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

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STO SE & Co. KGaA

(XETRA:STO3)

Select Model

Rating:62Neutral

Price Target:EUR 114.00▲(7.75% Upside)

Action:reiterated

Date:11/06/26

The overall score of 62 reflects a company with a solid financial foundation but facing operational challenges. The primary strength is a robust, low-debt balance sheet that provides stability. This is counterbalanced by significant income statement pressures, including a multi-year revenue decline and severe gross margin compression. Technical trends are supportive in the near term, and the valuation is fair, neither adding significant risk nor opportunity. The lack of earnings call guidance or corporate events limits forward-looking catalysts.

Positive Factors

Conservative balance sheetLow and stable leverage reduces financial risk and preserves flexibility during weaker construction conditions. Rising equity provides additional balance-sheet resilience, allowing STO to continue investing in its façade and finishing systems without relying heavily on debt.

Negative Factors

Multi-year revenue declineA three-year revenue contraction indicates sustained pressure on STO’s growth trajectory rather than a single-period fluctuation. Continued top-line weakness can reduce operating leverage, limit reinvestment capacity, and make recovery dependent on a broader improvement in construction and renovation activity.

STO SE & Co. KGaA (STO3) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 609.21M
Dividend Yield: 0.29%
Average Volume (3M): 3,077
Price to Earnings (P/E): 14.5
Beta (1Y): 0.61
Revenue Growth: 1.61%
EPS Growth: 23.38%
Country: Germany
Employees: 5,507
Sector: General
Sector Strength: 55
Industry: Construction Materials

STO SE & Co. KGaA Business Overview & Revenue Model

Company Description

Sto SE & Co. KGaA, headquartered in Stühlingen, Germany, specializes in the global manufacture and distribution of a diverse range of building coatings and integrated systems. Operating across Europe, the Americas, and the Asia Pacific, the company p...

How the Company Makes Money

Sto primarily makes money by selling building-material products and integrated system solutions used to insulate, protect, and finish buildings. The main revenue stream comes from facade-related systems and components—especially thermal insulation an...

STO SE & Co. KGaA Financial Statement Overview

Summary

Financial performance is mixed. The balance sheet is a clear strength with low leverage (debt-to-equity 0.15) and growing equity. However, the income statement shows significant pressure with a three-year revenue decline and a sharp gross margin contraction to 22.8%, though aggressive cost-cutting has preserved profitability. Cash flow is adequate and improving but volatile. Overall, balance sheet stability partially offsets operational headwinds.

Income Statement

45Neutral

Balance Sheet

75Positive

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.62B	1.59B	1.61B	1.72B	1.79B	1.59B
Gross Profit	377.45M	363.35M	873.57M	923.28M	410.03M	374.09M
EBITDA	115.19M	147.75M	136.90M	193.30M	190.72M	185.59M
Net Income	41.38M	39.18M	37.62M	86.08M	90.09M	92.72M
Balance Sheet
Total Assets	1.21B	1.19B	1.16B	1.16B	1.12B	1.12B
Cash, Cash Equivalents and Short-Term Investments	229.49M	271.24M	251.67M	238.08M	214.40M	230.54M
Total Debt	103.76M	111.88M	104.32M	103.60M	85.48M	97.77M
Total Liabilities	443.61M	429.88M	414.79M	435.51M	438.61M	507.25M
Stockholders Equity	764.57M	762.30M	743.51M	729.27M	683.96M	605.35M
Cash Flow
Free Cash Flow	51.87M	61.69M	54.32M	124.28M	47.25M	68.37M
Operating Cash Flow	78.61M	98.61M	90.52M	170.92M	94.67M	110.31M
Investing Cash Flow	-22.44M	-44.60M	-38.26M	-103.83M	-54.25M	-51.41M
Financing Cash Flow	-48.26M	-48.29M	-64.11M	-62.69M	-71.85M	-55.72M

STO SE & Co. KGaA Technical Analysis

Technical Analysis SentimentPositive

Last Price105.80

Price Trends

50DMA101.73Positive

100DMA98.67Positive

200DMA102.19Positive

Market Momentum

MACD1.33Positive

RSI54.75Neutral

STOCH44.95Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:STO3, the sentiment is Positive. The current price of 105.80 is above the 20-day moving average (MA) of 105.07, above the 50-day MA of 101.73, and above the 200-day MA of 102.19, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 54.75 is Neutral, neither overbought nor oversold. The STOCH value of 44.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:STO3.

STO SE & Co. KGaA Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

DE:STO3 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:UZU	71Outperform	EUR 346.04M	12.89	9.06%	2.77%	8.61%	-13.27%
DE:STO3	62Neutral	EUR 600.25M	14.49	5.42%	0.29%	1.61%	23.38%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
DE:2HRA	49Neutral	EUR 254.60M	11.03	5.78%	1.46%	7.95%	492.34%
DE:VIB3	45Neutral	EUR 290.47M	-47.83	-1.76%	7.73%	-10.78%	-165.43%

* General Sector Average

Performance Comparison

DE:STO3 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:STO3	STO SE & Co. KGaA	105.80	-6.95	-6.17%
DE:B5A0	Bauer AG	5.70	0.40	7.55%
DE:CEV	Centrotec Sustainable	48.10	-11.86	-19.78%
DE:2HRA	H&R GmbH & Co. KGaA	6.84	2.12	44.92%
DE:UZU	Uzin Utz	68.60	-2.44	-3.43%
DE:VIB3	Villeroy & Boch	11.00	-4.40	-28.58%

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: Nov 04, 2026

STO SE & Co. KGaA AI Stock Analysis