BDL:129556102

Stock Analysis Report

Executive Summary

Schaeffler AG manufactures and sells precision components and systems for automotive and industrial applications in Europe, the Americas, China, and the Asia Pacific.


Snowflake Analysis

Good value with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 129556102's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.9%

129556102

2.3%

LU Auto Components

1.9%

LU Market


1 Year Return

-25.4%

129556102

-39.8%

LU Auto Components

-41.9%

LU Market

Return vs Industry: 129556102 exceeded the Luxembourg Auto Components industry which returned -39.8% over the past year.

Return vs Market: 129556102 exceeded the Luxembourg Market which returned -41.9% over the past year.


Shareholder returns

129556102IndustryMarket
7 Day7.9%2.3%1.9%
30 Day-34.1%-32.8%-36.5%
90 Day-44.4%-40.8%-40.9%
1 Year-20.0%-25.4%-37.5%-39.8%-39.9%-41.9%
3 Year-62.1%-67.2%-54.4%-58.1%-53.7%-58.7%
5 Yearn/a-46.5%-52.6%-63.5%-69.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 129556102 (€5.41) is trading below our estimate of fair value (€9.11)

Significantly Below Fair Value: 129556102 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 129556102 is poor value based on its PE Ratio (8.3x) compared to the Auto Components industry average (7.9x).

PE vs Market: 129556102 is good value based on its PE Ratio (8.3x) compared to the Luxembourg market (21.7x).


Price to Earnings Growth Ratio

PEG Ratio: 129556102 is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: 129556102 is overvalued based on its PB Ratio (1.3x) compared to the XE Auto Components industry average (0.7x).


Next Steps

Future Growth

How is Schaeffler forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

18.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 129556102's forecast earnings growth (18.2% per year) is above the savings rate (0.7%).

Earnings vs Market: 129556102's earnings (18.2% per year) are forecast to grow faster than the Luxembourg market (12.1% per year).

High Growth Earnings: 129556102's earnings are forecast to grow, but not significantly.

Revenue vs Market: 129556102's revenue (1.5% per year) is forecast to grow slower than the Luxembourg market (3.4% per year).

High Growth Revenue: 129556102's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 129556102's Return on Equity is forecast to be high in 3 years time (20.2%)


Next Steps

Past Performance

How has Schaeffler performed over the past 5 years?

1.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 129556102 has high quality earnings.

Growing Profit Margin: 129556102's current net profit margins (3%) are lower than last year (6.2%).


Past Earnings Growth Analysis

Earnings Trend: 129556102's earnings have grown by 1.5% per year over the past 5 years.

Accelerating Growth: 129556102's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 129556102 had negative earnings growth (-51.4%) over the past year, making it difficult to compare to the Auto Components industry average (-5.1%).


Return on Equity

High ROE: 129556102's Return on Equity (15.1%) is considered low.


Next Steps

Financial Health

How is Schaeffler's financial position?


Financial Position Analysis

Short Term Liabilities: 129556102's short term assets (€5.5B) exceed its short term liabilities (€3.7B).

Long Term Liabilities: 129556102's short term assets (€5.5B) do not cover its long term liabilities (€6.3B).


Debt to Equity History and Analysis

Debt Level: 129556102's debt to equity ratio (109.5%) is considered high.

Reducing Debt: 129556102's debt to equity ratio has reduced from 2470.7% to 109.5% over the past 5 years.

Debt Coverage: 129556102's debt is well covered by operating cash flow (49.4%).

Interest Coverage: 129556102's interest payments on its debt are well covered by EBIT (12x coverage).


Balance Sheet

Inventory Level: 129556102 has a high level of physical assets or inventory.

Debt Coverage by Assets: 129556102's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

8.42%

Current Dividend Yield


Upcoming Dividend Payment

TodayMar 28 2020Ex Dividend DateApr 20 2020Dividend Pay DateApr 22 20202 days from Ex DividendBuy in the next 22 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: 129556102's dividend (8.42%) is higher than the bottom 25% of dividend payers in the Luxembourg market (3.18%).

High Dividend: 129556102's dividend (8.42%) is in the top 25% of dividend payers in the Luxembourg market (7.39%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 129556102 has been paying a dividend for less than 10 years.

Growing Dividend: 129556102's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70%), 129556102's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 129556102's dividends in 3 years are forecast to be well covered by earnings (41.7% payout ratio).


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

Klaus Rosenfeld (53yo)

5.75s

Tenure

€4,410,000

Compensation

Mr. Klaus Rosenfeld serves as Chief Executive Officer and Managing Director at IHO Verwaltungs GmbH (alternative name Schaeffler Verwaltung Zwei GmbH). Mr. Rosenfeld serves as the Chief Executive Officer a ...


CEO Compensation Analysis

Compensation vs Market: Klaus's total compensation ($USD4.89M) is above average for companies of similar size in the Luxembourg market ($USD2.13M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Klaus Rosenfeld
CEO, Member of Board of Managing Directors & Member of Executive Board5.75yrs€4.41mno data
Dietmar Heinrich
CFO, Member of Executive Board & Member of Board of Managing Directors2.58yrs€1.88mno data
Stefan Spindler
CEO of Industrialno data€2.08mno data
Andreas Schick
COO, Member of Executive Board & Member of Board of Managing Directorsno data€1.93mno data
Corinna Schittenhelm
Chief HR Officer4.17yrs€1.92mno data
Uwe Wagner
CTO & Member of the Board of Managing Directors0.42yr€924.00kno data
Matthias Zink
CEO of Automotive OEM3.17yrs€1.93mno data
Michael Söding
CEO of Automotive Aftermarket2.17yrs€1.89mno data
Dirk Spindler
Senior VP of R&D Processes4.33yrs€59.00kno data
Yilin Zhang
Regional CEO of Greater China & Member of Executive Boardno datano datano data

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: 129556102's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dirk Spindler
Senior VP of R&D Processes4.33yrs€59.00kno data
Bernd Gottschalk
Member of Supervisory Board5.25yrs€58.00kno data
Robin Stalker
Member of Supervisory Board5.25yrs€105.00kno data
Holger Engelmann
Member of Supervisory Board5.25yrs€78.00kno data
Maria-Elisabeth Schaeffler-Thumann
Deputy Chairperson of Supervisory Boardno data€95.00kno data
Hans-Jörg Bullinger
Member of Supervisory Board5.25yrs€62.00kno data
Jürgen Wechsler
Employee representative Deputy Chairman of Supervisory Board4.33yrs€112.00kno data
Norbert Lenhard
Employee Representative of Supervisory Board4.33yrs€88.00kno data
Georg F. Schaeffler
Chairman of Supervisory Boardno data€160.00kno data
Reinold Mittag
Employee Representative of Supervisory Board4.33yrs€85.00kno data

4.8yrs

Average Tenure

62yo

Average Age

Experienced Board: 129556102's board of directors are considered experienced (4.8 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

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


Key Information

  • Name: Schaeffler AG
  • Ticker: 129556102
  • Exchange: BDL
  • Founded: 1946
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €3.559b
  • Shares outstanding: 666.00m
  • Website: https://www.schaeffler.com

Number of Employees


Location

  • Schaeffler AG
  • Industriestrasse 1-3
  • Herzogenaurach
  • Bavaria
  • 91074
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
129556102BDL (Bourse de Luxembourg)YesBearer SharesLUEUROct 2015
SHADB (Deutsche Boerse AG)YesBearer SharesDEEUROct 2015
SHAXTRA (XETRA Trading Platform)YesBearer SharesDEEUROct 2015
SHADBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEUROct 2015
0RBKLSE (London Stock Exchange)YesBearer SharesGBEUROct 2015
SCFL.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDOct 2015
SHAFSWX (SIX Swiss Exchange)YesBearer SharesCHCHFOct 2015
SHAWBAG (Wiener Boerse AG)YesBearer SharesATEUROct 2015
SHAETLX (Eurotlx)YesBearer SharesITEUROct 2015

Biography

Schaeffler AG manufactures and sells precision components and systems for automotive and industrial applications in Europe, the Americas, China, and the Asia Pacific. The company’s Automotive OEM division offers engine systems, including rolling bearing solutions, belt and chain drive products, valve train components, and systems for variable valve trains; and transmission systems, such as torsion and vibration dampers, clutches and double clutch systems, torque converters, CVT components, lightweight differentials, bearing solutions, and synchronizing and gearshift components. This division also provides chassis systems comprising wheel bearings, bearing solutions, steering components, electromechanical actuators for roll stabilizers, and power-assisted steering systems; and hybrid and electrical drive systems that include hybrid modules, electrical axle drives, and electrical wheel hub drives. Its Automotive Aftermarket division offers repair solutions for passenger cars, light commercial vehicles, heavy commercial vehicles, and tractors, as well as supporting services. The company’s Industrial division provides components and systems for rotary and linear movements, as well as services, maintenance products, and monitoring systems. This division serves customers in the wind, raw materials, aerospace, railway, off-road, two-wheelers, power transmission, and industrial automation sectors, as well as industrial aftermarket, mobility, and energy and raw materials. Schaeffler AG has a strategic partnership with Fraunhofer-Gesellschaft. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/28 00:46
End of Day Share Price2020/03/27 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.