StarragTornos Group AG (STGN) AI Stock Analysis

• Market Cap: CHF167.98M
• Dividend Yield: 3.42%
• Average Volume (3M): 1.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -1.46%
• EPS Growth: -115.85%
• Country: CH
• Employees: 1,869
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -1.66
• Shares Outstanding: 5,436,121
• 10 Day Avg. Volume: 952
• 30 Day Avg. Volume: 1,039
• PEG Ratio: -0.24
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -19.80
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: CHF30.00 ▲(0.33% Upside)

The overall stock score is primarily influenced by financial performance, which shows strong revenue growth but is offset by declining profitability and negative cash flow. Technical analysis indicates bearish momentum, and valuation concerns arise from the negative P/E ratio, although the dividend yield provides some support.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and demand for products, supporting long-term business expansion and stability.

Balance Sheet Strength

A low debt-to-equity ratio enhances financial stability, providing flexibility for future investments and resilience against economic downturns.

Gross Profit Margin

A high gross profit margin reflects efficient production and pricing strategies, contributing to sustainable profitability and competitive advantage.

Negative Factors

Declining Profitability

Decreasing net profit margins suggest challenges in cost management and pricing power, potentially impacting long-term earnings growth.

Negative Free Cash Flow

Negative free cash flow indicates potential liquidity issues, limiting the company's ability to self-fund growth initiatives and operations.

Profitability Margins

Declining EBIT and EBITDA margins suggest operational inefficiencies, which could hinder the company's ability to maintain competitive pricing and profitability.

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

StarragTornos Group AG generates revenue through the sale of its machine tools and automation solutions, which are primarily targeted at high-precision industries such as aerospace, automotive, and medical technology. Key revenue streams include direct sales of machinery, aftermarket services, and maintenance contracts that ensure ongoing support and upgrades for clients. Additionally, the company may benefit from partnerships with other technology providers and manufacturers, enhancing its product offerings and market reach. Factors contributing to its earnings include a strong focus on innovation, investment in research and development, and the ability to adapt to industry trends and customer needs.

StarragTornos Group AG Financial Statement Overview

Summary

StarragTornos Group AG demonstrates strong revenue growth and a solid balance sheet with low leverage. However, declining profitability margins and negative free cash flow present challenges. Improvement in cost management and cash flow generation is critical for sustaining growth and enhancing shareholder value.

Income Statement

StarragTornos Group AG has demonstrated solid revenue growth with a 20.8% increase from 2023 to 2024. The gross profit margin is healthy at 56.9%, and the net profit margin is 2.4%. However, the net profit margin has decreased from the previous year, indicating pressure on profitability. The EBIT and EBITDA margins reflect operational efficiency but have declined compared to 2023, suggesting potential cost management issues.

Balance Sheet

The company's balance sheet is strong with a debt-to-equity ratio of 0.19, indicating low leverage. The equity ratio is robust at 57.4%, reflecting financial stability. Return on Equity (ROE) is modest at 3.7%, down from the previous year, which points to a need for improved profitability to enhance shareholder returns.

Cash Flow

Operating cash flow has decreased significantly, and free cash flow turned negative in 2024. The free cash flow to net income ratio is negative, indicating cash flow issues that could impact the company's ability to fund operations and growth without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	457.29M	494.06M	409.00M	317.59M	292.61M	297.05M
Gross Profit	68.39M	281.00M	87.49M	54.86M	35.89M	37.61M
EBITDA	17.54M	29.38M	40.92M	26.09M	1.17M	9.30M
Net Income	-3.77M	11.85M	25.18M	11.11M	-5.40M	-634.00K
Balance Sheet
Total Assets	524.22M	550.87M	547.19M	333.91M	300.41M	317.54M
Cash, Cash Equivalents and Short-Term Investments	59.32M	60.70M	60.23M	21.48M	29.80M	32.51M
Total Debt	53.56M	60.97M	40.40M	1.37M	12.19M	25.96M
Total Liabilities	225.09M	234.76M	230.88M	161.43M	132.15M	142.05M
Stockholders Equity	299.12M	316.11M	316.31M	172.48M	168.21M	175.46M
Cash Flow
Free Cash Flow	47.30M	-10.21M	12.29M	5.31M	10.21M	5.81M
Operating Cash Flow	56.80M	7.72M	22.44M	12.32M	16.39M	11.00M
Investing Cash Flow	-8.73M	-14.75M	5.75M	-5.94M	-5.43M	-4.82M
Financing Cash Flow	-20.51M	6.79M	11.37M	-14.14M	-13.57M	12.05M

StarragTornos Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:STGN, the sentiment is Negative. The current price of 29.9 is below the 20-day moving average (MA) of 30.20, below the 50-day MA of 30.83, and below the 200-day MA of 33.73, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 39.19 is Neutral, neither overbought nor oversold. The STOCH value of 12.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	67 Neutral	CHF318.00M	10.26	14.20%	2.47%	-1.94%	6.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
STGN	54 Neutral	CHF167.98M	-44.74	―	3.42%	-1.46%	-115.85%
STRN	54 Neutral	CHF22.09M	-30.99	―	5.13%	-15.93%	-118.31%
RIEN	45 Neutral	CHF425.38M	-10.93	―	62.12%	-28.40%	-117.97%
FTON	45 Neutral	$139.98M	-3.01	-9.74%	―	-15.70%	-670.93%