XTRA:SYT

Stock Analysis Report

Executive Summary

Softing AG develops software, hardware, and system solutions worldwide.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SYT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.4%

SYT

4.3%

DE Electronic

7.2%

DE Market


1 Year Return

-22.7%

SYT

-26.3%

DE Electronic

-17.5%

DE Market

Return vs Industry: SYT exceeded the German Electronic industry which returned -23.9% over the past year.

Return vs Market: SYT underperformed the German Market which returned -14.1% over the past year.


Shareholder returns

SYTIndustryMarket
7 Day-0.4%4.3%7.2%
30 Day-22.2%-25.8%-22.3%
90 Day-34.3%-23.6%-26.1%
1 Year-21.3%-22.7%-24.8%-26.3%-14.9%-17.5%
3 Year-45.5%-48.2%-2.3%-5.5%-18.7%-25.7%
5 Year-57.0%-60.3%55.1%43.8%-17.8%-29.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Softing undervalued compared to its fair value and its price relative to the market?

6.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYT (€5.18) is trading below our estimate of fair value (€5.53)

Significantly Below Fair Value: SYT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SYT is good value based on its PE Ratio (13x) compared to the Electronic industry average (16.9x).

PE vs Market: SYT is good value based on its PE Ratio (13x) compared to the German market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: SYT is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: SYT is good value based on its PB Ratio (0.7x) compared to the DE Electronic industry average (1.2x).


Next Steps

Future Growth

How is Softing forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

26.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYT's forecast earnings growth (26.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: SYT's earnings (26.6% per year) are forecast to grow faster than the German market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SYT's revenue (6.1% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: SYT's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYT's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

How has Softing performed over the past 5 years?

-9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYT has high quality earnings.

Growing Profit Margin: SYT's current net profit margins (3.9%) are higher than last year (2.8%).


Past Earnings Growth Analysis

Earnings Trend: SYT's earnings have declined by -9.4% per year over the past 5 years.

Accelerating Growth: SYT's earnings growth over the past year (48.5%) exceeds its 5-year average (-9.4% per year).

Earnings vs Industry: SYT earnings growth over the past year (48.5%) exceeded the Electronic industry -7.4%.


Return on Equity

High ROE: SYT's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Softing's financial position?


Financial Position Analysis

Short Term Liabilities: SYT's short term assets (€42.9M) exceed its short term liabilities (€17.6M).

Long Term Liabilities: SYT's short term assets (€42.9M) exceed its long term liabilities (€24.9M).


Debt to Equity History and Analysis

Debt Level: SYT's debt to equity ratio (20.7%) is considered satisfactory.

Reducing Debt: SYT's debt to equity ratio has reduced from 28.7% to 20.7% over the past 5 years.

Debt Coverage: SYT's debt is well covered by operating cash flow (112%).

Interest Coverage: SYT's interest payments on its debt are well covered by EBIT (17.4x coverage).


Balance Sheet

Inventory Level: SYT has a low level of unsold assets or inventory.

Debt Coverage by Assets: SYT's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

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

2.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYT's dividend (2.51%) is higher than the bottom 25% of dividend payers in the German market (1.66%).

High Dividend: SYT's dividend (2.51%) is low compared to the top 25% of dividend payers in the German market (4.86%).


Stability and Growth of Payments

Stable Dividend: SYT has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SYT's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (32.7%), SYT's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYT's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).


Next Steps

Management

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

€1m

CEO Compensation


CEO

Wolfgang Trier

no data

Tenure

€1,074,000

Compensation

Dr.-Ing. Dr. rer.oec. Wolfgang Trier serves as the Chairman of the Executive Board and Chief Executive Officer at Softing AG. Dr.-Ing. Dr. rer.oec Trier serves as the Head of Investor Relations and Industr ...


CEO Compensation Analysis

Compensation vs Market: Wolfgang's total compensation ($USD0.00) is below average for companies of similar size in the German market ($USD429.96K).

Compensation vs Earnings: Insufficient data to compare Wolfgang's compensation with company performance.


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 been diluted in the past year, with total shares outstanding growing by 9.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Softing AG
  • Ticker: SYT
  • Exchange: XTRA
  • Founded: 1979
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: €47.166m
  • Shares outstanding: 9.11m
  • Website: https://www.softing.com

Number of Employees


Location

  • Softing AG
  • Richard-Reitzner-Allee 6
  • Haar
  • Bavaria
  • 85540
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYTDB (Deutsche Boerse AG)YesBearer SharesDEEURMay 2000
SYTXTRA (XETRA Trading Platform)YesBearer SharesDEEURMay 2000
0G73LSE (London Stock Exchange)YesBearer SharesGBEURMay 2000
SYTdBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURMay 2000

Biography

Softing AG develops software, hardware, and system solutions worldwide. The company operates through three segments: Industrial, Automotive, and IT Networks. It offers communications solutions and products for the manufacturing and process industry. The company also provides products and services for integrated communication functions in automation systems and devices, such as PROFIBUS, PROFINET, EthernetIP, EtherCAT, Powerlink, Modbus, CAN, CANopen, DeviceNet, FOUNDATION Fieldbus, and HART; interface cards; integration modules; chip solutions and communications software for implementing bus links; gateways for linking fieldbuses; and groupwide planning and administration systems. In addition, it offers tools for configuring networks; toolkits to integrate configuration functions; tools and devices for signal and protocol analysis of industrial communication networks; OPC servers, middleware, and development tools; and diagnostic devices. Further, the company provides vehicle adapters and data bus interfaces comprising interfaces, various PC connections, programming interfaces, and customized adaptations; and on-site consulting and engineering services, as well as special solutions for development/testing, production, and service. Additionally, it offers diagnostic solutions and servers, and customized and proprietary analytic tools; test automation software interfaces, editing and run time systems, and customized test stations, as well as solutions for the flash programming of control units; and devices for simulating electronic control units and rest bus systems. The company also provides customer-specific software and hardware developments for data communication/diagnosis/test systems; on-site customer support, as well as measurement technology and automation systems; and testing, qualifying, and certifying services for cabling in IT systems. Softing AG was founded in 1979 and is headquartered in Haar, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/27 21:27
End of Day Share Price2020/03/27 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.