SURTECO (SUR) AI Stock Analysis

• Market Cap: €182.97M
• Dividend Yield: 2.54%
• Average Volume (3M): 531.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.27
• Revenue Growth: -3.01%
• EPS Growth: -151.69%
• Country: DE
• Employees: 3,726
• Sector: Basic Materials
• Sector Strength: 58
• 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 ▲(0.81% 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 (SUR) is a leading provider of surface materials and decorative solutions, primarily serving the furniture, flooring, and interior design industries. The company specializes in producing high-quality decorative films, laminates, and surface materials that enhance the aesthetic appeal and functionality of various products. With a strong focus on innovation and sustainability, SURTECO operates across multiple sectors, including wood-based products, plastics, and textiles, catering to a diverse portfolio of clients worldwide.

How the Company Makes Money

SURTECO generates revenue through multiple key streams, primarily by manufacturing and selling surface materials such as laminates, decorative films, and melamine surfaces to furniture and flooring manufacturers. The company benefits from long-term relationships with its clients, ensuring steady demand for its products. Additionally, SURTECO's focus on innovation allows it to introduce new products and designs that cater to evolving market trends, enhancing its competitive edge. Strategic partnerships with manufacturers and distributors also play a crucial role in expanding its market reach and driving sales. Furthermore, SURTECO invests in sustainable practices, which can attract environmentally-conscious customers and open up new revenue opportunities in green building and design markets.

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	845.32M	856.59M	835.09M	747.70M	757.06M	626.99M
Gross Profit	361.28M	444.25M	400.36M	360.53M	391.43M	339.29M
EBITDA	86.70M	99.72M	68.27M	85.82M	117.02M	89.81M
Net Income	-10.89M	8.41M	-12.29M	25.23M	47.81M	33.69M
Balance Sheet
Total Assets	962.35M	1.01B	1.04B	851.86M	795.15M	798.78M
Cash, Cash Equivalents and Short-Term Investments	54.79M	73.64M	111.81M	121.80M	74.75M	134.33M
Total Debt	403.92M	411.10M	471.11M	270.51M	225.61M	282.85M
Total Liabilities	592.30M	601.92M	648.89M	425.79M	381.47M	425.45M
Stockholders Equity	370.05M	410.48M	392.63M	426.07M	413.68M	373.33M
Cash Flow
Free Cash Flow	39.91M	40.03M	61.77M	18.82M	10.65M	44.24M
Operating Cash Flow	46.09M	64.92M	100.58M	69.14M	43.75M	82.66M
Investing Cash Flow	-23.02M	-27.85M	-273.17M	-38.94M	-30.68M	-30.70M
Financing Cash Flow	-86.55M	-78.71M	166.70M	15.08M	-72.63M	-3.80M

SURTECO Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 12.4 is below the 20-day moving average (MA) of 12.47, below the 50-day MA of 12.65, and below the 200-day MA of 15.00, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 29.40 is Positive, neither overbought nor oversold. The STOCH value of <0.01 is Positive, 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	€345.54M	11.14	11.43%	2.79%	1.79%	29.51%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ST5	61 Neutral	€278.85M	27.55	2.94%	0.93%	5.08%	-63.43%
DLX	58 Neutral	€22.12M	25.62	2.33%	2.48%	-16.67%	-55.84%
SUR	56 Neutral	€182.97M	―	-1.18%	2.54%	-3.01%	-151.69%
GSC1	55 Neutral	€167.47M	23.38	2.79%	0.71%	-3.37%	15.71%
ZIL2	43 Neutral	€255.34M	-1.53	-16.55%	3.74%	-6.21%	-995.53%