SWX:RIEN

Stock Analysis Report

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Executive Summary

Rieter Holding AG, together with its subsidiaries, supplies systems for short-staple fiber spinning in Switzerland and internationally.


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.

Share Price & News

How has Rieter Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RIEN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

14.5%

RIEN

3.4%

CH Machinery

2.3%

CH Market


1 Year Return

-30.6%

RIEN

2.5%

CH Machinery

3.2%

CH Market

Return vs Industry: RIEN underperformed the Swiss Machinery industry which returned 1.8% over the past year.

Return vs Market: RIEN underperformed the Swiss Market which returned 3.6% over the past year.


Shareholder returns

RIENIndustryMarket
7 Day14.5%3.4%2.3%
30 Day11.5%12.7%4.9%
90 Day-8.3%11.6%2.7%
1 Year-27.0%-30.6%6.1%2.5%6.6%3.2%
3 Year-49.7%-55.0%7.5%-1.2%21.1%8.7%
5 Year-24.9%-35.8%41.6%20.0%32.6%10.5%

Price Volatility Vs. Market

How volatile is Rieter Holding's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rieter Holding undervalued compared to its fair value and its price relative to the market?

35.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RIEN (CHF98.1) is trading below our estimate of fair value (CHF153.55)

Significantly Below Fair Value: RIEN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RIEN is good value based on its PE Ratio (8.4x) compared to the Machinery industry average (19.4x).

PE vs Market: RIEN is good value based on its PE Ratio (8.4x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: RIEN is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: RIEN is good value based on its PB Ratio (0.9x) compared to the CH Machinery industry average (2.1x).


Next Steps

Future Growth

How is Rieter Holding forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RIEN's forecast earnings growth (4.3% per year) is above the savings rate (-0.2%).

Earnings vs Market: RIEN's earnings (4.3% per year) are forecast to grow slower than the Swiss market (8.5% per year).

High Growth Earnings: RIEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: RIEN's revenue (3.3% per year) is forecast to grow faster than the Swiss market (2.3% per year).

High Growth Revenue: RIEN's revenue (3.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RIEN's Return on Equity is forecast to be low in 3 years time (4.9%).


Next Steps

Past Performance

How has Rieter Holding performed over the past 5 years?

-18.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RIEN has a high level of non-cash earnings.

Growing Profit Margin: RIEN's current net profit margins (6.9%) are higher than last year (3%).


Past Earnings Growth Analysis

Earnings Trend: RIEN's earnings have declined by -18.1% per year over the past 5 years.

Accelerating Growth: RIEN's earnings growth over the past year (64.3%) exceeds its 5-year average (-18.1% per year).

Earnings vs Industry: RIEN earnings growth over the past year (64.3%) exceeded the Machinery industry 0.5%.


Return on Equity

High ROE: RIEN's Return on Equity (11.2%) is considered low.


Next Steps

Financial Health

How is Rieter Holding's financial position?


Financial Position Analysis

Short Term Liabilities: RIEN's short term assets (CHF567.2M) exceed its short term liabilities (CHF410.7M).

Long Term Liabilities: RIEN's short term assets (CHF567.2M) exceed its long term liabilities (CHF102.7M).


Debt to Equity History and Analysis

Debt Level: RIEN's debt to equity ratio (25.3%) is considered satisfactory.

Reducing Debt: RIEN's debt to equity ratio has reduced from 61.6% to 25.3% over the past 5 years.

Debt Coverage: RIEN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if RIEN's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Rieter Holding's current dividend yield, its reliability and sustainability?

4.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RIEN's dividend (4.59%) is higher than the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: RIEN's dividend (4.59%) is in the top 25% of dividend payers in the Swiss market (3.83%)


Stability and Growth of Payments

Stable Dividend: RIEN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RIEN has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.6%), RIEN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RIEN's dividends in 3 years are forecast to be well covered by earnings (44.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Norbert Klapper (56yo)

6.42yrs

Tenure

CHF1,111,742

Compensation

Dr. Norbert Klapper has been Chief Executive Officer at Rieter Holding AG since January 1, 2014 and served as a.i. Head of Business Group After Sales until 2019. Dr. Klapper had been Chief Financial Office ...


CEO Compensation Analysis

Compensation vs Market: Norbert's total compensation ($USD1.16M) is about average for companies of similar size in the Swiss market ($USD976.88K).

Compensation vs Earnings: Norbert's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Norbert Klapper
Chief Executive Officer6.42yrsCHF1.11m0.11% CHF497.4k
Kurt Ledermann
Chief Financial Officer1.08yrsno data0.00022% CHF981.2
Stephan Mörgeli
Head of Group Accounting & Reporting and Head of Internal Auditno datano datano data
Thomas Anwander
General Secretary & General Counsel27.42yrsno data0.037% CHF164.4k
Relindis Wieser
Head of Group Communicationno datano datano data
Carsten Liske
Head of Business Group Machines & Systems5.42yrsno data0.030% CHF132.2k
Serge Entleitner
Head of Business Group Components3.17yrsno data0.017% CHF76.8k
Rico Randegger
Head of Business Group After Sales1.08yrsno datano data

4.3yrs

Average Tenure

53yo

Average Age

Experienced Management: RIEN's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Pieper
Non-Executive Director11.08yrsCHF123.59k12.03% CHF53.7m
Bernhard Jucker
Chairman of the Board3.17yrsCHF416.17k0.095% CHF423.4k
Roger Baillod
Non-Executive Director4.17yrsCHF170.22k0.022% CHF96.4k
Peter Spuhler
Non-Executive Director11.17yrsCHF163.08k22.85% CHF101.9m
This Schneider
Independent Vice Chairman & Lead Director11.08yrsCHF202.70k0.17% CHF737.8k
Hans-Peter Schwald
Non-Executive Director11.08yrsCHF204.65k0.17% CHF757.3k
Luc Tack
Non-Executive Director3.17yrsCHF163.08k0.029% CHF131.3k
Carl Illi
Director3.17yrsCHF181.52k0.013% CHF58.0k

7.6yrs

Average Tenure

60.5yo

Average Age

Experienced Board: RIEN's board of directors are considered experienced (7.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Rieter Holding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rieter Holding AG
  • Ticker: RIEN
  • Exchange: SWX
  • Founded: 1795
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CHF446.016m
  • Shares outstanding: 4.51m
  • Website: https://www.rieter.com

Number of Employees


Location

  • Rieter Holding AG
  • Klosterstrasse 32
  • Winterthur
  • Zurich
  • 8406
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RIENSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJan 1992
RIHNDB (Deutsche Boerse AG)YesRegistered SharesDEEURJan 1992
0QKALSE (London Stock Exchange)YesRegistered SharesGBCHFJan 1992

Biography

Rieter Holding AG, together with its subsidiaries, supplies systems for short-staple fiber spinning in Switzerland and internationally. The company operates through three segments: Machines & Systems, Components, and After Sales. The Machines & Systems segment develops and manufactures machinery and systems for processing natural and man-made fibers, as well as their blends into yarns. This segment offers blowrooms, carding machines, draw frames, and combing machines for preparation; and ring, compact, rotor, and air jet spinning machines for end spinning. The Components segment supplies technology components to spinning mills and textile machinery manufacturers, as well as precision winding machines. This segment offers its products under the Bräcker, Graf, Novibra, SSM, and Suessen brands. The After Sales segment develops, produces, and distributes spare parts for the company's machines, such as drives, sensors, or controllers; sells technology components; and provides services that enable its customers to enhance their spinning mills. The company was founded in 1795 and is based in Winterthur, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 20:50
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.