Landis+Gyr Group AG (LAND) AI Stock Analysis

• Market Cap: $1.53B
• Dividend Yield: 3.48%
• Average Volume (3M): 79.33K
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.82
• Revenue Growth: -4.03%
• EPS Growth: 77.12%
• Country: CH
• Employees: 6,300
• Sector: Industrials
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): -5.66
• Shares Outstanding: 28,908,943
• 10 Day Avg. Volume: 85,223
• 30 Day Avg. Volume: 79,334
• PEG Ratio: 0.06
• Price to Book (P/B): 1.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -29.79
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 0.27
• Enterprise Value/Gross Profit: 3.16
• Enterprise Value/Ebitda: 2.67
• 1Y Price Target: $61.00
• Price Target Upside: 10.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 71 Outperform
• Price Target: ―

Landis+Gyr Group AG demonstrates strong revenue growth and financial stability but faces challenges with declining profitability margins. Technical indicators show mixed signals, with short-term momentum but potential overbought conditions. Valuation is reasonable, supported by a solid dividend yield. Earnings call insights reveal strong strategic initiatives but highlight some performance concerns, especially in the EMEA region.

Positive Factors

Book-to-bill ratio

Record bookings resulted in a book-to-bill of 1.5x, indicating strong demand and future revenue potential.

Divestment and U.S. listing

Strategic initiatives including divesting the EMEA business and a U.S. listing are catalysts for margin and multiple expansions.

Smart grid rollouts

Landis+Gyr is well positioned to capture momentum with the next wave of smart grid rollouts as it increases focus on the U.S.

Negative Factors

Inventory obsolescence

Fast adoption of Revelo led to inventory obsolescence, resulting in a $20 million write-off.

Lowered financial guidance

The recent strategic review from new management resulted in lowered FY24 guidance and the decision to exit non-core EV charging business which has been a margin drag.

Revenue guidance

FY25 revenue guidance was modestly below consensus, potentially impacting investor expectations.

Landis+Gyr Group AG Business Overview & Revenue Model

Company Description

Landis+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 Money

Landis+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 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.

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.

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.

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
	EBIT
144.15M	61.69M	82.34M	35.75M	162.34M
	EBITDA
214.15M	143.87M	163.84M	-278.23M	248.69M
	Net Income Common Stockholders
109.98M	207.93M	79.40M	-392.39M	113.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
127.84M	117.37M	84.85M	140.55M	319.38M
	Total Assets
2.44B	2.42B	2.29B	2.16B	2.78B
	Total Debt
335.40M	276.25M	332.49M	258.15M	424.87M
	Net Debt
207.56M	158.88M	247.64M	117.60M	105.49M
	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

• Technical Analysis Sentiment: Positive
• Last Price: 55.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 55 is above the 20-day moving average (MA) of 52.57, above the 50-day MA of 50.86, and below the 200-day MA of 60.72, indicating a neutral trend. The MACD of 0.48 indicates Negative momentum. The RSI at 64.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.57 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ABBN	78 Outperform	CHF87.12B	24.02	31.34%	1.89%	2.15%	15.03%
HUBN	78 Outperform	CHF1.56B	21.88	11.32%	2.26%	5.03%	11.32%
OERL	73 Outperform	CHF1.25B	18.98		5.19%	-11.92%	100.79%
LAND	71 Outperform	$1.53B	15.08	-6.00%	3.48%	-4.03%	77.12%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
COTN	65 Neutral	CHF1.87B	53.12		0.62%	12.05%	128.29%

Landis+Gyr Group AG Corporate Events

Landis+Gyr Achieves Record Order Intake Amid Strategic Transformation

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

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.