SWX:LEHN

Stock Analysis Report

Executive Summary

LEM Holding SA, together with its subsidiaries, provides solutions for measuring electrical parameters in China, the United States, Germany, Japan, Italy, Switzerland, and internationally.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0%

LEHN

-0.6%

CH Electronic

-0.6%

CH Market


1 Year Return

9.2%

LEHN

23.2%

CH Electronic

10.7%

CH Market

Return vs Industry: LEHN underperformed the Swiss Electronic industry which returned 23.2% over the past year.

Return vs Market: LEHN underperformed the Swiss Market which returned 10.7% over the past year.


Shareholder returns

LEHNIndustryMarket
7 Day0%-0.6%-0.6%
30 Day-5.7%-1.1%-0.4%
90 Day-14.7%3.4%1.1%
1 Year12.6%9.2%26.5%23.2%16.6%10.7%
3 Year11.0%1.8%21.5%13.7%35.5%21.9%
5 Year96.0%63.3%85.2%63.3%36.8%15.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

25.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LEHN (CHF1158) is trading above our estimate of fair value (CHF877.11)

Significantly Below Fair Value: LEHN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LEHN is poor value based on its PE Ratio (25x) compared to the Electronic industry average (20.8x).

PE vs Market: LEHN is poor value based on its PE Ratio (25x) compared to the Swiss market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: LEHN is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: LEHN is overvalued based on its PB Ratio (11.7x) compared to the CH Electronic industry average (2.5x).


Next Steps

Future Growth

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

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LEHN's forecast earnings growth (10.1% per year) is above the savings rate (3.3%).

Earnings vs Market: LEHN's earnings (10.1% per year) are forecast to grow slower than the Swiss market (10.4% per year).

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

Revenue vs Market: LEHN's revenue (7.9% per year) is forecast to grow faster than the Swiss market (3.5% per year).

High Growth Revenue: LEHN's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LEHN's Return on Equity is forecast to be very high in 3 years time (46.3%).


Next Steps

Past Performance

How has LEM Holding performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: LEHN's earnings have grown by 5.3% per year over the past 5 years.

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

Earnings vs Industry: LEHN had negative earnings growth (-1.5%) over the past year, making it difficult to compare to the Electronic industry average (1.6%).


Return on Equity

High ROE: LEHN's Return on Equity (46.6%) is considered outstanding.


Return on Assets

ROA vs Industry: LEHN has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: LEHN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is LEM Holding's financial position?


Financial Position Analysis

Short Term Liabilities: LEHN's short term assets (CHF125.2M) exceeds its short term liabilities (CHF64.5M)

Long Term Liabilities: LEHN's short term assets (125.2M) exceeds its long term liabilities (9.5M)


Debt to Equity History and Analysis

Debt Level: LEHN's debt to equity ratio (7.1%) is considered satisfactory

Reducing Debt: LEHN's debt to equity ratio has increased from 0.1% to 7.1% over the past 5 years.

Debt Coverage: LEHN's debt is well covered by operating cash flow (669.4%).

Interest Coverage: LEHN's interest payments on its debt are well covered by EBIT (572.4x coverage).


Balance Sheet

Inventory Level: LEHN has a high level of physical assets or inventory.

Debt Coverage by Assets: LEHN's debt is covered by short term assets (assets are 15.649620x debt).


Next Steps

Dividend

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

3.63%

Current Dividend Yield


Dividend Yield vs Market

company3.6%marketbottom25%1.9%markettop25%3.7%industryaverage2.9%forecastin3Years4.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: LEHN's dividend (3.63%) is higher than the bottom 25% of dividend payers in the Swiss market (1.92%).

High Dividend: LEHN's dividend (3.63%) is low compared to the top 25% of dividend payers in the Swiss market (3.71%).

Stable Dividend: LEHN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.7%), LEHN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LEHN's dividends in 3 years are forecast to be covered by earnings (86.9% payout ratio).


Next Steps

Management

What is the CEO of LEM Holding's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average management tenure


CEO

Frank Rehfeld (51yo)

1.5yrs

Tenure

CHF933,000

Compensation

Mr. Frank Rehfeld has been Chief Executive Officer at Lem Holding SA since 1 April 2018. He serves as Senior Vice President of Industry at Lem Holding SA since January 01, 2016 and served as its Head of Th ...


CEO Compensation Analysis

Compensation vs. Market: Frank has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Swiss market.

Compensation vs Earnings: Insufficient data to compare Frank's compensation with company performance.


Management Age and Tenure

3.9yrs

Average Tenure

52yo

Average Age

Experienced Management: LEHN's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: LEHN's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Rainer Bos (57yo)

    Senior Vice President of Automotive

    • Tenure: 4.3yrs
  • Andrea Borla (52yo)

    Chief Financial Officer

    • Tenure: 3.9yrs
  • Frank Rehfeld (51yo)

    CEO & Senior VP of Industry

    • Tenure: 1.5yrs
    • Compensation: CHF933.00k

Board Members

  • François Gabella (61yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: CHF87.00k
  • Ueli Wampfler (69yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: CHF131.00k
  • Ilan Cohen (63yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: CHF131.00k
  • Andreas Hürlimann (55yo)

    Chairman of the Board

    • Tenure: 6.3yrs
    • Compensation: CHF337.00k
  • Ulrich Looser (62yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: CHF153.00k
  • Werner Weber (59yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: CHF87.00k

Company Information

LEM Holding SA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LEM Holding SA
  • Ticker: LEHN
  • Exchange: SWX
  • Founded: 1972
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CHF1.319b
  • Shares outstanding: 1.14m
  • Website: https://www.lem.com

Number of Employees


Location

  • LEM Holding SA
  • Avenue Beauregard 1
  • Fribourg
  • Fribourg
  • 1700
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LEHNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJul 1999
LELADB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 1999
LMHD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 1999
0QKBLSE (London Stock Exchange)YesOrdinary SharesGBCHFJul 1999

Biography

LEM Holding SA, together with its subsidiaries, provides solutions for measuring electrical parameters in China, the United States, Germany, Japan, Italy, Switzerland, and internationally. It operates thro ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 20:47
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/03/31


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.