Stabilus (STM) AI Stock Analysis

• Market Cap: €675.55M
• Dividend Yield: 4.2%
• Average Volume (3M): 51.98K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.97
• Revenue Growth: 9.58%
• EPS Growth: -10.37%
• Country: DE
• Employees: 7,910
• Sector: Industrials
• Sector Strength: 87
• Industry: Industrial - Machinery
• EPS (TTM): 0.44
• Shares Outstanding: 24,700,000
• 10 Day Avg. Volume: 45,975
• 30 Day Avg. Volume: 51,985
• PEG Ratio: 0.27
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.87
• 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: €48.00
• Price Target Upside: 68.72% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 80 Outperform
• Price Target: €30.00 ▲(5.45%Upside)

Stabilus's stock is well-positioned due to its solid financial performance and attractive valuation. The company’s strong balance sheet with zero debt and favorable equity ratios enhances its financial stability. Additionally, the stock's valuation metrics are appealing, with a low P/E ratio and high dividend yield. Technical indicators suggest moderate bullish momentum, though long-term caution is advised as the price remains below the 100-day and 200-day moving averages. The absence of earnings call data and corporate events does not detract from the overall stability and attractiveness of the stock.

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 makes money primarily through the sale of its motion control products. Its revenue model is based on supplying gas springs, dampers, and electromechanical drives to a diverse range of industries, including automotive, industrial machinery, and consumer goods. The automotive sector is a key revenue stream, where Stabilus products are used in applications such as vehicle hoods, trunks, and tailgates. In the industrial sector, the company's products are used in machinery, medical devices, and ergonomic furniture. Stabilus benefits from long-term partnerships with major automotive manufacturers and suppliers, contributing to stable and recurring revenue. Additionally, the company's global presence allows it to tap into various regional markets, thereby diversifying its income sources.

Stabilus Financial Statement Overview

Summary

Stabilus demonstrates solid financial performance with strong revenue growth and profitability. The balance sheet is robust, with zero debt and strong equity ratios. While cash flow generation remains healthy, there is a need to monitor the declining free cash flow growth.

Income Statement

Stabilus showcases robust revenue growth with a TTM revenue increase of 8.8% compared to the previous year. The gross profit margin stands at 26.8%, while the net profit margin is 5.5%, indicating stable profitability. However, the EBIT margin has decreased slightly to 9.0%, suggesting pressure on operational efficiency.

Balance Sheet

The company maintains strong financial health with zero total debt in the latest TTM period, leading to a debt-to-equity ratio of 0. The equity ratio is 35.9%, demonstrating a solid equity base. Return on equity (ROE) is 10.3%, which is commendable, highlighting effective use of shareholder funds.

Cash Flow

Operating cash flow remains strong, surpassing net income, with an operating cash flow to net income ratio of 2.36. Free cash flow has decreased but remains positive. The free cash flow to net income ratio stands at 1.15, reflecting healthy cash generation capabilities, though there is a notable decline in free cash flow growth.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	1.33B	1.31B	1.22B	1.12B	937.67M	822.13M
Gross Profit	354.99M	342.29M	321.19M	311.22M	280.26M	231.50M
EBITDA	241.93M	225.60M	202.45M	226.29M	184.97M	154.22M
Net Income	72.48M	70.18M	101.78M	102.96M	73.39M	31.43M
Balance Sheet
Total Assets	1.96B	1.91B	1.33B	1.27B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	98.23M	110.19M	193.70M	168.95M	193.79M	169.71M
Total Debt	0.00	820.97M	291.43M	290.40M	331.85M	362.36M
Total Liabilities	1.23B	1.23B	622.30M	596.88M	622.29M	613.97M
Stockholders Equity	704.75M	649.87M	683.73M	665.52M	539.25M	461.68M
Cash Flow
Free Cash Flow	83.65M	113.98M	104.36M	80.66M	88.46M	61.30M
Operating Cash Flow	171.34M	196.98M	178.10M	125.73M	128.98M	108.88M
Investing Cash Flow	-724.28M	-717.39M	-81.44M	-67.54M	-40.36M	-47.70M
Financing Cash Flow	439.67M	440.69M	-66.42M	-91.60M	-60.46M	-31.89M

Stabilus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.45
• 50DMA: Positive
• 100DMA: Positive
• 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 28.45 is above the 20-day moving average (MA) of 26.71, above the 50-day MA of 25.62, and below the 200-day MA of 29.45, indicating a neutral trend. The MACD of 0.57 indicates Negative momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 81.61 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
STM	80 Outperform	€675.55M	10.26	9.96%	4.20%	9.58%	-10.37%
Sector *	58 Neutral	$1.33B	4.20	-2.93%	7.45%	3.67%	-51.13%
0J9C		€1.51B	14.28	4.78%	2.79%	―	―
0LQ4		€4.39B	15.34	15.25%	1.61%	―	―
0BQE		€1.54B	13.07	11.29%	2.64%	―	―
0FQR		€1.59B	41.66		4.54%	―	―
0RTR		€797.15M	17.46	11.34%	2.40%	―	―