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Sto SE (STO3) Fair Value & Analysis

Industrials · DE · Market cap €623M

SS Sto SE STO3 · XETRA
Price€96.00
Fair Value€123.27
Upside+28.4%
Quality55/100
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Mixed Growth
Thin margins · 2.5% net margin
Low debt · generates free cash flow
0.32% dividend yield
Mixed vs. peers (7/14)
Narrow moat 35/100
Evidence: High Range €92.45 – €154.09 Share as image

Fair value as of: Jul 19, 2026

From 24 valuation models · updated 21 days ago

Share price +3.7% over the past month.

A solid business, screening 28% undervalued on our models.

What matters now

  • Solid quality (55/100) at a price below fair value, the discount is the argument here, not the business quality.
  • Our model range runs from €92.45 (bear) to €154.09 (bull), base €123.27. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 55/100 (solid quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

€234.16 €91.30 Fair Value €123.27 Jun 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 19, 2026.

How to read this chart

60‑month range €91.30 – €234.16 · fair‑value band €92.45 – €154.09 · the €96.00 price screens below the €123.27 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 19, 2026.

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Analysis

Sto SE (STO3) currently trades at €96.00, while our model-based Fair Value estimate is €123.27, implying the stock looks roughly 28.4% 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: high), always confirm before acting.

Over the trailing twelve months, Sto SE generated revenue of €1.6B at a net margin of 2.5%. Revenue declined 0.3% year over year. It earns a return on equity of 5.2%. The balance sheet holds a net cash position of €2.8M. Fundamentals as of Jul 19, 2026

Our scenario range runs from €92.45 (bear case) to €154.09 (bull case); at €96.00, the current price sits within 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 28% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at -33% fair-value upside, at 28%, STO3 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 BearBaseBull Evidence
Highest evidence
Growth DCF €115.64 €141.85 €176.06 80
Residual Income €97.84 €97.76 €88.46 76
Rev-Margin DCF €128.43 €182.74 €243.01 74
All 24 models by family
DCF Models
FCF DCF €113.54 €141.57 €180.20 38
Owner Earnings €126.12 €157.92 €201.76 31
5Y Revenue Exit €128.43 €181.25 €249.77 39
5Y EBITDA Exit €186.59 €281.86 €394.02 41
5Y P/E Exit €114.08 €156.43 €200.75 38
10Y Revenue Exit €118.16 €160.74 €211.00 36
10Y EBITDA Exit €154.04 €221.99 €302.57 37
10Y P/E Exit €113.03 €145.63 €179.89 35
Earnings-Based
Graham-Dodd €46.96 €91.70 €114.74 54
EPV €96.14 €106.50 €115.13 59
Dividend Discount
Gordon GGM €28.81 €38.17 €46.72 70
DDM Multi-Stage €28.81 €38.07 €47.58 61
Multiples
P/E Multiple €108.77 €145.02 €181.28 63
P/S Multiple €88.05 €117.40 €146.75 58
P/B Multiple €88.05 €117.40 €146.75 55
EV/EBIT €200.00 €259.93 €319.86 53
EV/EBITDA €274.12 €358.76 €443.39 54
EV/Revenue €148.53 €203.52 €258.52 43
Asset-Based
NCAV (Graham) €67.18 €90.02 €134.36 50
Growth DCF
Growth DCF €115.64 €141.85 €176.06 80
Rev-Margin DCF €128.43 €182.74 €243.01 74
Economic Profit
Residual Income €97.84 €97.76 €88.46 76
ROIC Compounder €96.14 €106.50 €115.13 72
Growth Earnings
Growth-Adj P/E €78.35 €111.93 €145.52 68

Widest divergence: DCF Models (€157.92) versus Dividend Discount (€38.07). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) €1.6B
Revenue growth (YoY) -0.3%
Net margin 2.5%
Return on equity 5.2%
Free cash flow €61.7M FY2025
P/E ratio 17.2
More key figures
Operating margin 4.8%
EPS (TTM) €6.07
Dividend yield 0.3%
EPS growth (YoY) +32.8%
Net cash €2.8M FY2025

Figures from reported company fundamentals · as of Jul 19, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 55/100

Of which business quality 57 · Market factors (momentum, volatility) 35

Profitability 48
Margins and returns on capital today
Quality Growth 28
Are margins and returns improving?
Cashflow 52
Earnings quality: real cash, not paper profit
Fin. Strength 82
Balance sheet, leverage, solvency risk
Investment 90
Disciplined investing over empire-building
Low Volatility 80
Calm price path (market factor)
Momentum 20
Price trend over the last 3–12 months (market factor)
52W Momentum 11
Distance to the 52-week high (market factor)
Net Issuance 42
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

Sto SE & Co. KGaA manufactures and sells products, components, and functional systems for building coatings and energy-efficient building solutions in Europe, and internationally.

Full company description

Sto SE & Co. KGaA manufactures and sells products, components, and functional systems for building coatings and energy-efficient building solutions in Europe, 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 living and office interiors, decorative coatings, and interior claddings, as well as acoustic systems for regulating room sounds. The company also offers floor coatings; and products for concrete repair. It serves professional customers comprising painters, plasterers, and construction companies; and architects, planning offices, and the real estate industry. The company was founded in 1955 and is headquartered in Stühlingen, Germany. Sto SE & Co. KGaA operates as a subsidiary of Stotmeister Beteiligungs GmbH.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Sto SE reported revenue of €1.6B in FY2025 versus €1.6B in FY2021, a compound +0.0%/yr. Reported net income was €39.2M in FY2025, compounding −19.4%/yr from FY2021.

Growth Quality 51/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
€1.6B
Latest YoY
−1.3%
Avg. growth/yr (3Y)
−3.8%
Avg. growth/yr (5Y)
+2.1%
Avg. growth/yr (17Y)
+3.1%
Revenue +0.0%/yr
FY21 €1.6B
FY22 €1.8B
FY23 €1.7B
FY24 €1.6B
FY25 €1.6B
Net income −19.4%/yr
FY21 €92.7M
FY22 €90.1M
FY23 €86.1M
FY24 €37.6M
FY25 €39.2M

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Cite: Fair Value Calculator (2026). "Sto SE Fair Value". https://www.fairvalue-calculator.com/stock/STO3

Peer Group

Building Products & Equipment · 247 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 · Below median
Fair Value upside +28% · Top 25%
Return on equity (TTM) 5% · Below median
Return on assets 3% · Above median
Net margin (TTM) 2% · Below median
Operating margin (TTM) 5% · Below median
Revenue growth -0% · Below median
Dividend yield (TTM) 0.3% · Bottom 25%

Valuation Multiples vs Building Products & Equipment median · lower = cheaper

P/E (TTM) 16.0× · Cheaper than median
P/B 0.95× · Cheaper than median
P/S (TTM) 0.45× · Cheaper than median
P/FCF 11.7× · Pricier than median
EV/EBITDA 5.7× · 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 71 · sector 4
FUTURE 0 · sector 9
PAST 21 · sector 23
HEALTH 100 · sector 94
DIVIDEND 6 · sector 28

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 Building Products & Equipment stocks, each showing price versus our Fair Value estimate (as of Jul 19, 2026).

Stock Price Fair Value vs Fair Value
Trane Technologies plc TT $469.98 $212.34 -55%
Johnson Controls International plc JCI $142.81 $45.65 -68%
Carrier Global Corporation CARR $68.61 $17.35 -75%
Compagnie de Saint-Gobain S.A SGO €76.62 €101.60 +33%
Geberit AG GEBN CHF 523.20 CHF 307.66 -41%
Lennox International Inc LII $543.93 $363.09 -33%
Kingspan Group KRX €87.30 €70.76 -19%
Masco Corporation MAS $78.04 $54.36 -30%
PT Impack Pratama Industri Tbk, IMPC 1,420 IDR 179.76 IDR -87%
NIBE Industrier AB NIBEB kr 36.03 kr 25.37 -30%

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Frequently asked questions

Is Sto SE (STO3) overvalued or undervalued?
As of Jul 19, 2026, our model estimates a fair value of €123.27 versus a price of €96.00, about +28% (undervalued).
What is the fair value of STO3?
Our model-based fair value for Sto SE is €123.27 (as of Jul 19, 2026), built from audited fundamentals. The current price is €96.00.
What is the quality score of STO3?
Sto SE 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 Sto SE (STO3)?
Sto SE reported trailing-twelve-month revenue of about €1.6B (latest available figure, as of Jul 19, 2026).
What is the net profit margin of STO3?
The net profit margin of Sto SE is about 2.5%, meaning it keeps roughly 2.5% of revenue as net income. Based on the latest reported figures.
Does Sto SE pay a dividend?
Sto SE currently shows a dividend yield of about 0.30% relative to its recent price (as of Jul 19, 2026).

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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