Rieter Holding AG (RIEN) AI Stock Analysis

• Market Cap: CHF320.23M
• Dividend Yield: 2.79%
• Average Volume (3M): 15.38K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.17
• Revenue Growth: -39.44%
• EPS Growth: -85.89%
• Country: CH
• Employees: 4,785
• Sector: Industrials
• Sector Strength: 80
• Industry: Industrial - Machinery
• EPS (TTM): 2.33
• Shares Outstanding: 4,672,363
• 10 Day Avg. Volume: 11,463
• 30 Day Avg. Volume: 15,384
• PEG Ratio: 0.26
• 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: CHF101.00
• Price Target Upside: 38.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Rieter Holding AG faces significant challenges with declining revenues and profitability, impacting its overall financial strength. Technical indicators point to a bearish trend, and the stock might be overvalued based on its P/E ratio, despite a decent dividend yield. The company needs to address financial and operational weaknesses to improve its stock performance.

Rieter Holding AG Business Overview & Revenue Model

Company Description

Rieter Holding AG, together with its subsidiaries, supplies systems for short-staple fiber spinning in Switzerland and internationally. The company operates through three segments: Machines & Systems, Components, and After Sales. The Machines & Systems segment develops and manufactures machinery and systems for processing natural and man-made fibers, as well as their blends into yarns. This segment offers blowrooms and carding machines for fiber preparation; draw frames, combing machines, and rowing frames for spinning preparation; and ring, compact, rotor, and air jet spinning machines for end spinning. The Components segment supplies technology components to spinning mills and textile machinery manufacturers, as well as precision winding machines. This segment offers its products under the Accotex, Bräcker, Graf, Novibra, SSM, Suessen, and Temco brands. The After Sales segment develops, produces, and distributes spare parts for the company's machines; sells technology components; and provides services that enable its customers to enhance their spinning mills, as well as building conversions and modernization services. The company was founded in 1795 and is headquartered in Winterthur, Switzerland.

How the Company Makes Money

Rieter Holding AG generates revenue primarily through the sale of its textile machinery and technology components. The company's business is structured around three segments: Machines & Systems, Components, and After Sales. The Machines & Systems segment focuses on providing complete systems for fiber spinning, which is a major revenue driver. The Components segment supplies critical parts and technology for spinning machines, offering high-quality components that enhance efficiency and performance. The After Sales segment provides maintenance, repair, and upgrade services, as well as spare parts, ensuring operational continuity for customers. Rieter's revenue model is strongly supported by its global presence and the establishment of long-term customer relationships. Additionally, the company forms partnerships with various stakeholders in the textile industry to innovate and offer integrated solutions that meet the evolving needs of its clients.

Rieter Holding AG Financial Statement Overview

Summary

Rieter Holding AG is struggling with declining revenue and margins, impacting its financial health. The balance sheet is stable with a moderate debt-to-equity ratio, but cash flow challenges are notable. Overall, the financial performance is mediocre, with a need to improve revenue and cost management.

Income Statement

Rieter Holding AG has experienced a significant decline in revenue from 2023 to 2024, with a revenue drop from 1.42 billion to 859 million. The gross profit margin has also decreased, indicating potential pricing pressure or increased cost of goods sold. The net profit margin declined sharply, reflecting lower profitability. The EBIT and EBITDA margins also contracted, which suggests a reduction in operational efficiency.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced leverage position. The equity ratio has improved slightly, suggesting some stability in the financial structure. However, the return on equity has decreased, reflecting the impact of lower net income on shareholder returns.

Cash Flow

Rieter Holding AG reported a substantial decrease in free cash flow from the previous year. The operating cash flow to net income ratio indicates a challenge in converting earnings to cash. While the company has generated positive operating cash flow, the decrease in free cash flow highlights potential issues in capital expenditure management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
859.10M	1.42B	1.51B	969.20M	573.00M
	Gross Profit
263.40M	380.30M	329.00M	276.50M	133.80M
	EBIT
28.00M	101.70M	32.20M	47.60M	-87.50M
	EBITDA
81.80M	162.40M	76.90M	82.00M	-45.80M
	Net Income Common Stockholders
10.50M	74.00M	12.10M	31.70M	-89.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
103.40M	135.90M	176.10M	249.40M	283.20M
	Total Assets
1.22B	1.31B	1.54B	1.44B	963.50M
	Total Debt
333.70M	327.10M	461.70M	411.30M	241.90M
	Net Debt
230.50M	191.50M	286.00M	162.60M	-40.40M
	Total Liabilities
807.40M	933.30M	1.18B	1.04B	612.60M
	Stockholders Equity
410.90M	376.60M	359.90M	395.80M	350.60M
Cash Flow		Free Cash Flow
10.70M	26.60M	-122.90M	127.10M	-78.40M
	Operating Cash Flow
36.30M	69.30M	-76.20M	165.70M	-49.80M
	Investing Cash Flow
-21.10M	49.40M	-30.20M	-352.90M	-25.00M
	Financing Cash Flow
-50.30M	-151.60M	34.90M	151.40M	78.00M

Rieter Holding AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 73.00
• 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:RIEN, the sentiment is Neutral. The current price of 73 is above the 20-day moving average (MA) of 66.29, below the 50-day MA of 74.05, and below the 200-day MA of 86.23, indicating a neutral trend. The MACD of 0.38 indicates Negative momentum. The RSI at 65.44 is Neutral, neither overbought nor oversold. The STOCH value of 89.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:RIEN.

Rieter Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OERL	73 Outperform	CHF1.31B	19.77		4.99%	-11.92%	100.79%
Sector *	64 Neutral	$4.24B	11.64	5.23%	249.83%	4.07%	-10.54%
KOMN	54 Neutral	CHF539.40M	99.21		2.84%	-16.31%	-107.34%
RIEN	47 Neutral	CHF320.23M	30.76		2.79%	-39.44%	-85.89%

Rieter Holding AG Corporate Events

Rieter AG Acquires Barmag to Boost Market Leadership

Rieter Holding AG has announced the acquisition of Barmag from OC Oerlikon, a strategic move aimed at accelerating its growth strategy and establishing itself as a market leader in the natural and chemical fibers sector. This acquisition is expected to enhance Rieter’s market positioning and potentially impact its operations positively, offering new opportunities for stakeholders in the textile machinery industry.