Ströer SAX.DE
What does Ströer do?
Ströer is a media company with a focus on out-of-home advertising and digital marketing offerings. The core business consists of classic and digital out-of-home advertising spaces, such as billboards, advertising installations at stops and spaces in public transport. Revenue is generated predominantly from the sale of advertising time and space to advertisers and agencies, often on the basis of long-term concessions and lease agreements with municipalities and transport operators.
Beyond the out-of-home business, the company operates online offerings such as the news portal t-online and markets digital reach on its own and third-party platforms. In addition there is dialogue marketing with telephone and field sales as well as data-based services, including the Statista brand. In terms of competition, Ströer is among the leading out-of-home advertising providers in Germany and combines this position with digital reach and sales strength among small and medium-sized customers.
Score profile
Rank vs. Advertising Agencies (8 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Ströer ranks in the middle in the group Advertising Agencies (4.1/10). On growth, the company ranks below average in the group Advertising Agencies (2.5/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Advertising Agencies (5.5/10). On financial strength, Ströer ranks below average in the group Advertising Agencies (2.7/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 11.3x | 11.3x | better than 56 % |
| Trailing P/E | 17.8x | 23.8x | better than 79 % |
| PEG ratio | 16.0x | 1.0x | better than 6 % |
| EV/EBITDA | 6.9x | 11.0x | better than 81 % |
| Price/sales | 1.0x | 1.8x | better than 75 % |
| Price/book | 5.7x | 2.9x | better than 19 % |
| Revenue growth | 7.3% | 11.4% | better than 31 % |
| Earnings growth | -5.9% | 51.4% | better than 19 % |
| Gross margin | 42.1% | 71.1% | better than 31 % |
| Operating margin | 12.1% | 14.1% | better than 31 % |
| Net margin | 5.8% | 9.6% | better than 19 % |
| Return on equity | 33.6% | 16.4% | better than 81 % |
| Debt/equity | 471.1% | 41.8% | better than 6 % |
| Current ratio | 0.5x | 1.6x | better than 6 % |
| Free cash flow yield | 15.0% | 11.8% | better than 69 % |
| Dividend yield | 4.7% | 4.2% | – |
| Payout ratio | 84.1% | 203.7% | – |
| Beta | 1.07 | 1.07 | – |
Valuation: what is Ströer worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Ströer a model range of 39.35 EUR to 80.91 EUR per share.
10 analysts, average rating “—”, average price target 48.89 EUR (+24.9%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Companies' advertising budgets largely determine the utilization and prices of out-of-home and online advertising spaces.
- The expansion of digital advertising spaces enables flexible bookings, higher revenue per location and programmatic selling.
- Long-term concessions, attractive locations and high online reach strengthen the market position and bargaining power toward advertising customers.
Risks
- Advertising markets react strongly to economic fluctuations, as companies quickly cut marketing budgets in weak phases.
- The loss or unfavorable re-award of concessions with municipalities and transport operators can weaken the inventory of spaces and earnings power.
- Large digital platforms compete for advertising budgets, and regulatory requirements on data protection or advertising can restrict the business.
What to look for with Ströer
Organic revenue growth in the out-of-home business shows whether utilization and prices are rising, adjusted for acquisitions and currency effects.