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Landis+Gyr Group AG (CH:LAND)
:LAND
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Landis+Gyr Group AG
(OTC:LAND)
Rating:71Outperform
Price Target:―
Positive Factors
Bookings and Backlog
Record bookings resulted in a strong book-to-bill ratio of 1.5x, indicating robust demand and future revenue potential.
Smart Grid Rollouts
Landis+Gyr is well positioned to capture momentum with the next wave of smart grid rollouts, increasing its focus on the U.S. market.
Strategic Initiatives
Strategic initiatives including divesting the EMEA business and a planned U.S. listing are seen as catalysts for margin and multiple expansions.
Negative Factors
EBITDA Margin
Adjusted EBITDA margin guidance was reduced to 10% from a previous 11%-13% due to reduced operating leverage and obsolete inventory in the Americas.
Inventory Issues
Fast adoption of Revelo led to inventory obsolescence, resulting in a $20 million write-off in FY24.
Revenue Guidance
FY24 revenue guidance was lowered by 8% due to weaker demand from EMEA and the Americas.
Landis+Gyr Group AG (LAND) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
CHF1.64B
Dividend Yield2.02%
Average Volume (3M)81.00K
Price to Earnings (P/E)15.1
Beta (1Y)0.79
Revenue Growth-4.03%
EPS Growth77.12%
CountryCH
Employees6,300
SectorIndustrials
Sector Strength86
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)-5.66
Shares Outstanding28,908,943
10 Day Avg. Volume81,102
30 Day Avg. Volume81,001
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.45
Price to Sales (P/S)0.00
P/FCF Ratio-29.79
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue0.27
Enterprise Value/Gross Profit3.16
Enterprise Value/Ebitda2.67
Forecast
1Y Price Target
CHF54.20Price Target Upside-4.92% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Landis+Gyr Group AG Business Overview & Revenue Model
Company DescriptionLandis+Gyr Group AG is a global leader in energy management solutions with a strong focus on developing advanced metering infrastructure and smart grid technology. Headquartered in Switzerland, the company provides a comprehensive range of products and services that include smart meters, grid edge intelligence, and software solutions designed to optimize energy efficiency and improve the reliability of energy distribution. Landis+Gyr serves a diverse customer base, including utilities, municipalities, and large-scale energy consumers, across the Americas, Europe, and Asia-Pacific regions.
How the Company Makes MoneyLandis+Gyr generates revenue primarily through the sale of its smart metering products and associated software solutions. The company implements a business model that includes both direct sales and long-term service agreements, providing installation, maintenance, and data management services. Key revenue streams include hardware sales of smart meters, licensing fees for software solutions, and recurring revenue from service contracts. Additionally, strategic partnerships with utility companies and technology firms enhance its market presence and contribute to its earnings. The company's focus on innovation and energy efficiency has positioned it well to capitalize on the global trend towards smart grid infrastructure and sustainable energy management.
Landis+Gyr Group AG Earnings Call Summary
Earnings Call Date:May 02, 2025
(Q4-2024)
| % Change Since: 9.99%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Neutral
The earnings call reflected strong strategic progress and sustainability achievements, along with significant growth in order intake and backlog. However, this was offset by a decline in revenue, inventory write-downs, and tariff-related challenges, leading to a balanced sentiment.Q4-2024 Updates
Positive Updates
Record Order Intake and Backlog
Landis+Gyr reported a strong order intake of $2.6 billion, resulting in a book-to-bill ratio of 1.5, and a record backlog of $4.6 billion, representing a 22.9% year-over-year increase.
Sustainability Achievements
Landis+Gyr reached 96% renewable electricity use across the Group, reduced Scope 1 and 2 emissions by over 60% since 2021, and achieved a 12% reduction in Scope 3 emissions per $100 of revenue.
Strategic Focus on the Americas
The Americas region accounted for 56% of revenue and the majority of profitability, with efforts to strengthen the region highlighted by the leadership changes and the upcoming U.S. listing.
Software and Services Growth
Approximately 35% of the backlog is software-related, with the Americas region having close to 50% software content.
Negative Updates
Revenue Decline
Net revenue declined by 10.5% in constant currency, mainly due to the non-reoccurrence of pent-up demand realization in FY '23 and tariff-related shipment delays.
Inventory Obsolescence
A $20 million inventory obsolescence expense was recorded due to the fast adoption of the Revelo platform, leading to a write-down of components.
Tariff-Related Challenges
Tariff-related shipment delays in March resulted in approximately $30 million of revenue shifting into FY '25, reflecting ongoing challenges posed by trade tariffs.
EMEA Performance Issues
Revenue in the EMEA region declined by 6.5% in constant currency due to project delays and softer performance in the UK and Turkey.
Company Guidance
During the Analyst and Investors Call for the full year 2024, Landis+Gyr outlined its financial and strategic performance, emphasizing strong order intake of $2.6 billion, which led to a book-to-bill ratio of 1.5. The company reported a record high backlog of $4.6 billion, reflecting a 22.9% year-over-year increase. Despite a revenue decline due to pent-up demand from FY 2023 and shipment delays, the adjusted EBITDA margin was 9.9%, aligning with updated guidance. Excluding one-off items, the margin was slightly higher at 10.4%. The Americas region, which is the most profitable segment with a 40% return on capital, accounted for 56% of the business. The company also achieved substantial sustainability milestones, including 96% renewable electricity usage and a 60% reduction in Scope 1 and 2 emissions since 2021. Looking forward, Landis+Gyr expects net revenue growth between 5% and 8% in FY 2025, with an adjusted EBITDA margin of 10.5% to 12%. The strategic focus remains on enhancing grid edge intelligence and expanding software and services, which now comprise 35% of the backlog.Landis+Gyr Group AG Financial Statement Overview
Summary
Landis+Gyr Group AG shows solid revenue growth and effective cost management, with a stable balance sheet and improving cash flow generation. However, challenges include a decreased net profit margin and reduced return on equity.Income Statement
Landis+Gyr Group AG has demonstrated solid revenue growth from 2023 to 2024, with a remarkable revenue growth rate of 16.75%. The gross profit margin stands at 30.5%, indicating efficient cost management. However, the net profit margin decreased to 5.6% from the previous year's 12.4%, suggesting a decline in profitability. The EBIT margin improved to 7.3%, reflecting better operating efficiency, while the EBITDA margin of 10.9% indicates healthy earnings before interest, taxes, depreciation, and amortization.75
Positive
Balance Sheet
The company maintains a strong balance sheet with an equity ratio of 63.2%, indicating financial stability. The debt-to-equity ratio is relatively low at 0.22, reflecting prudent leverage levels. Return on equity decreased to 7.1% from 13.7% last year, highlighting a reduction in profitability relative to shareholder equity.70
Positive
Cash Flow
Free cash flow improved significantly, turning positive with a growth rate of 220.92% from the previous year, which enhances financial flexibility. The company shows a strong operating cash flow to net income ratio of 1.10, indicating robust cash generation. However, a free cash flow to net income ratio of 0.81 suggests room for improvement in converting profits into cash flows.68
Positive
| Breakdown | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.96B | 1.68B | 1.46B | 1.36B | 1.70B |
| Gross Profit | 598.81M | 477.45M | 470.22M | 385.12M | 547.56M |
| EBITDA | 214.15M | 143.87M | 163.84M | -278.23M | 248.69M |
| Net Income | 109.98M | 207.93M | 79.40M | -392.39M | 113.75M |
Balance Sheet | |||||
| Total Assets | 2.44B | 2.42B | 2.29B | 2.16B | 2.78B |
| Cash, Cash Equivalents and Short-Term Investments | 127.84M | 117.37M | 84.85M | 140.55M | 319.38M |
| Total Debt | 335.40M | 276.25M | 332.49M | 258.15M | 424.87M |
| Total Liabilities | 892.88M | 895.03M | 890.46M | 783.67M | 986.63M |
| Stockholders Equity | 1.54B | 1.52B | 1.38B | 1.37B | 1.80B |
Cash Flow | |||||
| Free Cash Flow | 89.57M | -74.07M | 88.69M | 97.34M | 120.41M |
| Operating Cash Flow | 121.20M | -45.77M | 115.78M | 123.94M | 148.94M |
| Investing Cash Flow | -102.86M | 205.78M | -184.17M | -38.09M | -28.52M |
| Financing Cash Flow | -5.35M | -118.87M | 14.22M | -271.41M | 129.28M |
Landis+Gyr Group AG Technical Analysis
Positive
57.00
Price Trends
52.52
Positive
51.23
Positive
57.90
Negative
Market Momentum
1.37
Negative
61.47
Neutral
77.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LAND, the sentiment is Positive. The current price of 57 is above the 20-day moving average (MA) of 54.81, above the 50-day MA of 52.52, and below the 200-day MA of 57.90, indicating a neutral trend. The MACD of 1.37 indicates Negative momentum. The RSI at 61.47 is Neutral, neither overbought nor oversold. The STOCH value of 77.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:LAND.
Landis+Gyr Group AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | CHF85.46B | 23.56 | 31.34% | 1.57% | 2.15% | 15.03% | |
78 Outperform | CHF1.60B | 22.34 | 11.32% | 2.20% | 5.03% | 11.32% | |
71 Outperform | CHF1.64B | 15.08 | -6.00% | 2.02% | -4.03% | 77.12% | |
69 Neutral | CHF2.03B | 57.81 | 0.57% | 12.05% | 128.29% | ||
68 Neutral | CHF1.21B | 18.36 | 5.37% | -11.92% | 100.79% | ||
65 Neutral | $10.81B | 15.65 | 5.50% | 1.89% | 3.10% | -27.09% |
* Industrials Sector Average
Performance Comparison
CH:LAND
Landis+Gyr Group AG
57.00
-23.63
-29.30%
CH:OERL
OC Oerlikon Corporation AG
3.73
-0.97
-20.64%
CH:ABBN
ABB Ltd
46.78
-2.44
-4.95%
CH:HUBN
HUBER+SUHNER AG
86.40
10.67
14.09%
CH:COTN
COMET Holding AG
261.40
-111.86
-29.97%
Landis+Gyr Group AG Corporate Events
Landis+Gyr Achieves Record Order Intake Amid Strategic Transformation
May 2, 2025
Landis+Gyr reported strong fiscal year 2024 results with a record order intake of USD 2.6 billion and an order backlog of USD 4.6 billion, despite a decline in net sales due to one-time sales in 2023 and delivery delays. The company is undergoing a strategic transformation, including a review of its EMEA operations and a US listing, and expects sales growth of 5% to 8% in fiscal year 2025, supported by its robust order pipeline and Grid-Edge solutions.
Landis+Gyr Appoints New CFO to Drive Strategic Growth
Mar 14, 2025
Landis+Gyr Group AG has appointed Davinder Athwal as the new Chief Financial Officer, effective April 1, 2025. Athwal, who brings over 25 years of financial leadership experience, will succeed Elodie Carr-Cingari. His appointment aligns with the company’s strategic focus on growth in the Americas, leveraging his strong US background to drive operational efficiency and strategic initiatives.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.