LEM Holding SA (LEHN) AI Stock Analysis

• Market Cap: $640.36M
• Dividend Yield: 5.57%
• Average Volume (3M): 2.41K
• Price to Earnings (P/E): 76.3
• Beta (1Y): 1.42
• Revenue Growth: -24.36%
• EPS Growth: -87.16%
• Country: CH
• Employees: 1,800
• Sector: Technology
• Sector Strength: 91
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.75
• Shares Outstanding: 1,140,000
• 10 Day Avg. Volume: 2,323
• 30 Day Avg. Volume: 2,406
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 3.03
• Enterprise Value/Gross Profit: 7.02
• Enterprise Value/Ebitda: 61.19
• 1Y Price Target: $798.33
• Price Target Upside: 45.95% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: CHF730.00 ▲(33.46% Upside)

The overall stock score is low due to significant financial challenges, including declining revenue and profitability, as well as high financial leverage. The stock's technical outlook is bearish, and its valuation suggests overvaluation despite a reasonable dividend yield.

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, 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

LEH Holding SA generates revenue through multiple streams, primarily by investing in and managing a diversified portfolio of companies and assets. Key revenue streams include dividends and capital gains from equity investments in technology and renewable energy sectors, rental income from its real estate holdings, and profit-sharing agreements from joint ventures in sustainable projects. The company also engages in strategic partnerships with other firms to enhance its investment capabilities and market reach, which further contributes to its earnings. Additionally, LEH Holding may explore opportunities in asset management and advisory services, leveraging its expertise to provide tailored solutions for institutional and private investors.

LEM Holding SA Financial Statement Overview

Summary

LEM Holding SA is facing declining revenue and profitability, with negative revenue growth and reduced margins. The company has higher financial leverage and decreased cash flow generation, though it 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	306.92M	405.78M	406.35M	373.39M	300.97M
Gross Profit	132.59M	189.16M	192.19M	177.28M	140.60M
EBITDA	34.16M	93.64M	106.98M	103.35M	73.45M
Net Income	8.39M	65.33M	75.34M	72.37M	55.60M
Balance Sheet
Total Assets	345.60M	344.32M	332.48M	306.14M	266.42M
Cash, Cash Equivalents and Short-Term Investments	18.70M	23.71M	21.77M	17.20M	22.42M
Total Debt	142.91M	95.66M	73.62M	70.67M	31.36M
Total Liabilities	219.83M	167.65M	158.85M	144.94M	134.52M
Stockholders Equity	125.77M	176.68M	173.63M	161.20M	131.90M
Cash Flow
Free Cash Flow	14.61M	45.27M	60.61M	28.91M	36.98M
Operating Cash Flow	30.18M	74.42M	87.00M	50.43M	50.88M
Investing Cash Flow	-16.20M	-31.56M	-26.45M	-21.00M	-13.46M
Financing Cash Flow	-18.68M	-39.80M	-54.93M	-34.64M	-35.05M

LEM Holding SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 547.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

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 547 is below the 20-day moving average (MA) of 696.30, below the 50-day MA of 774.34, and below the 200-day MA of 792.04, indicating a bearish trend. The MACD of -72.57 indicates Positive momentum. The RSI at 20.10 is Positive, neither overbought nor oversold. The STOCH value of 3.09 is Positive, 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	CHF2.27B	25.22		2.26%	-0.84%	-8.41%
Sector *	57 Neutral	HK$14.83B	9.08	-0.60%	4.27%	7.14%	-38.21%
LEHN	45 Neutral	$640.36M	76.30	5.60%	5.57%	-24.36%	-87.16%
AUKUF	―	$1.26B	―	-9.68%	―	―	―
0QNH	―	CHF2.00B	28.00	11.32%	1.75%	―	―
LGYRF	―	$2.37B	16.11	-6.00%	1.99%	―	―
UBLXF	―	$1.27B	―	-20.37%	1.00%	―	―

LEM Holding SA Corporate Events

LEM Holding SA Reports Q1 2025/26 Results Amidst Market Challenges

LEM Holding SA reported a 6.5% decline in sales for Q1 2025/26, impacted by currency depreciation and price pressures in China. Despite challenges, the company saw growth in its Automotive and Track segments, with bookings increasing by 19% year-over-year. The ‘Fit for Growth’ program has started to positively impact efficiency, although EBIT and net profit margins have decreased. LEM continues to focus on innovation and market expansion, particularly in China, while navigating uncertainties related to US tariffs and currency fluctuations.

LEM Holding SA Approves All Proposals at Annual General Meeting

LEM Holding SA successfully held its Annual General Meeting, where 80.42% of the share capital entitled to vote was represented. The meeting saw the approval of all resolutions proposed by the Board of Directors, including the re-election of board members and the confirmation of Andreas Hürlimann as Chairman. The compensation for the Board and Executive Management was also approved, along with consultative votes on the compensation report and non-financial matters. This meeting reinforces LEM’s stable governance and strategic direction, potentially boosting stakeholder confidence and maintaining its strong industry positioning.

LEM Holding SA Reports Challenging Year with Signs of Recovery

LEM Holding SA reported a challenging financial year 2024/25 with a 24.4% decline in sales, but signs of recovery were noted in the second half, particularly in China and the automotive sector. The company’s ‘Fit for Growth’ program aims to improve EBIT significantly in the coming years, despite current profitability challenges and global economic uncertainties. The Board of Directors proposed not to pay a dividend for the year due to these uncertainties. LEM remains focused on innovation and strengthening its market position, especially in China, to leverage global trends in electrification and e-mobility.