Stabilus (STM) AI Stock Analysis

• Market Cap: €598.98M
• Dividend Yield: 4.74%
• Average Volume (3M): 53.68K
• Price to Earnings (P/E): 11.6
• Beta (1Y): 1.04
• Revenue Growth: 3.07%
• EPS Growth: -31.90%
• Country: DE
• Employees: 7,910
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.40
• Shares Outstanding: 24,700,000
• 10 Day Avg. Volume: 66,049
• 30 Day Avg. Volume: 53,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €35.60
• Price Target Upside: 46.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 70 Neutral
• Price Target: €27.00 ▲(11.34% Upside)

Stabilus's overall stock score is driven by its solid valuation with a low P/E ratio and high dividend yield, indicating potential value for investors. However, financial performance concerns, particularly declining revenue and increased leverage, pose risks. Technical analysis shows mixed signals, with short-term bullish momentum but longer-term bearish trends.

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 primarily through the sale of its gas springs and dampers, which are critical components in numerous applications across automotive and industrial sectors. The company's revenue model is based on direct sales to original equipment manufacturers (OEMs) and aftermarket sales. Key revenue streams include long-term contracts with automotive companies, which provide a stable income source, as well as sales to industrial customers for various applications. Additionally, Stabilus benefits from strategic partnerships with leading automotive manufacturers and other industries, allowing it to expand its market reach and enhance product development. The growing demand for automation and ergonomic solutions also contributes to the company's earnings, as more industries seek to improve efficiency and user comfort.

Stabilus Financial Statement Overview

Summary

Stabilus faces challenges with declining revenue and profitability margins. Cash flow generation shows positive trends, but increased leverage and reduced return on equity highlight potential financial risks. The company needs to improve sales and manage debt levels to enhance financial stability.

Income Statement

Stabilus shows a stable gross profit margin of 27.27% TTM, though slightly down from previous years. The net profit margin has decreased to 3.93% TTM, indicating pressure on profitability. Revenue growth rate is negative at -2.57% TTM, suggesting a decline in sales. EBIT and EBITDA margins are healthy but have decreased over time, reflecting operational challenges.

Balance Sheet

The debt-to-equity ratio has increased to 1.30 TTM, indicating higher leverage and potential risk. Return on equity is at 7.88% TTM, showing reduced profitability for shareholders. The equity ratio is stable, but the increased debt levels could pose financial risks if not managed properly.

Cash Flow

Operating cash flow to net income ratio is at 0.52 TTM, showing moderate cash generation relative to net income. Free cash flow growth is positive at 2.14% TTM, indicating some improvement in cash generation. The free cash flow to net income ratio is 0.54 TTM, reflecting decent cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.32B	1.31B	1.22B	1.12B	937.67M	822.13M
Gross Profit	358.91M	342.29M	321.19M	311.22M	280.26M	231.50M
EBITDA	224.59M	225.60M	202.45M	226.29M	184.97M	154.22M
Net Income	51.75M	70.18M	101.78M	102.96M	73.39M	31.43M
Balance Sheet
Total Assets	1.87B	1.91B	1.33B	1.27B	1.17B	1.08B
Cash, Cash Equivalents and Short-Term Investments	126.22M	110.19M	193.70M	168.95M	193.79M	169.71M
Total Debt	799.93M	820.97M	291.43M	290.40M	331.85M	362.36M
Total Liabilities	1.22B	1.23B	622.30M	596.88M	622.29M	613.97M
Stockholders Equity	615.39M	649.87M	683.73M	665.52M	539.25M	461.68M
Cash Flow
Free Cash Flow	104.89M	113.98M	104.36M	80.66M	88.46M	61.30M
Operating Cash Flow	194.01M	196.98M	178.10M	125.73M	128.98M	108.88M
Investing Cash Flow	-87.39M	-717.39M	-81.44M	-67.54M	-40.36M	-47.70M
Financing Cash Flow	-113.52M	440.69M	-66.42M	-91.60M	-60.46M	-31.89M

Stabilus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.25
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 24.25 is below the 20-day moving average (MA) of 24.34, above the 50-day MA of 24.14, and below the 200-day MA of 26.44, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 49.36 is Neutral, neither overbought nor oversold. The STOCH value of 41.46 is Neutral, 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	72 Outperform	€1.55B	12.74	10.81%	3.13%	4.20%	-20.71%
KRN	72 Outperform	€3.87B	13.46	14.60%	2.12%	10.25%	20.72%
STM	70 Neutral	€598.98M	11.57	8.01%	4.74%	3.07%	-31.90%
JST	64 Neutral	€746.49M	19.77	10.89%	2.99%	5.34%	-9.83%
PFV	61 Neutral	€1.53B	48.59	6.73%	4.73%	―	―
DUE	60 Neutral	€1.39B	-74.44	-1.77%	3.48%	-15.83%	-120.52%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%