Aebi Schmidt Holding AG (AEBI) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: 0.38%
• Average Volume (3M): 180.55K
• Price to Earnings (P/E): 2.6
• Beta (1Y): 1.78
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 3,000
• Sector: Industrials
• Sector Strength: 72
• Industry: General Transportation
• EPS (TTM): 0.02
• Shares Outstanding: 77,341,780
• 10 Day Avg. Volume: 162,928
• 30 Day Avg. Volume: 180,550
• PEG Ratio: 1.03
• Price to Book (P/B): 16.06
• Price to Sales (P/S): 5.40
• P/FCF Ratio: 106.33
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 8.56
• Enterprise Value/Ebitda: 29.48
• 1Y Price Target: $15.75
• Price Target Upside: 38.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.87
• Revenue Forecast (FY): $2.04B

• Rating: 77 Outperform
• Price Target: $17.00 ▲(49.52% Upside)

The score is driven mainly by extremely attractive valuation (very low P/E and high dividend yield). Financial performance is improving across profitability and cash flow, but leverage remains a key risk. Technically, the uptrend is intact, though overbought readings increase near-term pullback risk.

Positive Factors

Recurring aftermarket and service revenues

Aftermarket parts, consumables and services create durable, higher-margin recurring revenue tied to installed fleets. This stabilizes cash flow across seasons, supports lifecycle customer retention, and provides a predictable base to fund operations and incremental investment over multiple years.

Improving operating performance and cash generation

Sustained top-line growth with rising margins and a stronger FCF-to-net-income ratio indicates improved operational efficiency and cash conversion. These trends enhance the firm’s ability to self-fund maintenance capex, service debt, and support strategic initiatives over the medium term without relying solely on external financing.

Acquisition-driven scale and synergy potential

The Shyft acquisition expands product breadth and customer reach; realized synergies and implemented governance can sustainably lift margins and sales effectiveness. If integration stays on track, scale benefits and cross-selling can materially strengthen long-term competitiveness and profitability.

Negative Factors

Elevated financial leverage

A debt-to-equity ratio above 1 signals material leverage that raises refinancing, interest-rate and covenant risk. High leverage limits financial flexibility for capex, R&D, or acquisitions during downturns and increases the need for consistent cash generation to avoid balance-sheet stress over the medium term.

Persistently low net profit margins

Even after improvements, single-digit net margins leave limited buffer against raw material, wage, or pricing pressure. Low profitability constrains reinvestment capacity and makes returns sensitive to modest demand or cost shocks, challenging sustainable EPS growth absent structural margin expansion.

Concentration in municipal and infrastructure end markets

Heavy exposure to municipal and infrastructure spending ties revenue to public budgets and procurement cycles, which can be lumpy and politically driven. This end-market concentration increases structural demand volatility and lengthens sales cycles, pressuring revenue predictability over several quarters.

Aebi Schmidt Holding AG Business Overview & Revenue Model

Company Description

Develops and manufactures specialty-purpose vehicles and attachments for snow clearance, de‑icing, sweeping, airport operations, and agricultural applications. Merged with The Shyft Group to create a global specialty vehicle leader.

How the Company Makes Money

Aebi Schmidt generates revenue through multiple key streams, primarily by selling its specialized vehicles and equipment to municipal clients, contractors, and utility companies. The company also earns money through the provision of aftermarket services, including maintenance, spare parts, and upgrades for its machinery. Additionally, strategic partnerships with other manufacturers and service providers enhance its product offerings and extend its market reach, contributing to overall sales growth. The company's focus on innovation allows it to offer premium products, which often command higher prices, thereby boosting profit margins.

Aebi Schmidt Holding AG Financial Statement Overview

Summary

Aebi Schmidt Holding AG demonstrates a positive financial trajectory with improvements across income, balance sheet, and cash flow metrics. Revenue and profit growth are evident, alongside better operational efficiency and cash flow management. However, the company faces challenges with high leverage, which requires careful monitoring to ensure financial stability.

Income Statement

Aebi Schmidt Holding AG shows a solid performance in its income statement with a notable improvement in net profit margin from 1.1% to 2.8% and a revenue growth rate of 6.9% year-over-year. The gross profit margin remains stable at around 21%, indicating consistent cost management. EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency. However, the net profit margin, while improved, remains relatively low, suggesting room for further profitability enhancements.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.27, which, although improved from the previous year's 1.51, still indicates significant leverage. Return on equity has increased to 8.4% from 3.3%, showcasing better utilization of equity. The equity ratio stands at approximately 33.6%, suggesting a moderate level of financial stability. While improvements are evident, the high leverage could pose risks if not managed carefully.

Cash Flow

The cash flow statement highlights a strong free cash flow growth and a healthy free cash flow to net income ratio of 0.80, up from 0.60. Operating cash flow to net income ratio has also improved, indicating better cash generation relative to net income. These improvements suggest enhanced cash flow management, although the overall cash flow generation remains moderate.

Breakdown	TTM	Dec 2024	Dec 2023
Income Statement
Total Revenue	941.19M	1.09B	1.02B
Gross Profit	192.58M	228.24M	206.65M
EBITDA	55.89M	102.18M	82.54M
Net Income	3.28M	30.68M	11.20M
Balance Sheet
Total Assets	2.08B	1.09B	1.11B
Cash, Cash Equivalents and Short-Term Investments	125.97M	65.17M	42.70M
Total Debt	813.83M	461.84M	509.65M
Total Liabilities	1.26B	722.95M	772.82M
Stockholders Equity	812.25M	365.09M	337.96M
Cash Flow
Free Cash Flow	-35.01M	55.16M	18.18M
Operating Cash Flow	-24.55M	68.77M	30.09M
Investing Cash Flow	9.94M	-9.11M	-21.63M
Financing Cash Flow	77.72M	-35.43M	-22.35M

Aebi Schmidt Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GD	80 Outperform	$99.24B	23.81	17.78%	1.73%	11.86%	17.39%
AEBI	77 Outperform	$1.15B	2.61	―	0.38%	―	―
GE	77 Outperform	$342.94B	43.35	42.74%	0.48%	-19.21%	31.83%
CAT	76 Outperform	$302.73B	33.19	46.30%	0.98%	-1.51%	-9.69%
DE	66 Neutral	$139.12B	27.80	20.61%	1.34%	-11.66%	-27.80%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGCO	59 Neutral	$8.31B	22.18	8.69%	1.10%	-20.09%	121.28%