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SFS Group AG
(SFSN)
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Rating:70Outperform
Price Target:
CHF150.00
▲(13.46% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by solid underlying financial strength (strong gross margins, improving leverage, and improving free cash flow) and a constructive earnings update with reaffirmed guidance and healthy H1 margins. This is tempered by mixed technical signals (neutral momentum) and a valuation that is reasonable but not clearly cheap (P/E ~21, modest ~1.8% yield).
Positive Factors
Organic growth and profitability
SFS is delivering genuine underlying growth alongside strong profitability, with organic expansion and a double-digit adjusted EBIT margin. This combination supports reinvestment, strengthens resilience across its diversified industrial customer base, and indicates continued earnings capacity over the next several quarters.
Negative Factors
Moderating earnings margins
Although gross margins remain strong, the decline in operating and net margins shows that earlier profitability peaks have not been fully sustained. Continued margin normalization could limit earnings growth even if revenue expands, making efficiency gains and disciplined cost management important to future returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Organic growth and profitability
SFS is delivering genuine underlying growth alongside strong profitability, with organic expansion and a double-digit adjusted EBIT margin. This combination supports reinvestment, strengthens resilience across its diversified industrial customer base, and indicates continued earnings capacity over the next several quarters.
Read all positive factors
SFS Group AG (SFSN) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF5.46B
Dividend Yield1.78%
Average Volume (3M)28.57K
Price to Earnings (P/E)21.3
Beta (1Y)0.58
Revenue Growth1.51%
EPS Growth8.62%
CountryCH
Employees14,341
SectorGeneral
Sector StrengthN/A
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)6.59
Shares Outstanding38,900,000
10 Day Avg. Volume24,248
30 Day Avg. Volume28,573
Financial Highlights & Ratios
PEG Ratio-2.07
Price to Book (P/B)2.64
Price to Sales (P/S)1.37
P/FCF Ratio15.42
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
CHF147.50Price Target Upside11.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)7.22
Revenue Forecast (FY)CHF3.12B
SFS Group AG Business Overview & Revenue Model
Company Description
SFS Group AG operates globally, delivering mechanical fastening solutions, meticulously crafted precision components, assembled products, and comprehensive logistics services. Their expansive range of offerings caters to diverse applications, feat...
How the Company Makes Money
SFS Group makes money primarily by selling engineered components and fastening solutions and by providing associated value-added services to industrial and commercial customers. Revenue is generated through (1) the manufacture and sale of engineer...
SFS Group AG Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 26, 2027
Earnings Call Sentiment Positive
Overall the call presents a constructive financial and operational picture: the group delivered solid organic growth, robust margins (adjusted EBIT margin 13.3%), strong cash conversion (EBITDA conversion 43.7%), and strategic acquisitions that expand aerospace and distribution capabilities. Headwinds include a material FX drag (-4.2% / CHF 64.8m), net working capital increases tied to acquisitions and electronics receivables, and an active streamlining program that will reduce sales (~CHF 110m) and incur one-off costs (~CHF 75m) but is expected to improve midterm profitability (~+0.8 ppt). Management reaffirmed full-year guidance (3–6% local-currency growth; adjusted EBIT margin 12–15%) and signaled cautious optimism about normalization of working capital and sustained cash generation.Positive Updates
Reported and Organic Sales Growth
Group sales of CHF 1.559 billion in H1 2026, reported growth +1.3% YoY; organic growth +4.0% and local-currency growth ~+5.5%, within the upper end of the 3–6% guidance range.
Negative Updates
Currency Headwind and Reported Growth Compression
Appreciation of the Swiss franc reduced reported sales by CHF 64.8 million (a -4.2% currency effect), limiting reported growth to +1.3% despite stronger local-currency performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Reported and Organic Sales Growth
Group sales of CHF 1.559 billion in H1 2026, reported growth +1.3% YoY; organic growth +4.0% and local-currency growth ~+5.5%, within the upper end of the 3–6% guidance range.
Read all positive updates
Company Guidance
Management reiterated full‑year 2026 guidance of 3–6% growth in local currencies (including scope) and an adjusted EBIT margin target of 12–15%. In H1 SFS reported sales of CHF 1.559bn (+1.3% reported; organic +4%; M&A +1.5%; FX headwind −4.2%/CHF 64.8m), adjusted EBIT CHF 206m (13.3%) — EBIT incl. non‑recurring CHF 211.2m (13.6%) — EBITDA CHF 273.7m (17.6%), EPS CHF 3.82 (+CHF 0.96), free cash flow CHF 121m (EBITDA conversion 43.7%), and CapEx ~CHF 32m (2.3% of sales) versus D&A 4.2%. Management reconfirmed midterm CapEx of 4–6% of sales and an EBITDA conversion target of 40–50%, noted an HDD run‑rate target of CHF 80–100m p.a., and said the streamlining program (expected completion end‑2027) will reduce sales by ~CHF 110m, incur ~CHF 75m one‑off costs, affect ~650 employees and deliver ~+0.8 percentage points to EBIT margin by end‑2027; equity ratio H1 was 58.9% (vs 60.3% PY).SFS Group AG Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.07B | 3.07B | 3.05B | 3.11B | 2.74B | 1.90B |
| Gross Profit | 789.00M | 1.78B | 1.77B | 1.77B | 732.60M | 583.50M |
| EBITDA | 513.00M | 456.40M | 474.70M | 497.80M | 463.90M | 407.90M |
| Net Income | 256.40M | 219.00M | 241.30M | 266.00M | 266.70M | 243.80M |
Balance Sheet | ||||||
| Total Assets | 2.69B | 2.51B | 2.61B | 2.55B | 2.57B | 1.84B |
| Cash, Cash Equivalents and Short-Term Investments | 222.40M | 209.80M | 224.60M | 227.50M | 221.50M | 286.00M |
| Total Debt | 542.70M | 374.60M | 559.60M | 672.80M | 699.20M | 6.80M |
| Total Liabilities | 1.11B | 893.90M | 1.05B | 1.17B | 1.27B | 388.70M |
| Stockholders Equity | 1.57B | 1.60B | 1.54B | 1.36B | 1.28B | 1.43B |
Cash Flow | ||||||
| Free Cash Flow | 278.00M | 273.60M | 226.10M | 139.40M | 118.10M | 203.60M |
| Operating Cash Flow | 359.10M | 377.30M | 375.00M | 313.40M | 289.10M | 325.00M |
| Investing Cash Flow | -245.60M | -100.70M | -158.00M | -179.00M | -644.70M | -114.50M |
| Financing Cash Flow | -62.30M | -281.40M | -223.30M | -117.70M | 294.70M | -115.60M |
SFS Group AG Technical Analysis
Positive
132.20
Price Trends
136.12
Positive
134.99
Positive
126.81
Positive
Market Momentum
0.83
Positive
57.53
Neutral
59.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SFSN, the sentiment is Positive. The current price of 132.2 is below the 20-day moving average (MA) of 139.15, below the 50-day MA of 136.12, and above the 200-day MA of 126.81, indicating a bullish trend. The MACD of 0.83 indicates Positive momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 59.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:SFSN.
SFS Group AG Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | CHF3.25B | 18.25 | ― | 2.04% | -4.06% | -17.81% | |
70 Outperform | CHF5.46B | 21.34 | ― | 1.78% | 1.51% | 8.62% | |
68 Neutral | CHF2.02B | 23.14 | 22.42% | 1.49% | 7.01% | 28.45% | |
63 Neutral | CHF3.01B | 41.37 | 10.84% | 1.23% | -3.69% | -0.64% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | CHF387.63M | -41.31 | ― | 1.89% | -2.66% | 9.28% | |
54 Neutral | CHF4.70B | -34.91 | ― | 2.36% | -20.47% | -148.37% |
* General Sector Average
CH:SFSN
SFS Group AG
140.60
33.05
30.73%
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331.00
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-4.17%
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57.25
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3.67%
CH:KOMN
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11.83%
CH:BOSN
Bossard Holding AG
262.00
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CH:HUBN
HUBER+SUHNER AG
163.00
17.79
12.25%
SFS Group AG Corporate Events
SFS Group to Detail Segment Strategy at September 2026 Investor Day
Sep 16, 2026
SFS Group AG will host an Investor Day on 17 September 2026, where Group Management plans to offer investors deeper insights into the strategy, technologies and applications across its Engineered Components, Fastening Systems and Distribution Log...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.