SFS Group AG (SFSN) AI Stock Analysis

• Market Cap: CHF4.08B
• Dividend Yield: 1.98%
• Average Volume (3M): 24.23K
• Price to Earnings (P/E): 17.3
• Beta (1Y): 0.73
• Revenue Growth: -0.71%
• EPS Growth: -6.12%
• Country: CH
• Employees: 13,689
• Sector: Services
• Sector Strength: N/A
• Industry: Manufacturing - Tools & Accessories
• EPS (TTM): 2.98
• Shares Outstanding: 38,900,000
• 10 Day Avg. Volume: 20,816
• 30 Day Avg. Volume: 24,227
• PEG Ratio: -2.20
• Price to Book (P/B): 3.17
• Price to Sales (P/S): 1.60
• P/FCF Ratio: 21.60
• 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: CHF125.00
• Price Target Upside: 23.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: CHF121.00 ▲(19.09% Upside)

SFS Group AG's overall stock score is driven primarily by its strong financial performance, characterized by robust profitability and cash flow generation. The technical analysis indicates stable price trends with mild bullish momentum, while the valuation suggests the stock is reasonably priced. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Cash Generation Ability

Strong cash generation supports financial flexibility, enabling reinvestment and strategic initiatives, crucial for long-term growth.

Profitability

High profitability margins indicate effective cost management and competitive pricing power, sustaining long-term business viability.

Diversified Revenue Streams

Diversified revenue reduces dependency on any single market, enhancing stability and resilience against sector-specific downturns.

Negative Factors

Revenue Decline

A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting future growth.

Increasing Leverage

Rising leverage may constrain financial flexibility and increase risk, affecting the company's ability to finance new opportunities.

EPS Growth Decline

Declining EPS growth suggests potential challenges in profitability and efficiency, impacting investor confidence and valuation.

SFS Group AG Business Overview & Revenue Model

Company Description

SFS Group AG supplies mechanical fastening systems, assemblies, precision molded parts, and logistics solutions internationally. It offers airbag restraint systems; automation; bracket logic concept; brake systems; building technologies; clip nuts; communication technologies; components, assemblies, and complete devices; connections and reinforcements for timber construction; and domestic and kitchen appliances. The company also provides fasters for inserts; fastening and hinge technology for doors, windows, and glass facades; fastening system for the façade; furniture fittings; hand driving tools and wrenches; hard disk drives; inserts; interior plastics; life-saving fall protection; lifestyle electronics; mobile devices; sensors; seats and doors; connections and reinforcements for structural timber construction; tools, forest and garden equipment; wire and hypotubing; and window fittings. It offers its products to the aircraft, automotive, construction, electronics, medical, and other markets. SFS Group AG was founded in 1928 and is headquartered in Heerbrugg, Switzerland.

How the Company Makes Money

SFS Group AG generates revenue primarily through the sale of its fastening systems and precision components. The company serves a wide array of industries, allowing it to diversify its revenue streams. Key revenue sources include direct sales to manufacturers in the automotive and electronics sectors, where high-volume production and tailored solutions are critical. Additionally, SFS has established significant partnerships with major industry players, enhancing its market reach and customer base. The company also invests in research and development to innovate and expand its product offerings, which contributes to its competitive advantage and revenue growth.

SFS Group AG Financial Statement Overview

Summary

SFS Group AG maintains a solid financial position with strong profitability and cash flow generation. Despite a recent decline in revenue and increasing leverage, the company exhibits robust margins and efficient operations. The balanced capital structure and healthy shareholder returns position the firm well within the manufacturing industry.

Income Statement

SFS Group AG shows strong profitability with consistent gross profit margins exceeding 50% over the years. The net profit margin remains robust, although it has slightly decreased recently. Despite a minor drop in revenue from 2023 to 2024, the company demonstrates solid EBIT and EBITDA margins, indicating effective cost management.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio, which increased due to higher debt levels. The equity ratio is stable, showcasing a balanced capital structure. Return on equity is healthy, though it has experienced some fluctuations, suggesting potential volatility in shareholder returns.

Cash Flow

SFS Group AG's cash flow statement highlights strong operating cash flows with a positive trend in free cash flow. The operating cash flow to net income ratio indicates efficient cash generation relative to net income. Free cash flow growth is notable, reinforcing financial flexibility and capacity for reinvestment.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.04B	3.05B	3.11B	2.74B	1.90B	1.71B
Gross Profit	1.28B	1.77B	1.77B	732.60M	583.50M	471.30M
EBITDA	464.40M	474.70M	497.80M	463.90M	407.90M	321.90M
Net Income	236.00M	241.30M	266.00M	266.70M	243.80M	183.90M
Balance Sheet
Total Assets	2.49B	2.61B	2.55B	2.57B	1.84B	1.68B
Cash, Cash Equivalents and Short-Term Investments	168.70M	224.60M	227.50M	221.50M	286.00M	187.70M
Total Debt	485.70M	559.60M	672.80M	699.20M	6.80M	43.50M
Total Liabilities	989.40M	1.05B	1.17B	1.27B	388.70M	405.90M
Stockholders Equity	1.49B	1.54B	1.36B	1.28B	1.43B	1.26B
Cash Flow
Free Cash Flow	266.90M	226.10M	139.40M	118.10M	203.60M	193.30M
Operating Cash Flow	395.80M	375.00M	313.40M	289.10M	325.00M	297.40M
Investing Cash Flow	-144.60M	-158.00M	-179.00M	-644.70M	-114.50M	-148.60M
Financing Cash Flow	-253.90M	-223.30M	-117.70M	294.70M	-115.60M	-85.80M

SFS Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 101.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SFSN, the sentiment is Negative. The current price of 101.6 is below the 20-day moving average (MA) of 108.16, below the 50-day MA of 108.22, and below the 200-day MA of 110.14, indicating a bearish trend. The MACD of -1.20 indicates Positive momentum. The RSI at 27.68 is Positive, neither overbought nor oversold. The STOCH value of 9.71 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SFSN.

SFS Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SQN	73 Outperform	CHF7.18B	23.50	―	1.30%	18.76%	20.08%
SFSN	72 Outperform	CHF4.08B	17.29	―	1.98%	-0.71%	-6.12%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%