Stabilus (STM) AI Stock Analysis

• Market Cap: €511.29M
• Dividend Yield: 5.57%
• Average Volume (3M): 47.58K
• Price to Earnings (P/E): 22.1
• Beta (1Y): 1.27
• Revenue Growth: -0.75%
• EPS Growth: -67.10%
• Country: DE
• Employees: 7,910
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.46
• Shares Outstanding: 24,700,000
• 10 Day Avg. Volume: 31,819
• 30 Day Avg. Volume: 47,575
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €39.25
• Price Target Upside: 89.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: €22.00 ▲(6.28% Upside)

The overall stock score of 68 reflects a mixed outlook for Stabilus. The company's strong cash flow management and attractive dividend yield are significant positives. However, challenges in revenue growth, declining profit margins, and increased leverage present risks. Technical indicators suggest a bearish trend, which could impact short-term performance. The valuation remains reasonable, providing some support to the stock's attractiveness.

Positive Factors

Cash Flow Management

Strong cash flow management ensures Stabilus can fund operations and growth initiatives, providing a buffer against economic fluctuations.

Market Position

As a market leader, Stabilus benefits from brand recognition and economies of scale, strengthening its competitive position and customer loyalty.

Diverse Revenue Streams

Diversified revenue sources across industries reduce dependency on a single market, enhancing stability and resilience to sector-specific downturns.

Negative Factors

Declining Profit Margins

Decreasing profit margins indicate cost pressures or pricing challenges, which could erode profitability and shareholder value over time.

Revenue Growth Challenges

Negative revenue growth suggests difficulties in maintaining sales momentum, potentially impacting future earnings and market share.

Increased Leverage

Higher leverage can limit financial flexibility and increase risk, particularly if economic conditions worsen or interest rates rise.

Stabilus Business Overview & Revenue Model

Company Description

Stabilus S.A., together with its subsidiaries, manufactures and sells gas springs and dampers, and electric tailgate opening and closing equipment in Europe and internationally. The company offers non-locking, locking, and swivel chair gas springs; motion and vibration dampers; and electric motor drives and CAD-configurators, as well as services and spare parts. Its products are used in automotive, furniture, swivel chair, medical and rehabilitation technology, RV and motorhome, transportation and traffic, agricultural and construction machinery, other commercial vehicle, and machine construction applications, as well as other applications, including leisure, house and building technology, sales and cooling counters, kiosks, and automotive overrun brakes. The company was formerly known as Servus HoldCo S.à r.l. and changed its name to Stabilus S.A. in May 2014. Stabilus S.A. was founded in 1934 and is based in Luxembourg.

How the Company Makes Money

Stabilus generates revenue through the sale of its core products, including gas springs and dampers, to a diverse range of industries, most notably automotive and industrial manufacturing. The company's revenue model is primarily based on product sales, which includes both standard and customized solutions tailored to specific customer needs. Key revenue streams come from long-term contracts with major automotive manufacturers, as well as partnerships with industrial equipment producers and furniture makers. Additionally, Stabilus benefits from a growing demand for motion control solutions driven by trends such as automation and ergonomic design, further solidifying its market position and contributing to its earnings.

Stabilus Financial Statement Overview

Summary

Stabilus shows a mixed financial performance with challenges in revenue growth and profitability, as indicated by declining margins. The balance sheet reflects increased leverage, which could pose risks if not managed effectively. However, the company demonstrates strong cash flow management, with positive free cash flow growth and efficient cash conversion. Overall, while there are areas of concern, particularly in revenue and profit margins, the company's cash flow strength provides a solid foundation for future stability.

Income Statement

Stabilus has shown a slight decline in revenue growth with a negative growth rate of -1.53% in the latest year, indicating a potential challenge in maintaining sales momentum. The gross profit margin has decreased from previous years, reflecting potential cost pressures or pricing challenges. Net profit margin has also decreased significantly from 7.38% to 1.78%, suggesting reduced profitability. However, the company maintains a reasonable EBIT and EBITDA margin, indicating operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has increased, indicating higher leverage, which could pose a risk if not managed properly. However, the equity ratio remains stable, showing a solid equity base. Return on equity has decreased, reflecting lower profitability on shareholders' investments. Overall, the balance sheet shows a stable financial position but with increased leverage.

Cash Flow

Stabilus has demonstrated positive free cash flow growth, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong, suggesting efficient cash conversion from earnings. The free cash flow to net income ratio is also healthy, reflecting good cash flow management. Despite these strengths, the decline in operating cash flow compared to previous years is a concern.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.30B	1.30B	1.31B	1.22B	1.12B	937.67M
Gross Profit	318.96M	318.96M	342.29M	321.19M	311.22M	280.26M
EBITDA	184.61M	184.61M	225.60M	202.45M	226.29M	184.97M
Net Income	23.09M	23.09M	70.18M	101.78M	102.96M	73.39M
Balance Sheet
Total Assets	1.95B	1.95B	1.91B	1.33B	1.27B	1.17B
Cash, Cash Equivalents and Short-Term Investments	162.62M	162.62M	110.19M	193.70M	168.95M	193.79M
Total Debt	833.80M	833.80M	820.97M	291.43M	290.40M	331.85M
Total Liabilities	1.31B	1.31B	1.23B	622.30M	596.88M	622.29M
Stockholders Equity	605.78M	605.78M	649.87M	683.73M	665.52M	539.25M
Cash Flow
Free Cash Flow	102.84M	106.14M	113.98M	104.36M	80.66M	88.46M
Operating Cash Flow	182.93M	163.88M	196.98M	178.10M	125.73M	128.98M
Investing Cash Flow	-86.23M	-86.24M	-717.39M	-81.44M	-67.54M	-40.36M
Financing Cash Flow	-38.75M	-19.69M	440.69M	-66.42M	-91.60M	-60.46M

Stabilus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.70
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:STM, the sentiment is Positive. The current price of 20.7 is above the 20-day moving average (MA) of 20.07, above the 50-day MA of 20.34, and below the 200-day MA of 23.48, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 55.34 is Neutral, neither overbought nor oversold. The STOCH value of 88.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:STM.

Stabilus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KSB3	77 Outperform	€1.79B	15.55	11.18%	2.84%	4.20%	-20.71%
KRN	75 Outperform	€4.42B	15.27	14.99%	1.95%	8.15%	16.17%
JST	70 Outperform	€888.04M	30.70	8.47%	2.81%	21.74%	-20.68%
STM	68 Neutral	€511.29M	22.14	3.68%	5.57%	-0.75%	-67.10%
PFV	64 Neutral	€1.57B	50.09	5.47%	4.66%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	54 Neutral	€1.64B	-51.41	-7.86%	3.12%	-18.21%	-137.62%