SURTECO (SUR) AI Stock Analysis

• Market Cap: €172.11M
• Dividend Yield: 2.75%
• Average Volume (3M): 531.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: -3.01%
• EPS Growth: -151.69%
• Country: DE
• Employees: 3,726
• Sector: General
• Sector Strength: N/A
• Industry: Paper, Lumber & Forest Products
• EPS (TTM): 0.02
• Shares Outstanding: 15,505,731
• 10 Day Avg. Volume: 448
• 30 Day Avg. Volume: 531
• PEG Ratio: -0.21
• Price to Book (P/B): 0.74
• Price to Sales (P/S): 0.35
• P/FCF Ratio: 7.59
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €12.50 ▲(14.68% Upside)

SURTECO's overall stock score is primarily impacted by strong cash flow management and a stable balance sheet, which are offset by profitability challenges and bearish technical indicators. The negative P/E ratio reflects current financial struggles, though the dividend yield offers some support.

Positive Factors

Cash Flow Management

Strong cash flow management enhances financial flexibility, allowing SURTECO to invest in growth opportunities and weather economic downturns.

Stable Balance Sheet

A stable balance sheet with balanced leverage supports long-term financial health and reduces risk, enabling sustainable operations.

Sustainability Focus

Commitment to sustainability can drive long-term growth by tapping into the green market and enhancing brand reputation.

Negative Factors

Profitability Issues

Negative profitability can hinder reinvestment in business operations and affect long-term growth prospects, necessitating strategic adjustments.

Stagnant Revenue Growth

Stagnant revenue growth limits the company's ability to expand market share and invest in new product development, impacting future competitiveness.

Low Operating Efficiency

Low operating efficiency suggests challenges in cost management and scaling operations, which can affect profitability and competitive positioning.

SURTECO Business Overview & Revenue Model

Company Description

Surteco Group SE develops, produces, and sells coated surface materials based on paper and plastic in Germany, rest of Europe, and North and South America. The company operates through Decoratives, Profiles, and Technicals segments. The Decoratives segment offers decor papers, finish foils, and edgebandings. Its Profiles segment provides floor strips, skirtings, wall edging systems, and technical extrusions for a range of industrial applications. The company's Technicals segment offers impregnated products, surface coatings, multi-layer hybrid foils, bandings, finish foils based on plastic, and technical plastic foils for other industrial sectors and for further processing to form carpets. It serves the wood-based, flooring, door and furniture, interior design, construction, trade floorlayers, and caravan industries, as well as carpenters and artisan businesses. Surteco Group SE is based in Buttenwiesen, Germany.

How the Company Makes Money

SURTECO generates revenue through the sale of its decorative surface products and technologies to manufacturers in the furniture and construction sectors. The company has multiple key revenue streams, including the production of melamine and laminate surfaces, edge banding, and specialty coatings. Additionally, SURTECO benefits from strategic partnerships with furniture manufacturers and distributors, which facilitate the distribution of its products. The company's focus on innovation and sustainability also allows it to capitalize on emerging market trends, thus contributing to its overall earnings.

SURTECO Financial Statement Overview

Summary

SURTECO demonstrates strong cash flow management and a stable balance sheet, with effective cost control as evidenced by a high gross profit margin. However, profitability is a concern due to a negative net profit margin and stagnant revenue growth.

Income Statement

SURTECO's income statement displays mixed performance. The TTM gross profit margin stands at 34.74%, showing strong cost management. However, the net profit margin is negative at -0.42%, indicating issues with profitability. The revenue growth rate from 2024 to TTM is stagnant, with a slight decline, which poses challenges for future growth. EBIT and EBITDA margins are relatively low at 2.57% and 10.70% respectively, reflecting limited operating efficiency.

Balance Sheet

The balance sheet reveals a debt-to-equity ratio of 1.03, indicating a balanced leverage position. The return on equity (ROE) is negative for TTM, signaling profitability issues impacting shareholder returns. The equity ratio is healthy at 39.08%, suggesting a stable capital structure with adequate asset backing.

Cash Flow

SURTECO's cash flow statement is strong, with a positive free cash flow growth rate of 7.67% from 2024 to TTM. The operating cash flow to net income ratio is favorable, reflecting strong cash generation relative to profits. The free cash flow to net income ratio supports this view, indicating effective cash management despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	834.13M	856.59M	835.09M	747.70M	757.06M	626.99M
Gross Profit	362.24M	444.25M	400.36M	360.53M	391.43M	339.29M
EBITDA	89.57M	99.72M	68.27M	85.82M	117.02M	89.81M
Net Income	-4.54M	8.41M	-12.29M	25.23M	47.81M	33.69M
Balance Sheet
Total Assets	962.02M	1.01B	1.04B	851.86M	795.15M	798.78M
Cash, Cash Equivalents and Short-Term Investments	55.13M	73.64M	111.81M	121.80M	74.75M	134.33M
Total Debt	402.30M	411.10M	471.11M	270.51M	225.61M	282.85M
Total Liabilities	591.38M	601.92M	648.89M	425.79M	381.47M	425.45M
Stockholders Equity	370.65M	410.48M	392.63M	426.07M	413.68M	373.33M
Cash Flow
Free Cash Flow	44.28M	40.03M	61.77M	18.82M	10.65M	44.24M
Operating Cash Flow	58.62M	64.92M	100.58M	69.14M	43.75M	82.66M
Investing Cash Flow	-24.93M	-27.85M	-273.17M	-38.94M	-30.68M	-30.70M
Financing Cash Flow	-83.28M	-78.71M	166.70M	15.08M	-72.63M	-3.80M

SURTECO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.90
• 50DMA: Negative
• 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:SUR, the sentiment is Negative. The current price of 10.9 is below the 20-day moving average (MA) of 11.07, below the 50-day MA of 11.78, and below the 200-day MA of 14.14, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 43.55 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SUR.

SURTECO Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UZU	74 Outperform	€368.24M	11.88	11.43%	2.66%	1.79%	29.51%
GSC1	67 Neutral	€160.42M	20.65	2.79%	0.69%	-3.37%	15.71%
ST5	61 Neutral	€290.82M	28.73	2.94%	0.96%	5.08%	-63.43%
DLX	61 Neutral	€24.38M	28.23	2.33%	2.17%	-16.67%	-55.84%
SUR	56 Neutral	€172.11M	-37.95	-1.18%	2.75%	-3.01%	-151.69%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ZIL2	46 Neutral	€270.86M	-2.35	-16.55%	3.51%	-6.21%	-995.53%