Stabilus (STM) AI Stock Analysis

• Market Cap: €365.56M
• Dividend Yield: 5.57%
• Average Volume (3M): 47.58K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 1.28
• Revenue Growth: -0.75%
• EPS Growth: -67.10%
• Country: DE
• Employees: 7,910
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.32
• Shares Outstanding: 24,700,000
• 10 Day Avg. Volume: 31,819
• 30 Day Avg. Volume: 47,575
• PEG Ratio: -0.39
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 5.72
• 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: €36.33
• Price Target Upside: 145.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 2.72
• Revenue Forecast (FY): €1.25B

• Rating: 46 Neutral
• Price Target: €14.50 ▼(-2.03% Downside)
• Action: Downgraded Date: 01/28/26
• Date: Action: Downgraded 01/28/26

The score is driven primarily by weakened financial performance—sharp margin compression and higher leverage—partly offset by still-solid operating and free cash flow. Technicals further pressure the outlook as the stock trades below key moving averages with negative MACD, while valuation is supported by a high dividend yield but tempered by an elevated P/E.

Positive Factors

Cash generation / Free Cash Flow

Consistent trailing cash generation and rising FCF provide a durable internal funding source. Over 2–6 months this supports working capital, selective capex, dividend funding or debt paydown, increasing financial flexibility even if earnings remain subdued.

Diversified end markets & customer contracts

Serving automotive, industrial and furniture markets with long-term OEM contracts reduces single-market cyclicality. Structural demand drivers like automation and ergonomic design support steady product need and provide resilience across economic cycles.

Operational profitability at EBITDA level

A mid-teens EBITDA margin indicates enduring operational efficiency and scope to cover fixed costs. This level of operating profitability supports reinvestment in R&D and product development, sustaining competitive product capability over the medium term.

Negative Factors

Elevated leverage

A materially higher debt-to-equity ratio raises refinancing and interest-rate sensitivity risk. Elevated leverage constrains strategic flexibility, increases fixed financial costs, and means deleveraging will likely take multiple quarters absent a sustained earnings recovery.

Compressed margins / Thin net margin

Sharp margin compression to a very thin net margin reduces the company’s ability to absorb demand shocks and fund growth internally. Persistently low net profitability limits cash available for debt reduction, dividends, and reinvestment over the coming months.

Weak revenue trend and low ROE

Declining revenue combined with depressed ROE signals weakening earnings power and capital efficiency. Without a durable top-line recovery, returns on invested capital may remain low, slowing balance-sheet repair and value accretion over the medium term.

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

Financials are mixed: revenue is slightly down (-2.7%) and margins have compressed sharply (TTM EBIT margin ~6.5%, net margin ~1.8%). Leverage has risen materially (debt-to-equity ~1.38) and ROE has fallen (~3–4%), increasing balance-sheet risk. Cash generation is a relative strength (TTM operating cash flow ~184M; free cash flow ~116M, up ~12.9%), but debt coverage suggests deleveraging may take time.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down (-2.7%) and profitability has compressed meaningfully versus prior years. EBIT margin is ~6.5% and net margin is ~1.8% in TTM (Trailing-Twelve-Months), down sharply from 2022–2024 levels, indicating weaker pricing/power, higher costs, or mix pressure. A positive is that the company remains profitable on an operating basis with a mid-teens EBITDA margin (~14%), but the very thin net margin leaves limited cushion if end-markets soften further.

Balance Sheet

Leverage has increased materially: debt-to-equity is ~1.38 in the latest periods versus ~0.43–0.62 in 2021–2023, reducing balance sheet flexibility. Return on equity has fallen to ~3–4% recently, reflecting weaker earnings power on a now more leveraged capital base. While total assets and equity remain sizeable, the higher debt load elevates refinancing and interest-rate sensitivity risk compared with the company’s earlier profile.

Cash Flow

Cash generation is a relative bright spot. TTM (Trailing-Twelve-Months) operating cash flow (~184M) and free cash flow (~116M) are solid, with free cash flow up ~12.9% versus the prior period shown. However, cash conversion vs accounting earnings is not especially strong (free cash flow is well below net income on the provided ratio), and operating cash flow covers only about half of total debt, so deleveraging would likely take time without a rebound in earnings.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	1.26B	1.30B	1.31B	1.22B	1.12B	937.67M
Gross Profit	340.73M	318.96M	342.29M	321.19M	311.22M	280.26M
EBITDA	174.28M	184.61M	225.60M	202.45M	226.29M	184.97M
Net Income	16.96M	23.09M	70.18M	101.78M	102.96M	73.39M
Balance Sheet
Total Assets	1.87B	1.95B	1.91B	1.33B	1.27B	1.17B
Cash, Cash Equivalents and Short-Term Investments	166.35M	164.52M	110.19M	193.70M	168.95M	193.79M
Total Debt	784.86M	833.80M	820.97M	291.43M	290.40M	331.85M
Total Liabilities	1.22B	1.31B	1.23B	622.30M	596.88M	622.29M
Stockholders Equity	619.50M	605.78M	649.87M	683.73M	665.52M	539.25M
Cash Flow
Free Cash Flow	116.06M	106.14M	113.98M	104.36M	80.66M	88.46M
Operating Cash Flow	184.27M	163.88M	196.98M	178.10M	125.73M	128.98M
Investing Cash Flow	-78.90M	-86.24M	-717.39M	-81.44M	-67.54M	-40.36M
Financing Cash Flow	-30.18M	-19.69M	440.69M	-66.42M	-91.60M	-60.46M

Stabilus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.80
• 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:STM, the sentiment is Negative. The current price of 14.8 is below the 20-day moving average (MA) of 17.34, below the 50-day MA of 18.63, and below the 200-day MA of 21.76, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 21.73 is Positive, neither overbought nor oversold. The STOCH value of 3.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€2.08B	6.65	10.90%	2.84%	4.20%	-20.71%
KRN	75 Outperform	€3.58B	14.37	14.99%	1.95%	8.15%	16.17%
JST	70 Outperform	€904.73M	-286.29	8.47%	2.81%	21.74%	-20.68%
PFV	64 Neutral	€1.63B	43.60	5.63%	4.66%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	54 Neutral	€1.25B	7.70	-7.86%	3.12%	-18.21%	-137.62%
STM	46 Neutral	€365.56M	16.36	2.71%	5.57%	-0.75%	-67.10%