Stabilus SE

Stabilus maintains a debt-to-equity ratio of 1.42, indicating a moderate reliance on debt financing. The company's liquidity position is characterized as medium, with a current ratio of 1.64, suggesting it can cover short-term obligations but with limited buffer. Free cash flow is reported at 6.42 million EUR, which is significantly lower than operating cash flow of 196.5 million EUR, indicating that capital expenditures are consuming a large portion of operating cash. Profitability metrics show a return on equity of 3.81% and a return on assets of 1.23%, both of which are below the industry median for industrial machinery firms. The operating margin of 6.50% (calculated from operating income of 84.25 million EUR on revenue of 1.296 billion EUR) is also below the industry average, suggesting that Stabilus is underperforming in terms of operational efficiency. The company's revenue is concentrated in a few key markets, with the automotive sector being the primary driver. However, the exact geographic breakdown is not disclosed in the available data. This concentration could expose the company to sector-specific risks, particularly in the event of a downturn in the automotive industry. Looking ahead, Stabilus is expected to see modest revenue growth, though the exact figures are not provided in the current dataset. The company's capital expenditure of -88.51 million EUR indicates a significant investment in long-term assets, which could support future growth but may also strain short-term liquidity. Risk factors include a medium liquidity risk due to the current ratio and a negative net cash position after subtracting total debt. The dilution risk is assessed as low, with no significant dilution expected in the near term. The company has not issued any new shares recently, and the number of shares outstanding remains stable. Recent events include analyst estimates that suggest a wide range of price targets, from 17.00 EUR to 45.00 EUR, with a mean of 28.71 EUR and a median of 26.00 EUR. The mean recommendation of 2.12 indicates a generally positive outlook, with 2 strong buy and 5 buy ratings.