LEM Holding SA (LEHN) AI Stock Analysis

• Market Cap: $829.50M
• Dividend Yield: 8.3%
• Average Volume (3M): 2.07K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 1.26
• Revenue Growth: -21.46%
• EPS Growth: -63.46%
• Country: CH
• Employees: 1,800
• Sector: Industrials
• Sector Strength: 82
• Industry: Electrical Equipment & Parts
• EPS (TTM): 3.25
• Shares Outstanding: 1,140,000
• 10 Day Avg. Volume: 1,478
• 30 Day Avg. Volume: 2,067
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $1,116.67
• Price Target Upside: 48.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

LEM Holding SA's overall stock score reflects a sound financial foundation with consistent profitability and effective equity use, albeit with concerns over operational efficiency and rising debt. The technical analysis suggests negative momentum, with the stock trading below key moving averages. Although the stock appears overvalued with a high P/E ratio, the substantial dividend yield provides a compensating benefit for investors seeking income.

Positive Factors

Future Valuation

Management's unchanged but slightly postponed FY-29/30 company target would still theoretically mean a bull-case fair value level of up to CHF 2,508.

Investment Opportunity

Medium- and longer-term oriented investors may find an attractive entry opportunity following the recent share price correction.

Market Growth

Underlying market growth opportunities should remain in the automotive and BEV sectors despite current destocking challenges.

Negative Factors

Operational Performance

Ongoing negative operational leverage visible in Q2-24/25.

Quarterly Performance

Q2-24/25 figures show a -10% / -7% / -28% deviation vs consensus order intake / sales / EBIT expectations, which is likely to be viewed negatively by the market.

Sales and Earnings Forecast

Sales forecasts for FY-24/25 and FY-25/26 have been reduced by 11% and 12%, respectively, and adjusted EBIT by 44% and 38%.

LEM Holding SA Business Overview & Revenue Model

Company Description

LEM Holding SA (LEHN) is a leading company in the design, manufacturing, and sale of electrical measurement products. The company operates primarily in the industrial and automotive sectors, offering an array of products such as current and voltage sensors that are critical for the efficient functioning of various electronic devices and systems. LEM's solutions are integral to applications in renewable energy, automation, and mobility, reflecting a commitment to sustainable technological advancement.

How the Company Makes Money

LEM Holding SA generates revenue through the sale of its high-quality sensors and measurement solutions. These products are utilized across various industries, including industrial automation, renewable energy, and automotive sectors. The company leverages its expertise in electrical measurement technologies to provide innovative solutions that meet the evolving demands of its clients. Key revenue streams include direct sales to manufacturers and distributors, as well as partnerships with companies requiring custom sensor solutions. LEM's robust R&D capabilities allow it to maintain a competitive edge, driving demand for its products globally.

LEM Holding SA Financial Statement Overview

Summary

LEM Holding SA maintains a strong financial position with steady profitability and effective equity utilization. The income statement shows consistent revenue with a slight recent decrease, stable profit margins, but challenges in operational efficiency indicated by declining EBIT and EBITDA margins. The balance sheet presents manageable leverage and effective equity use, although increasing debt warrants attention. Cash flows are stable, yet the decline in free cash flow growth raises concerns about future liquidity.

Income Statement

LEM Holding SA demonstrates consistent revenue with a slight decrease in the most recent fiscal year. Gross and net profit margins have remained relatively stable, with the latest gross profit margin at 46.6% and net profit margin at 16.1%. However, the company has experienced a decrease in EBIT and EBITDA margins, indicating potential challenges in operational efficiency.

Balance Sheet

The balance sheet shows a reasonable debt-to-equity ratio of 0.54, suggesting manageable leverage. Return on equity is healthy at 37.0%, reflecting effective use of shareholder equity. The equity ratio stands at 51.3%, indicating a balanced capital structure. However, the rise in total debt over recent years could pose a risk if not managed carefully.

Cash Flow

Operating cash flow decreased compared to the previous year, yet free cash flow remains positive, indicating the company can fund operations and investments. The operating cash flow to net income ratio is satisfactory at 1.14, suggesting good cash generation relative to reported earnings. However, the decline in free cash flow growth rate raises concerns about future liquidity.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
405.78M	406.35M	373.39M	300.97M	307.94M
	Gross Profit
189.16M	192.19M	177.28M	140.60M	142.75M
	EBIT
81.06M	92.39M	88.20M	59.70M	59.71M
	EBITDA
93.64M	106.98M	103.35M	73.45M	74.17M
	Net Income Common Stockholders
65.33M	75.34M	72.37M	55.60M	60.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.71M	21.77M	17.20M	22.42M	19.24M
	Total Assets
344.32M	332.48M	306.14M	266.42M	232.01M
	Total Debt
95.66M	73.62M	70.67M	31.36M	15.14M
	Net Debt
71.95M	51.85M	53.47M	8.95M	-4.10M
	Total Liabilities
167.65M	158.85M	144.94M	134.52M	114.65M
	Stockholders Equity
176.68M	173.63M	161.20M	131.90M	117.36M
Cash Flow		Free Cash Flow
45.27M	60.61M	28.91M	36.98M	58.64M
	Operating Cash Flow
74.42M	87.00M	50.43M	50.88M	73.62M
	Investing Cash Flow
-31.56M	-26.45M	-21.00M	-13.46M	-14.72M
	Financing Cash Flow
-39.80M	-54.93M	-34.64M	-35.05M	-51.26M

LEM Holding SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 750.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LEHN, the sentiment is Neutral. The current price of 750 is above the 20-day moving average (MA) of 671.00, above the 50-day MA of 732.88, and below the 200-day MA of 954.53, indicating a neutral trend. The MACD of 4.41 indicates Negative momentum. The RSI at 63.48 is Neutral, neither overbought nor oversold. The STOCH value of 83.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:LEHN.

LEM Holding SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMPN	75 Outperform	CHF865.39M	9.31	15.10%	1.83%	-1.03%	-34.58%
AUTN	69 Neutral	$767.64M	14.73	10.83%	2.12%	1.58%	-9.05%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
LEHN	62 Neutral	$829.50M	26.47	21.86%	8.30%	-21.46%	-63.46%
SENS	58 Neutral	€1.06B	―	-9.83%	―	18.58%	-339.05%
ARBN	55 Neutral	CHF423.03M	51.34		70.75%	―	―
BYS	45 Neutral	CHF536.66M	―	-9.88%	1.56%	-30.30%	-261.35%