Stabilus (STM) AI Stock Analysis

• Market Cap: €479.18M
• Dividend Yield: 5.57%
• Average Volume (3M): 47.58K
• Price to Earnings (P/E): 28.2
• 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): 0.32
• 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: €35.00
• Price Target Upside: 80.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €18.50 ▼(-4.64% Downside)

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

Market leadership & diversified end markets

Longstanding leadership in motion-control hardware and exposure to automotive, industrial and furniture markets provide durable demand diversification. Deep OEM relationships and customized product lines create structural revenue visibility and make market share recoveries more likely when end markets normalize.

Solid operating and free cash flow

Consistent positive operating and rising free cash flow support internal investment, dividend funding and gradual deleveraging. Cash generation cushions earnings volatility, funds capex for product development and gives management flexibility to address higher leverage without immediate external financing.

Resilient operating profitability (mid‑teens EBITDA)

A mid-teens EBITDA margin indicates underlying product-level economics and pricing power in engineered components. This operating profitability supports reinvestment and cash conversion even as net margin fluctuates, helping preserve capacity to serve OEM contracts and invest in product enhancements.

Negative Factors

Rising leverage increases balance-sheet risk

A materially higher debt-to-equity ratio elevates refinancing and interest-rate sensitivity, limiting strategic flexibility. Even with solid cash flow, the company will need sustained FCF or asset sales to deleverage; elevated leverage reduces resilience to prolonged market weakness or cyclical downturns in key end markets.

Sharp margin compression; very thin net margin

Significant compression from prior margin levels weakens the firm's ability to absorb cost shocks or pricing pressure. A sub-2% net margin leaves little cushion for operational disruption, reducing free cash flow upside potential and increasing the risk that modest demand slumps translate to profit declines or margin-driven covenant stress.

Revenue decline trend

A declining revenue trend undermines scale benefits and may indicate weakening order momentum with OEMs or end-market softness. Continued revenue contraction would slow margin recovery and extend the time required to deleverage, pressuring ROE and limiting capacity to fund strategic initiatives without external capital.

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

Stabilus Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 19.4 is below the 20-day moving average (MA) of 19.65, below the 50-day MA of 19.94, and below the 200-day MA of 23.23, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 47.46 is Neutral, neither overbought nor oversold. The STOCH value of 51.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€1.85B	15.92	11.18%	2.84%	4.20%	-20.71%
KRN	75 Outperform	€4.29B	15.25	14.99%	1.95%	8.15%	16.17%
JST	70 Outperform	€934.23M	32.50	8.47%	2.81%	21.74%	-20.68%
PFV	64 Neutral	€1.62B	51.73	5.47%	4.66%	―	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DUE	54 Neutral	€1.56B	-48.81	-7.86%	3.12%	-18.21%	-137.62%
STM	46 Neutral	€479.18M	28.20	3.68%	5.57%	-0.75%	-67.10%