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Stock Analysis & ValuationScherzer & Co. AG (PZS.DE)

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2.60
Sector Valuation Confidence Level
High
Valuation methodValue, Upside, %
Artificial intelligence (AI)38.071364
Intrinsic value (DCF)322.0112285
Graham-Dodd Method2.673
Graham Formula3.3830

Strategic Investment Analysis

Company Overview

Scherzer & Co. AG is a Germany-based investment manager with a rich history dating back to 1880. Headquartered in Cologne, the firm specializes in managing assets for both institutional and private investors, focusing on high-growth companies with sustainable business models. Operating in the competitive asset management sector within the broader financial services industry, Scherzer & Co. AG leverages its long-standing expertise to identify and capitalize on investment opportunities. The firm's strategic emphasis on sustainability and growth aligns with increasing investor demand for responsible and forward-looking investment strategies. With a market capitalization of approximately €66.5 million, Scherzer & Co. AG remains a niche player in the European asset management landscape, offering tailored investment solutions. Its conservative beta of 0.334 suggests lower volatility compared to the broader market, appealing to risk-averse investors.

Investment Summary

Scherzer & Co. AG presents a mixed investment profile. On the positive side, its focus on sustainable high-growth companies aligns with current market trends, and its low beta indicates relative stability. However, the firm's modest market cap and lack of dividend payments may deter income-focused investors. The company reported €13.5 million in revenue and €1.43 million in net income for the latest fiscal period, with diluted EPS of €0.05. While these figures demonstrate profitability, the absence of operating cash flow and capital expenditure data limits deeper financial analysis. Investors may find Scherzer & Co. AG attractive for its niche focus and stability, but should weigh these factors against the firm's smaller scale and limited financial disclosures.

Competitive Analysis

Scherzer & Co. AG operates in a highly competitive asset management sector dominated by larger global players. The firm's competitive advantage lies in its specialized focus on sustainable high-growth companies and its long-established presence in the German market. This niche positioning allows Scherzer to differentiate itself from mass-market asset managers. However, its relatively small size (€66.5 million market cap) limits its ability to compete with larger firms in terms of resources, brand recognition, and global reach. The firm's conservative investment approach, evidenced by its low beta, may appeal to certain investor segments but could limit returns in bullish markets. Scherzer's lack of dividend payments and limited financial disclosures may also put it at a disadvantage compared to more transparent competitors. The firm's strength lies in its deep understanding of the German and European high-growth investment landscape, but it faces significant challenges in scaling its operations and attracting assets away from larger, more diversified asset managers.

Major Competitors

  • Allianz SE (ALV.DE): Allianz is a global financial services giant with a massive asset management arm (Allianz Global Investors). Its scale, brand recognition, and global reach far surpass Scherzer's capabilities. However, Allianz's size may make it less nimble in targeting niche sustainable investment opportunities. Allianz offers dividends, which Scherzer does not.
  • Deutsche Börse AG (DB1.DE): While primarily an exchange operator, Deutsche Börse has significant asset management operations through its subsidiaries. Its strong position in German financial infrastructure gives it advantages in market access and data. However, it lacks Scherzer's focused approach to sustainable high-growth investments.
  • DWS Group (DWS.DE): As one of Europe's largest asset managers, DWS competes directly in sustainable investing but with much greater resources. DWS offers a wider range of products and services, though Scherzer may have more flexibility in its investment decisions due to its smaller size.
  • Thomson Reuters (TRI): While not a direct competitor in asset management, Thomson Reuters competes in financial data and analytics that support investment decisions. Its Refinitiv division provides tools that asset managers like Scherzer rely on, representing a different kind of competitive pressure.
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