StarragTornos Group AG (STGN) AI Stock Analysis

• Market Cap: CHF182.65M
• Dividend Yield: 3.45%
• Average Volume (3M): 1.04K
• Price to Earnings (P/E): 30.3
• Beta (1Y): 0.57
• Revenue Growth: -1.46%
• EPS Growth: -115.85%
• Country: CH
• Employees: 1,869
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 2.64
• Shares Outstanding: 5,436,121
• 10 Day Avg. Volume: 952
• 30 Day Avg. Volume: 1,039
• PEG Ratio: -0.55
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.37
• 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: CHF45.00
• Price Target Upside: 46.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 2.78
• Revenue Forecast (FY): CHF479.54M

• Rating: 61 Neutral
• Price Target: CHF34.00 ▲(10.39% Upside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is primarily supported by balance-sheet strength and the 2025 rebound to positive operating cash flow/free cash flow, but is held back by weaker recent fundamentals (revenue decline and sharp margin compression). Technical signals are broadly neutral, while valuation is a headwind due to the high P/E despite a moderate dividend yield.

Positive Factors

Conservative balance sheet

Very low leverage versus equity gives the company durable financial flexibility. A conservative balance sheet supports capital spending, R&D or targeted M&A, and helps the firm absorb cyclical downturns in industrial equipment demand without threatening solvency.

Improved cash generation

A material rebound to positive operating and free cash flow in 2025 improves the company's ability to self-fund maintenance, aftermarket service capacity and dividend payouts. Consistent cash conversion would support long-term reinvestment and balance-sheet resilience.

Durable business model with aftermarket

Capital-equipment sales supplemented by aftermarket parts and services create a recurring revenue layer tied to an installed base. That installed-base economics and technical customer lock-in support steadier long-term margins and higher lifetime customer value.

Negative Factors

Revenue decline

A recent downturn in top-line sales signals softer end-market demand for capital equipment. If new-machine order weakness persists, it will constrain capacity utilization and impair ability to leverage fixed costs, pressuring margins and longer-term growth.

Margin compression

Steep margin deterioration materially reduces returns on capital and limits funds available for reinvestment. Sustained margin pressure would weaken competitiveness on R&D and service capability, and increase vulnerability to cyclical downturns in industrial markets.

Free cash flow volatility

Historical swings between negative and positive free cash flow highlight inconsistency in cash generation. That volatility complicates multi-year planning for capex, service-network investments and dividends, raising execution risk during industry cycles.

StarragTornos Group AG Business Overview & Revenue Model

Company Description

Starrag Group Holding AG manufactures and sells high-precision machine tools for milling, turning, boring, and grinding of work pieces of metallic, composite, and ceramic materials. The company's products include vertical and horizontal machining centers, blade and blisks machining centers, portal and gantry machining centers, vertical turning lathes, vertical grinding machines, faceting machines, transfer machines, and aerostructures machining centers. It also offers integrated technology and maintenance and engineering services, as well as software solutions. In addition, the company provides automation solutions, technology services, and integrated production systems. It markets its products under the Berthiez, Bumotec, Dörries, Droop+Rein, Heckert, Scharmann/Ecoforce, SIP, Starrag, TTL, Ecospeed, and WMW brands for customers in the aerospace, energy, transportation, and industrial sectors in Switzerland, Germany, France, the United Kingdom, India, and internationally. The company was formerly known as StarragHeckert Holding AG and changed its name to Starrag Group Holding AG in 2012. Starrag Group Holding AG was founded in 1885 and is headquartered in Rorschacherberg, Switzerland.

How the Company Makes Money

The company makes money primarily by selling CNC machine tools and related machining systems to industrial customers. Revenue is generated from (1) new machine sales (capital equipment purchases by customers), and (2) aftermarket activities tied to the installed base, such as spare parts, maintenance, service/repairs, and other lifecycle support linked to keeping machines productive over time. Additional detail on specific segment revenue mix, named major partnerships, or customer concentration is null.

StarragTornos Group AG Financial Statement Overview

Summary

Financial stability is a key strength (low debt vs. equity and no balance-sheet stress), but operating performance has weakened with a 2025 revenue decline (~3.3%) and significant margin compression (net margin down to ~1.2%). Cash flow rebounded strongly in 2025 with positive free cash flow, though historical volatility remains a risk.

Income Statement

Revenue expanded strongly in 2022–2024, but declined in 2025 (annual revenue down ~3.3%), signaling a softer near-term demand backdrop. Profitability has also cooled materially: net margin fell from ~6.2% (2023) to ~2.4% (2024) and ~1.2% (2025), with operating margins similarly compressing. The business remains profitable in the latest year, but earnings power looks more cyclical/volatile than consistently compounding.

Balance Sheet

The balance sheet appears conservatively positioned with low leverage: 2025 total debt (~23M) is modest versus equity (~313M), implying strong balance-sheet resilience. Equity has remained relatively stable across recent years, and asset levels are steady, suggesting no obvious balance-sheet stress. The main weakness is returns: profitability has fallen recently, which can pressure returns on shareholder capital if the lower-margin environment persists.

Cash Flow

Cash generation improved meaningfully in 2025 with operating cash flow (~47.8M) and positive free cash flow (~34.9M), a sharp rebound from negative free cash flow in 2024. That said, free cash flow growth was negative in 2025 (down ~26%), and the prior-year swing into negative free cash flow highlights volatility—important for an industrial cyclical. Overall, cash conversion looks capable, but consistency remains a watch item.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	457.29M	442.09M	494.06M	409.00M	317.59M	292.61M
Gross Profit	68.39M	254.33M	281.00M	87.49M	54.86M	35.89M
EBITDA	17.54M	6.02M	29.38M	40.92M	26.09M	1.17M
Net Income	-3.77M	5.34M	11.85M	25.18M	11.11M	-5.40M
Balance Sheet
Total Assets	524.22M	524.53M	550.87M	547.19M	333.91M	300.41M
Cash, Cash Equivalents and Short-Term Investments	59.32M	52.81M	60.70M	60.23M	21.48M	29.80M
Total Debt	53.56M	23.21M	60.97M	40.40M	1.37M	12.19M
Total Liabilities	225.09M	211.96M	234.76M	230.88M	161.43M	132.15M
Stockholders Equity	299.12M	312.58M	316.11M	316.31M	172.48M	168.21M
Cash Flow
Free Cash Flow	47.30M	34.91M	-10.21M	12.29M	5.31M	10.21M
Operating Cash Flow	56.80M	47.83M	7.72M	22.44M	12.32M	16.39M
Investing Cash Flow	-8.73M	-12.41M	-14.75M	5.75M	-5.94M	-5.43M
Financing Cash Flow	-20.51M	-42.00M	6.79M	11.37M	-14.14M	-13.57M

StarragTornos Group AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 30.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:STGN, the sentiment is Neutral. The current price of 30.8 is below the 20-day moving average (MA) of 32.98, below the 50-day MA of 31.99, and below the 200-day MA of 31.91, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.29 is Neutral, neither overbought nor oversold. The STOCH value of 30.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:STGN.

StarragTornos Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MIKN	69 Neutral	CHF258.07M	6.02	13.91%	2.43%	-1.94%	6.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STGN	61 Neutral	CHF182.65M	30.31	―	3.45%	-1.46%	-115.85%
STRN	54 Neutral	CHF20.44M	-8.77	―	4.90%	-15.93%	-118.31%
FTON	51 Neutral	CHF131.14M	-13.75	-1.88%	―	-15.70%	-670.93%
RIEN	46 Neutral	CHF413.49M	-2.53	―	7.53%	-28.40%	-117.97%