SFS Group AG (SFSN) AI Stock Analysis

• Market Cap: CHF4.11B
• Dividend Yield: 1.9%
• Average Volume (3M): 24.16K
• Price to Earnings (P/E): 17.4
• Beta (1Y): 0.78
• 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): 3.10
• Shares Outstanding: 38,900,000
• 10 Day Avg. Volume: 16,005
• 30 Day Avg. Volume: 24,162
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: CHF132.63
• Price Target Upside: 25.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: CHF121.00 ▲(14.37% Upside)

SFS Group AG's overall stock score is influenced by its strong financial performance and reasonable valuation. Despite some technical indicators signaling potential bearish momentum, the company's robust financial health and moderate P/E ratio underpin its investment appeal.

Positive Factors

EBIT Improvement

EBIT in the Electronics Components segment improved by 16% year over year, with a better margin of 13.6% due to steady demand and stringent cost control.

Financial Performance

Cash generation improved significantly, with operating cash flow up 20%, leading to a free cash flow increase of 61%.

Negative Factors

Order Volatility

Order behavior remains volatile, with muted demand momentum for construction.

Sales Guidance

SFS refrains from providing sales guidance due to ongoing end-market uncertainty.

SFS Group AG Business Overview & Revenue Model

Company Description

SFS Group AG is a global leader in mechanical fastening systems and precision components. Headquartered in Switzerland, the company operates across various sectors including automotive, construction, and industrial applications. SFS Group specializes in developing, manufacturing, and supplying high-quality fasteners and precision components that are critical to the performance and reliability of its clients' products.

How the Company Makes Money

SFS Group AG generates revenue primarily through the manufacturing and sale of mechanical fastening systems and precision components. The company's key revenue streams include the automotive sector, where it supplies components used in vehicle manufacturing, and the construction industry, where its fastening systems are used in building and infrastructure projects. Additionally, SFS Group serves industrial applications, providing solutions that enhance the reliability and efficiency of machinery and equipment. The company leverages long-term partnerships with major OEMs and maintains a global presence to ensure a steady flow of contracts and recurring business. Its earnings are significantly bolstered by its commitment to innovation and quality, which helps maintain strong customer relationships and competitive market positioning.

SFS Group AG Financial Statement Overview

Summary

SFS Group AG maintains a solid financial position with strong profitability and cash flow generation. Despite a slight revenue decline and increased leverage, the company demonstrates robust margins and efficient operations, supported by a balanced capital structure.

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

SFS Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 105.80
• 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 CH:SFSN, the sentiment is Negative. The current price of 105.8 is below the 20-day moving average (MA) of 107.52, below the 50-day MA of 110.06, and below the 200-day MA of 114.45, indicating a bearish trend. The MACD of -1.42 indicates Positive momentum. The RSI at 42.67 is Neutral, neither overbought nor oversold. The STOCH value of 32.29 is Neutral, 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	75 Outperform	CHF8.39B	28.76		1.06%	24.78%	34.74%
SFSN	71 Outperform	CHF4.11B	17.42		1.90%	-0.71%	-6.12%
Sector *	65 Neutral	CHF6.82B	12.39	16.30%	2.63%	1.41%	16.64%

SFS Group AG Corporate Events

SFS Group Reports Strong Half-Year Results and Strategic Adjustments

SFS Group AG reported sales of CHF 1,539.1 million and a normalized EBIT margin of 11.0% for the first half of 2025. The company is implementing a program to adjust its production and distribution network, aiming to increase the EBIT margin by 0.8 percentage points despite incurring one-time costs of CHF 75 million. This strategic move is intended to enhance SFS Group’s market positioning and prepare for future growth.

The most recent analyst rating on (CH:SFSN) stock is a Buy with a CHF140.00 price target. To see the full list of analyst forecasts on SFS Group AG stock, see the CH:SFSN Stock Forecast page.