SMT Scharf (S188) AI Stock Analysis

• Market Cap: €30.92M
• Dividend Yield: 3.62%
• Average Volume (3M): 2.04K
• Price to Earnings (P/E): 7.9
• Beta (1Y): <0.01
• Revenue Growth: 76.29%
• EPS Growth: 347.70%
• Country: DE
• Employees: 542
• Sector: General
• Sector Strength: N/A
• Industry: Railroads
• EPS (TTM): -0.38
• Shares Outstanding: 5,521,456
• 10 Day Avg. Volume: 1,895
• 30 Day Avg. Volume: 2,037
• PEG Ratio: 0.48
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.41
• P/FCF Ratio: -43.68
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €6.50 ▲(13.04% Upside)

The score is driven primarily by solid financial stability from very low leverage and improved TTM cash generation, tempered by cyclical/uneven profitability and cash-flow volatility. Valuation is supportive with a low P/E and solid dividend yield, but technical signals remain weak with a clear downtrend and negative momentum.

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

Strong balance-sheet position with very low leverage and good flexibility supports stability (Balance Sheet Score 86). Operating performance is profitable with solid gross/operating margins and revenue growth (Income Statement Score 68), but net margin is relatively thin and results show cyclicality. Cash flow has improved to solidly positive in TTM, yet remains volatile with sharply negative recent free-cash-flow growth (Cash Flow Score 61).

Income Statement

TTM (Trailing-Twelve-Months) revenue is up strongly versus the prior annual period, and profitability remains positive with solid gross and operating margins. However, net margin in TTM is relatively thin versus prior years, reflecting weaker bottom-line conversion. Results also show historical cyclicality (including a loss in 2020), so earnings power appears less consistent across the cycle.

Balance Sheet

The balance sheet looks conservatively positioned: leverage is very low in TTM with minimal debt relative to equity, providing flexibility and downside protection. Equity remains sizable versus assets, and returns on equity are positive. The main weakness is that return on equity is only moderate in TTM and has trended down from peak levels in earlier years, indicating less efficient profit generation recently.

Cash Flow

TTM cash generation improved meaningfully, with operating cash flow and free cash flow turning solidly positive after a weak 2024 (negative operating and free cash flow). Free cash flow is close to net income in TTM, supporting earnings quality. The key concern is volatility: cash flow has swung materially year-to-year, and recent free cash flow growth is sharply negative, signaling uneven conversion and potential working-capital or investment-driven fluctuations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	118.04M	95.03M	73.17M	93.71M	85.87M	50.18M
Gross Profit	25.20M	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	3.84M	5.60M	4.88M	14.54M	12.56M	-8.17M
Balance Sheet
Total Assets	151.23M	182.31M	126.51M	131.02M	121.29M	83.54M
Cash, Cash Equivalents and Short-Term Investments	17.73M	15.81M	9.25M	8.75M	9.56M	4.55M
Total Debt	2.69M	22.65M	3.00M	3.42M	2.80M	14.80M
Total Liabilities	39.61M	64.13M	39.80M	44.04M	49.59M	35.09M
Stockholders Equity	86.56M	90.67M	84.94M	85.28M	70.25M	47.03M
Cash Flow
Free Cash Flow	10.93M	-901.96K	2.40M	2.82M	-9.64M	-446.81K
Operating Cash Flow	11.38M	-348.96K	3.88M	5.68M	-5.50M	2.79M
Investing Cash Flow	-1.03M	-1.55M	-1.46M	-2.81M	-3.07M	-2.82M
Financing Cash Flow	-2.34M	5.92M	-794.13K	-1.69M	6.58M	-1.97M

SMT Scharf Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 5.75 is above the 20-day moving average (MA) of 5.73, below the 50-day MA of 5.77, and below the 200-day MA of 6.77, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:S188.

SMT Scharf Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVU	76 Outperform	€352.74M	27.04	16.55%	1.34%	12.50%	10.93%
S188	68 Neutral	€30.92M	7.91	4.50%	3.62%	76.29%	347.70%
VOS	62 Neutral	€1.65B	28.56	10.59%	1.46%	9.63%	-7.69%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
CY1K	48 Neutral	€45.43M	-27.73	-5.10%	―	―	―
GMM	46 Neutral	€106.54M	6.35	9.81%	―	-10.08%	―