SAF-HOLLAND SE (SFQ) AI Stock Analysis

• Market Cap: €622.81M
• Dividend Yield: 6.28%
• Average Volume (3M): 53.33K
• Price to Earnings (P/E): 12.2
• Beta (1Y): 1.05
• Revenue Growth: -15.69%
• EPS Growth: -45.20%
• Country: DE
• Employees: 5,626
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.37
• Shares Outstanding: 45,394,302
• 10 Day Avg. Volume: 51,723
• 30 Day Avg. Volume: 53,325
• PEG Ratio: -2.54
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 0.36
• P/FCF Ratio: 4.68
• 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: €21.25
• Price Target Upside: 56.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: €14.50 ▲(7.09% Upside)

SAF-HOLLAND SE's overall stock score is primarily influenced by its mixed financial performance and bearish technical indicators. The company's high leverage and declining revenue growth are significant concerns. However, the stock's attractive valuation, with a low P/E ratio and high dividend yield, provides some upside potential. The lack of positive technical momentum and the absence of earnings call insights or corporate events further weigh on the score.

SAF-HOLLAND SE Business Overview & Revenue Model

Company Description

SAF-Holland SE manufactures and supplies chassis-related assemblies and components for trailers, trucks, semi-trailers, and buses. The company offers axle and suspension systems, fifth wheels, coupling systems, kingpins, and landing gears, as well as ball races, braking and EBS systems, lighting systems, and disc brakes. It markets its products under the SAF, Holland, Neway, KLL, V.Orlandi, TrailerMaster, and York brands. The company serves original equipment manufacturers. It primarily operates in Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company was founded in 1881 and is headquartered in Bessenbach, Germany.

How the Company Makes Money

SAF-HOLLAND generates revenue through multiple streams, primarily by supplying products to OEMs and aftermarket customers. The company's revenue model is based on the sale of its range of products, which includes couplings, axles, and suspension systems. A significant portion of their earnings comes from long-term contracts with major truck and trailer manufacturers, ensuring a steady demand for their products. Additionally, SAF-HOLLAND benefits from the growing trend towards enhanced vehicle safety and efficiency, which drives the demand for their innovative solutions. Partnerships with key players in the transportation industry further bolster their market presence and sales, allowing them to leverage collaborative opportunities and expand their reach into new markets.

SAF-HOLLAND SE Financial Statement Overview

Summary

SAF-HOLLAND SE presents a mixed financial picture. While the company maintains healthy profit margins, the declining revenue growth and high leverage are areas of concern. The cash flow situation needs improvement to ensure long-term sustainability. The company should focus on revenue growth strategies and managing its debt levels to enhance its financial stability.

Income Statement

SAF-HOLLAND SE has shown a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a slight decline in revenue growth rate at -3.55%, which is concerning. However, the company maintains a healthy gross profit margin of 22.73% and a stable EBIT margin of 8.41%. The net profit margin stands at 3.52%, reflecting moderate profitability. The company needs to address the declining revenue trend to improve its financial health.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.40, indicating significant leverage, which could pose a risk if not managed properly. The return on equity (ROE) is 12.65%, showing decent profitability relative to shareholder equity. The equity ratio is not explicitly calculated, but the company appears to have a balanced asset structure. Overall, the balance sheet reflects a stable yet leveraged financial position.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -34.15% in the TTM period, which is a concern. The operating cash flow to net income ratio is 0.46, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is 0.74, suggesting that the company is generating reasonable free cash flow relative to its net income. Improving cash flow generation will be crucial for future stability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.88B	2.11B	1.57B	1.25B	959.52M
Gross Profit	398.51M	417.73M	412.76M	259.55M	209.09M	168.85M
EBITDA	254.26M	248.32M	234.75M	150.61M	115.61M	74.62M
Net Income	51.12M	77.35M	79.93M	61.08M	36.74M	13.79M
Balance Sheet
Total Assets	1.67B	1.71B	1.66B	1.50B	1.01B	920.49M
Cash, Cash Equivalents and Short-Term Investments	237.72M	311.18M	251.65M	248.60M	167.32M	173.15M
Total Debt	801.24M	774.21M	710.54M	769.47M	370.07M	375.01M
Total Liabilities	1.21B	1.18B	1.19B	1.06B	643.20M	620.02M
Stockholders Equity	464.71M	523.46M	473.05M	440.54M	370.22M	297.82M
Cash Flow
Free Cash Flow	108.89M	143.21M	141.04M	117.14M	15.00M	113.46M
Operating Cash Flow	168.55M	200.65M	202.73M	153.39M	39.65M	137.92M
Investing Cash Flow	-84.40M	-97.42M	-13.78M	-431.68M	-21.86M	-21.95M
Financing Cash Flow	-119.17M	-49.04M	-180.87M	353.30M	-31.59M	-64.90M

SAF-HOLLAND SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.54
• 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:SFQ, the sentiment is Negative. The current price of 13.54 is below the 20-day moving average (MA) of 14.18, below the 50-day MA of 14.72, and below the 200-day MA of 15.70, indicating a bearish trend. The MACD of -0.28 indicates Positive momentum. The RSI at 29.76 is Positive, neither overbought nor oversold. The STOCH value of 13.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$13.26B	8.90	―	2.87%	-38.10%	-75.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KBX	62 Neutral	€12.92B	29.70	14.52%	2.19%	-1.77%	-28.68%
HLE	59 Neutral	€8.91B	46.31	6.30%	1.16%	-0.29%	-41.38%
SFQ	58 Neutral	€622.81M	12.18	10.72%	6.28%	-15.69%	-45.20%
SHA0	55 Neutral	€6.45B	-5.65	-34.39%	3.67%	45.16%	-790.24%
ZIL2	43 Neutral	€255.34M	-1.53	-23.03%	3.79%	-4.26%	-412.06%