STS Group AG (SF3) AI Stock Analysis

• Market Cap: €24.12M
• Dividend Yield: 1.48%
• Average Volume (3M): 4.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.70
• Revenue Growth: 4.55%
• EPS Growth: 45.49%
• Country: DE
• Employees: 1,402
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.11
• Shares Outstanding: 6,500,000
• 10 Day Avg. Volume: 1,552
• 30 Day Avg. Volume: 4,078
• PEG Ratio: 0.78
• Price to Book (P/B): 0.53
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -3.14
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: €3.50 ▲(10.06% Upside)

The overall stock score reflects significant financial challenges, including declining revenue and high leverage, coupled with bearish technical indicators. The valuation is somewhat supported by a modest dividend yield, but negative earnings weigh heavily on the score.

Positive Factors

Gross Profit Margin

A stable gross profit margin indicates effective cost management, which can help sustain profitability even amid revenue challenges.

Strategic Partnerships

Collaborations with industry leaders enhance innovation and market reach, supporting long-term growth and competitive positioning.

Equity Ratio

A balanced equity ratio indicates a stable asset structure, which can provide resilience against financial volatility.

Negative Factors

High Leverage

High leverage increases financial risk, potentially straining cash flow and limiting investment in growth opportunities.

Negative Cash Flow Growth

Severe negative cash flow growth suggests liquidity issues, impacting the company's ability to fund operations and invest in future growth.

Declining Revenue

Declining revenue indicates challenges in maintaining sales momentum, which could affect long-term market position and profitability.

STS Group AG Business Overview & Revenue Model

Company Description

STS Group AG (SF3) is a leading provider of innovative solutions in the field of composite materials and lightweight construction. The company operates primarily within the automotive and industrial sectors, focusing on the development and manufacturing of high-performance components and systems. Core products include lightweight structural components and complex assemblies that enhance the efficiency and sustainability of vehicles and industrial applications.

How the Company Makes Money

STS Group AG generates revenue through the sale of its composite materials and lightweight components to various clients in the automotive and industrial sectors. Key revenue streams include direct sales of manufactured parts, long-term supply agreements with major automotive manufacturers, and collaborative projects aimed at developing advanced materials solutions. Additionally, strategic partnerships with industry leaders and participation in research and development initiatives contribute to the company's earnings, allowing it to stay at the forefront of innovation in lightweight construction.

STS Group AG Financial Statement Overview

Summary

STS Group AG faces several financial challenges across its income statement, balance sheet, and cash flow. The company struggles with declining revenue and profitability, high leverage, and volatile cash flows. While there are some strengths in gross profit margins and asset structure, the overall financial health requires strategic improvements to enhance stability, profitability, and cash flow management.

Income Statement

STS Group AG's income statement shows a mixed performance. The company has a declining revenue trend with a negative revenue growth rate of -2.63% in the TTM period, indicating potential challenges in maintaining sales momentum. Gross profit margin remains relatively stable at 39.84%, which is a positive sign of cost management. However, the net profit margin is negative, reflecting ongoing profitability issues. The EBIT and EBITDA margins are modest, suggesting limited operational efficiency improvements.

Balance Sheet

The balance sheet of STS Group AG reveals a high debt-to-equity ratio of 1.13 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative, highlighting challenges in generating returns for shareholders. However, the equity ratio is reasonable, suggesting a balanced asset structure. Overall, the balance sheet reflects a need for improved financial stability and reduced leverage.

Cash Flow

Cash flow analysis shows significant volatility. The free cash flow growth rate is highly negative at -1242.86% in the TTM period, indicating severe cash flow challenges. The operating cash flow to net income ratio is low, suggesting limited cash generation from operations. The free cash flow to net income ratio is positive, but overall cash flow management needs improvement to ensure liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	303.50M	311.10M	277.90M	235.10M	242.00M	235.00M
Gross Profit	120.90M	120.80M	102.50M	92.70M	106.10M	105.80M
EBITDA	16.50M	23.50M	20.70M	9.80M	19.00M	14.70M
Net Income	-600.00K	-600.00K	-1.20M	-9.90M	1.80M	-19.80M
Balance Sheet
Total Assets	220.40M	230.80M	266.50M	211.60M	199.40M	185.70M
Cash, Cash Equivalents and Short-Term Investments	32.60M	26.40M	39.30M	25.60M	28.30M	20.00M
Total Debt	48.20M	76.70M	58.80M	39.70M	40.00M	43.00M
Total Liabilities	177.70M	185.80M	219.90M	162.10M	141.10M	134.60M
Stockholders Equity	42.70M	45.00M	46.60M	49.50M	58.30M	51.10M
Cash Flow
Free Cash Flow	4.00M	-7.60M	15.60M	-1.80M	22.60M	-12.50M
Operating Cash Flow	11.70M	7.10M	30.50M	6.50M	36.10M	-1.60M
Investing Cash Flow	-11.40M	-15.60M	-14.30M	-8.70M	-16.80M	-23.70M
Financing Cash Flow	-5.00M	-4.60M	-3.10M	-200.00K	-10.30M	28.10M

STS Group AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.18
• 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:SF3, the sentiment is Negative. The current price of 3.18 is below the 20-day moving average (MA) of 3.45, below the 50-day MA of 3.78, and below the 200-day MA of 3.50, indicating a bearish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 40.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SF3.

STS Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	69 Neutral	€91.87M	8.21	7.17%	6.12%	-4.01%	-10.36%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
IS7	46 Neutral	€7.43M	-1.89	-22.94%	―	-11.97%	-76.11%
SF3	45 Neutral	€24.12M	-40.22	-1.36%	1.48%	4.55%	45.49%
GMM	45 Neutral	€90.15M	5.37	9.81%	―	-10.08%	―
MSAG	43 Neutral	€41.27M	-5.66	-11.55%	―	-40.37%	-406.54%
HGEA	41 Neutral	€19.03M	-0.97	-35.15%	―	-10.38%	-19.93%