SURTECO (SUR) AI Stock Analysis

• Market Cap: €200.80M
• Dividend Yield: 2.75%
• Average Volume (3M): 531.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.23
• 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: 53 Neutral
• Price Target: €13.00 ▲(19.27% Upside)

The score is primarily held back by pressured and volatile profitability alongside higher leverage, while positive free cash flow provides partial support. Technicals remain weak/neutral with a negative MACD and price below longer-term moving averages. Valuation is less favorable due to a negative P/E, though the ~2.7% dividend yield is a modest positive.

Positive Factors

Free Cash Flow Strength

Sustained positive operating cash flow and improving free cash flow provide durable internal funding for capex, working capital and dividends. Strong FCF gives management flexibility to invest in product innovation or pay down debt even if accounting earnings remain volatile.

Market Position & Product Diversification

Leading presence across decorative surfaces, edge banding and laminates secures diversified end markets (furniture, construction). Long-standing partnerships with manufacturers and distributors create durable sales channels and make product innovation and sustainability initiatives more impactful over time.

Resilient Gross Margins

Relatively healthy gross margins act as a structural buffer against input cost swings and competitive pricing. Higher gross margins support reinvestment in R&D and sustainability, improving the odds of margin recovery at the operating and net levels as volumes stabilize.

Negative Factors

Elevated Leverage

Leverage near 1.1x increases financial risk and limits strategic optionality. With debt roughly equal to equity, interest and principal servicing constrain free cash deployment for growth or capital returns and increase vulnerability if profitability remains pressured.

Volatile and Weak Profitability

Recurring swings between profit and loss undermine predictability of margins and ROE. Volatility complicates capital allocation, discourages confident reinvestment, and may force reliance on external financing or cost cuts to achieve stable returns over the medium term.

Declining Revenue Trend

TTM revenue down roughly 3% signals demand pressure or lost share; sustained top-line erosion can erode scale economics and margin recovery prospects. Without consistent revenue growth, deleveraging and margin improvement become harder to sustain over the coming quarters.

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

Cash generation is a relative strength (positive operating cash flow and free cash flow, with FCF improving), but profitability has weakened with slightly lower TTM revenue and a small net loss. Balance-sheet risk is higher than prior years due to elevated leverage (~1.1x debt-to-equity) and negative TTM ROE, which constrains the overall financial score.

Income Statement

Profitability has weakened meaningfully versus prior years. TTM (Trailing-Twelve-Months) revenue is slightly down and the company slipped to a small net loss, while operating profitability remains positive but thin. Gross margin is still healthy, but the earnings profile has been volatile (profit in 2024, loss in 2023, profit in 2022), which lowers confidence in near-term earnings stability.

Balance Sheet

Leverage is elevated for the current earnings level. Debt is roughly in line with equity (about 1.1x debt-to-equity in TTM (Trailing-Twelve-Months)), which is a noticeable step up from 2020–2022 when leverage was lower. Equity remains solid in absolute terms, but returns on equity are negative in TTM (Trailing-Twelve-Months), suggesting the balance sheet is carrying more financial risk than the current profitability supports.

Cash Flow

Cash generation is a relative strength. TTM (Trailing-Twelve-Months) operating cash flow and free cash flow are both positive, and free cash flow improved versus the prior annual period. However, cash conversion versus accounting earnings is not particularly strong (free cash flow is below net income magnitude on a ratio basis), and operating cash flow covers only a modest portion of debt, which limits financial flexibility if profitability stays pressured.

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: Positive
• Last Price: 10.90
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 10.9 is below the 20-day moving average (MA) of 11.93, below the 50-day MA of 11.65, and below the 200-day MA of 13.87, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 67.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	€380.85M	12.28	11.43%	2.66%	1.79%	29.51%
GSC1	66 Neutral	€163.13M	21.00	2.79%	0.69%	-3.37%	15.71%
ST5	61 Neutral	€323.92M	32.00	2.94%	0.96%	5.08%	-63.43%
DLX	61 Neutral	€25.61M	29.66	2.33%	2.17%	-16.67%	-55.84%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
SUR	53 Neutral	€200.80M	-44.27	-1.18%	2.75%	-3.01%	-151.69%
ZIL2	46 Neutral	€269.91M	-2.35	-16.55%	3.51%	-6.21%	-995.53%