LEM Holding SA (LEHN) AI Stock Analysis

• Market Cap: $1.02B
• Dividend Yield: 5.57%
• Average Volume (3M): 1.54K
• Price to Earnings (P/E): 121.9
• Beta (1Y): 1.37
• Revenue Growth: -24.36%
• EPS Growth: -87.16%
• Country: CH
• Employees: 1,800
• Sector: Industrials
• Sector Strength: 94
• Industry: Electrical Equipment & Parts
• EPS (TTM): N/A
• Shares Outstanding: 1,140,000
• 10 Day Avg. Volume: 1,469
• 30 Day Avg. Volume: 1,537
• PEG Ratio: -1.62
• Price to Book (P/B): 7.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 61.88
• 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: $977.82
• Price Target Upside: 8.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 56 Neutral
• Price Target: CHF864.00 ▼(-3.79%Downside)

The overall score of 56 reflects significant financial challenges, including declining revenue and profitability, and high financial leverage. While technical analysis indicates positive momentum, the stock appears overvalued based on its high P/E ratio. The dividend yield provides some compensation for investors.

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 global company specializing in the design and manufacture of innovative and high-quality solutions for measuring electrical parameters. The company operates primarily in the industrial and automotive sectors, offering a wide range of products such as current and voltage sensors. LEM's products are crucial for applications in renewable energy, automation, and electric vehicles, contributing to efficiency and sustainability.

How the Company Makes Money

LEM Holding SA generates revenue through the sale of its electrical measurement products, particularly current and voltage sensors, to a diverse range of industries. The company's key revenue streams include the industrial and automotive sectors, where its products are integral to applications like renewable energy systems, factory automation, and electric vehicle powertrains. LEM's strong focus on innovation and R&D allows it to maintain a competitive edge and meet the evolving needs of its clients. Additionally, LEM has established significant partnerships with major OEMs and suppliers in the automotive and industrial markets, further enhancing its revenue potential. The company's global presence and customer-centric approach contribute to its sustained earnings growth.

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: Positive
• Last Price: 898.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 898 is above the 20-day moving average (MA) of 865.20, above the 50-day MA of 817.90, and above the 200-day MA of 834.64, indicating a bullish trend. The MACD of 23.38 indicates Negative momentum. The RSI at 66.13 is Neutral, neither overbought nor oversold. The STOCH value of 80.46 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IMPN	75 Outperform	CHF977.95M	10.52	15.10%	1.70%	-1.03%	-34.58%
AUTN	72 Outperform	$894.22M	17.16	10.83%	1.82%	1.58%	-9.05%
Sector *	58 Neutral	HK$14.89B	4.77	-2.78%	5.38%	3.80%	-54.55%
SENS	58 Neutral	CHF1.30B	―	-9.50%	―	18.58%	-339.05%
LEHN	56 Neutral	$1.02B	121.94	5.60%	5.57%	-24.36%	-87.16%
ARBN	54 Neutral	CHF400.22M	48.57		74.78%	―	―
BYS	45 Neutral	CHF792.07M	―	-9.18%	1.04%	-30.30%	-261.35%

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.

The most recent analyst rating on (CH:LEHN) stock is a Buy with a CHF1525.00 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 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.

The most recent analyst rating on (CH:LEHN) stock is a Buy with a CHF1525.00 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 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.

The most recent analyst rating on (CH:LEHN) stock is a Buy with a CHF1525.00 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 Announces 2024/25 Annual Results Conference

LEM Holding SA has announced an upcoming conference to present its financial results for the year 2024/25. The event, scheduled for May 27, 2025, in Zurich, will feature presentations from key executives and provide an opportunity for investors and analysts to engage in a Q&A session. This announcement underscores LEM’s commitment to transparency and stakeholder engagement, potentially impacting its market perception and investor relations positively.