LEM Holding SA (LEHN) AI Stock Analysis

• Market Cap: CHF339.55M
• Dividend Yield: N/A
• Average Volume (3M): 3.27K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 1.09
• Revenue Growth: -11.90%
• EPS Growth: -78.34%
• Country: CH
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.06
• Shares Outstanding: 1,140,000
• 10 Day Avg. Volume: 3,552
• 30 Day Avg. Volume: 3,265
• PEG Ratio: -1.10
• Price to Book (P/B): 6.42
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 55.28
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF367.50
• Price Target Upside: 23.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 14.13
• Revenue Forecast (FY): CHF285.43M

• Rating: 54 Neutral
• Price Target: CHF334.00 ▲(12.08% Upside)
• Action: Reiterated Date: 02/07/26
• Date: Action: Reiterated 02/07/26

The score is primarily held back by weakening financial performance (declining revenue, compressed margins, and lower free cash flow) and an expensive valuation (high P/E). These are partially offset by mixed-to-improving operating execution noted on the earnings call (cost actions and better cash flow) and a near-term technical setup that is improving but still constrained by negative longer-term trend signals.

Positive Factors

Diversified holding model

LEM’s diversified holding model spreads revenue and cash generation across multiple sectors and subsidiary business models. That diversification reduces dependence on any single cyclical end market, smoothing earnings and providing management flexibility to allocate capital where returns are highest over the medium term.

Cost reduction program

Material and sustained cost reductions from the Fit for Growth program improve operating leverage and structural margins. Lower fixed costs and leaner R&D/SG&A increase the likelihood management can achieve targeted EBIT corridors and sustain profitability even if top-line recovery is gradual.

Improved cash generation

The swing to positive operating cash flow reflects better working-capital management and the impact of cost actions, strengthening liquidity. More reliable cash generation supports debt servicing, reinvestment in plants (eg Malaysia), and cushions the business during cyclical downturns over the coming quarters.

Negative Factors

Revenue and margin deterioration

A sharp multi-quarter revenue decline and compressed net and operating margins materially reduce internal funding for growth, lower return on equity, and make it harder to meet medium-term margin targets. Prolonged weakness diminishes scale economics and raises execution risk.

Rising leverage

Higher leverage reduces financial flexibility and raises interest and refinancing risk, particularly while revenue and free cash flow are depressed. A leveraged capital structure limits the company's ability to invest in strategic initiatives or absorb further operating shocks without materially increasing financing costs.

Structural regional and sector headwinds

Persistent overcapacity, price pressure in Renewables, regional contraction in EMEA and intensified Chinese competition present structural threats to revenue mix and margins. These dynamics can limit sustainable growth and force ongoing price/mix concessions, challenging medium-term recovery plans.

LEM Holding SA Business Overview & Revenue Model

Company Description

LEM Holding SA, together with its subsidiaries, provides solutions for measuring electrical parameters in China, the United States, Germany, Japan, Italy, Switzerland, and internationally. It operates in two segments, Industry and Automotive. The Industry segment develops, manufactures, and sells transducers for the measurement of current and voltage of various industrial applications. The Automotive segment develops, manufactures, and sells transducers for applications in automotive markets. The company also offers energy meters; smart electronic battery sensors and shunts; and integrators. Its products are used in various applications, such as drives, welding, renewable energies, power supplies, traction, high-precision, trackside, automation, automotive battery management and motor control, smart grid, electric vehicle chargers, conventional and green cars businesses, as well as for AC/DC converters, uninterrupted power supply systems for computers, micro turbines, and wind and solar power generation. The company was founded in 1972 and is based in Plan-les-Ouates, Switzerland.

How the Company Makes Money

LEHN generates revenue primarily through its ownership stakes in subsidiary companies across different sectors. The company earns income from dividends received from these subsidiaries, as well as capital gains from the sale of assets. Additionally, LEHN may engage in management fees charged to its subsidiaries for providing strategic guidance and operational support. The company's diversified portfolio helps mitigate risks and stabilize earnings, while partnerships with industry leaders further enhance its revenue-generating capabilities through collaborative initiatives and shared resources.

LEM Holding SA Financial Statement Overview

Summary

Financials are pressured by a sharp revenue decline (-24.34%) and weaker profitability (net margin ~2.73% with declining EBIT/EBITDA margins). Leverage has risen (debt-to-equity ~1.14) and free cash flow fell significantly (-67.73%), though cash flow conversion vs. net income remains relatively strong (operating cash flow to net income ~3.60).

Income Statement

LEM Holding SA has shown a decline in revenue and profitability over the last year. The gross profit margin is around 43.21%, which indicates efficient cost management but has decreased from prior years. The net profit margin has also dropped to 2.73%, reflecting a significant decrease in net income. EBIT and EBITDA margins are at 6.15% and 11.13% respectively, both showing a downward trend. Revenue growth rate is negative at -24.34%, indicating a concerning drop in sales.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.14, reflecting higher leverage, which could pose a risk if not managed effectively. Return on equity stands at a low 6.67%, indicating reduced profitability for shareholders. The equity ratio is 36.39%, showing a decent portion of assets funded by equity, but has been declining, suggesting an increase in financial risk.

Cash Flow

Operating cash flow has decreased significantly, impacting the company's liquidity, with a ratio of operating cash flow to net income at 3.60, which is relatively strong despite a drop. Free cash flow growth rate is negative at -67.73%, indicating a decline in free cash generated. The free cash flow to net income ratio is 1.74, suggesting adequate but decreasing cash flow management.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	298.63M	306.92M	405.78M	406.35M	373.39M	300.97M
Gross Profit	122.31M	132.59M	189.16M	192.19M	177.28M	140.60M
EBITDA	13.91M	34.16M	93.64M	106.98M	103.35M	73.45M
Net Income	6.61M	8.39M	65.33M	75.34M	72.37M	55.60M
Balance Sheet
Total Assets	325.41M	345.60M	344.32M	332.48M	306.14M	266.42M
Cash, Cash Equivalents and Short-Term Investments	20.43M	18.70M	23.71M	21.77M	17.20M	22.42M
Total Debt	134.18M	142.91M	95.66M	73.62M	70.67M	31.36M
Total Liabilities	194.44M	219.83M	167.65M	158.85M	144.94M	134.52M
Stockholders Equity	130.96M	125.77M	176.68M	173.63M	161.20M	131.90M
Cash Flow
Free Cash Flow	34.78M	14.61M	45.27M	60.61M	28.91M	36.98M
Operating Cash Flow	42.51M	30.18M	74.42M	87.00M	50.43M	50.88M
Investing Cash Flow	-11.35M	-16.20M	-31.56M	-26.45M	-21.00M	-13.46M
Financing Cash Flow	-28.34M	-18.68M	-39.80M	-54.93M	-34.64M	-35.05M

LEM Holding SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 298.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LEHN, the sentiment is Negative. The current price of 298 is below the 20-day moving average (MA) of 317.07, below the 50-day MA of 298.65, and below the 200-day MA of 512.82, indicating a bearish trend. The MACD of 2.83 indicates Positive momentum. The RSI at 42.97 is Neutral, neither overbought nor oversold. The STOCH value of 42.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:LEHN.

LEM Holding SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IFCN	75 Outperform	CHF2.89B	37.90	―	2.14%	-0.84%	-8.41%
HUBN	67 Neutral	CHF3.33B	11.24	11.64%	1.32%	13.03%	20.38%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UBXN	58 Neutral	CHF1.02B	-26.67	-20.37%	―	-27.51%	-36.15%
LEHN	54 Neutral	CHF339.55M	20.05	5.19%	―	-11.90%	-78.34%
LAND	52 Neutral	CHF1.48B	-2.99	-9.35%	2.22%	-32.13%	-386.99%
AMS	44 Neutral	CHF782.50M	-6.44	-14.27%	―	-5.48%	79.75%

LEM Holding SA Corporate Events

LEM Holds Margins and Lifts Guidance as Market Stabilizes Despite Currency Drag

LEM reported essentially flat sales at constant currencies for the first nine months of 2025/26, as growth in Automation and Automotive was offset by weakness in Renewable Energy and Energy Distribution & High Precision, while a strong Swiss franc pushed reported revenue down 5.4% to CHF 218.4 million. Bookings and the book-to-bill ratio signaled stabilization, particularly in data-center-related applications, and gross margin held at 39.8% thanks to pricing discipline and productivity gains. The “Fit for Growth” efficiency program sharply reduced SG&A, supporting an 8.5% EBIT margin and stable net profit despite pricing pressure in China, softer EV infrastructure investment and regional divergences in demand. On the back of this resilience and operational improvements, LEM raised its full-year sales guidance to CHF 275–290 million and is targeting a high single-digit EBIT margin, positioning itself to capture medium-term growth from data centers, electrification and e-mobility even as near-term market conditions remain uncertain.

The most recent analyst rating on (CH:LEHN) stock is a Sell with a CHF260.00 price target. To see the full list of analyst forecasts on LEM Holding SA stock, see the CH:LEHN Stock Forecast page.

LEM Holding SA Reports Stable Sales and Updates Financial Ambitions Amid Currency Challenges

LEM Holding SA reported stable sales at constant exchange rates for the first half of 2025/26, despite a 5.3% decline in reported sales due to currency fluctuations. The company saw growth in its Automotive, Track, and Automation segments, with a notable rebound in gross profit margin and EBIT recovery, supported by its ‘Fit for Growth’ efficiency program. LEM updated its mid-term financial ambitions, targeting sustainable sales growth and improved EBIT margins, while navigating uncertainties related to global tariffs and geopolitical movements.

The most recent analyst rating on (CH:LEHN) stock is a Hold with a CHF540.00 price target. To see the full list of analyst forecasts on LEM Holding SA stock, see the CH:LEHN Stock Forecast page.