XTRA:SF3

Stock Analysis Report

Executive Summary

STS Group AG develops, manufactures, and supplies products and solutions for acoustic and thermal insulation, and components made of plastics or composite materials for the automobile and trucking industries in Germany and internationally.

Rewards

Trading at 73.9% below its fair value

Earnings are forecast to grow 47.19% per year

Risk Analysis

Interest payments are not well covered by earnings

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap (€29M)



Snowflake Analysis

Fair value with moderate growth potential.


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Share Price & News

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


Latest Share Price and Events

Stable Share Price: SF3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.6%

SF3

1.8%

DE Machinery

1.0%

DE Market


1 Year Return

-57.2%

SF3

-2.9%

DE Machinery

15.7%

DE Market

Return vs Industry: SF3 underperformed the German Machinery industry which returned -2.9% over the past year.

Return vs Market: SF3 underperformed the German Market which returned 15.7% over the past year.


Shareholder returns

SF3IndustryMarket
7 Day-0.6%1.8%1.0%
30 Day-5.1%1.1%1.0%
90 Day-4.6%2.5%6.7%
1 Year-57.2%-57.2%0.2%-2.9%19.3%15.7%
3 Yearn/a-6.6%-13.3%19.5%8.9%
5 Yearn/a21.2%7.4%36.9%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is STS Group 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: SF3 (€4.8) is trading below our estimate of fair value (€18.37)

Significantly Below Fair Value: SF3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SF3 is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.

PE vs Market: SF3 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SF3's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SF3 is good value based on its PB Ratio (0.4x) compared to the DE Machinery industry average (1.5x).


Next Steps

Future Growth

How is STS Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

47.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SF3 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: SF3 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: SF3's is expected to become profitable in the next 3 years.

Revenue vs Market: SF3's revenue (2.3% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: SF3's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SF3's Return on Equity is forecast to be low in 3 years time (5.2%).


Next Steps

Past Performance

How has STS Group performed over the past 5 years?

-16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SF3 is currently unprofitable.

Growing Profit Margin: SF3 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SF3 is unprofitable, and losses have increased over the past 5 years at a rate of -16.9% per year.

Accelerating Growth: Unable to compare SF3's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SF3 is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-0.6%).


Return on Equity

High ROE: SF3 has a negative Return on Equity (-8.99%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is STS Group's financial position?


Financial Position Analysis

Short Term Liabilities: SF3's short term assets (€152.6M) do not cover its short term liabilities (€153.8M).

Long Term Liabilities: SF3's short term assets (€152.6M) exceed its long term liabilities (€58.9M).


Debt to Equity History and Analysis

Debt Level: SF3's debt to equity ratio (68.5%) is considered high.

Reducing Debt: Insufficient data to determine if SF3's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: SF3's debt is well covered by operating cash flow (36.6%).

Interest Coverage: SF3 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

Inventory Level: SF3 has a high level of physical assets or inventory.

Debt Coverage by Assets: SF3's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.3%markettop25%3.6%industryaverage2.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SF3's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SF3's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SF3's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SF3's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SF3 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SF3's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of STS Group's salary, the management and board of directors tenure and is there insider trading?

2.4yrs

Average management tenure


CEO

Andreas Becker 0

2.9yrs

Tenure

0

Mr. Andreas Becker has been Chief Executive Officer of STS Group AG since 2017 and its Member of the Management Board of STS Group AG since 20 February 2017. From 1996 to 2013, Mr. Becker held several seni ...


Management Age and Tenure

2.4yrs

Average Tenure

Experienced Management: SF3's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: SF3's board of directors are not considered experienced ( 1.9 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 been substantially diluted in the past year, with total shares outstanding growing by 117.4%.


Management Team

  • Ulrich Hauck (55yo)

    CFO & Member of Management Board

    • Tenure: 0.7yrs
  • Andreas Becker

    CEO & Member of the Management Board

    • Tenure: 2.9yrs
  • Patrick Oschust

    COO & Member of the Management Board

    • Tenure: 2.4yrs
  • Stefan Hummel

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Kristian Schleede (61yo)

    Deputy Chairman of the Supervisory Board

    • Tenure: 1.9yrs
  • Bernd Maierhofer

    Member of the Supervisory Board

    • Tenure: 1.6yrs
  • Robin Laik

    Chairman of the Supervisory Board

    • Tenure: 1.9yrs

Company Information

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


Key Information

  • Name: STS Group AG
  • Ticker: SF3
  • Exchange: XTRA
  • Founded: 1934
  • Industry: Construction Machinery and Heavy Trucks
  • Sector: Capital Goods
  • Market Cap: €28.575m
  • Shares outstanding: 5.95m
  • Website: https://sts.group

Number of Employees


Location

  • STS Group AG
  • Zeppelinstrasse 4
  • Freising District
  • Hallbergmoos
  • Bavaria
  • 85399
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SF3XTRA (XETRA Trading Platform)YesOrdinary Bearer SharesDEEURMay 2018
SF3DB (Deutsche Boerse AG)YesOrdinary Bearer SharesDEEURMay 2018

Biography

STS Group AG develops, manufactures, and supplies products and solutions for acoustic and thermal insulation, and components made of plastics or composite materials for the automobile and trucking industri ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 21:38
End of Day Share Price2019/12/13 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.