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LEM Holding SA (CH:LEHN)
:LEHN

LEM Holding SA (LEHN) AI Stock Analysis

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LEM Holding SA

(OTC:LEHN)

Rating:62Neutral
Price Target:
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 (LEHN) vs. iShares MSCI Switzerland ETF (EWL)

LEM Holding SA Business Overview & Revenue Model

Company DescriptionLEM 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 MoneyLEM 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
75
Positive
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
72
Positive
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
70
Positive
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
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
338.99M405.78M406.35M373.39M300.97M307.94M
Gross Profit
153.52M189.16M192.19M177.28M140.60M142.75M
EBIT
43.56M81.06M92.39M88.20M59.70M59.71M
EBITDA
48.04M93.64M106.98M103.35M73.45M74.17M
Net Income Common Stockholders
30.51M65.33M75.34M72.37M55.60M60.69M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.71M23.71M21.77M17.20M22.42M19.24M
Total Assets
344.32M344.32M332.48M306.14M266.42M232.01M
Total Debt
95.66M95.66M73.62M70.67M31.36M15.14M
Net Debt
71.95M71.95M51.85M53.47M8.95M-4.10M
Total Liabilities
167.65M167.65M158.85M144.94M134.52M114.65M
Stockholders Equity
176.68M176.68M173.63M161.20M131.90M117.36M
Cash FlowFree Cash Flow
12.28M45.27M60.61M28.91M36.98M58.64M
Operating Cash Flow
34.48M74.42M87.00M50.43M50.88M73.62M
Investing Cash Flow
-23.64M-31.56M-26.45M-21.00M-13.46M-14.72M
Financing Cash Flow
-16.43M-39.80M-54.93M-34.64M-35.05M-51.26M

LEM Holding SA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price807.00
Price Trends
50DMA
714.30
Positive
100DMA
780.79
Positive
200DMA
915.37
Negative
Market Momentum
MACD
12.28
Positive
RSI
63.62
Neutral
STOCH
74.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:LEHN, the sentiment is Positive. The current price of 807 is above the 20-day moving average (MA) of 770.80, above the 50-day MA of 714.30, and below the 200-day MA of 915.37, indicating a neutral trend. The MACD of 12.28 indicates Positive momentum. The RSI at 63.62 is Neutral, neither overbought nor oversold. The STOCH value of 74.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:LEHN.

LEM Holding SA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
$4.49B12.285.32%248.53%4.08%-12.00%
62
Neutral
$895.59M109.585.60%8.30%-21.46%-63.46%
$1.01B17.0810.83%
CHF761.05M486.72-9.88%1.09%
$1.19B11.0815.10%1.60%
59
Neutral
CHF392.62M48.07
76.23%
DE1Q3
€1.16B-9.50%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:LEHN
LEM Holding SA
807.00
-655.24
-44.81%
ATNNF
Autoneum Holding AG
174.18
93.54
116.00%
GB:0QW1
Bystronic
370.00
-50.88
-12.09%
IPLNF
Implenia AG
63.38
26.42
71.48%
CH:ARBN
Arbonia AG
5.73
-0.43
-6.98%
DE:1Q3
Sensirion Holding AG
76.30
46.40
155.18%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.