Schlatter Industries (SWX:STRN) - Share price, News & Analysis

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

STRN (CHF26.2) is trading below our estimate of [[fair value]] (CHF676.66)

STRN fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	5/6
Dividends	0/6

STRN Stock Overview

Schlatter Industries AG manufactures and sells welding systems and weaving machines worldwide.

Rewards

Trading at 96.1% below our estimate of its fair value

Earnings grew by 1225.1% over the past year

Risk Analysis

Earnings have declined by 10.4% per year over past 5 years

Does not have a meaningful market cap (CHF29M)

Schlatter Industries Competitors

Tornos Holding

SWX:TOHN

CHF121.1m

Adval Tech Holding

SWX:ADVN

CHF114.6m

Mikron Holding

SWX:MIKN

CHF142.0m

Feintool International Holding

SWX:FTON

CHF314.6m

Price History & Performance

Summary of all time highs, changes and price drops for Schlatter Industries
Historical stock prices
Current Share Price	CHF26.20
52 Week High	CHF30.60
52 Week Low	CHF20.20
Beta	0.55
1 Month Change	-5.76%
3 Month Change	-5.07%
1 Year Change	-9.03%
3 Year Change	-31.05%
5 Year Change	-48.48%
Change since IPO	-95.52%

Recent News & Updates

Mar 27

Schlatter Industries (VTX:STRN) Is Experiencing Growth In Returns On Capital

There are a few key trends to look for if we want to identify the next multi-bagger. In a perfect world, we'd like to...

Shareholder Returns

	STRN	CH Machinery	CH Market
7D	-3.0%	2.4%	0.08%
1Y	-9.0%	-31.0%	-12.9%

Return vs Industry: STRN exceeded the Swiss Machinery industry which returned -31% over the past year.

Return vs Market: STRN exceeded the Swiss Market which returned -12.9% over the past year.

Price Volatility

Is STRN's price volatile compared to industry and market?
STRN volatility
STRN Average Weekly Movement	5.2%
Machinery Industry Average Movement	5.2%
Market Average Movement	4.5%
10% most volatile stocks in CH Market	7.8%
10% least volatile stocks in CH Market	2.4%

Stable Share Price: STRN is not significantly more volatile than the rest of Swiss stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: STRN's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1916	331	Werner Schmidli	https://www.schlattergroup.com

Schlatter Industries AG manufactures and sells welding systems and weaving machines worldwide. It offers welding machines for reinforcing and industrial mesh, and industrial fences; wire straightening and cutting machines; MeshStudio, a 3-dimensional drawing program for welded wire mesh; wire butt welding machines; and flash butt welding machines for rails. The company also provides warp preparation machines; weaving machines for press fabrics, dryer fabrics, and industrial filters; finishing machines for forming, press, and dryer fabrics; wire weaving machines for metal wire fabrics; wire crimping machines for sieves and screens; and screen assembly machines for sieves and screens under the Jäger brand name.

Schlatter Industries Fundamentals Summary

How do Schlatter Industries's earnings and revenue compare to its market cap?
STRN fundamental statistics
Market Cap	CHF28.94m
Earnings (TTM)	CHF4.97m
Revenue (TTM)	CHF101.09m

5.8x

P/E Ratio

0.3x

P/S Ratio

Is STRN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
STRN income statement (TTM)
Revenue	CHF101.09m
Cost of Revenue	CHF51.82m
Gross Profit	CHF49.26m
Other Expenses	CHF44.29m
Earnings	CHF4.97m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	4.50
Gross Margin	48.73%
Net Profit Margin	4.92%
Debt/Equity Ratio	25.9%

How did STRN perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

4/6

Valuation Score 4/6

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

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for STRN. This is calculated by dividing STRN's market cap by their current preferred multiple.
What is STRN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CHF28.94m

STRN 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	0.2x
Enterprise Value/EBITDA	2.4x
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

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

STRN PE Ratio vs Peers

The above table shows the PE ratio for STRN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	13x
TOHN Tornos Holding	6.9x	-5.8%	CHF121.1m
ADVN Adval Tech Holding	19.5x	14.1%	CHF114.6m
MIKN Mikron Holding	9.1x	n/a	CHF142.0m
FTON Feintool International Holding	16.4x	18.5%	CHF314.6m
STRN Schlatter Industries	5.8x	n/a	CHF28.9m

Price-To-Earnings vs Peers: STRN is good value based on its Price-To-Earnings Ratio (5.8x) compared to the peer average (13x).

Price to Earnings Ratio vs Industry

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

Price-To-Earnings vs Industry: STRN is good value based on its Price-To-Earnings Ratio (5.8x) compared to the Swiss Machinery industry average (23.5x)

Price to Earnings Ratio vs Fair Ratio

What is STRN'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.

STRN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	5.8x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate STRN's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

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

Below Fair Value: STRN (CHF26.2) is trading below our estimate of fair value (CHF676.66)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is Schlatter Industries forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

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

14.4%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Schlatter Industries has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Discover growth companies

Examine whether Schlatter Industries is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
Schlatter Industries competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Schlatter Industries performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

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

-10.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: STRN has high quality earnings.

Growing Profit Margin: STRN's current net profit margins (4.9%) are higher than last year (0.4%).

Past Earnings Growth Analysis

Earnings Trend: STRN's earnings have declined by 10.4% per year over the past 5 years.

Accelerating Growth: STRN's earnings growth over the past year (1225.1%) exceeds its 5-year average (-10.4% per year).

Earnings vs Industry: STRN earnings growth over the past year (1225.1%) exceeded the Machinery industry 19.6%.

Return on Equity

High ROE: STRN's Return on Equity (17%) is considered low.

Discover strong past performing companies

Financial Health

How is Schlatter Industries's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

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

Financial Position Analysis

Short Term Liabilities: STRN's short term assets (CHF66.1M) exceed its short term liabilities (CHF45.2M).

Long Term Liabilities: STRN's short term assets (CHF66.1M) exceed its long term liabilities (CHF10.4M).

Debt to Equity History and Analysis

Debt Level: STRN has more cash than its total debt.

Reducing Debt: STRN's debt to equity ratio has increased from 2.6% to 25.9% over the past 5 years.

Debt Coverage: STRN's debt is well covered by operating cash flow (158.7%).

Interest Coverage: STRN's interest payments on its debt are well covered by EBIT (10.1x coverage).

Balance Sheet

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Dividend

What is Schlatter Industries's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate STRN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate STRN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if STRN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if STRN's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as STRN has not reported any payouts.

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Management

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

10.0yrs

Average management tenure

CEO

Werner Schmidli (57 yo)

10.17yrs

Tenure

CHF758,112

Compensation

Mr. Werner Schmidli has been the Chief Executive Officer of Schlatter Industries AG (a/k/a Schlatter Holding AG) since June 01, 2012 and serves as its Member of Management Board. He has been a Managing Dir...

CEO Compensation Analysis

Compensation vs Market: Werner's total compensation ($USD795.27K) is about average for companies of similar size in the Swiss market ($USD650.58K).

Compensation vs Earnings: Werner's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: STRN's management team is seasoned and experienced (10 years average tenure).

Board Members

Experienced Board: STRN's board of directors are seasoned and experienced ( 12.3 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	2022/08/17 00:00
End of Day Share Price	2022/08/17 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31