STS Group Valuation

Q: What is the Fair Price of SF3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SF3 (€3.92) is trading below our estimate of [[fair value]] (€18.01)

Is SF3 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

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

Share Price vs Fair Value

What is the Fair Price of SF3 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SF3 (€3.92) is trading below our estimate of fair value (€18.01)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SF3?

Key metric: As SF3 is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for SF3. This is calculated by dividing SF3's market cap by their current revenue.
What is SF3's PS Ratio?
PS Ratio	0.08x
Sales	€301.90m
Market Cap	€25.28m

SF3 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	0.2x
Enterprise Value/EBITDA	2.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SF3's PS Ratio compare to its peers?

The above table shows the PS ratio for SF3 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PS	Estimated Growth	Market Cap
Peer Average	0.4x
MSAG MS Industrie	0.2x	-2.6%	€39.9m
S188 SMT Scharf	0.6x	2.1%	€42.4m
DEZ DEUTZ	0.3x	11.6%	€553.1m
JST JOST Werke	0.6x	4.1%	€631.0m
SF3 STS Group	0.08x	4.2%	€25.3m

Price-To-Sales vs Peers: SF3 is good value based on its Price-To-Sales Ratio (0.1x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does SF3's PS Ratio compare vs other companies in the DE Machinery Industry?

6 Companies	Price / Sales	Estimated Growth	Market Cap
Industry Avg.	0.5x	4.5%
SF3 STS Group	0.08x	4.2%	US$26.62m
HDD Heidelberger Druckmaschinen	0.1x	4.2%	US$303.09m
SKB Koenig & Bauer	0.1x	4.8%	US$195.88m

6 Companies		Estimated Growth	Market Cap
Industry Avg.	0.5x	12.5%
SF3 STS Group	0.08x	56.4%	US$26.62m

No more companies

Price-To-Sales vs Industry: SF3 is good value based on its Price-To-Sales Ratio (0.1x) compared to the German Machinery industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is SF3'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.

SF3 PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	0.08x
Fair PS Ratio	0.2x

Price-To-Sales vs Fair Ratio: SF3 is good value based on its Price-To-Sales Ratio (0.1x) compared to the estimated Fair Price-To-Sales Ratio (0.2x).

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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