LEM Holding SA (LEHN) AI Stock Analysis

• Market Cap: $495.08M
• Dividend Yield: N/A
• Average Volume (3M): 3.27K
• Price to Earnings (P/E): 59.0
• Beta (1Y): 1.31
• Revenue Growth: -11.90%
• EPS Growth: -78.34%
• Country: CH
• Employees: 1,800
• Sector: Technology
• Sector Strength: 88
• Industry: Electrical Equipment & Parts
• EPS (TTM): 4.18
• 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: 1.88
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 61.19
• 1Y Price Target: $405.74
• Price Target Upside: 28.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: CHF417.00 ▲(32.38% Upside)

LEM Holding SA's overall stock score is primarily impacted by its declining financial performance and bearish technical indicators. The high P/E ratio further suggests overvaluation, while the earnings call provided some positive insights but did not significantly alter the overall negative outlook.

Positive Factors

Strategic Geographic Expansion

The successful establishment of a new plant in Malaysia demonstrates effective geographic diversification, potentially reducing operational risks and enhancing market reach.

Improved Cash Flow

Enhanced cash flow indicates better liquidity management, which supports ongoing operations and potential reinvestment in growth initiatives.

Successful Cost Reduction Initiatives

Effective cost management through the Fit for Growth program enhances profitability and allows for more strategic allocation of resources.

Negative Factors

Decline in Revenue Growth

A significant decline in revenue growth suggests challenges in market demand or competitive positioning, potentially impacting long-term financial health.

Rising Financial Leverage

Increased leverage can strain financial flexibility and elevate risk, especially if revenue and profitability do not improve.

Weakness in Renewable Energy Segment

Challenges in the Renewable Energy segment, including price pressures and overcapacity, could hinder growth in a key strategic area.

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

LEM Holding SA is experiencing declining revenue and profitability, with a negative revenue growth rate of -24.34%. The company's financial leverage has increased, and cash flow generation has decreased significantly. Despite these challenges, the company maintains a reasonable cash flow to net income ratio.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	306.92M	306.92M	405.78M	406.35M	373.39M	300.97M
Gross Profit	132.59M	132.59M	189.16M	192.19M	177.28M	140.60M
EBITDA	15.22M	34.16M	93.64M	106.98M	103.35M	73.45M
Net Income	8.39M	8.39M	65.33M	75.34M	72.37M	55.60M
Balance Sheet
Total Assets	345.60M	345.60M	344.32M	332.48M	306.14M	266.42M
Cash, Cash Equivalents and Short-Term Investments	18.70M	18.70M	23.71M	21.77M	17.20M	22.42M
Total Debt	142.91M	142.91M	95.66M	73.62M	70.67M	31.36M
Total Liabilities	219.83M	219.83M	167.65M	158.85M	144.94M	134.52M
Stockholders Equity	125.77M	125.77M	176.68M	173.63M	161.20M	131.90M
Cash Flow
Free Cash Flow	15.91M	14.61M	45.27M	60.61M	28.91M	36.98M
Operating Cash Flow	30.18M	30.18M	74.42M	87.00M	50.43M	50.88M
Investing Cash Flow	-16.20M	-16.20M	-31.56M	-26.45M	-21.00M	-13.46M
Financing Cash Flow	-18.68M	-18.68M	-39.80M	-54.93M	-34.64M	-35.05M

LEM Holding SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 315.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 315 is below the 20-day moving average (MA) of 320.55, below the 50-day MA of 413.82, and below the 200-day MA of 637.62, indicating a bearish trend. The MACD of -28.29 indicates Negative momentum. The RSI at 29.82 is Positive, neither overbought nor oversold. The STOCH value of 61.94 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
HUBN	78 Outperform	CHF2.73B	37.28	11.64%	1.28%	13.03%	20.38%
IFCN	69 Neutral	CHF2.33B	25.79	―	2.03%	-0.84%	-8.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UBXN	58 Neutral	$1.02B	-8.98	-20.37%	―	-27.51%	-36.15%
LAND	47 Neutral	CHF1.53B	―	-9.35%	2.17%	-32.13%	-386.99%
LEHN	45 Neutral	$495.08M	58.99	5.19%	―	-11.90%	-78.34%
AMS	42 Neutral	$751.33M	―	-14.27%	―	-5.48%	79.75%

LEM Holding SA Corporate Events

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.

LEM Holding SA to Announce Half-Year Results for 2025/26

LEM Holding SA is set to release its half-year results for 2025/26 on November 10, 2025. The announcement will be accompanied by a media and investor conference call and audio webcast, where CEO Frank Rehfeld and CFO Antoine Chulia will discuss the results and provide an outlook for the financial year. This event is significant for stakeholders as it offers insights into the company’s performance and strategic direction in the evolving energy and mobility sectors.