SMT Scharf (S188) AI Stock Analysis

SMT Scharf

(XETRA:S188)

Select Model

Rating:37Underperform

Price Target:EUR 4.50▼(-6.25% Downside)

Action:downgraded

Date:10/31/26

The stock scores at the absolute minimum of 37, reflecting a convergence of severe risks. The most significant factor is the company's rapidly deteriorating financial performance, marked by unprofitability and significant cash burn. This is compounded by extremely bearish technicals, with the stock in a deep downtrend and oversold territory. The negative P/E ratio and an unsustainable dividend yield offer no valuation support. The only positive, a strong balance sheet, is insufficient to offset the critical operational and market challenges.

Positive Factors

Conservative Balance SheetVery low leverage and a substantial equity cushion reduce balance-sheet stress and give SMT Scharf more resilience through an earnings downturn. This financial capacity can preserve strategic flexibility for operations, investment, and service support while the company works to restore profitability.

Negative Factors

Revenue Decline and Net LossThe combination of declining TTM revenue and a sizable net loss indicates weakening demand conversion and reduced earnings quality. Continued top-line pressure can limit operating leverage, reduce resources available for investment, and make a return to sustainable profitability more difficult.

SMT Scharf (S188) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 27.03M
Dividend Yield: 4.25%
Average Volume (3M): 3,445
Price to Earnings (P/E): -3.2
Beta (1Y): 0.04
Revenue Growth: -29.35%
EPS Growth: -311.01%
Country: Germany
Employees: 469
Sector: General
Sector Strength: 55
Industry: Industrial - Machinery

SMT Scharf Business Overview & Revenue Model

Company Description

SMT Scharf AG engages in the development, manufacture, and service of transportation equipment and logistics systems for underground mining and tunnel construction. The company operates through four segments: Coal Mining, Mineral Mining, Tunnel, and...

SMT Scharf Financial Statement Overview

Summary

Financial performance is critically weak. The income statement shows a collapse in profitability with TTM net losses and gross margins falling to 11.5%. Cash flow is deeply negative, with a -233.6% decline in free cash flow, indicating unsustainable cash burn. The only mitigating factor is a healthy balance sheet with low debt, but this is overshadowed by severe operational deterioration.

Income Statement

18Very Negative

Balance Sheet

72Positive

Cash Flow

10Very Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Mar 2024	Dec 2022	Dec 2021
Income Statement
Total Revenue	83.39M	102.93M	95.03M	73.17M	93.71M	85.87M
Gross Profit	9.61M	14.99M	17.98M	15.19M	28.31M	16.08M
EBITDA	5.01M	7.14M	9.42M	12.34M	22.71M	17.68M
Net Income	-8.11M	-4.45M	5.60M	4.88M	14.54M	12.56M
Balance Sheet
Total Assets	158.33M	156.19M	182.31M	126.51M	131.02M	121.29M
Cash, Cash Equivalents and Short-Term Investments	13.95M	19.78M	15.81M	9.25M	8.75M	9.56M
Total Debt	1.82M	14.78M	22.65M	3.00M	3.42M	2.80M
Total Liabilities	43.95M	45.68M	64.13M	39.80M	44.04M	49.59M
Stockholders Equity	81.82M	84.71M	90.67M	84.94M	85.28M	70.25M
Cash Flow
Free Cash Flow	-3.56M	13.45M	-901.96K	2.40M	2.82M	-9.64M
Operating Cash Flow	-2.64M	14.53M	-348.96K	3.88M	5.68M	-5.50M
Investing Cash Flow	-1.63M	-1.82M	-1.55M	-1.46M	-2.81M	-3.07M
Financing Cash Flow	-6.30M	-13.98M	5.92M	-794.13K	-1.69M	6.58M

SMT Scharf Technical Analysis

Technical Analysis SentimentNegative

Last Price4.80

Price Trends

50DMA5.74Negative

100DMA5.99Negative

200DMA6.57Negative

Market Momentum

MACD-0.21Positive

RSI16.80Positive

STOCH12.81Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:S188, the sentiment is Negative. The current price of 4.80 is below the 20-day moving average (MA) of 5.57, below the 50-day MA of 5.74, and below the 200-day MA of 6.57, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 16.80 is Positive, neither overbought nor oversold. The STOCH value of 12.81 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:S188.

SMT Scharf Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:S188 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:IVU	80Outperform	EUR 494.52M	32.06	16.60%	1.05%	10.44%	21.23%
DE:MBH3	80Outperform	EUR 912.50M	18.03	14.44%	5.23%	8.93%	21.86%
DE:AAG	69Neutral	EUR 158.46M	13.81	6.84%	9.28%	-40.42%	-24.77%
DE:VOS	66Neutral	EUR 944.00M	33.55	6.03%	1.63%	20.91%	-50.32%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:S188	37Underperform	EUR 27.03M	-3.23	-9.71%	4.25%	-29.35%	-311.01%

* General Sector Average

Performance Comparison

DE:S188 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:S188	SMT Scharf	4.80	-2.10	-30.43%
DE:AAG	Aumann AG	13.95	2.61	22.98%
DE:B5A0	Bauer AG	5.80	0.40	7.41%
DE:IVU	IVU Traffic Technologies	27.90	8.43	43.29%
DE:MBH3	Maschinenfabrik Berthold Hermle	182.50	54.85	42.97%
DE:VOS	Vossloh AG	49.66	-21.49	-30.20%

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.

Date of analysis: Oct 31, 2026

SMT Scharf AI Stock Analysis