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SFS Group AG (CH:SFSN)
:SFSN
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SFS Group AG (SFSN) AI Stock Analysis

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CH:SFSN

SFS Group AG

(SFSN)

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Outperform 73 (OpenAI - 5.2)
Rating:73Outperform
Price Target:
CHF157.00
▲(20.40% Upside)
Action:Reiterated
Date:07/23/26
The score is driven primarily by solid underlying financial strength (improving leverage and improving free-cash-flow generation) and constructive earnings-call execution/guidance (H1 margins in the guided range and reaffirmed targets). This is balanced by a somewhat demanding valuation (P/E ~25 with a modest yield) and technical momentum that is strong but nearing stretched levels (high stochastic), which can raise near-term pullback risk.
Positive Factors
Conservative Balance Sheet
A materially lower debt-to-equity (≈0.23 in 2025) and a high equity ratio provide durable financial flexibility. This strengthens the company’s ability to fund capex, absorb cyclical downturns, pursue acquisitions, and maintain investment-grade-like resilience over the next several quarters.
Negative Factors
Softening Profitability
A downward trend in margins to mid-single digits reduces earnings resilience and free-cash upside. Structural pressure on operating profitability limits ability to self-fund growth and makes meeting midterm margin targets dependent on successful cost and pricing measures.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
A materially lower debt-to-equity (≈0.23 in 2025) and a high equity ratio provide durable financial flexibility. This strengthens the company’s ability to fund capex, absorb cyclical downturns, pursue acquisitions, and maintain investment-grade-like resilience over the next several quarters.
Read all positive factors

SFS Group AG (SFSN) vs. iShares MSCI Switzerland ETF (EWL)

SFS Group AG Business Overview & Revenue Model

Company Description
SFS Group AG operates globally, delivering mechanical fastening solutions, meticulously crafted precision components, assembled products, and comprehensive logistics services. Their expansive range of offerings caters to diverse applications, feat...
How the Company Makes Money
SFS Group AG primarily makes money by selling manufactured industrial components and fastening solutions and by providing related supply and logistics services to business customers. A core revenue stream comes from producing and selling engineere...

SFS Group AG Earnings Call Summary

Earnings Call Date:Jul 23, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Feb 26, 2027
Earnings Call Sentiment Positive
Overall the call presents a constructive financial and operational picture: the group delivered solid organic growth, robust margins (adjusted EBIT margin 13.3%), strong cash conversion (EBITDA conversion 43.7%), and strategic acquisitions that expand aerospace and distribution capabilities. Headwinds include a material FX drag (-4.2% / CHF 64.8m), net working capital increases tied to acquisitions and electronics receivables, and an active streamlining program that will reduce sales (~CHF 110m) and incur one-off costs (~CHF 75m) but is expected to improve midterm profitability (~+0.8 ppt). Management reaffirmed full-year guidance (3–6% local-currency growth; adjusted EBIT margin 12–15%) and signaled cautious optimism about normalization of working capital and sustained cash generation.
Positive Updates
Reported and Organic Sales Growth
Group sales of CHF 1.559 billion in H1 2026, reported growth +1.3% YoY; organic growth +4.0% and local-currency growth ~+5.5%, within the upper end of the 3–6% guidance range.
Negative Updates
Currency Headwind and Reported Growth Compression
Appreciation of the Swiss franc reduced reported sales by CHF 64.8 million (a -4.2% currency effect), limiting reported growth to +1.3% despite stronger local-currency performance.
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Q2-2026 Updates
Negative
Reported and Organic Sales Growth
Group sales of CHF 1.559 billion in H1 2026, reported growth +1.3% YoY; organic growth +4.0% and local-currency growth ~+5.5%, within the upper end of the 3–6% guidance range.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance of 3–6% growth in local currencies (including scope) and an adjusted EBIT margin target of 12–15%. In H1 SFS reported sales of CHF 1.559bn (+1.3% reported; organic +4%; M&A +1.5%; FX headwind −4.2%/CHF 64.8m), adjusted EBIT CHF 206m (13.3%) — EBIT incl. non‑recurring CHF 211.2m (13.6%) — EBITDA CHF 273.7m (17.6%), EPS CHF 3.82 (+CHF 0.96), free cash flow CHF 121m (EBITDA conversion 43.7%), and CapEx ~CHF 32m (2.3% of sales) versus D&A 4.2%. Management reconfirmed midterm CapEx of 4–6% of sales and an EBITDA conversion target of 40–50%, noted an HDD run‑rate target of CHF 80–100m p.a., and said the streamlining program (expected completion end‑2027) will reduce sales by ~CHF 110m, incur ~CHF 75m one‑off costs, affect ~650 employees and deliver ~+0.8 percentage points to EBIT margin by end‑2027; equity ratio H1 was 58.9% (vs 60.3% PY).

SFS Group AG Financial Statement Overview

Summary
Overall financials look healthy: conservative and improving leverage (debt-to-equity down to ~0.23 in 2025) and solid/free-cash-flow growth in 2024–2025. Offsetting this, profitability has softened versus earlier peaks (net margin ~7.1% in 2025) and cash conversion has been somewhat inconsistent (FCF below net income and recent OCF coverage below 1), which tempers the score.
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.07B3.07B3.05B3.11B2.74B1.90B
Gross Profit789.00M1.78B1.77B1.77B732.60M583.50M
EBITDA513.00M456.40M474.70M497.80M463.90M407.90M
Net Income256.40M219.00M241.30M266.00M266.70M243.80M
Balance Sheet
Total Assets2.69B2.51B2.61B2.55B2.57B1.84B
Cash, Cash Equivalents and Short-Term Investments222.40M209.80M224.60M227.50M221.50M286.00M
Total Debt542.70M374.60M559.60M672.80M699.20M6.80M
Total Liabilities1.11B893.90M1.05B1.17B1.27B388.70M
Stockholders Equity1.57B1.60B1.54B1.36B1.28B1.43B
Cash Flow
Free Cash Flow278.00M273.60M226.10M139.40M118.10M203.60M
Operating Cash Flow359.10M377.30M375.00M313.40M289.10M325.00M
Investing Cash Flow-245.60M-100.70M-158.00M-179.00M-644.70M-114.50M
Financing Cash Flow-62.30M-281.40M-223.30M-117.70M294.70M-115.60M

SFS Group AG Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price130.40
Price Trends
50DMA
133.72
Negative
100DMA
127.41
Positive
200DMA
118.52
Positive
Market Momentum
MACD
-0.68
Positive
RSI
44.16
Neutral
STOCH
18.18
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SFSN, the sentiment is Neutral. The current price of 130.4 is below the 20-day moving average (MA) of 134.32, below the 50-day MA of 133.72, and above the 200-day MA of 118.52, indicating a neutral trend. The MACD of -0.68 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 18.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:SFSN.

SFS Group AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
CHF5.12B20.001.92%1.51%8.62%
70
Outperform
CHF3.00B16.872.04%-4.06%-17.81%
67
Neutral
CHF1.77B20.2322.75%1.65%7.01%28.45%
64
Neutral
CHF3.78B50.8711.34%1.07%-3.33%4.16%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
53
Neutral
CHF403.53M-43.01-2.66%9.28%
52
Neutral
CHF4.30B-31.982.58%-20.47%-148.37%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:SFSN
SFS Group AG
131.80
27.58
26.46%
CH:BUCN
Bucher Industries AG
306.00
-72.33
-19.12%
CH:GF
Georg Fischer AG
52.45
-9.75
-15.68%
CH:KOMN
Komax Holding AG
78.70
-7.00
-8.17%
CH:BOSN
Bossard Holding AG
229.00
71.00
44.94%
CH:HUBN
HUBER+SUHNER AG
205.00
97.78
91.19%

SFS Group AG Corporate Events

SFS Group Exceeds Growth Targets with Strong First-Half 2026 Results
Jul 23, 2026
SFS Group AG reported that it is on track to meet its 2026 objectives after a robust first half, generating sales of CHF 1,559.3 million and achieving a normalized EBIT margin of 13.3%. These results indicate solid operational performance and unde...
SFS Group Buys U.S. Aviation Fastener Specialist to Expand Aerospace Reach
Jul 10, 2026
SFS Group AG has agreed to acquire Heartland Precision Fasteners Inc., an American manufacturer of specialized fasteners for aircraft structures and engines, in a move that broadens its presence in aerospace. The transaction will extend SFS’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 23, 2026