STO SE & Co. KGaA (STO3) AI Stock Analysis

• Market Cap: €669.47M
• Dividend Yield: 2.67%
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.61
• Revenue Growth: -3.84%
• EPS Growth: -49.20%
• Country: DE
• Employees: 5,599
• Sector: Services
• Sector Strength: N/A
• Industry: Construction
• EPS (TTM): N/A
• Shares Outstanding: 2,538,000
• 10 Day Avg. Volume: 2,801
• 30 Day Avg. Volume: 2,192
• PEG Ratio: -0.20
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 7.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: €134.00 ▲(7.89% Upside)

STO SE & Co. KGaA's overall stock score reflects a stable financial performance with a strong balance sheet and moderate valuation. The technical analysis suggests a lack of strong momentum, which is a concern. The absence of earnings call and corporate events data limits the analysis, but the company's financial stability and decent dividend yield are positive factors.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low debt levels provides STO SE & Co. KGaA with financial stability and flexibility to invest in growth opportunities and weather economic downturns.

Sustainable Building Practices

Emphasizing sustainability aligns with global trends towards eco-friendly construction, potentially attracting environmentally conscious clients and investors, and providing a competitive edge.

Diverse Revenue Streams

Diverse revenue streams from sales, leasing, and management services reduce dependency on a single income source, enhancing financial resilience and stability.

Negative Factors

Inconsistent Revenue Growth

Inconsistent revenue growth suggests potential demand or operational challenges, which could impact long-term profitability and market confidence.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to reinvest in growth initiatives, pay down debt, or return capital to shareholders, potentially affecting future financial health.

Fluctuating Profit Margins

Fluctuating profit margins indicate challenges in maintaining consistent profitability, which could affect investor confidence and the company's ability to fund operations and growth.

STO SE & Co. KGaA Business Overview & Revenue Model

Company Description

STO SE & Co. KGaA (STO3) is a leading operator in the construction and real estate sector, primarily engaged in the development, construction, and management of residential and commercial properties. The company focuses on sustainable building practices and innovative real estate solutions, contributing to urban development and infrastructure improvement. With a diverse portfolio that includes residential buildings, commercial spaces, and public infrastructure projects, STO3 positions itself as a key player in the European market, emphasizing quality and sustainability in its offerings.

How the Company Makes Money

STO3 generates revenue through multiple streams, primarily from the sale and leasing of residential and commercial properties. The company undertakes real estate development projects, which involve acquiring land, constructing buildings, and subsequently selling or leasing the developed properties to clients. Additionally, STO3 engages in property management services, providing ongoing maintenance and management solutions for its real estate assets, which contributes to steady income. Significant partnerships with local governments and private sector entities enhance its project pipeline, while a focus on sustainable development can attract environmentally conscious investors and clients, providing a competitive edge in the market.

STO SE & Co. KGaA Financial Statement Overview

Summary

STO SE & Co. KGaA's financial health is generally stable, though there are areas of concern. The income statement reflects challenges in maintaining consistent revenue and profit growth. The balance sheet is robust, with strong equity and low debt levels. Cash flow generation has been positive but inconsistent, highlighting potential liquidity management issues.

Income Statement

STO SE & Co. KGaA shows a mixed performance in its income statement. The gross profit margin is stable, indicating efficient cost management. However, the net profit margin has fluctuated over the years, reflecting variable profitability. Revenue growth has been inconsistent, with a notable decline in the latest year, suggesting possible demand or operational challenges. Both EBIT and EBITDA margins have decreased, indicating reduced operational efficiency.

Balance Sheet

The balance sheet is solid with a strong equity base, reflected in a healthy equity ratio, indicating low reliance on debt. The debt-to-equity ratio is favorable, suggesting prudent use of leverage. Return on equity has varied, showing fluctuating returns to shareholders. Overall, the company maintains a stable balance sheet with manageable liabilities.

Cash Flow

Cash flow analysis reveals some challenges. Free cash flow has shown variability, with a significant decline in the latest period. The operating cash flow to net income ratio indicates efficient cash generation relative to profitability, but the declining free cash flow growth rate is a concern. Despite this, the company has managed to maintain positive free cash flow over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.61B	1.72B	1.79B	1.59B	1.43B
Gross Profit	863.34M	873.57M	923.28M	410.03M	374.09M	359.06M
EBITDA	94.52M	136.90M	193.30M	190.72M	185.59M	175.15M
Net Income	33.54M	37.62M	86.08M	90.09M	92.72M	80.77M
Balance Sheet
Total Assets	1.17B	1.16B	1.16B	1.12B	1.12B	993.99M
Cash, Cash Equivalents and Short-Term Investments	201.84M	251.67M	238.08M	214.40M	230.54M	247.74M
Total Debt	97.47M	104.32M	103.60M	85.48M	97.77M	77.66M
Total Liabilities	443.40M	414.79M	435.51M	438.61M	507.25M	462.62M
Stockholders Equity	728.82M	743.51M	729.27M	683.96M	605.35M	528.61M
Cash Flow
Free Cash Flow	54.18M	54.32M	124.28M	47.25M	68.37M	134.21M
Operating Cash Flow	94.71M	90.52M	170.92M	94.67M	110.31M	175.96M
Investing Cash Flow	-36.18M	-38.26M	-103.83M	-54.25M	-51.41M	-124.20M
Financing Cash Flow	-49.98M	-64.11M	-62.69M	-71.85M	-55.72M	-49.19M

STO SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 124.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:STO3, the sentiment is Positive. The current price of 124.2 is above the 20-day moving average (MA) of 117.89, above the 50-day MA of 121.07, and above the 200-day MA of 122.31, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 56.72 is Neutral, neither overbought nor oversold. The STOCH value of 73.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:STO3.

STO SE & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MBB	74 Outperform	€818.88M	19.78	9.50%	1.84%	13.42%	155.75%
UZU	74 Outperform	€345.54M	11.14	11.43%	2.64%	1.79%	29.51%
STO3	70 Outperform	€669.47M	19.96	4.63%	2.67%	-3.84%	-49.20%
SUR	56 Neutral	€182.97M	―	-1.18%	2.56%	-3.01%	-151.69%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
KCO	46 Neutral	€535.66M	-3.63	-8.11%	3.38%	4.41%	50.71%