Schaffer (ASX:SFC) Shares Look Cheap Despite Five Year Earnings Slide

Schaffer stock has been grinding higher in recent weeks, yet at A$19.60 it still trades on a P/E of 12x that is below both the Australian market and the wider auto components peer group. The latest full year numbers put that value appeal under the spotlight. Earnings from continuing operations of A$24.831 million on A$210.899 million of trailing revenue translate into a net margin of 10.9%, only a touch above last year and set against a five year earnings decline. The gap between a value label and fading earnings is now the core question for investors.

Love Schaffer’s sub-market P/E and double digit net margin but concerned about the five year earnings decline? Check out 11 high quality undiscovered gems for stocks that combine value pricing with stronger earnings trends.

FY 2026 Earnings Summary

• Revenue (FY 2026 vs. FY 2025, trailing twelve months): A$210.9 million vs. A$229.7 million (decline of 8.2%)
• Net Income from Continuing Operations (FY 2026 vs. FY 2025, trailing twelve months): A$24.8 million vs. A$27.8 million (decline of 10.8%)
• Basic EPS (FY 2026 vs. FY 2025, trailing twelve months): A$1.64 vs. A$1.79 (decline of 8.6%)
• Net Profit Margin (FY 2026 vs. FY 2025, trailing twelve months): 10.9% vs. 10.6% (improvement of 0.3 percentage points)

Prefer clear charts instead of another wall of earnings tables and ratios? See Schaffer’s full financial picture in an easy visual breakdown of its valuation profile in the company report for Schaffer.

Schaffer earnings still support a cautious bull story

For investors attracted to Schaffer as a diversified real asset industrial, the latest figures still give some support. Revenue and net income from continuing operations both eased over the year, yet the net margin edged up to 10.9%. That points to decent cost control and pricing discipline despite softer top line conditions. The mix of automotive leather, building materials and property is not driving growth right now, but the group is still converting a meaningful share of sales into profit. This helps the case for a resilient underlying business model.

Slower Schaffer growth keeps cyclicality concerns alive

The bear story around Schaffer focuses on cyclical earnings pressure, and that concern is not fully eased by these numbers. Revenue fell 8.2% and net income from continuing operations declined 10.8%, which matches the narrative of a business exposed to autos and construction cycles. Basic EPS moved the same way, down 8.6%. Margin stability softens the blow, but the combination of lower sales and earnings points to end market headwinds rather than a one off issue. For cautious investors, that keeps attention on how much earnings risk still sits in the current cycle.

After five years of declining earnings and an unstable dividend profile, you may want to review whether those are isolated issues or early warning signs. Scan our risk analysis for Schaffer which shows 2 important warning signs to see if Schaffer faces deeper structural vulnerabilities already flagged by the risk score.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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