SMT Scharf (S188) AI Stock Analysis

• Market Cap: €44.87M
• Dividend Yield: 2.56%
• Average Volume (3M): 11.50K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.10
• Revenue Growth: 44.76%
• EPS Growth: 47.20%
• Country: DE
• Employees: 542
• Sector: Industrials
• Sector Strength: 78
• Industry: Railroads
• EPS (TTM): N/A
• Shares Outstanding: 5,521,456
• 10 Day Avg. Volume: 7,912
• 30 Day Avg. Volume: 11,496
• 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: -7.98% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: €7.50 ▼(-7.98% Downside)

SMT Scharf's overall score is driven by its strong valuation, indicating potential undervaluation with a low P/E ratio. Financial performance is solid, supported by robust revenue growth and profitability, although cash flow concerns exist. Technical analysis shows neutrality with a slight positive momentum, yet potential oversold conditions could present an opportunity.

SMT Scharf Business Overview & Revenue Model

Company Description

SMT Scharf (S188) is a leading provider of transport solutions and services for the underground mining and tunnel construction sectors. The company specializes in the development, production, and maintenance of rail and monorail systems designed to safely and efficiently move materials, equipment, and personnel in challenging underground environments.

How the Company Makes Money

SMT Scharf generates revenue through the sale and leasing of its specialized underground transportation systems, including rail-bound and monorail solutions. The company also earns income from providing maintenance, repair, and refurbishment services for these systems, ensuring their longevity and operational efficiency. Additionally, SMT Scharf benefits from long-term service agreements and partnerships with mining and tunneling companies, which contribute to a stable and recurring revenue stream. The company's revenue model is further supported by its global presence, allowing it to tap into diverse markets and meet the needs of clients worldwide.

SMT Scharf Financial Statement Overview

Summary

SMT Scharf exhibits strong revenue growth and robust profitability margins, indicating effective cost management and operational efficiency. The balance sheet is solid with low leverage, enhancing financial stability. However, negative cash flow from operations and reliance on financing activities for cash needs are areas of concern.

Income Statement

SMT Scharf has demonstrated strong revenue growth with a 40% increase from the previous year in the TTM period, indicating robust demand and business expansion. The gross profit margin stands at approximately 19.1%, showing effective cost management, while the net profit margin is healthy at 6.8%. The EBIT margin is solid at 6.7%, and the EBITDA margin is 12.4%, reflecting good operational efficiency. However, fluctuations in profitability over previous years suggest potential volatility.

Balance Sheet

The company's balance sheet shows a stable financial position with a debt-to-equity ratio of 0.28, indicating manageable leverage compared to equity. The equity ratio is strong at 53.4%, showcasing a sound capital structure with a significant portion of assets funded by equity. However, there has been a slight decline in total assets over the past year, which could limit growth opportunities.

Cash Flow

Cash flows present a mixed picture with negative free cash flow in the TTM period, which highlights challenges in generating cash from operations. The operating cash flow to net income ratio is negative, indicating inefficiencies in converting profits into cash. Despite this, financing activities have provided a cash inflow, but reliance on external financing could pose risks if not managed carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	105.43M	95.03M	73.17M	93.71M	85.87M	50.18M
Gross Profit	20.11M	17.98M	15.19M	28.31M	16.08M	-2.96M
EBITDA	13.04M	9.42M	12.34M	22.71M	17.68M	851.67K
Net Income	7.14M	5.60M	4.88M	14.54M	12.56M	-8.17M
Balance Sheet
Total Assets	173.37M	182.31M	126.51M	131.02M	121.29M	83.54M
Cash, Cash Equivalents and Short-Term Investments	13.76M	15.10M	9.25M	8.75M	9.56M	4.55M
Total Debt	26.31M	21.72M	3.00M	3.42M	2.80M	14.80M
Total Liabilities	53.57M	64.13M	39.80M	44.04M	49.59M	35.09M
Stockholders Equity	92.65M	90.67M	84.94M	85.28M	70.25M	47.03M
Cash Flow
Free Cash Flow	-7.30M	-901.96K	2.40M	2.82M	―	―
Operating Cash Flow	-6.52M	-348.96K	3.88M	5.68M	―	2.79M
Investing Cash Flow	-1.22M	-1.55M	-1.46M	-2.81M	-3.07M	―
Financing Cash Flow	7.30M	5.92M	―	―	6.58M	―

SMT Scharf Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 8.15 is above the 20-day moving average (MA) of 7.94, above the 50-day MA of 7.07, and above the 200-day MA of 6.94, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 55.95 is Neutral, neither overbought nor oversold. The STOCH value of 19.93 is Positive, 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
IVU	75 Outperform	€388.56M	31.49	14.92%	1.27%	8.74%	6.32%
S188	71 Outperform	€44.87M	6.28	8.05%	2.56%	44.76%	47.20%
VOS	71 Outperform	€1.72B	28.80	10.98%	1.23%	4.84%	2.72%
Sector *	66 Neutral	€10.82B	25.33	6.80%	2.53%	4.18%	-16.31%
GMM	52 Neutral	€99.83M	―	-15.91%	―	-18.47%	-892.72%