Value Ideas Blog
List of Investment Analyses
Here is a list of our earlier investment analyses. It will be updated on a regular basis.  
3U Holding AG (Part 1) (Part 2) Analysis
Banque Privee Edmond de Rothschild S.A. (Part 1) Analysis
CARMAT S.A. (Part 1) Quick Check
Dangote Cement PLC (Part 1) Quick Check
Hornbach Baumarkt AG (Part 1)(Part 2) Analysis
Kabel Deutschland AG (Part 1) Analysis
Sto SE & CoKGaA (Part 1)(Part 2) Analysis
Vetropack Holding AG (Part 1)(Part 2)(Part 3) Analysis
A link can be found in the side bar menu.

First off, a quick note: Felix is working for an investment bank for a couple of weeks, so he will not be involved in the reporting on German stocks for that period.

Today I would like to present you, in this quick write up, the SMT Scharf AG – ISIN: DE0005751986. SMT Scharf was founded in the year of 1951 and is based in Hamm which lies in the old industrial and mining arear of Germany the so called “Ruhrpott”. SMT Scharf is listed on the German stock exchange since the year of 2008 and the first time I heard of it on a value investing conference was in the year 2012. The company and the investment case was presented by the guys of the Frankfurter Aktienfonds für Stiftungen. Since than the development of the share price looks like this:


SMT Scharf_hist_wallstreet_online_20090811_20140811

(Source: WallStreet:Online)


SMT Scharf is the world market leader for the production, installation and maintenance of underground rail-bound railway systems which are used in the hard coal mining business. Its market share in this segment is over 40%, you can find an interview with the CEO from the year 2013 here, the number of installed rialways is really interesting due to the fact that you can calculated the future service revenue with it.

Das Segment, das Scharf bedient, sind „Einschienenhängebahnen“ = „Monorails“, eine sehr spezialisierte und kleine Nische: Weltweit gibt es etwa 1200 bis 1400 Monorails, wovon etwa 530 von uns sind, daraus resultiert unser 40%-Marktanteil. Der Jahresumsatz in dem Segment sind etwa 250 neue Bahnen (100 Mio. EUR) und eben so viel Service, also ca. 200 Mio. EUR. Auch davon hat Scharf mit 77 Mio. fast 40%. []

You can find an older presentation for the EK-Forum here. A nice video about the product can be found here. read more