Schindler Holding (SWX:SCHN) - Share price, News & Analysis

Q: What is the Fair Price of SCHN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SCHN (CHF169) is trading below our estimate of [[fair value]] (CHF189.94)

SCHN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	6/6
Dividends	5/6

SCHN Stock Overview

Schindler Holding AG engages in the production, installation, maintenance, and modernization of passenger and freight elevators, escalators, and moving walks worldwide.

Rewards

Trading at 11% below our estimate of its fair value

Earnings are forecast to grow 15.26% per year

Pays a reliable dividend of 2.37%

Risk Analysis

No risks detected for SCHN from our risk checks.

Schindler Holding Competitors

VAT Group

SWX:VACN

CHF7.3b

SFS Group

SWX:SFSN

CHF3.9b

Georg Fischer

SWX:GF

CHF4.0b

Dätwyler Holding

SWX:DAE

CHF3.4b

Price History & Performance

Summary of all time highs, changes and price drops for Schindler Holding
Historical stock prices
Current Share Price	CHF169.00
52 Week High	CHF294.20
52 Week Low	CHF161.00
Beta	0.65
1 Month Change	-12.89%
3 Month Change	-17.08%
1 Year Change	-37.08%
3 Year Change	-21.54%
5 Year Change	-15.50%
Change since IPO	2,625.81%

Recent News & Updates

Apr 08

Returns On Capital At Schindler Holding (VTX:SCHN) Paint A Concerning Picture

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Shareholder Returns

	SCHN	CH Machinery	CH Market
7D	-0.1%	-0.08%	3.4%
1Y	-37.1%	-31.7%	-12.4%

Return vs Industry: SCHN underperformed the Swiss Machinery industry which returned -31.7% over the past year.

Return vs Market: SCHN underperformed the Swiss Market which returned -12.4% over the past year.

Price Volatility

Is SCHN's price volatile compared to industry and market?
SCHN volatility
SCHN Average Weekly Movement	4.0%
Machinery Industry Average Movement	5.1%
Market Average Movement	4.6%
10% most volatile stocks in CH Market	7.6%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: SCHN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SCHN's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1874	69,308	Silvio Napoli	https://www.schindler.com

Schindler Holding AG engages in the production, installation, maintenance, and modernization of passenger and freight elevators, escalators, and moving walks worldwide. It also offers digital media services for engaging communication channels, such as Schindler Ahead DoorShow, which displays information, advertising, and announcements on the elevator doors; Schindler Ahead SmartMirror, a mirror and a screen for entertainment or information; and Schindler Ahead AdScreen, an advertising and communication space. In addition, the company provides transit management services through its destination control system.

Schindler Holding Fundamentals Summary

How do Schindler Holding's earnings and revenue compare to its market cap?
SCHN fundamental statistics
Market Cap	CHF18.32b
Earnings (TTM)	CHF759.00m
Revenue (TTM)	CHF11.27b

24.0x

P/E Ratio

1.6x

P/S Ratio

Is SCHN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SCHN income statement (TTM)
Revenue	CHF11.27b
Cost of Revenue	CHF3.41b
Gross Profit	CHF7.85b
Other Expenses	CHF7.09b
Earnings	CHF759.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 22, 2022

Earnings per share (EPS)	7.05
Gross Margin	69.70%
Net Profit Margin	6.74%
Debt/Equity Ratio	0.0%

How did SCHN perform over the long term?

See historical performance and comparison

Dividends

2.4%

Current Dividend Yield

57%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SCHN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SCHN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SCHN. This is calculated by dividing SCHN's market cap by their current preferred multiple.
What is SCHN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF18.32b

SCHN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	12.4x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does SCHN's PE Ratio compare to its peers?

SCHN PE Ratio vs Peers

The above table shows the PE ratio for SCHN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24x
VACN VAT Group	33.5x	12.2%	CHF7.3b
SFSN SFS Group	15.9x	5.8%	CHF3.9b
GF Georg Fischer	18.9x	13.8%	CHF4.0b
DAE Dätwyler Holding	27.7x	16.9%	CHF3.4b
SCHN Schindler Holding	24x	15.3%	CHF18.3b

Forward PE

Price-To-Earnings vs Peers: SCHN is good value based on its Price-To-Earnings Ratio (24x) compared to the peer average (24x).

Price to Earnings Ratio vs Industry

How does SCHN's PE Ratio compare vs other companies in the CH Machinery Industry?

Price-To-Earnings vs Industry: SCHN is expensive based on its Price-To-Earnings Ratio (24x) compared to the Swiss Machinery industry average (17.5x)

Price to Earnings Ratio vs Fair Ratio

What is SCHN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SCHN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	24x
Fair PE Ratio	34.4x

Price-To-Earnings vs Fair Ratio: SCHN is good value based on its Price-To-Earnings Ratio (24x) compared to the estimated Fair Price-To-Earnings Ratio (34.4x).

Share Price vs Fair Value

What is the Fair Price of SCHN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SCHN (CHF169) is trading below our estimate of fair value (CHF189.94)

Significantly Below Fair Value: SCHN is trading below fair value, but not by a significant amount.

Price to Earnings Growth Ratio

PEG Ratio: SCHN is poor value based on its PEG Ratio (1.6x)

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Future Growth

How is Schindler Holding forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

15.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SCHN's forecast earnings growth (15.3% per year) is above the savings rate (-0.3%).

Earnings vs Market: SCHN's earnings (15.3% per year) are forecast to grow faster than the Swiss market (6.1% per year).

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

Revenue vs Market: SCHN's revenue (3.9% per year) is forecast to grow slower than the Swiss market (4.2% per year).

High Growth Revenue: SCHN's revenue (3.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SCHN's Return on Equity is forecast to be low in 3 years time (18.5%).

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Past Performance

How has Schindler Holding performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SCHN has high quality earnings.

Growing Profit Margin: SCHN's current net profit margins (6.7%) are lower than last year (7.5%).

Past Earnings Growth Analysis

Earnings Trend: SCHN's earnings have declined by 1.4% per year over the past 5 years.

Accelerating Growth: SCHN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SCHN had negative earnings growth (-6.3%) over the past year, making it difficult to compare to the Machinery industry average (53.4%).

Return on Equity

High ROE: SCHN's Return on Equity (19.5%) is considered low.

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Financial Health

How is Schindler Holding's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SCHN's short term assets (CHF8.0B) exceed its short term liabilities (CHF6.2B).

Long Term Liabilities: SCHN's short term assets (CHF8.0B) exceed its long term liabilities (CHF1.6B).

Debt to Equity History and Analysis

Debt Level: SCHN is debt free.

Reducing Debt: SCHN had no debt 5 years ago.

Debt Coverage: SCHN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SCHN has no debt, therefore coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is Schindler Holding current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.37%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SCHN's dividend (2.37%) is higher than the bottom 25% of dividend payers in the Swiss market (1.99%).

High Dividend: SCHN's dividend (2.37%) is low compared to the top 25% of dividend payers in the Swiss market (4.14%).

Stability and Growth of Payments

Stable Dividend: SCHN's dividends per share have been stable in the past 10 years.

Growing Dividend: SCHN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (57.1%), SCHN's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.3%), SCHN's dividend payments are well covered by cash flows.

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Management

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

4.2yrs

Average management tenure

CEO

Silvio Napoli (56 yo)

0.42

Tenure

CHF4,061,000

Compensation

Mr. Silvio Napoli has been an Independent Director at Eaton Corporation plc since July 26, 2019. He has been an Executive Director of Schindler Holding AG since March 22, 2016 and its Executive Chairman of...

CEO Compensation Analysis

Compensation vs Market: Silvio's total compensation ($USD4.25M) is below average for companies of similar size in the Swiss market ($USD6.61M).

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

Leadership Team

Experienced Management: SCHN's management team is considered experienced (4.2 years average tenure).

Board Members

Experienced Board: SCHN's board of directors are considered experienced (7.4 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.

Data	Last Updated (UTC time)
Company Analysis	2022/06/27 00:00
End of Day Share Price	2022/06/27 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31