Schaffer Corporation Limited (SFC) AI Stock Analysis

• Market Cap: AU$281.33M
• Dividend Yield: 4.35%
• Average Volume (3M): 2.05K
• Price to Earnings (P/E): 9.1
• Beta (1Y): 0.05
• Revenue Growth: 5.89%
• EPS Growth: 79.20%
• Country: AU
• Employees: 900
• Sector: Consumer Cyclical
• Sector Strength: 68
• Industry: Auto - Parts
• EPS (TTM): 0.94
• Shares Outstanding: 13,590,807
• 10 Day Avg. Volume: 1,270
• 30 Day Avg. Volume: 2,047
• PEG Ratio: 0.63
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.45
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$23.50
• Price Target Upside: 12.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: AU$23.00 ▲(10.58%Upside)

Schaffer Corporation Limited's stock score is driven by strong financial performance and attractive valuation, offset by bearish technical indicators. The company has demonstrated solid revenue growth and profitability with prudent financial management. However, current technical signals suggest caution, as the stock shows potential downward momentum.

Schaffer Corporation Limited Business Overview & Revenue Model

Company Description

Schaffer Corporation Limited (SFC) is a diversified industrial company based in Australia. The company operates in several sectors, including automotive leather, building materials, and investment property. Schaffer Corporation has established a reputation for delivering quality products and services across its key divisions, which include the Automotive Leather division and the Building Materials division.

How the Company Makes Money

Schaffer Corporation Limited generates revenue primarily through its two main business divisions. The Automotive Leather division is a significant contributor, supplying leather to major automotive manufacturers globally. This division earns income by fulfilling large-scale contracts for car interiors, leveraging its expertise in leather processing and finishing. The Building Materials division also provides a steady revenue stream by manufacturing and distributing concrete paving, precast, and pre-stressed concrete products used in infrastructure and residential projects. Additionally, Schaffer Corporation benefits from its investment property segment, which generates rental income and capital appreciation. The company's earnings are further supported by strategic partnerships with customers and suppliers, which enhance its market positioning and operational efficiency.

Schaffer Corporation Limited Financial Statement Overview

Summary

Schaffer Corporation Limited exhibits strong financial health with robust revenue growth and profitability. The company has shown effective cost management and prudent leverage, contributing to solid returns on equity and cash flow generation. Minor risks include a decrease in the asset base and EBIT margins.

Income Statement

Schaffer Corporation Limited has demonstrated strong revenue growth with a 23.15% increase from 2023 to 2024. The gross profit margin improved to 23.15%, indicating efficient cost management. The net profit margin also increased, reaching 11.95%, showcasing enhanced profitability. However, EBIT and EBITDA margins slightly decreased, suggesting potential cost pressures or investment in growth.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 53.72%. The debt-to-equity ratio is 0.38, reflecting a conservative leverage approach. Return on equity improved to 12.05%, indicating effective use of shareholder capital. However, total assets slightly decreased, which may signify reduced asset growth potential.

Cash Flow

Operating cash flow showed substantial improvement, with a positive free cash flow of 44.22 million AUD, reflecting strong cash generation. The free cash flow to net income ratio is robust, and the operating cash flow to net income ratio suggests efficient cash conversion. The company has managed capital expenditures prudently, supporting cash flow stability.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	216.16M	173.99M	162.41M	196.33M	155.57M
Gross Profit	45.98M	35.19M	40.58M	58.62M	37.02M
EBITDA	54.56M	33.54M	46.09M	71.64M	48.14M
Net Income	27.05M	13.59M	26.19M	38.83M	23.55M
Balance Sheet
Total Assets	418.07M	422.33M	386.70M	365.81M	255.88M
Cash, Cash Equivalents and Short-Term Investments	47.68M	41.09M	44.57M	43.61M	35.02M
Total Debt	85.19M	98.15M	63.99M	66.19M	86.96M
Total Liabilities	179.91M	197.40M	165.71M	161.36M	132.08M
Stockholders Equity	224.61M	210.05M	207.85M	193.82M	115.24M
Cash Flow
Free Cash Flow	44.22M	-1.15M	15.85M	48.22M	15.32M
Operating Cash Flow	47.72M	5.94M	21.77M	53.77M	20.81M
Investing Cash Flow	-16.63M	-29.82M	-2.07M	-13.71M	-3.10M
Financing Cash Flow	-33.71M	17.97M	-12.01M	-31.85M	-18.00K

Schaffer Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SFC, the sentiment is Negative. The current price of 20.8 is below the 20-day moving average (MA) of 20.95, below the 50-day MA of 21.06, and below the 200-day MA of 21.20, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 39.63 is Neutral, neither overbought nor oversold. The STOCH value of 1.62 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:SFC.

Schaffer Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RPM	76 Outperform	AU$17.35M	4.01	6.94%	―	12.63%	46.73%
SFC	69 Neutral	AU$281.33M	9.08	13.91%	4.35%	5.89%	79.20%
ABV	67 Neutral	AU$31.83M	25.76	14.53%	―	18.20%	-15.38%
NTD	58 Neutral	AU$34.38M	15.95	-42.37%	―	-3.66%	-750.00%
Sector *	57 Neutral	HK$25.55B	4.08	-2.03%	5.79%	-0.31%	-67.64%
AMA	48 Neutral	AU$420.87M	435.00	1.53%	―	-1.09%	―
SIX	40 Underperform	AU$31.43M	―		―	-29.96%	-37.78%

Schaffer Corporation Limited Corporate Events

Schaffer Corporation Reports 44% Surge in First-Half Profit

Schaffer Corporation Limited reported a significant 44% increase in net profit after tax to $12.7 million for the first half of 2025. The Automotive Leather division maintained stable profits despite a decrease in revenue due to delayed program launches and supply chain disruptions, while Delta saw strong profitability from large-scale infrastructure projects. However, future revenues and profits for Delta are expected to decline due to completed projects and excess industry capacity.

Schaffer Corporation Announces New Dividend Distribution for 2024

Schaffer Corporation Limited announced a new dividend distribution of AUD 0.45 per ordinary fully paid share, related to the six-month financial period ending December 31, 2024. The ex-dividend date is set for March 6, 2025, with the record date on March 7, 2025, and payment scheduled for March 14, 2025, reflecting the company’s ongoing commitment to delivering value to its shareholders.

Schaffer Corporation Reports Robust Profit Growth Amid Slight Revenue Decline

Schaffer Corporation Limited’s recent half-year financial report reveals a 0.5% decline in revenues from ordinary activities to $112,285,000. However, net profit attributable to members surged by 44% to $12,742,000, indicating a robust financial performance despite slight revenue decline. The company declared an interim dividend of 45 cents per security, fully franked, payable on March 14, 2025, with a record date of March 7, 2025. Notably, the net tangible asset backing per share increased from $14.81 to $17.06, suggesting strong asset growth.