0 million. a profit from operating activities (EBIT) of EUR 4.5 million is expected. SMT Scharf AG had last forecast consolidated revenue of EUR 73.0 million and negative EBIT of EUR -3.3 million. New Risk • Oct 30
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of German stocks, typically moving 7.1% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Share price has been volatile over the past 3 months (7.1% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (5.7% net profit margin). Market cap is less than US$100m (€36.1m market cap, or US$38.3m). Major Estimate Revision • Aug 24
Consensus EPS estimates fall from profit to €0.36 loss The consensus outlook for fiscal year 2023 has been updated. Expected to report loss instead of -€0.357 instead of €0.158 per share profit previously forecast. Revenue forecast unchanged at €72.6m Machinery industry in Germany expected to see average net income growth of 3.8% next year. Consensus price target down from €14.25 to €11.25. Share price was steady at €6.65 over the past week. New Risk • Aug 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 1.1% per year for the foreseeable future. Minor Risks Profit margins are more than 30% lower than last year (9.1% net profit margin). Market cap is less than US$100m (€36.4m market cap, or US$39.6m). Major Estimate Revision • Aug 18
Consensus revenue estimates fall by 18% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from €88.5m to €72.6m. EPS estimate fell from €0.993 to €0.158 per share. Net income forecast to shrink 76% next year vs 3.8% growth forecast for Machinery industry in Germany . Consensus price target down from €15.50 to €14.25. Share price fell 4.9% to €6.75 over the past week. Reported Earnings • Aug 16
Second quarter 2023 earnings released: €0.003 loss per share (vs €0.60 profit in 2Q 2022) Second quarter 2023 results: €0.003 loss per share (down from €0.60 profit in 2Q 2022). Revenue: €19.7m (down 13% from 2Q 2022). Net loss: €18.0k (down 100% from profit in 2Q 2022). Revenue is forecast to grow 6.2% p.a. on average during the next 3 years, compared to a 3.5% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 70% per year but the company’s share price has fallen by 8% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment deteriorates as stock falls 24% After last week's 24% share price decline to €7.35, the stock trades at a forward P/E ratio of 7x. Average forward P/E is 11x in the Machinery industry in Germany. Total loss to shareholders of 6.0% over the past three years. Announcement • May 25
SMT Scharf AG, Annual General Meeting, May 23, 2023 SMT Scharf AG, Annual General Meeting, May 23, 2023. Reported Earnings • May 14
First quarter 2023 earnings released: €0.049 loss per share (vs €1.07 profit in 1Q 2022) First quarter 2023 results: €0.049 loss per share (down from €1.07 profit in 1Q 2022). Revenue: €14.1m (down 4.5% from 1Q 2022). Net loss: €269.0k (down 105% from profit in 1Q 2022). Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.4% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 77% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Price Target Changed • Apr 17
Price target decreased by 9.1% to €16.57 Down from €18.23, the current price target is an average from 3 analysts. New target price is 68% above last closing price of €9.85. Stock is down 10% over the past year. The company is forecast to post earnings per share of €1.21 for next year compared to €2.66 last year. Reported Earnings • Apr 13
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: €2.75 (up from €2.46 in FY 2021). Revenue: €106.6m (up 22% from FY 2021). Net income: €14.5m (up 16% from FY 2021). Profit margin: 14% (in line with FY 2021). Revenue exceeded analyst estimates by 1.3%. Earnings per share (EPS) also surpassed analyst estimates by 48%. Revenue is forecast to grow 3.4% p.a. on average during the next 3 years, compared to a 4.2% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 73% per year but the company’s share price has only increased by 9% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 16
Price target increased to €18.23 Up from €16.50, the current price target is an average from 3 analysts. New target price is 55% above last closing price of €11.80. Stock is down 24% over the past year. The company is forecast to post earnings per share of €1.69 for next year compared to €2.46 last year. Major Estimate Revision • Oct 22
Consensus EPS estimates increase by 28% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from €81.9m to €87.0m. EPS estimate increased from €1.22 to €1.56 per share. Net income forecast to shrink 56% next year vs 14% growth forecast for Machinery industry in Germany . Consensus price target of €18.00 unchanged from last update. Share price was steady at €11.00 over the past week. Major Estimate Revision • Oct 14
Consensus EPS estimates increase by 37% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from €80.1m to €87.2m. EPS estimate increased from €1.13 to €1.56 per share. Net income forecast to shrink 62% next year vs 14% growth forecast for Machinery industry in Germany . Consensus price target up from €15.58 to €17.00. Share price rose 3.8% to €10.80 over the past week. Valuation Update With 7 Day Price Move • Aug 24
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €11.58, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Machinery industry in Germany. Total loss to shareholders of 11% over the past three years. Reported Earnings • Aug 14
Second quarter 2022 earnings released: EPS: €0.60 (vs €0.34 in 2Q 2021) Second quarter 2022 results: EPS: €0.60 (up from €0.34 in 2Q 2021). Revenue: €24.5m (up 22% from 2Q 2021). Net income: €3.31m (up 79% from 2Q 2021). Profit margin: 14% (up from 9.2% in 2Q 2021). The increase in margin was driven by higher revenue. Over the next year, revenue is expected to shrink by 16% compared to a 10% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 46% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 16
Investor sentiment deteriorated over the past week After last week's 17% share price decline to €11.75, the stock trades at a forward P/E ratio of 10x. Average forward P/E is 11x in the Machinery industry in Germany. Total loss to shareholders of 14% over the past three years. Major Estimate Revision • May 24
Consensus EPS estimates increase by 26% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from €77.7m to €80.4m. EPS estimate increased from €0.95 to €1.20 per share. Net income forecast to shrink 59% next year vs 15% growth forecast for Machinery industry in Germany . Consensus price target down from €17.50 to €16.50. Share price rose 3.2% to €14.40 over the past week. Price Target Changed • May 23
Price target decreased to €16.50 Down from €18.00, the current price target is an average from 2 analysts. New target price is 18% above last closing price of €14.00. Stock is up 37% over the past year. The company is forecast to post earnings per share of €0.95 for next year compared to €2.46 last year. Reported Earnings • May 14
First quarter 2022 earnings: EPS exceeds analyst expectations First quarter 2022 results: EPS: €1.07 (up from €0.39 in 1Q 2021). Revenue: €21.5m (up 72% from 1Q 2021). Net income: €5.85m (up 226% from 1Q 2021). Profit margin: 27% (up from 14% in 1Q 2021). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 68%. Over the next year, revenue is expected to shrink by 17% compared to a 11% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Announcement • Apr 22
SMT Scharf Ordinary Shares to Be Deleted from Other OTC SMT Scharf AG's Ordinary Shares will be deleted from other OTC effective from April 22, 2022 due to Inactive Security. Major Estimate Revision • Apr 07
Consensus EPS estimates fall by 20% The consensus outlook for earnings per share (EPS) in 2022 has deteriorated. 2022 revenue forecast decreased from €81.4m to €77.7m. EPS estimate also fell from €1.19 per share to €0.95 per share. Net income forecast to shrink 55% next year vs 19% growth forecast for Machinery industry in Germany . Consensus price target down from €18.00 to €17.50. Share price fell 3.6% to €10.80 over the past week. Reported Earnings • Apr 02
Full year 2021 earnings: EPS exceeds analyst expectations Full year 2021 results: EPS: €2.46 (up from €1.79 loss in FY 2020). Revenue: €94.6m (up 85% from FY 2020). Net income: €12.6m (up €20.7m from FY 2020). Profit margin: 13% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 68%. Over the next year, revenue is expected to shrink by 14% compared to a 10% growth forecast for the industry in Germany. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Announcement • Apr 02
SMT Scharf AG, Annual General Meeting, May 17, 2022 SMT Scharf AG, Annual General Meeting, May 17, 2022. Valuation Update With 7 Day Price Move • Feb 24
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €10.65, the stock trades at a forward P/E ratio of 8x. Average forward P/E is 13x in the Machinery industry in Germany. Total loss to shareholders of 9.1% over the past three years. Reported Earnings • Nov 14
Third quarter 2021 earnings released: EPS €1.00 (vs €1.24 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: €25.5m (up 92% from 3Q 2020). Net income: €4.99m (up €10.6m from 3Q 2020). Profit margin: 20% (up from net loss in 3Q 2020). Over the last 3 years on average, earnings per share has fallen by 59% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Price Target Changed • Oct 26
Price target increased to €18.00 Up from €14.50, the current price target is an average from 2 analysts. New target price is 21% above last closing price of €14.85. The company is forecast to post earnings per share of €0.99 next year compared to a net loss per share of €1.79 last year. Reported Earnings • Aug 14
Second quarter 2021 earnings released: EPS €0.34 (vs €0.008 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: €21.5m (up 65% from 2Q 2020). Net income: €1.85m (up €1.81m from 2Q 2020). Profit margin: 8.6% (up from 0.3% in 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 83 percentage points per year, which is a significant difference in performance. Price Target Changed • Jul 30
Price target increased to €12.90 Up from €11.65, the current price target is an average from 2 analysts. New target price is approximately in line with last closing price of €12.65. Reported Earnings • Apr 01
Full year 2020 earnings released The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: €54.4m (down 29% from FY 2019). Net loss: €8.17m (down 249% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 49% per year but the company’s share price has only fallen by 19% per year, which means it has not declined as severely as earnings.