STS Group AG (SF3) AI Stock Analysis

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STS Group AG

(XETRA:SF3)

Select Model

Rating:61Neutral

Price Target:EUR 4.50▲(16.28% Upside)

Action:reiterated

Date:09/15/26

The overall score of 61 reflects a company with strong cash generation and an attractive valuation, offset by weak profitability and bearish technical momentum. The primary strength is the robust free cash flow, which provides a solid foundation for deleveraging and reinvestment. The main risk is the inability to convert revenue growth into a healthy net profit margin, compounded by high balance sheet leverage. Technical trends are currently negative, with the stock trading below key moving averages, which tempers the positive financial and valuation signals.

Positive Factors

Strong cash generationTTM operating and free cash flow provide internally generated funds to support debt service, investment and customer-program execution. The sharp improvement from negative free cash flow in 2024 strengthens liquidity, although sustaining this benefit depends on continued conversion into cash.

Negative Factors

Thin net profitabilityVery thin net profitability leaves limited protection against higher costs, weaker vehicle volumes or execution issues. Even with improved operating performance, small adverse changes can materially reduce earnings and constrain funds available for strategic investment.

STS Group AG (SF3) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 24.96M
Dividend Yield: 1.28%
Average Volume (3M): 3,419
Price to Earnings (P/E): 9.0
Beta (1Y): 0.55
Revenue Growth: 1.46%
EPS Growth: ―
Country: Germany
Employees: 1,400
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Auto - Parts

STS Group AG Business Overview & Revenue Model

Company Description

STS Group AG is a specialized supplier of sophisticated components and integrated systems for the automotive and commercial vehicle sectors, with key operations in Germany, France, Mexico, and China. The company's activities are structured into three...

How the Company Makes Money

STS Group AG generates revenue primarily by manufacturing and selling automotive components to vehicle manufacturers (OEMs) and other automotive suppliers under customer-specific supply contracts. Key revenue streams typically include (1) serial prod...

STS Group AG Financial Statement Overview

Summary

Financial performance is mixed. Cash flow is a standout strength (Score 78), with robust free cash flow of €44.2M providing ample coverage and financial flexibility. However, the income statement (Score 62) shows a razor-thin net margin of 0.9% despite a top-line recovery, and the balance sheet (Score 55) is strained by high leverage with a debt-to-equity ratio above 1.0x. The overall profile is of a company in turnaround with cash generation as its primary asset.

Income Statement

62Positive

Balance Sheet

55Neutral

Cash Flow

78Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	312.40M	292.00M	311.10M	277.90M	235.10M	242.00M
Gross Profit	142.60M	49.30M	120.80M	102.50M	92.70M	106.10M
EBITDA	28.00M	25.30M	23.50M	20.70M	9.90M	19.00M
Net Income	2.80M	-500.00K	-600.00K	-1.20M	-9.90M	1.80M
Balance Sheet
Total Assets	246.30M	226.50M	230.80M	266.50M	211.60M	199.40M
Cash, Cash Equivalents and Short-Term Investments	44.90M	35.60M	26.40M	39.30M	25.60M	28.30M
Total Debt	50.50M	50.00M	76.70M	58.80M	39.70M	40.00M
Total Liabilities	199.60M	183.60M	185.80M	219.90M	162.10M	141.10M
Stockholders Equity	46.70M	42.90M	45.00M	46.60M	49.50M	58.30M
Cash Flow
Free Cash Flow	44.20M	33.30M	-7.60M	15.60M	-1.80M	22.60M
Operating Cash Flow	50.70M	37.30M	7.10M	30.50M	6.50M	36.10M
Investing Cash Flow	-8.40M	-6.30M	-15.60M	-14.30M	-8.70M	-16.80M
Financing Cash Flow	-24.70M	-20.00M	-4.60M	-3.10M	-200.00K	-10.30M

STS Group AG Technical Analysis

Technical Analysis SentimentNegative

Last Price3.87

Price Trends

50DMA4.14Negative

100DMA3.75Positive

200DMA3.42Positive

Market Momentum

MACD-0.08Positive

RSI35.70Neutral

STOCH23.05Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SF3, the sentiment is Negative. The current price of 3.87 is below the 20-day moving average (MA) of 4.14, below the 50-day MA of 4.14, and above the 200-day MA of 3.42, indicating a neutral trend. The MACD of -0.08 indicates Positive momentum. The RSI at 35.70 is Neutral, neither overbought nor oversold. The STOCH value of 23.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SF3.

STS Group AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:SF3 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:ZIL2	67Neutral	EUR 392.20M	11.68	5.53%	2.36%	5.65%	―
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DE:SF3	61Neutral	EUR 25.16M	9.00	6.25%	1.28%	1.46%	―
DE:PWO	56Neutral	EUR 63.13M	23.75	1.63%	8.01%	-6.65%	-75.87%
DE:BDT	51Neutral	EUR 78.42M	-1.64	-16.20%	―	-14.82%	44.17%
DE:GMM	51Neutral	EUR 122.18M	6.46	9.76%	―	1.82%	13.67%
DE:ED4	40Underperform	EUR 123.37M	-4.89	-12.07%	―	-10.23%	-8.88%

* Consumer Cyclical Sector Average

Performance Comparison

DE:SF3 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:SF3	STS Group AG	3.87	0.45	13.16%
DE:BDT	Bertrandt AG	7.80	-10.40	-57.14%
DE:ED4	EDAG Engineering	2.82	-3.58	-55.94%
DE:ZIL2	ElringKlinger AG	6.35	2.47	63.58%
DE:GMM	Grammer AG	8.20	1.95	31.20%
DE:PWO	Progress Werk Oberkirch	20.60	-6.60	-24.27%

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: Sep 15, 2026

STS Group AG AI Stock Analysis