SAF-HOLLAND SE (SFQ) AI Stock Analysis

• Market Cap: €777.15M
• Dividend Yield: 4.3%
• Average Volume (3M): 53.19K
• Price to Earnings (P/E): 12.1
• Beta (1Y): 0.97
• Revenue Growth: -14.58%
• EPS Growth: -26.10%
• Country: DE
• Employees: 5,626
• Sector: Industrials
• Sector Strength: 85
• Industry: Auto - Parts
• EPS (TTM): 0.29
• Shares Outstanding: 45,394,302
• 10 Day Avg. Volume: 52,437
• 30 Day Avg. Volume: 53,185
• PEG Ratio: 0.14
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.91
• 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: €24.00
• Price Target Upside: 40.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 68 Neutral
• Price Target: €17.50 ▲(2.70%Upside)

SAF-HOLLAND SE shows a strong financial foundation with efficient cash management and reasonable valuation, supported by a healthy dividend yield. However, technical indicators point to a cautious outlook in the short term, and declining revenue presents a challenge for growth. Addressing these concerns could enhance the company's long-term prospects.

SAF-HOLLAND SE Business Overview & Revenue Model

Company Description

SAF-HOLLAND SE is a leading global manufacturer and supplier in the commercial vehicle industry, specializing in high-quality systems and components for trailers, trucks, buses, and recreational vehicles. The company operates in the sectors of fleet management, logistics, and transportation, providing core products such as axle and suspension systems, fifth wheels, kingpins, and landing gears. With a strong focus on innovation and quality, SAF-HOLLAND SE caters to a diverse customer base across the globe, ensuring enhanced safety, performance, and efficiency in commercial vehicles.

How the Company Makes Money

SAF-HOLLAND SE generates revenue primarily through the sale of its comprehensive range of products designed for the commercial vehicle industry. The company's key revenue streams include the production and distribution of axle and suspension systems, which are essential components for trailers and trucks, as well as fifth wheels, kingpins, and landing gears. SAF-HOLLAND SE also benefits from its extensive aftermarket services, offering maintenance and replacement parts to ensure the longevity and reliability of its products. Significant partnerships with vehicle manufacturers and fleet operators contribute to the company's earnings, as these relationships help to secure long-term contracts and recurring business. Additionally, SAF-HOLLAND SE's global presence and strong brand reputation allow it to capitalize on market opportunities in various regions, further bolstering its financial performance.

SAF-HOLLAND SE Financial Statement Overview

Summary

SAF-HOLLAND SE demonstrates solid financial health with strong cash generation and operational efficiency, despite recent revenue decline. The company's balance sheet is stable, although high leverage is a concern. Overall, the company is positioned well for stability, but revenue growth needs attention.

Income Statement

The income statement shows a solid performance with a healthy gross profit margin of 22.73% TTM, indicative of efficient cost management. The net profit margin TTM of 3.52% is modest, but consistent with industry norms. Revenue has decreased by 14.26% from the previous year, which is a concern for growth trajectory. The EBIT margin of 8.44% and EBITDA margin of 14.46% TTM reflect strong operational efficiency.

Balance Sheet

The balance sheet reveals a balanced approach to leverage, with a debt-to-equity ratio of 1.40, indicating moderate leverage. The equity ratio of 30.93% highlights a stable capital structure. Return on equity stands at 11.98% TTM, reflecting reasonable profitability. However, the high debt level could pose risks if revenue declines continue.

Cash Flow

Cash flow analysis shows robust operating cash flow to net income ratio of 3.49 TTM, highlighting strong cash generation capability. Free cash flow growth is 15.46% year over year, signaling efficient capital management. The free cash flow to net income ratio of 2.58 TTM underscores ample liquidity for investment and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.82B	1.88B	2.11B	1.57B	1.25B	959.52M
Gross Profit	413.88M	417.73M	412.76M	259.55M	209.09M	168.85M
EBITDA	263.21M	248.32M	234.75M	150.61M	115.61M	74.62M
Net Income	64.17M	77.35M	79.93M	61.08M	36.74M	13.79M
Balance Sheet
Total Assets	1.73B	1.71B	1.66B	1.50B	1.01B	920.49M
Cash, Cash Equivalents and Short-Term Investments	281.77M	311.18M	251.65M	248.60M	167.32M	173.15M
Total Debt	748.45M	774.21M	710.54M	769.47M	370.07M	375.01M
Total Liabilities	1.19B	1.18B	1.19B	1.06B	643.20M	620.02M
Stockholders Equity	535.59M	523.46M	473.05M	440.54M	370.22M	297.82M
Cash Flow
Free Cash Flow	165.37M	143.21M	141.04M	117.14M	15.00M	113.46M
Operating Cash Flow	223.96M	200.65M	202.73M	153.39M	39.65M	137.92M
Investing Cash Flow	-90.40M	-97.42M	-13.78M	-431.68M	-21.86M	-21.95M
Financing Cash Flow	-91.44M	-49.04M	-180.87M	353.30M	-31.59M	-64.90M

SAF-HOLLAND SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.04
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SFQ, the sentiment is Positive. The current price of 17.04 is above the 20-day moving average (MA) of 16.39, above the 50-day MA of 16.13, and above the 200-day MA of 15.02, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 61.49 is Neutral, neither overbought nor oversold. The STOCH value of 82.19 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SFQ.

SAF-HOLLAND SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CON	74 Outperform	$15.00B	11.64	10.07%	3.33%	-14.83%	78.73%
SFQ	68 Neutral	€777.15M	12.11	12.40%	4.30%	-14.58%	-26.10%
Sector *	67 Neutral	€8.08B	19.96	6.46%	2.73%	1.89%	-38.57%
HLE	66 Neutral	€9.73B	31.29	10.12%	1.09%	0.66%	21.09%
KBX	65 Neutral	€13.38B	31.39	13.95%	2.15%	-1.57%	-26.71%
SHA0	63 Neutral	€4.45B	22.28	-19.48%	4.57%	23.27%	-280.44%
ZIL2	46 Neutral	€278.15M	―	-19.89%	2.88%	-3.49%	-421.15%