SMT Scharf (S188) AI Stock Analysis

• Market Cap: €42.41M
• Dividend Yield: 2.71%
• Average Volume (3M): 1.37K
• Price to Earnings (P/E): 7.5
• Beta (1Y): 0.12
• Revenue Growth: 67.14%
• EPS Growth: -5.93%
• Country: DE
• Employees: 542
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): -0.07
• Shares Outstanding: 5,521,456
• 10 Day Avg. Volume: 1,565
• 30 Day Avg. Volume: 1,370
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €7.50
• Price Target Upside: -2.60% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 60 Neutral
• Price Target: €7.50 ▼(-2.60% Downside)

The stock's overall score is driven by strong financial stability and attractive valuation, offset by bearish technical indicators and cash flow challenges. Addressing profitability and cash flow issues could enhance the stock's attractiveness.

SMT Scharf Business Overview & Revenue Model

Company Description

SMT Scharf AG engages in the development, manufacture, and service of transportation equipment and logistics systems for underground mining and tunnel construction. The company operates through four segments: Coal Mining, Mineral Mining, Tunnel, and Other Industries. It offers monorail and duorail systems, chairlift systems, segment cranes, lifting devices, explosive and placement devices, drilling and splitting tools, construction site cranes, battery and diesel locomotives, muckmasters, lift working platform, cable drive, mini climbers, light electric vehicles, and climbing locomotive products. The company's products are primarily used in hard coal, gold, platinum, copper, nickel, and salt mining activities. It has operations in Germany, Russia and rest of CIS states, Poland, China, Africa, the United States, and internationally. The company was founded in 1941 and is headquartered in Hamm, Germany. As of September 19, 2024, SMT Scharf AG operates as a subsidiary of Yankuang Energy Group Company Limited.

How the Company Makes Money

SMT Scharf generates revenue primarily through the sale of its transport systems and related services. Key revenue streams include the manufacturing and sale of rail-bound vehicles, custom transport solutions, and the provision of maintenance and support services for its systems. The company also benefits from long-term contracts and partnerships with major mining corporations, which provide a steady revenue base. Additionally, SMT Scharf engages in after-sales services, including spare parts supply and upgrades, which further contribute to its earnings.

SMT Scharf Financial Statement Overview

Summary

SMT Scharf shows strong revenue growth and improved operational efficiency, but faces challenges with profitability and cash flow. The balance sheet is robust with low leverage, providing financial stability.

Income Statement

The income statement shows a positive revenue growth rate of 10.72% in the TTM period, indicating strong sales momentum. However, the gross profit margin has decreased from previous years, reflecting potential cost pressures. The net profit margin is relatively low at 4.82%, suggesting limited profitability. EBIT and EBITDA margins have improved, indicating better operational efficiency.

Balance Sheet

The balance sheet is stable with a low debt-to-equity ratio of 0.032, indicating conservative leverage. Return on equity is modest at 6.32%, suggesting moderate profitability for shareholders. The equity ratio is strong, reflecting a solid capital structure with a high proportion of equity financing.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is significantly negative, indicating cash flow deterioration. However, the free cash flow to net income ratio is high, suggesting that cash flow issues may be temporary or due to investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	116.73M	95.03M	73.17M	93.71M	85.87M	50.18M
Gross Profit	24.44M	17.98M	15.19M	28.31M	16.08M	-2.96M
EBITDA	12.99M	9.42M	12.34M	22.71M	17.68M	851.67K
Net Income	5.63M	5.60M	4.88M	14.54M	12.56M	-8.17M
Balance Sheet
Total Assets	160.65M	182.31M	126.51M	131.02M	121.29M	83.54M
Cash, Cash Equivalents and Short-Term Investments	16.02M	15.81M	9.25M	8.75M	9.56M	4.55M
Total Debt	2.84M	21.72M	3.00M	3.42M	2.80M	14.80M
Total Liabilities	47.30M	64.13M	39.80M	44.04M	49.59M	35.09M
Stockholders Equity	88.90M	90.67M	84.94M	85.28M	70.25M	47.03M
Cash Flow
Free Cash Flow	-962.96K	-901.96K	2.40M	2.82M	―	―
Operating Cash Flow	-349.96K	-348.96K	3.88M	5.68M	―	2.79M
Investing Cash Flow	-1.09M	-1.55M	-1.46M	-2.81M	-3.07M	―
Financing Cash Flow	1.09M	5.92M	―	―	6.58M	―

SMT Scharf Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:S188, the sentiment is Positive. The current price of 7.7 is above the 20-day moving average (MA) of 7.51, below the 50-day MA of 7.73, and above the 200-day MA of 6.96, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 55.84 is Neutral, neither overbought nor oversold. The STOCH value of 50.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:S188.

SMT Scharf Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VOS	74 Outperform	€1.69B	28.25	10.98%	1.26%	4.84%	2.72%
IVU	73 Outperform	€345.82M	27.99	15.74%	1.37%	11.53%	10.12%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
S188	60 Neutral	€42.41M	7.53	6.39%	2.71%	67.14%	-5.93%
GMM	51 Neutral	€103.56M	―	-16.40%	―	-21.63%	-6045.90%