Rieter Holding AG (RIEN) AI Stock Analysis

• Market Cap: CHF416.80M
• Dividend Yield: 7.07%
• Average Volume (3M): 601.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: -28.40%
• EPS Growth: -117.97%
• Country: CH
• Employees: 4,785
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.52
• Shares Outstanding: 136,057,710
• 10 Day Avg. Volume: 699,239
• 30 Day Avg. Volume: 601,241
• PEG Ratio: -0.42
• Price to Book (P/B): 0.93
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 35.73
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: CHF3.00 ▼(-10.18% Downside)

Rieter Holding AG's overall stock score is primarily impacted by its declining financial performance and bearish technical indicators. The valuation is concerning with a negative P/E ratio and unsustainable dividend yield. The absence of earnings call insights and corporate events further limits positive outlook.

Positive Factors

Business Model Strength

Rieter's business model, centered on spinning machinery and components, ensures a steady revenue stream from the textile sector, supporting long-term stability.

Market Position

As a leading supplier in the textile machinery sector, Rieter benefits from a strong market position, enhancing its ability to capture market share and drive growth.

Innovation and Technology

Rieter's focus on innovation and technology strengthens its competitive edge, enabling adaptation to market demands and supporting long-term growth.

Negative Factors

Revenue Decline

A significant revenue decline indicates challenges in maintaining sales momentum, potentially impacting long-term financial health and market competitiveness.

Profitability Challenges

Decreased profitability margins suggest operational inefficiencies and pricing pressures, which could hinder future earnings and investment capacity.

Cash Flow Issues

Reduced free cash flow highlights potential capital expenditure management issues, limiting the company's ability to invest in growth and innovation.

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 generates revenue primarily through the sale of its textile machinery and systems, which are essential for the production of yarns in spinning mills. The Machine Systems segment is a significant revenue driver, as it provides complete spinning solutions that are sold to textile manufacturers worldwide. Additionally, the After Sales segment contributes to the company's earnings by offering maintenance, spare parts, and upgrades for existing machinery, ensuring a continuous revenue stream beyond the initial sale. The Components segment further enhances profitability by supplying essential components for spinning processes. Strategic partnerships with textile manufacturers and ongoing investment in innovation and technology also play a crucial role in Rieter's revenue generation, enabling the company to maintain a competitive edge in the market.

Rieter Holding AG Financial Statement Overview

Summary

Rieter Holding AG is facing challenges with declining revenue and profitability, impacting its financial health. The balance sheet remains relatively stable, but the cash flow situation needs improvement to support future growth and operational needs.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	774.30M	859.10M	1.42B	1.51B	969.20M	573.00M
Gross Profit	224.30M	263.40M	380.30M	329.00M	276.50M	133.80M
EBITDA	53.70M	81.80M	162.40M	76.90M	82.00M	-45.80M
Net Income	-11.30M	10.50M	74.00M	12.10M	31.70M	-89.80M
Balance Sheet
Total Assets	1.16B	1.22B	1.31B	1.54B	1.44B	963.50M
Cash, Cash Equivalents and Short-Term Investments	108.20M	103.40M	135.90M	176.10M	249.40M	283.20M
Total Debt	394.00M	333.70M	327.10M	461.70M	411.30M	241.90M
Total Liabilities	803.40M	807.40M	933.30M	1.18B	1.04B	612.60M
Stockholders Equity	355.90M	410.90M	376.60M	359.90M	395.80M	350.60M
Cash Flow
Free Cash Flow	-39.40M	10.70M	26.60M	-122.90M	127.10M	-78.40M
Operating Cash Flow	-20.60M	36.30M	69.30M	-76.20M	165.70M	-49.80M
Investing Cash Flow	1.60M	-21.10M	49.40M	-30.20M	-352.90M	-25.00M
Financing Cash Flow	38.30M	-50.30M	-151.60M	34.90M	151.40M	78.00M

Rieter Holding AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 3.34
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 3.34 is above the 20-day moving average (MA) of 3.16, above the 50-day MA of 3.31, and below the 200-day MA of 6.78, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 75.11 is Neutral, 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
MIKN	67 Neutral	CHF343.05M	10.83	14.20%	2.51%	-1.94%	6.63%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FTON	56 Neutral	$139.98M	-3.01	-9.74%	―	-15.70%	-670.93%
STGN	54 Neutral	CHF167.98M	-44.74	―	3.39%	-1.46%	-115.85%
KOMN	49 Neutral	CHF320.98M	-31.05	―	―	-13.64%	-281.19%
RIEN	45 Neutral	CHF416.80M	-10.71	―	7.07%	-28.40%	-117.97%