Buy Or Sell Opportunity • Aug 10
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 15% to €6.10. The fair value is estimated to be €7.77, 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 • 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 28% to €6.35. The fair value is estimated to be €7.99, 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 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. 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. New Risk • Nov 16
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: 0.1% Last year net profit margin: 6.9% 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: Minor Risks Profit margins are more than 30% lower than last year (0.1% net profit margin). Market cap is less than US$100m (€41.0m market cap, or US$43.2m). Reported Earnings • Nov 16
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 22% per year, which means it has not declined as severely as earnings. Valuation Update With 7 Day Price Move • Sep 21
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to €8.10, the stock trades at a forward P/E ratio of 14x. Average forward P/E is 10x in the Machinery industry in Germany. Total loss to shareholders of 40% over the past three years. 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 14% per year, which means it is significantly lagging earnings. 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. Valuation Update With 7 Day Price Move • Mar 07
Investor sentiment improves as stock rises 19% After last week's 19% share price gain to €6.80, 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 19% 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. 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 (7.2% 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). Valuation Update With 7 Day Price Move • Nov 03
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to €6.45, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 10x in the Machinery industry in Germany. Total loss to shareholders of 14% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at €11.85 per share. New Risk • Oct 31
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 7.2% 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 (7.2% 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 (€35.8m market cap, or US$37.9m). 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 • 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 (€36.9m market cap, or US$40.2m). 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 7% per year, which means it is significantly lagging earnings. Valuation Update With 7 Day Price Move • Aug 09
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to €7.55, 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 2.3% 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 66% above last closing price of €10.00. Stock is down 9.5% 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 8% per year, which means it is significantly lagging earnings growth. Reported Earnings • Nov 16
Third quarter 2022 earnings released: EPS: €0.62 (vs €1.00 in 3Q 2021) Third quarter 2022 results: EPS: €0.62 (down from €1.00 in 3Q 2021). Revenue: €24.3m (up 5.1% from 3Q 2021). Net income: €3.38m (down 32% from 3Q 2021). Profit margin: 14% (down from 22% in 3Q 2021). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.7% p.a. on average during the next 3 years, compared to a 3.9% growth forecast for the Machinery industry in Germany. Over the last 3 years on average, earnings per share has increased by 62% 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 • Oct 14
Price target increased to €18.00 Up from €16.50, the current price target is an average from 2 analysts. New target price is 65% above last closing price of €10.90. Stock is down 30% over the past year. The company is forecast to post earnings per share of €1.22 for next year compared to €2.46 last year. Valuation Update With 7 Day Price Move • Aug 25
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €11.44, 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 10% 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 4% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 17
Investor sentiment deteriorated over the past week After last week's 15% share price decline to €11.80, 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 13% over the past three years. 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 19% above last closing price of €13.85. Stock is up 36% 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 1% per year, which means it is significantly lagging earnings growth. 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. Valuation Update With 7 Day Price Move • Feb 26
Investor sentiment deteriorated over the past week After last week's 16% share price decline to €10.55, the stock trades at a forward P/E ratio of 9x. Average forward P/E is 13x in the Machinery industry in Germany. Total loss to shareholders of 11% 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 27
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 82 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 €12.75. Reported Earnings • Apr 02
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 20% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 24
New 90-day low: €8.20 The company is down 8.0% from its price of €8.88 on 25 November 2020. The German market is up 9.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 5.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €12.27 per share. Is New 90 Day High Low • Jan 23
New 90-day high: €9.32 The company is up 21% from its price of €7.72 on 23 October 2020. The German market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 16% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €12.84 per share. Is New 90 Day High Low • Nov 26
New 90-day high: €8.88 The company is up 10.0% from its price of €8.08 on 27 August 2020. The German market is up 1.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 6.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €10.69 per share. Reported Earnings • Nov 17
Third quarter 2020 earnings released: €1.24 loss per share The company reported a poor third quarter result with weaker earnings, revenues and control over expenses. Third quarter 2020 results: Revenue: €13.3m (down 20% from 3Q 2019). Net loss: €5.65m (down €6.95m from profit in 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 41% 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. Analyst Estimate Surprise Post Earnings • Nov 17
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Over the next year, revenue is forecast to stay flat compared to a 3.0% growth forecast for the Machinery industry in Germany. Reported Earnings • Nov 13
Third quarter 2020 earnings released: €1.24 loss per share The company reported a poor third quarter result with weaker earnings, revenues and control over expenses. Third quarter 2020 results: Revenue: €14.4m (down 13% from 3Q 2019). Net loss: €5.65m (down €6.95m from profit in 3Q 2019). Over the last 3 years on average, earnings per share has fallen by 41% per year but the company’s share price has only fallen by 20% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Nov 13
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 2.9%. Earnings per share (EPS) also surpassed analyst estimates by 22%. Over the next year, revenue is expected to shrink by 4.0% compared to a 2.4% growth forecast for the Machinery industry in Germany. Is New 90 Day High Low • Oct 29
New 90-day low: €7.28 The company is down 6.0% from its price of €7.74 on 30 July 2020. The German market is down 5.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is €9.63 per share.