STO SE & Co. KGaA (STO3) AI Stock Analysis

• Market Cap: €694.43M
• Dividend Yield: 2.7%
• Average Volume (3M): 2.19K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.62
• Revenue Growth: -3.84%
• EPS Growth: -49.20%
• Country: DE
• Employees: 5,599
• Sector: Services
• Sector Strength: N/A
• Industry: Construction
• EPS (TTM): 2.88
• Shares Outstanding: 2,538,000
• 10 Day Avg. Volume: 2,801
• 30 Day Avg. Volume: 2,192
• PEG Ratio: -0.20
• Price to Book (P/B): 0.56
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 7.66
• 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: €134.00
• Price Target Upside: 9.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 70 Outperform
• Price Target: €134.00 ▲(9.48% Upside)

STO SE & Co. KGaA's overall stock score reflects a stable financial foundation with a strong balance sheet and fair valuation. However, inconsistent revenue and cash flow performance, along with neutral technical indicators, suggest a cautious outlook. The absence of earnings call insights and corporate events limits additional context.

STO SE & Co. KGaA Business Overview & Revenue Model

Company Description

Sto SE & Co. KGaA engages in the manufacture and sale of products and systems for building coatings in Europe, the United States, the Asia Pacific, and internationally. It offers facade systems, including external wall insulation and rainscreen cladding facade systems; facade coatings, such as render and paint systems; and interior products comprising plaster and paint systems for home and office interiors, decorative coatings, and interior claddings, as well as interior products for surface decoration that include paints, patterns, materials, and textures. The company also provides acoustic systems, which comprise acoustic board systems, acoustic sails, and acoustic plaster finishes that allow various textures, shapes, and colors; floor coatings for industrial facilities, trade and public facilities, parking decks, cleanrooms, and balconies; and concrete restoration products. In addition, it offers insulants, carrier boards for acoustic systems, rainscreen cladding systems, architectural elements, brick surfaces, outdoor ceramics, interior tiles, paints and lacquers, and glass granulates. Further, the company provides integrated solutions for façade insulation, interiors, acoustics, floor coatings, and concrete restoration. It serves professional applicators, such as painters, plasterers, and building contractors, as well as architects, planning offices, and real estate industry through direct and multi-stage distribution systems. The company was formerly known as Sto AG and changed its name to Sto SE & Co. KGaA in March 2014. The company is headquartered in Stühlingen, Germany. Sto SE & Co. KGaA is a subsidiary of Stotmeister Beteiligungs GmbH.

How the Company Makes Money

STO3 generates revenue through multiple streams, primarily from the sale and leasing of residential and commercial properties. The company undertakes real estate development projects, which involve acquiring land, constructing buildings, and subsequently selling or leasing the developed properties to clients. Additionally, STO3 engages in property management services, providing ongoing maintenance and management solutions for its real estate assets, which contributes to steady income. Significant partnerships with local governments and private sector entities enhance its project pipeline, while a focus on sustainable development can attract environmentally conscious investors and clients, providing a competitive edge in the market.

STO SE & Co. KGaA Financial Statement Overview

Summary

STO SE & Co. KGaA has a stable financial health with a strong balance sheet and low debt levels. However, inconsistent revenue and profit growth, along with declining free cash flow, highlight areas for improvement.

Income Statement

STO SE & Co. KGaA shows a mixed performance in its income statement. The gross profit margin is stable, indicating efficient cost management. However, the net profit margin has fluctuated over the years, reflecting variable profitability. Revenue growth has been inconsistent, with a notable decline in the latest year, suggesting possible demand or operational challenges. Both EBIT and EBITDA margins have decreased, indicating reduced operational efficiency.

Balance Sheet

The balance sheet is solid with a strong equity base, reflected in a healthy equity ratio, indicating low reliance on debt. The debt-to-equity ratio is favorable, suggesting prudent use of leverage. Return on equity has varied, showing fluctuating returns to shareholders. Overall, the company maintains a stable balance sheet with manageable liabilities.

Cash Flow

Cash flow analysis reveals some challenges. Free cash flow has shown variability, with a significant decline in the latest period. The operating cash flow to net income ratio indicates efficient cash generation relative to profitability, but the declining free cash flow growth rate is a concern. Despite this, the company has managed to maintain positive free cash flow over the years.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.59B	1.61B	1.72B	1.79B	1.59B	1.43B
Gross Profit	863.34M	873.57M	923.28M	410.03M	374.09M	359.06M
EBITDA	94.52M	136.90M	193.30M	190.72M	185.59M	175.15M
Net Income	33.54M	37.62M	86.08M	90.09M	92.72M	80.77M
Balance Sheet
Total Assets	1.17B	1.16B	1.16B	1.12B	1.12B	993.99M
Cash, Cash Equivalents and Short-Term Investments	201.84M	251.67M	238.08M	214.40M	230.54M	247.74M
Total Debt	97.47M	104.32M	103.60M	85.48M	97.77M	77.66M
Total Liabilities	443.40M	414.79M	435.51M	438.61M	507.25M	462.62M
Stockholders Equity	728.82M	743.51M	729.27M	683.96M	605.35M	528.61M
Cash Flow
Free Cash Flow	54.18M	54.32M	124.28M	47.25M	68.37M	134.21M
Operating Cash Flow	94.71M	90.52M	170.92M	94.67M	110.31M	175.96M
Investing Cash Flow	-36.18M	-38.26M	-103.83M	-54.25M	-51.41M	-124.20M
Financing Cash Flow	-49.98M	-64.11M	-62.69M	-71.85M	-55.72M	-49.19M

STO SE & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.40
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:STO3, the sentiment is Negative. The current price of 122.4 is below the 20-day moving average (MA) of 123.50, below the 50-day MA of 123.63, and above the 200-day MA of 120.71, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 13.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:STO3.

STO SE & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UZU	76 Outperform	€370.76M	11.96	11.43%	2.59%	1.79%	29.51%
MBB	71 Outperform	€702.39M	16.97	7.18%	2.00%	15.33%	111.97%
STO3	70 Outperform	€694.43M	20.71	4.63%	2.70%	-3.84%	-49.20%
SUR	57 Neutral	€194.60M	28.54	-2.79%	2.39%	-1.00%	-296.04%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
KCO	49 Neutral	€520.69M	―	-9.12%	3.83%	0.38%	40.94%