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

• Market Cap: €714.86M
• Dividend Yield: 2.64%
• Average Volume (3M): 2.00K
• Price to Earnings (P/E): 19.0
• Beta (1Y): 0.65
• Revenue Growth: -6.15%
• EPS Growth: -56.30%
• 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: 1,793
• 30 Day Avg. Volume: 2,004
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €135.00
• Price Target Upside: 7.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: €135.00 ▲(7.48% Upside)

The overall stock score for STO SE & Co. KGaA is driven primarily by its steady financial performance, particularly its strong balance sheet with low leverage. Technical indicators suggest a neutral to slightly bullish trend, providing a positive outlook in the short term. Valuation metrics indicate a fair market value, though the low dividend yield may not attract income-focused investors. To enhance its stock appeal, the company should address revenue consistency and optimize cash flow management.

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 exhibits a stable financial health with a robust balance sheet characterized by strong equity and low debt levels. However, inconsistent revenue growth and declining operational efficiency in the income statement, alongside variable cash flow generation, indicate areas that need improvement for sustained growth.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.61B	1.72B	1.79B	1.59B	1.43B
Gross Profit	873.57M	413.98M	410.03M	374.09M	359.06M
EBITDA	136.90M	193.30M	190.72M	185.59M	175.15M
Net Income	37.62M	86.08M	90.09M	92.72M	80.77M
Balance Sheet
Total Assets	1.16B	1.16B	1.12B	1.12B	993.99M
Cash, Cash Equivalents and Short-Term Investments	251.67M	238.08M	214.40M	223.93M	241.97M
Total Debt	104.32M	103.60M	85.48M	97.77M	77.66M
Total Liabilities	414.79M	435.51M	438.61M	507.25M	462.62M
Stockholders Equity	743.51M	729.27M	683.96M	605.35M	528.61M
Cash Flow
Free Cash Flow	54.32M	124.28M	47.25M	68.37M	134.21M
Operating Cash Flow	90.52M	170.92M	94.67M	110.31M	175.96M
Investing Cash Flow	-38.26M	-103.83M	-54.25M	-51.41M	-124.20M
Financing Cash Flow	-64.11M	-62.69M	-59.52M	-55.72M	-47.42M

STO SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 125.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 125.6 is above the 20-day moving average (MA) of 124.82, above the 50-day MA of 122.13, and above the 200-day MA of 117.50, indicating a bullish trend. The MACD of 0.67 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 36.48 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
UZU	76 Outperform	€337.97M	11.48	10.96%	2.84%	-0.69%	30.36%
STO3	75 Outperform	€714.86M	19.00	5.11%	2.64%	-6.15%	-56.30%
MBB	74 Outperform	€676.69M	16.35	7.18%	2.11%	15.33%	111.97%
Sector *	66 Neutral	€7.42B	13.39	35.49%	3.63%	2.10%	-117.48%
SUR	57 Neutral	€217.86M	28.54	-2.79%	2.11%	-1.00%	-296.04%
KCO	47 Neutral	€600.49M	―	-9.12%	3.38%	0.38%	40.94%