Schaffer Corporation Limited (SFC) AI Stock Analysis

• Market Cap: AU$284.18M
• Dividend Yield: 4.3%
• Average Volume (3M): 3.29K
• Price to Earnings (P/E): 9.2
• Beta (1Y): 0.05
• Revenue Growth: 5.89%
• EPS Growth: 79.20%
• Country: AU
• Employees: 900
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Auto - Parts
• EPS (TTM): 0.94
• Shares Outstanding: 13,590,807
• 10 Day Avg. Volume: 3,612
• 30 Day Avg. Volume: 3,295
• PEG Ratio: -13.76
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.83
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: AU$23.50 ▲(12.39%Upside)

Schaffer Corporation Limited's strong financial performance and attractive valuation underpin its overall stock score. Despite a neutral technical analysis suggesting limited momentum, the company's solid revenue growth and profitability, coupled with a low P/E ratio and high dividend yield, make it a compelling investment. Investors should monitor potential risks related to asset base decreases and EBIT margin pressures.

Schaffer Corporation Limited Business Overview & Revenue Model

Company Description

Schaffer Corporation Limited (SFC) is an Australian-based company engaged in a diversified range of business activities, primarily in the manufacturing and investment sectors. The company operates through three main segments: Automotive Leather, Building Materials, and Investment Property. Schaffer Corporation is known for its quality leather products supplied to the global automotive industry, particularly for high-end car interiors. The Building Materials segment focuses on producing and supplying paving and concrete products, while the Investment Property segment involves managing a portfolio of commercial properties.

How the Company Makes Money

Schaffer Corporation Limited generates revenue through its diverse operations across several segments. The Automotive Leather segment is a major revenue stream, providing leather products to automotive manufacturers worldwide, with a focus on premium and luxury vehicle markets. The Building Materials segment contributes to earnings by manufacturing and selling construction-related products, including paving and precast concrete materials. Additionally, the company's Investment Property segment generates income through leasing and managing commercial properties, benefiting from rental income and potential property value appreciation. Strategic partnerships with automotive manufacturers and its established market presence in the building industry are significant factors contributing to Schaffer Corporation's earnings.

Schaffer Corporation Limited Financial Statement Overview

Summary

Schaffer Corporation Limited exhibits strong financial health with a solid growth trajectory in revenue and profitability. The company has prudently managed leverage while delivering strong returns on equity and cash flow generation. Potential risks include slight decreases in asset base and EBIT margins, which should be monitored for future impact.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	225.62M	216.16M	173.99M	162.41M	196.33M	155.57M
Gross Profit	54.11M	45.98M	35.19M	40.58M	58.62M	37.02M
EBITDA	42.92M	54.56M	33.54M	46.09M	71.64M	48.14M
Net Income	30.96M	27.05M	13.59M	26.19M	38.83M	23.55M
Balance Sheet
Total Assets	431.62M	418.07M	422.33M	386.70M	365.81M	255.88M
Cash, Cash Equivalents and Short-Term Investments	48.23M	47.68M	41.09M	44.57M	43.61M	35.02M
Total Debt	87.62M	85.19M	98.15M	63.99M	66.19M	86.96M
Total Liabilities	184.79M	179.91M	197.40M	165.71M	161.36M	132.08M
Stockholders Equity	233.13M	224.61M	210.05M	207.85M	193.82M	115.24M
Cash Flow
Free Cash Flow	33.55M	44.22M	-1.15M	15.85M	48.22M	15.32M
Operating Cash Flow	36.90M	47.72M	5.94M	21.77M	53.77M	20.81M
Investing Cash Flow	-30.23M	-16.63M	-29.82M	-2.07M	-13.71M	-3.10M
Financing Cash Flow	-21.19M	-33.71M	17.97M	-12.01M	-31.85M	-18.00K

Schaffer Corporation Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 20.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:SFC, the sentiment is Neutral. The current price of 20.91 is below the 20-day moving average (MA) of 21.13, below the 50-day MA of 21.12, and below the 200-day MA of 21.22, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.56 is Neutral, neither overbought nor oversold. The STOCH value of 42.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AU:SFC.

Schaffer Corporation Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AUB	75 Outperform	€4.12B	35.53	7.96%	1.41%	6.53%	-8.63%
SFC	73 Outperform	AU$284.18M	9.17	13.91%	4.30%	5.89%	79.20%
JHX	70 Outperform	$16.74B	26.07	21.09%	―	-0.65%	-15.10%
Sector *	61 Neutral	AU$2.78B	25.73	5.01%	5.27%	2.63%	-29.95%
BKW	53 Neutral	$5.23B	―	-1.34%	1.46%	-7.76%	-123.85%

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.