SWX:SAHN

Stock Analysis Report

Schaffner Holding

Executive Summary

Schaffner Holding AG, together with its subsidiaries, develops, manufactures, and sells solutions for power electronic systems worldwide.

Rewards

Trading at 65.2% below its fair value

Earnings are forecast to grow 27.12% per year

Risk Analysis

Has a high level of debt

Unstable dividend track record



Snowflake Analysis

Very undervalued with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

SAHN

-0.2%

CH Electronic

0.3%

CH Market


1 Year Return

-23.8%

SAHN

34.3%

CH Electronic

19.6%

CH Market

Return vs Industry: SAHN underperformed the Swiss Electronic industry which returned 39.8% over the past year.

Return vs Market: SAHN underperformed the Swiss Market which returned 18.9% over the past year.


Shareholder returns

SAHNIndustryMarket
7 Day-2.0%-0.2%0.3%
30 Day-12.8%1.7%1.6%
90 Day3.7%19.4%6.9%
1 Year-22.0%-23.8%38.0%34.3%25.3%19.6%
3 Year-15.9%-21.5%43.0%33.8%41.0%24.0%
5 Year-15.3%-23.2%130.7%103.0%54.0%29.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAHN (CHF206) is trading below our estimate of fair value (CHF592.26)

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


Price To Earnings Ratio

PE vs Industry: SAHN is good value based on its PE Ratio (18.1x) compared to the Electronic industry average (22x).

PE vs Market: SAHN is good value based on its PE Ratio (18.1x) compared to the Swiss market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: SAHN is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: SAHN is good value based on its PB Ratio (2.1x) compared to the CH Electronic industry average (2.6x).


Next Steps

Future Growth

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

27.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAHN's forecast earnings growth (27.1% per year) is above the savings rate (-0.6%).

Earnings vs Market: SAHN's earnings (27.1% per year) are forecast to grow faster than the Swiss market (10.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAHN's revenue (3.6% per year) is forecast to grow faster than the Swiss market (3.6% per year).

High Growth Revenue: SAHN's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SAHN's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Schaffner Holding performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAHN has high quality earnings.

Growing Profit Margin: SAHN's current net profit margins (3.7%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: SAHN's earnings have declined by -3% per year over the past 5 years.

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

Earnings vs Industry: SAHN had negative earnings growth (-23.3%) over the past year, making it difficult to compare to the Electronic industry average (-2.4%).


Return on Equity

High ROE: SAHN's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Schaffner Holding's financial position?


Financial Position Analysis

Short Term Liabilities: SAHN's short term assets (CHF96.9M) exceed its short term liabilities (CHF40.4M).

Long Term Liabilities: SAHN's short term assets (CHF96.9M) exceed its long term liabilities (CHF38.3M).


Debt to Equity History and Analysis

Debt Level: SAHN's debt to equity ratio (53.4%) is considered high.

Reducing Debt: SAHN's debt to equity ratio has increased from 53.1% to 53.4% over the past 5 years.

Debt Coverage: SAHN's debt is well covered by operating cash flow (43.9%).

Interest Coverage: SAHN's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: SAHN's debt is covered by short term assets (assets are 2.9x debt).


Next Steps

Dividend

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

2.53%

Current Dividend Yield


Dividend Yield vs Market

company2.5%marketbottom25%1.7%markettop25%3.4%industryaverage2.4%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: SAHN's dividend (2.43%) is higher than the bottom 25% of dividend payers in the Swiss market (1.73%).

High Dividend: SAHN's dividend (2.43%) is low compared to the top 25% of dividend payers in the Swiss market (3.42%).


Stability and Growth of Payments

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

Growing Dividend: SAHN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), SAHN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Marc Aeschlimann (51yo)

2.3yrs

Tenure

CHF723,000

Compensation

Mr. Marc Aeschlimann has been the Chief Executive Officer of Schaffner Holding AG since September 1, 2017. Mr. Aeschlimann served as Chief Executive Officer of Franke Kaffeemaschinen AG (alternate name, Fr ...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD746.58K) is about average for companies of similar size in the Swiss market ($USD714.12K).

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


Management Age and Tenure

2.0yrs

Average Tenure

51yo

Average Age

Experienced Management: SAHN's management team is considered experienced (2 years average tenure).


Board Age and Tenure

5.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SAHN's board of directors are considered experienced (7 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

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


Management Team

  • Martin Köppel (59yo)

    Head of Global Quality

    • Tenure: 2yrs
  • Marc Aeschlimann (51yo)

    Chief Executive Officer

    • Tenure: 2.3yrs
    • Compensation: CHF723.00k
  • Guido Schlegelmilch (55yo)

    Head of the EMC Division & Executive VP

    • Tenure: 8.3yrs
  • Susanne Bolliger

    Head of Corporate Human Resources

    • Tenure: 11.3yrs
  • Christian Herren (43yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Max Bänziger (52yo)

    Chief Operating Officer

    • Tenure: 2yrs
  • Martin Lütenegger (50yo)

    Head of Automotive Division & Executive VP

    • Tenure: 1.2yrs
  • Daniel Zeidler (47yo)

    Executive VP & Head of Power Magnetics Division

    • Tenure: 1.2yrs

Board Members

  • Gerhard Pegam (57yo)

    Director

    • Tenure: 7yrs
    • Compensation: CHF90.00k
  • Urs Kaufmann (57yo)

    Chairman of the Board

    • Tenure: 3yrs
    • Compensation: CHF264.00k
  • Philipp Buhofer (60yo)

    Vice Chairman

    • Tenure: 3yrs
    • Compensation: CHF90.00k
  • Georg Wechsler (63yo)

    Director

    • Tenure: 8yrs
    • Compensation: CHF92.00k

Company Information

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


Key Information

  • Name: Schaffner Holding AG
  • Ticker: SAHN
  • Exchange: SWX
  • Founded: 1962
  • Industry: Electronic Components
  • Sector: Tech
  • Market Cap: CHF125.246m
  • Shares outstanding: 632.56k
  • Website: https://www.schaffner.com

Number of Employees


Location

  • Schaffner Holding AG
  • Nordstrasse 11
  • Luterbach
  • Solothurn
  • 4542
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAHNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJun 1998
SFRNDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 1998
0QJYLSE (London Stock Exchange)YesRegistered SharesGBCHFJun 1998

Biography

Schaffner Holding AG, together with its subsidiaries, develops, manufactures, and sells solutions for power electronic systems worldwide. The company operates through three segments: Electromagnetic Compatibility (EMC), Power Magnetics, and Automotive. It offers EMC/EMI filters and chokes, including IEC inlet filters and power entry modules, single-phase filters, DC filters, 3-phase filters, 3-phase + neutral line filters, open frame filters, feedthrough components, PCB filters, and pulse transformers; power solutions comprising line and load reactors, Ecosine passive harmonic filters, Ecosine active harmonic filters, and output filters; and power magnetics, which include inductors, filters, and transformers. The company also provides automotive components, such as EMC/EMI filters, common mode chokes, inductors, and antennas. It primarily serves motor drives, machinery, mobility, renewables, power supply, and automotive markets. The company was founded in 1962 and is headquartered in Luterbach, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/26 20:47
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.