Stroeer SE & Co. KGaA (SAX) AI Stock Analysis

• Market Cap: €2.03B
• Dividend Yield: 6.33%
• Average Volume (3M): 183.93K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.99
• Revenue Growth: 1.52%
• EPS Growth: 7.11%
• Country: DE
• Employees: 11,858
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.52
• Shares Outstanding: 55,843,310
• 10 Day Avg. Volume: 347,881
• 30 Day Avg. Volume: 183,926
• PEG Ratio: 0.49
• Price to Book (P/B): 5.52
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 7.16
• 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: €54.60
• Price Target Upside: 50.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: €37.00 ▲(1.79% Upside)

Stroeer SE & Co. KGaA's overall stock score is primarily influenced by its strong valuation, with an attractive dividend yield and reasonable P/E ratio. However, financial performance is mixed, with robust profitability but challenges in revenue growth and high leverage. Technical analysis indicates a bearish trend, which could impact short-term performance.

Positive Factors

Profitability and Margins

Strong margins and high return on equity indicate effective management and operational efficiency, supporting long-term profitability.

Diversified Revenue Model

A diversified revenue model reduces dependency on a single income stream, enhancing resilience against market fluctuations.

Market Position

Being a market leader in Germany provides a competitive edge and opportunities for growth in the advertising industry.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial stability.

Declining Revenue Growth

A declining revenue growth rate may signal challenges in market expansion and competitiveness, affecting future earnings potential.

Cash Flow Pressure

Decreasing free cash flow growth indicates potential liquidity issues, necessitating focus on improving cash generation.

Stroeer SE & Co. KGaA Business Overview & Revenue Model

Company Description

Ströer SE & Co. KGaA provides out-of-home media and online advertising solutions in Germany and internationally. The company operates through three segments: Out-of-Home (OOH) Media, Digital & Dialog Media, and Data As A Service (DaaS) & E-Commerce. It offers various forms of outdoor advertising media, such as traditional posters; advertisements at bus and tram shelters, and on public transport; and digital advertising installations. The company also operates t-online.de, as well as special interest portals, such as giga.de, familie.de, desried.de, and kino.de for online advertising. In addition, it provides DaaS under the Statista brand name; and operates an online cosmetic store under the AsamBeauty brand. The company operates approximately 1,000 Websites. It sells its products to private and corporate customers in the area of telecommunications, energy, IT, tourism, multimedia, retail, financial services, and e-commerce sectors. Ströer SE & Co. KGaA is based in Cologne, Germany.

How the Company Makes Money

Stroeer generates revenue primarily through its advertising services, which include the sale of advertising space on its various outdoor media platforms. The company has a diversified revenue model that includes traditional outdoor advertising, digital marketing solutions, and performance marketing services. Key revenue streams include long-term contracts with advertisers, programmatic advertising, and partnerships with local municipalities for public advertising spaces. Additionally, Stroeer has expanded its revenue through strategic acquisitions and collaborations with other media companies, enhancing its market presence and advertising offerings.

Stroeer SE & Co. KGaA Financial Statement Overview

Summary

Stroeer SE & Co. KGaA shows strengths in profitability margins and return on equity, but faces challenges with declining revenue growth and high leverage. The company's ability to generate cash from operations is solid, yet the negative free cash flow growth and high debt levels pose risks.

Income Statement

Stroeer SE & Co. KGaA shows a mixed performance in its income statement. The company has maintained a stable gross profit margin around 44%, indicating efficient cost management. However, the net profit margin is relatively low at 6.7% TTM, reflecting challenges in converting revenue into profit. The revenue growth rate has declined by 32.8% TTM, which is concerning and suggests potential market or operational challenges. EBIT and EBITDA margins are healthy, but the declining revenue growth rate is a significant concern.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.70 TTM, indicating significant leverage and potential financial risk. Return on equity is strong at 32.2% TTM, showcasing effective use of equity to generate profits. However, the equity ratio is low, suggesting a reliance on debt financing. The high leverage could pose risks if revenue continues to decline.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 3.5% TTM, which is a concern for future liquidity. The operating cash flow to net income ratio is moderate at 0.57, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio is strong at 0.79, suggesting good cash conversion from profits. However, the negative growth in free cash flow is a potential risk.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.06B	2.05B	1.91B	1.77B	1.63B	1.44B
Gross Profit	891.84M	896.12M	796.76M	756.48M	643.05M	504.57M
EBITDA	584.12M	623.18M	555.17M	540.80M	488.44M	428.86M
Net Income	123.80M	130.80M	92.83M	143.26M	122.13M	48.64M
Balance Sheet
Total Assets	2.82B	2.89B	2.74B	2.76B	2.72B	2.62B
Cash, Cash Equivalents and Short-Term Investments	78.07M	75.49M	72.31M	76.42M	67.98M	88.71M
Total Debt	806.30M	1.68B	1.64B	1.62B	1.58B	1.55B
Total Liabilities	2.39B	2.41B	2.30B	2.28B	2.23B	2.14B
Stockholders Equity	404.38M	465.50M	436.04M	464.23M	474.51M	470.72M
Cash Flow
Free Cash Flow	310.68M	358.96M	270.07M	247.27M	319.91M	283.28M
Operating Cash Flow	411.74M	454.49M	401.13M	410.89M	426.46M	380.28M
Investing Cash Flow	-204.27M	-198.39M	-124.45M	-148.43M	-99.33M	-120.08M
Financing Cash Flow	-212.97M	-252.92M	-284.24M	-245.97M	-349.21M	-281.67M

Stroeer SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SAX, the sentiment is Positive. The current price of 36.35 is above the 20-day moving average (MA) of 35.82, below the 50-day MA of 36.61, and below the 200-day MA of 44.22, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 52.16 is Neutral, neither overbought nor oversold. The STOCH value of 62.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SAX.

Stroeer SE & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TNIE	79 Outperform	€1.26B	40.91	8.50%	―	29.34%	―
SAX	60 Neutral	€2.03B	16.40	35.66%	6.33%	1.52%	7.11%
APM	60 Neutral	€66.17M	28.76	9.61%	―	90.24%	289.96%
YOC	56 Neutral	€35.59M	20.22	27.12%	―	10.42%	-53.29%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SYZ	45 Neutral	€20.72M	-1.29	-46.35%	―	-13.27%	-779.38%