XTRA:SAX

Stock Analysis Report

Ströer SE KGaA

Executive Summary

Ströer SE & Co. KGaA provides out-of-home and online advertising services to private and corporate customers in Germany, Turkey, and internationally.

Rewards

Trading at 31.1% below its fair value

Earnings are forecast to grow 19.89% per year

Risk Analysis

Has a high level of debt

Dividend of 2.6% is not well covered by earnings



Snowflake Analysis

Reasonable growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Ströer SE KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

SAX

1.4%

DE Media

-0.2%

DE Market


1 Year Return

51.3%

SAX

7.0%

DE Media

13.7%

DE Market

Return vs Industry: SAX exceeded the German Media industry which returned 7% over the past year.

Return vs Market: SAX exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

SAXIndustryMarket
7 Day-0.9%1.4%-0.2%
30 Day3.4%-0.5%0.3%
90 Day8.4%2.2%3.7%
1 Year56.5%51.3%12.4%7.0%17.2%13.7%
3 Year69.1%56.7%-16.7%-27.6%15.4%5.3%
5 Year203.5%174.3%-18.1%-35.2%21.3%4.7%

Price Volatility Vs. Market

How volatile is Ströer SE KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ströer SE KGaA undervalued compared to its fair value and its price relative to the market?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAX (€76.8) is trading below our estimate of fair value (€111.39)

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


Price To Earnings Ratio

PE vs Industry: SAX is poor value based on its PE Ratio (39.6x) compared to the Media industry average (28.9x).

PE vs Market: SAX is poor value based on its PE Ratio (39.6x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: SAX is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: SAX is overvalued based on its PB Ratio (7.4x) compared to the DE Media industry average (2.9x).


Next Steps

Future Growth

How is Ströer SE KGaA forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAX's forecast earnings growth (19.9% per year) is above the savings rate (-0.4%).

Earnings vs Market: SAX's earnings (19.9% per year) are forecast to grow faster than the German market (13.1% per year).

High Growth Earnings: SAX's earnings are forecast to grow, but not significantly.

Revenue vs Market: SAX's revenue (5.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: SAX's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAX's Return on Equity is forecast to be high in 3 years time (36.8%)


Next Steps

Past Performance

How has Ströer SE KGaA performed over the past 5 years?

26.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAX has high quality earnings.

Growing Profit Margin: SAX's current net profit margins (6.2%) are lower than last year (7.2%).


Past Earnings Growth Analysis

Earnings Trend: SAX's earnings have grown significantly by 26.5% per year over the past 5 years.

Accelerating Growth: SAX's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SAX had negative earnings growth (-6.5%) over the past year, making it difficult to compare to the Media industry average (-8.9%).


Return on Equity

High ROE: SAX's Return on Equity (18.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ströer SE KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: SAX's short term assets (€350.5M) do not cover its short term liabilities (€532.6M).

Long Term Liabilities: SAX's short term assets (€350.5M) do not cover its long term liabilities (€1.8B).


Debt to Equity History and Analysis

Debt Level: SAX's debt to equity ratio (112.9%) is considered high.

Reducing Debt: SAX's debt to equity ratio has reduced from 117.5% to 112.9% over the past 5 years.

Debt Coverage: SAX's debt is well covered by operating cash flow (67.6%).

Interest Coverage: SAX's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAX's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is Ströer SE KGaA's current dividend yield, its reliability and sustainability?

2.60%

Current Dividend Yield


Dividend Yield vs Market

company2.6%marketbottom25%1.3%markettop25%3.7%industryaverage5.9%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: SAX's dividend (2.6%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: SAX's dividend (2.6%) is low compared to the top 25% of dividend payers in the German market (3.65%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SAX has been paying a dividend for less than 10 years.

Growing Dividend: SAX's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (103.2%), SAX's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAX's dividends in 3 years are forecast to be covered by earnings (58% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Udo Müller (57yo)

2.1yrs

Tenure

€3,775,200

Compensation

Mr. Udo Müller is the Founder, Chairman of Management Board and Co-Chief Executive Officerof Ströer SE & Co. KGaA. At the young age of 19, he managed his first publishing house. Following his medical degr ...


CEO Compensation Analysis

Compensation vs Market: Udo's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD2.27M).

Compensation vs Earnings: Udo's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Udo Müller
Founder2.1yrs€3.78m21.2% 921.0m
Christian Schmalzl
Co-CEO & Member of Management Board2.9yrs€1.41m0.050% 2.2m
Christian Baier
CFO & Member of Management Board1.1yrsno datano data
Christoph Löhrke
Head of Investor & Credit Relations0yrsno datano data
Marc Sausen
Director of Corporate Communications0yrsno datano data

2.1yrs

Average Tenure

Experienced Management: SAX's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vicente Vento Bosch
Member of Supervisory Board4.3yrs€31.10kno data
Dirk Ströer
Deputy Chairman of Supervisory Board0yrs€48.30k21.31% 925.8m
Christoph Vilanek
Chairman of Supervisory Board5.7yrs€75.00kno data
Martin Diederichs
Member of Supervisory Board1.5yrs€31.50kno data
Ulrich Voigt
Member of Supervisory Board6.3yrs€47.60kno data
Tobias Meuser
Employee Representative Supervisory Board Member2.9yrs€600.00no data
Christian Gellesch
Employee Representative Supervisory Board Member2.9yrs€600.00no data
Thomas Müller
Member of Supervisory Board2.9yrs€400.00no data
Sabine Hüttinger
Employee Representative Supervisory Board Member2.9yrs€600.00no data
Rachel Marquardt
Employee Representative Supervisory Board Member2.9yrs€400.00no data

2.9yrs

Average Tenure

49yo

Average Age

Experienced Board: SAX's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

Ströer SE & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ströer SE & Co. KGaA
  • Ticker: SAX
  • Exchange: XTRA
  • Founded:
  • Industry: Advertising
  • Sector: Media
  • Market Cap: €4.345b
  • Shares outstanding: 56.58m
  • Website: https://www.stroeer.com

Number of Employees


Location

  • Ströer SE & Co. KGaA
  • Ströer Allee 1
  • Cologne
  • North Rhine-Westphalia
  • 50999
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAXDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2010
SAXXTRA (XETRA Trading Platform)YesCommon SharesDEEURJul 2010
0MYZLSE (London Stock Exchange)YesCommon SharesGBEURJul 2010
SAXDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 2010
SAXSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 2010
SAXWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 2010
SAXETLX (Eurotlx)YesCommon SharesITEURJul 2010

Biography

Ströer SE & Co. KGaA provides out-of-home and online advertising services to private and corporate customers in Germany, Turkey, and internationally. The company operates through three segments: Ströer Digital, Out-of-Home Germany, and Out-of-Home International. Its out-of-home advertising solutions covers various forms of outdoor advertising media, such as traditional posters; advertisements at bus and tram stop shelters, and on public transport; and digital and interactive solutions. The company markets approximately 300,000 outdoor advertising spaces. It also offers digital advertising on the Internet and on mobile devices, as well as in public spaces as a public video network. The company operates approximately 1,000 Websites. The company was formerly known as Ströer SE. Ströer SE & Co. KGaA is headquartered in Cologne, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:03
End of Day Share Price2020/02/20 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.