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

• Market Cap: €2.35B
• Dividend Yield: 5.52%
• Average Volume (3M): 54.13K
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.93
• Revenue Growth: 2.36%
• EPS Growth: 23.51%
• Country: DE
• Employees: 11,858
• Sector: Services
• Sector Strength: N/A
• Industry: Advertising Agencies
• EPS (TTM): 0.57
• Shares Outstanding: 55,843,310
• 10 Day Avg. Volume: 81,650
• 30 Day Avg. Volume: 54,125
• 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: €63.50
• Price Target Upside: 51.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 56 Neutral
• Price Target: €44.00 ▲(5.26% Upside)

Stroeer SE & Co. KGaA's overall score is driven by financial performance challenges, particularly declining revenue growth and high leverage. Technical analysis indicates bearish momentum, adding risk. However, the stock's valuation is supported by a reasonable P/E ratio and attractive dividend yield.

Stroeer SE & Co. KGaA Business Overview & Revenue Model

Company Description

Stroeer SE & Co. KGaA is a leading German company specializing in out-of-home advertising, digital marketing, and media services. The company operates in various sectors, including billboard advertising, public transport advertising, and digital advertising platforms. Stroeer offers a comprehensive range of advertising solutions, utilizing both traditional and digital media to connect brands with consumers across urban and rural landscapes.

How the Company Makes Money

Stroeer generates revenue primarily through its advertising services. Its key revenue streams include the sale of advertising space on billboards, digital screens, and other outdoor media formats. The company also earns income from its digital marketing services, which encompass programmatic advertising and targeted digital campaigns. Significant partnerships with local and national brands, as well as collaborations with municipalities and public transport operators, enhance Stroeer's market presence and create additional revenue opportunities. Furthermore, the increasing shift towards digital transformation in advertising contributes to the growth of its digital solutions and services, thereby driving overall profitability.

Stroeer SE & Co. KGaA Financial Statement Overview

Summary

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

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	902.54M	896.12M	796.76M	756.48M	643.05M	504.57M
EBITDA	592.15M	623.18M	543.09M	540.80M	488.44M	428.86M
Net Income	133.92M	130.80M	92.83M	143.26M	122.13M	48.64M
Balance Sheet
Total Assets	2.79B	2.89B	2.74B	2.76B	2.72B	2.62B
Cash, Cash Equivalents and Short-Term Investments	84.67M	75.49M	72.31M	76.42M	67.98M	88.71M
Total Debt	782.57M	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	379.17M	465.50M	436.04M	464.23M	474.51M	470.72M
Cash Flow
Free Cash Flow	343.31M	358.96M	270.07M	247.27M	319.91M	283.28M
Operating Cash Flow	437.69M	454.49M	401.13M	410.89M	426.46M	380.28M
Investing Cash Flow	-198.50M	-198.39M	-124.45M	-148.43M	-99.33M	-120.08M
Financing Cash Flow	-242.56M	-252.92M	-284.24M	-245.97M	-349.21M	-281.67M

Stroeer SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SAX, the sentiment is Negative. The current price of 41.8 is below the 20-day moving average (MA) of 44.13, below the 50-day MA of 47.05, and below the 200-day MA of 49.36, indicating a bearish trend. The MACD of -1.59 indicates Positive momentum. The RSI at 24.16 is Positive, neither overbought nor oversold. The STOCH value of 9.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
Sector *	57 Neutral	$1.87B	9.43	8.02%	2.45%	5.38%	-37.86%
SAX	56 Neutral	€2.35B	17.51	35.66%	5.52%	2.36%	23.51%
0OOS	―	€90.36M	45.29		―	―	―
0G8Z	―	€374.00M	―		―	―	―
0NKH	―	€27.81M	14.92	-42.79%	―	―	―
0NN5	―	€50.87M	23.46	33.31%	―	―	―
TNIE	67 Neutral	€734.45M	51.13	3.90%	―	33.13%	―