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SFS Group AG
(SFSN)
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Rating:73Outperform
Price Target:
CHF153.00
▲(22.01% Upside)
Action:Reiterated
Date:03/15/26
The score is driven primarily by solid financial quality (strong profitability base, improving leverage, and good free cash flow) and attractive valuation (low P/E). These positives are tempered by mixed technical momentum and earnings-call risks tied to restructuring impacts, planned revenue phase-out, and uncertain demand/currency conditions despite supportive 2026 guidance.
Positive Factors
High Gross Margins
SFS's sustained ~57–58% gross margin reflects structural pricing power and manufacturing specialization in engineered fasteners and precision parts. High gross margins provide a durable buffer against cyclical demand, support reinvestment and margin-recovery programs, and underpin long-term profitability and resilience.
Negative Factors
Planned Revenue Phase‑out
Management's deliberate CHF 110m phase-out of legacy products structurally reduces the revenue base and creates near-term top-line pressure. The long-term benefit depends on successful migration to higher-margin offerings and scope growth; failure to offset lost volume risks sustained revenue weakness.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
SFS's sustained ~57–58% gross margin reflects structural pricing power and manufacturing specialization in engineered fasteners and precision parts. High gross margins provide a durable buffer against cyclical demand, support reinvestment and margin-recovery programs, and underpin long-term profitability and resilience.
Read all positive factors
SFS Group AG (SFSN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF5.33B
Dividend Yield1.85%
Average Volume (3M)24.23K
Price to Earnings (P/E)24.4
Beta (1Y)0.68
Revenue Growth0.47%
EPS Growth-9.20%
CountryCH
Employees13,689
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)5.63
Shares Outstanding38,900,000
10 Day Avg. Volume20,816
30 Day Avg. Volume24,227
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)2.64
Price to Sales (P/S)1.37
P/FCF Ratio15.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF137.33Price Target Upside9.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.83
Revenue Forecast (FY)CHF3.12B
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:Mar 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveys a constructive and cautiously optimistic tone: SFS delivered resilient results in a tough macro and FX environment with meaningful organic growth, margin improvement, strong free cash flow, balance sheet strengthening and important ESG progress. At the same time, management flagged tangible near-term headwinds — one-time restructuring costs, currency impacts, a reduction in EPS, segment weakness (Fastening Systems, medical), a deliberate phase-out of CHF 110m legacy revenue and workforce reductions — and emphasized ongoing demand volatility and tax pressure. On balance the company appears to be taking disciplined action (cost/program measures, selective M&A, capex discipline) to position for medium-term recovery while absorbing short-term disruption.Positive Updates
Top-line resilience and organic growth
Sales of CHF 3.056 billion, +0.6% vs prior year; organic sales growth of 2.9% demonstrating underlying demand momentum despite adverse FX headwinds (-2.9%, ~CHF 88m).
Negative Updates
Earnings per share decline
Earnings per share decreased to CHF 5.63 from CHF 6.21 (down CHF 0.58, ~9.4%) driven by difficult economic environment and non-recurring streamlining costs.
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Q4-2025 Updates
Positive
Negative
Top-line resilience and organic growth
Sales of CHF 3.056 billion, +0.6% vs prior year; organic sales growth of 2.9% demonstrating underlying demand momentum despite adverse FX headwinds (-2.9%, ~CHF 88m).
Read all positive updates
Company Guidance
The company guided to 2026 organic growth of 3–6% in local currencies (including scope effects) and an adjusted EBIT margin target of 12–15%, reiterating mid‑term targets amid ongoing uncertainty; key program metrics to factor in are a CHF 110m top‑line phase‑out target (≈20% completed, ~CHF50m of the reduction expected to materialize in 2026), a workforce reduction target of 650 FTEs (330 implemented by year‑end; completion by end‑2027), and a CHF 75m total adaptation cost (CHF 46.7m booked, >60% of the target), with the program expected to lift EBIT by ~0.8 percentage points in total (about half in 2026). Capital expenditure is guided to 4–6% of sales (2025 was a low 3.4%; 2026 expected at the lower end), free cash flow conversion target remains 40–50% of EBITDA (2025 operating FCF CHF 274m or 57% of EBITDA), and capital allocation keeps a proposed dividend of CHF 2.50 (payout ratio <50%, yield 2.3%) while further strengthening the balance sheet (equity ratio 64.4%).SFS Group AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.07B | 3.05B | 3.11B | 2.74B | 1.90B |
| Gross Profit | 1.78B | 1.77B | 1.77B | 732.60M | 583.50M |
| EBITDA | 456.40M | 474.70M | 497.80M | 463.90M | 407.90M |
| Net Income | 219.00M | 241.30M | 266.00M | 266.70M | 243.80M |
Balance Sheet | |||||
| Total Assets | 2.51B | 2.61B | 2.55B | 2.57B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 209.80M | 224.60M | 227.50M | 221.50M | 286.00M |
| Total Debt | 374.60M | 559.60M | 672.80M | 699.20M | 6.80M |
| Total Liabilities | 893.90M | 1.05B | 1.17B | 1.27B | 388.70M |
| Stockholders Equity | 1.60B | 1.54B | 1.36B | 1.28B | 1.43B |
Cash Flow | |||||
| Free Cash Flow | 273.60M | 226.10M | 139.40M | 118.10M | 203.60M |
| Operating Cash Flow | 377.30M | 375.00M | 313.40M | 289.10M | 325.00M |
| Investing Cash Flow | -100.70M | -158.00M | -179.00M | -644.70M | -114.50M |
| Financing Cash Flow | -281.40M | -223.30M | -117.70M | 294.70M | -115.60M |
SFS Group AG Technical Analysis
Positive
125.40
Price Trends
128.19
Positive
122.90
Positive
114.95
Positive
Market Momentum
1.78
Positive
63.89
Neutral
31.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SFSN, the sentiment is Positive. The current price of 125.4 is below the 20-day moving average (MA) of 133.48, below the 50-day MA of 128.19, and above the 200-day MA of 114.95, indicating a bullish trend. The MACD of 1.78 indicates Positive momentum. The RSI at 63.89 is Neutral, neither overbought nor oversold. The STOCH value of 31.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SFSN.
SFS Group AG Peers Comparison
UnderperformOutperform
Sector (55)
CH:SFSN
SFS Group AG
137.20
31.22
29.46%
CH:SQN
Swissquote Group Holding Ltd.
41.76
-8.01
-16.09%
SFS Group AG Corporate Events
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’...
SFS shareholders back all board proposals and approve CHF 2.50 dividend
Apr 22, 2026
Shareholders of SFS Group AG approved all proposals put forward by the Board of Directors at the 2026 General Meeting, signaling broad investor support for the company’s governance and strategic direction. The meeting also backed a dividend ...
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.