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SMT Scharf AG (S188) Fair Value & Analysis

Industrials · DE · Market cap €34.7M

SS SMT Scharf AG S188 · XETRA
Price€6.20
Fair Value€12.22
Upside+97.1%
Quality55/100
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Mixed Growth
Loss-making · -7.1% net margin
generates free cash flow
Mixed vs. peers (6/11)
Narrow moat 17/100
Evidence: Medium Range €9.34 – €15.10 Share as image

Fair value as of: Jul 17, 2026

From 15 valuation models · updated 24 days ago

Share price −3.1% over the past month.

A solid business, screening 97% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (€9.34). The market is more pessimistic than our downside scenario.
  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

€15.44 €5.39 Fair Value €12.22 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 17, 2026.

How to read this chart

60‑month range €5.39 – €15.44 · fair‑value band €9.34 – €15.10 · the €6.20 price screens below the €12.22 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 17, 2026.

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Analysis

SMT Scharf AG (S188) currently trades at €6.20, while our model-based Fair Value estimate is €12.22, implying the stock looks roughly 97.1% undervalued today. The Quality Score stands at 55/100 (solid quality), in the Industrials sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: medium), always confirm before acting.

Over the trailing twelve months, SMT Scharf AG generated revenue of €94.4M at a net margin of -7.1%. Revenue declined 38.8% year over year. It earns a return on equity of -1.1%. The balance sheet holds a net cash position of €3.9M. Fundamentals as of Jul 17, 2026

Our scenario range runs from €9.34 (bear case) to €15.10 (bull case); at €6.20, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 33% below its 52-week high and 18% above its 52-week low, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -28% fair-value upside, at 97%, S188 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF €24.11 €31.42 €40.11 72
Gordon GGM €1.46 €2.45 €3.18 70
Rev-Margin DCF €15.68 €20.10 €25.39 67
All 15 models by family
DCF Models
FCF DCF €24.13 €32.70 €43.59 38
5Y Revenue Exit €15.68 €19.73 €24.52 39
5Y EBITDA Exit €18.75 €25.53 €33.22 41
10Y Revenue Exit €19.08 €23.40 €28.66 36
10Y EBITDA Exit €20.90 €26.86 €34.39 37
Earnings-Based
EPV €5.84 €6.13 €6.36 59
Dividend Discount
Gordon GGM €1.46 €2.45 €3.18 70
DDM Multi-Stage €1.46 €2.26 €2.64 61
Multiples
EV/EBIT €12.05 €14.92 €17.80 53
EV/EBITDA €16.14 €20.38 €24.61 54
EV/Revenue €9.58 €12.22 €14.86 43
Asset-Based
NCAV (Graham) €7.74 €10.37 €15.48 50
Growth DCF
Growth DCF €24.11 €31.42 €40.11 72
Rev-Margin DCF €15.68 €20.10 €25.39 67
Economic Profit
ROIC Compounder €5.84 €6.13 €6.36 67

Widest divergence: DCF Models (€25.53) versus Dividend Discount (€2.26). Highest evidence: Growth DCF (72).

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Key figures & financial health

Revenue (TTM) €94.4M
Revenue growth (YoY) -38.8%
Net margin -7.1%
Return on equity -1.1%
Free cash flow €13.5M FY2025
Operating margin -22.3%
More key figures
EPS (TTM) €-1.03
Net cash €3.9M FY2025

Figures from reported company fundamentals · as of Jul 17, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 56 · Market factors (momentum, volatility) 39

Profitability 14
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 70
Earnings quality: real cash, not paper profit
Fin. Strength 63
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 73
Calm price path (market factor)
Momentum 31
Price trend over the last 3–12 months (market factor)
52W Momentum 15
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

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 Logistics, and Other Industries.

Full 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 Logistics, and Other Industries. It offers monorail and duorail systems, chairlift systems, segment cranes, lifting devices, explosive and placement devices, drilling and splitting tools, construction site cranes, battery and diesel locomotives, muckmasters, lift working platform, cable drive, mini climbers, light electric vehicles, and climbing locomotive products. The company's products are primarily used in hard coal, gold, platinum, copper, nickel, and salt mining activities. It has operations in Germany, Russia and rest of CIS states, Poland, China, Africa, the United States, and internationally. The company was founded in 1941 and is headquartered in Hamm, Germany. SMT Scharf AG operates as a subsidiary of Yankuang Energy Group Company Limited.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

SMT Scharf AG reported revenue of €103M in FY2025 versus €85.9M in FY2021, a compound +4.6%/yr. Reported net income was −€4.4M in FY2025.

Growth Quality 59/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€103M
Latest YoY
+8.3%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.2%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.5%
Avg. growth/yr (20Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.5%
Revenue +4.6%/yr
FY21 €85.9M
FY22 €93.7M
FY23 €73.2M
FY24 €95.0M
FY25 €103M
Net income
FY21 €12.6M
FY22 €14.5M
FY23 €4.9M
FY24 €5.6M
FY25 −€4.4M
Character of growth · EPS growth decomposed (2015-2025) +16.9 % p.a.
Revenue per share +4.3 pp

of which total revenue +7.7 pp · buybacks/dilution −3.4 pp

EBIT margin −1.3 pp
Tax rate +6.0 pp
Residual (interest, one-offs) +7.9 pp

Absolute contributions in percentage points per year; they sum to the EPS growth rate. Start and end points are 3-year averages (details on hover).

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Cite: Fair Value Calculator (2026). "SMT Scharf AG Fair Value". https://www.fairvalue-calculator.com/stock/S188

Peer Group

Railroads · 111 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 55 · Above median
Fair Value upside +97% · Top 25%
Return on assets 1% · Bottom 25%
Net margin (TTM) -7% · Bottom 25%
Operating margin (TTM) -22% · Bottom 25%
Revenue growth -38% · Bottom 25%

Valuation Multiples vs Railroads median · lower = cheaper

P/B 0.47× · Cheaper than 75% of peers
P/S (TTM) 0.43× · Cheaper than 75% of peers
P/FCF 3.0× · Cheaper than median
EV/EBITDA 5.2× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 28
FUTURE 0 · sector 20
PAST 0 · sector 31
HEALTH 0 · sector 88
DIVIDEND 0 · sector 41

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Railroads stocks, each showing price versus our Fair Value estimate (as of Jul 17, 2026).

Stock Price Fair Value vs Fair Value
Union Pacific Corporation UNP $301.75 $144.60 -52%
CSX Corporation CSX $49.41 $12.85 -74%
Canadian Pacific Kansas City Limited CP $92.91 $35.00 -62%
Canadian National Railway Company CNI $128.22 $92.63 -28%
Norfolk Southern Corporation NSC $327.47 $117.90 -64%
Westinghouse Air Brake Technologies Corporation WAB $259.71 $144.80 -44%
Beijing-Shanghai High-Speed Railway Co 601816 ¥4.82 ¥5.65 +17%
CRRC Corporation 601766 ¥5.65 ¥9.53 +69%
Daqin Railway Co 601006 ¥4.85 ¥6.24 +29%
Hyundai Rotem Company 064350 167,700 KRW 125,182 KRW -25%

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Frequently asked questions

Is SMT Scharf AG (S188) overvalued or undervalued?
As of Jul 17, 2026, our model estimates a fair value of €12.22 versus a price of €6.20, about +97% (undervalued).
What is the fair value of S188?
Our model-based fair value for SMT Scharf AG is €12.22 (as of Jul 17, 2026), built from audited fundamentals. The current price is €6.20.
What is the quality score of S188?
SMT Scharf AG has a Quality Score of 55/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of SMT Scharf AG (S188)?
SMT Scharf AG reported trailing-twelve-month revenue of about €94.4M (latest available figure, as of Jul 17, 2026).
What is the net profit margin of S188?
The net profit margin of SMT Scharf AG is about -7.1%, meaning it is currently running at a net loss. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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