SFS Group AG (CH:SFSN)
:SFSN
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SFS Group AG
(SFSN)
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Rating:73Outperform
Price Target:
CHF132.00
▲(11.86% Upside)
Action:ReiteratedDate: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 gross margins near 57–58% reflect durable manufacturing scale, pricing power and value‑added engineering in precision components. That margin base provides a structural cushion to absorb cyclical demand, FX swings and supports reinvestment and margin recovery initiatives over the medium term.
Negative Factors
Planned top-line phase-out
Management's deliberate CHF 110m legacy revenue phase‑out materially reduces the revenue base near term. While intended to improve portfolio quality, it creates structural pressure on reported sales and margins until replacement revenues and efficiency gains fully materialize over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
SFS's sustained gross margins near 57–58% reflect durable manufacturing scale, pricing power and value‑added engineering in precision components. That margin base provides a structural cushion to absorb cyclical demand, FX swings and supports reinvestment and margin recovery initiatives over the medium term.
Read all positive factors
SFS Group AG (SFSN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF4.59B
Dividend Yield1.85%
Average Volume (3M)24.23K
Price to Earnings (P/E)19.3
Beta (1Y)0.65
Revenue Growth-0.71%
EPS Growth-6.12%
CountryCH
Employees13,689
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)3.61
Shares Outstanding38,900,000
10 Day Avg. Volume20,816
30 Day Avg. Volume24,227
Financial Highlights & Ratios
PEG Ratio-2.06
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
CHF130.00Price Target Upside10.17% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)6.91
Revenue Forecast (FY)CHF3.08B
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...
How the Company Makes Money
SFS Group AG makes money by selling engineered components and fastening-related products and services to industrial and professional customers. Revenue is primarily generated through: (1) Engineered Components: sales of customized and standardized...
SFS Group AG Earnings Call Summary
Earnings Call Date:Mar 06, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jul 21, 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.
Read all updates
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
118.00
Price Trends
119.06
Negative
112.73
Positive
110.55
Positive
Market Momentum
-0.19
Negative
49.89
Neutral
86.18
Negative
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 118 is above the 20-day moving average (MA) of 117.82, below the 50-day MA of 119.06, and above the 200-day MA of 110.55, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 is Negative, 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
118.00
22.18
23.15%
CH:SQN
Swissquote Group Holding Ltd.
392.00
61.50
18.61%
SFS Group AG Corporate Events
SFS Group Posts Resilient 2025 Results Amid Weak Investment Climate
Mar 6, 2026
SFS Group AG reported that in the highly uncertain and investment-weary markets of 2025, it generated sales of CHF 3,056.6 million and achieved a normalized EBIT margin of 12.2%. The company attributed this robust performance to its broad diversif...
SFS Group’s Climate Targets Validated as 1.5°C-Aligned by SBTi
Jan 29, 2026
SFS Group AG has reached a key milestone in its climate strategy, with the Science Based Targets initiative (SBTi) validating the company’s short- and long-term greenhouse gas reduction targets as aligned with the 1.5°C objective of the...
SFS Group Delivers Solid Organic Growth in 2025 Despite Currency Headwinds
Jan 23, 2026
SFS Group reported sales of CHF 3,056.6 million for the 2025 financial year, achieving organic growth of 2.9% despite a challenging market environment. The company attributed its solid performance to its broad positioning across multiple end marke...
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.