| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 20.29 | 19 |
| Intrinsic value (DCF) | 9.61 | -43 |
| Graham-Dodd Method | 4.26 | -75 |
| Graham Formula | n/a |
SAF-Holland SE (SFQ.DE) is a leading global manufacturer of chassis-related assemblies and components for trailers, trucks, semi-trailers, and buses. Headquartered in Bessenbach, Germany, the company operates under well-known brands such as SAF, Holland, Neway, KLL, V.Orlandi, TrailerMaster, and York. Its product portfolio includes axle and suspension systems, fifth wheels, coupling systems, kingpins, landing gears, braking and EBS systems, lighting systems, and disc brakes. Serving original equipment manufacturers (OEMs), SAF-Holland has a strong presence in Europe, the Middle East, Africa, the Americas, and the Asia-Pacific region. Founded in 1881, the company combines deep industry expertise with innovative engineering to deliver high-performance solutions for the commercial vehicle sector. As a key player in the Auto - Parts industry, SAF-Holland benefits from global demand for durable and efficient transportation components, positioning it as a critical supplier in the Consumer Cyclical sector.
SAF-Holland SE presents a compelling investment case with its diversified product portfolio and strong global presence in the commercial vehicle components market. The company reported €1.88 billion in revenue and €77.3 million in net income for the latest fiscal year, with a diluted EPS of €1.7. Its operating cash flow of €200.7 million and a solid cash position of €300.7 million provide financial stability. However, investors should note the company's high beta of 1.856, indicating higher volatility compared to the broader market. The dividend yield, supported by a €1.7 per share payout, adds income appeal. Risks include exposure to cyclical demand in the commercial vehicle industry and potential supply chain disruptions. Overall, SAF-Holland's established market position and technological expertise make it a noteworthy player in the auto parts sector.
SAF-Holland SE holds a competitive edge through its strong brand recognition, diversified product offerings, and global distribution network. The company's multi-brand strategy (SAF, Holland, Neway, etc.) allows it to cater to various market segments, from heavy-duty trucks to specialized trailers. Its focus on R&D ensures continuous innovation in chassis and suspension systems, enhancing vehicle performance and safety. However, the company operates in a highly competitive industry with price-sensitive customers, requiring efficient cost management. SAF-Holland's presence in emerging markets provides growth opportunities but also exposes it to geopolitical and economic risks. Compared to peers, its mid-market positioning balances quality and affordability, though it faces stiff competition from larger players with greater scale and smaller, niche competitors with lower-cost offerings. The company’s ability to maintain margins while expanding in high-growth regions will be critical to its long-term success.