Schindler Holding AG (SCHP) AI Stock Analysis

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Schindler Holding AG

(OTC:SCHP)

Rating:73Outperform

Price Target:

CHF330.00

▲(11.41%Upside)

Schindler's strong financial performance and positive earnings call bolster its stock score. Technical analysis provides a neutral outlook, and the high P/E ratio raises valuation concerns. The company's strategic initiatives and financial stability make it a solid, though somewhat overvalued, investment in the industrial machinery sector.

Schindler Holding AG (SCHP) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap

CHF31.14B

Dividend Yield2.01%

Average Volume (3M)81.44K

Price to Earnings (P/E)32.1

Beta (1Y)0.72

Revenue Growth-2.07%

EPS Growth9.68%

CountryCH

Employees70,162

SectorIndustrials

Sector Strength86

IndustryIndustrial - Machinery

Share Statistics

EPS (TTM)2.42

Shares Outstanding40,716,830

10 Day Avg. Volume89,253

30 Day Avg. Volume81,437

Financial Highlights & Ratios

PEG Ratio-2.21

Price to Book (P/B)6.62

Price to Sales (P/S)0.00

P/FCF Ratio20.91

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

CHF296.11

Price Target Upside-0.03% Downside

Rating ConsensusHold

Number of Analyst Covering9

Schindler Holding AG Business Overview & Revenue Model

Company DescriptionSchindler Holding AG (SCHP) is a leading global provider of elevators, escalators, and related services. Founded in 1874 and headquartered in Switzerland, Schindler operates in the industrial and manufacturing sectors, delivering innovative mobility solutions to urban environments worldwide. The company designs, manufactures, installs, and services both new installations and existing systems, catering to a wide range of customers across residential, commercial, and infrastructure markets.

How the Company Makes MoneySchindler Holding AG generates revenue through a diversified business model that includes the sale of new elevators and escalators, modernization of existing systems, and maintenance services. A significant portion of the company's income is derived from long-term maintenance contracts, which provide a steady stream of recurring revenue. Schindler's modernization services, which upgrade older equipment to meet current safety and performance standards, also contribute to their revenue. Additionally, Schindler benefits from strategic partnerships and collaborations with real estate developers and infrastructure projects globally, enhancing its market reach and customer base.

Schindler Holding AG Earnings Call Summary

Earnings Call Date:Jul 18, 2025

(Q2-2025)

% Change Since: -1.07%|

Next Earnings Date:Oct 24, 2025

Earnings Call Sentiment Neutral

The earnings call presented a generally positive outlook with strong performance in order growth, modernization, and operating margins. However, challenges persist in the Chinese market, currency headwinds, and potential tariff impacts, balancing out the positive achievements.

Q2-2025 Updates

Positive Updates

Order Growth and Modernization Success

Schindler reported over 5% order growth in local currencies, with Modernization business growing 22% in the first half of 2025. Q2 saw accelerated double-digit growth in all regions for modernization.

Strong Operating Margin and Cash Flow

Operating margin reached 12.3% in the first half of 2025, with significant contributions from efficiency improvements. Operating cash flow was CHF 703 million, up from last year's strong levels.

Positive Market Response to New U.S. Product

The new U.S. mid-rise product received overwhelming positive customer response, with successful initial installations setting up for continued rollout.

Negative Updates

Challenges in China New Installations

China's New Installation market continues to decline by high single-digits, with a 30% drop in Q2, mainly due to prolonged market weakness.

Currency and Tariff Headwinds

Schindler faces significant currency headwinds due to a strengthening Swiss franc and potential tariff impacts, estimated to be approximately CHF 20 million.

Lowered China Service Market Outlook

China Service market growth outlook has been reduced due to fewer units being converted to installed base, impacting global figures.

Company Guidance

During the Schindler Half Year Results 2025 Conference Call, the company's management provided guidance for the remainder of the fiscal year. They projected a low single-digit revenue growth in local currencies for the full year 2025 and aimed for a reported EBIT margin of 12%. The company experienced a 5% order growth in local currencies for the first half of the year, with a 22% increase in their Modernization business and mid-single-digit growth in Services. The operating margin for H1 2025 was 12.3%, and operating cash flow reached CHF 703 million. Schindler addressed external challenges, such as currency headwinds and tariffs, while highlighting efficiency initiatives that were bolstering margins. The guidance reiterated the focus on maintaining operating efficiency and managing restructuring costs, particularly in China, where the company is streamlining its organization to adapt to market conditions.

Schindler Holding AG Financial Statement Overview

Summary

Schindler Holding AG exhibits strong profitability with solid gross and net profit margins. Despite a slight revenue decline, the company maintains excellent cost management and operational efficiency. The robust balance sheet with low leverage and healthy ROE, along with strong cash flow generation, underscore its financial stability and potential for growth.

Income Statement

Positive

Schindler Holding AG demonstrates solid profitability with a gross profit margin of 62.53% and a net profit margin of 8.45% for 2024. Despite a minor revenue decline of 2.24% year-over-year, the company maintains strong EBIT (11.26%) and EBITDA (14.65%) margins. These figures highlight good cost management and operational efficiency, although the slight revenue drop indicates a potential area for improvement.

Balance Sheet

Positive

The company maintains a robust financial position with a low debt-to-equity ratio of 0.16, indicating conservative leverage. The return on equity (ROE) is healthy at 19.17%, showcasing efficient use of equity to generate profits. An equity ratio of 41.28% further underscores strong asset backing by equity, enhancing financial stability.

Cash Flow

Very Positive

Schindler's cash flow is strong, with a substantial free cash flow growth rate of 27.11% year-over-year. The operating cash flow to net income ratio of 1.68 and a free cash flow to net income ratio of 1.56 indicate excellent cash conversion efficiency, suggesting robust liquidity and operational performance.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	11.24B	11.49B	11.35B	11.24B	10.64B
Gross Profit	7.03B	8.06B	3.02B	3.19B	2.96B
EBITDA	1.65B	1.58B	1.27B	1.49B	1.39B
Net Income	950.00M	866.00M	610.00M	828.00M	722.00M
Balance Sheet
Total Assets	12.00B	11.31B	11.81B	11.97B	10.88B
Cash, Cash Equivalents and Short-Term Investments	4.07B	3.57B	3.44B	3.82B	3.39B
Total Debt	812.00M	699.00M	1.04B	1.09B	939.00M
Total Liabilities	6.95B	6.60B	7.36B	7.54B	6.87B
Stockholders Equity	4.95B	4.60B	4.33B	4.30B	3.89B
Cash Flow
Free Cash Flow	1.49B	1.17B	558.00M	1.18B	1.44B
Operating Cash Flow	1.59B	1.27B	688.00M	1.31B	1.58B
Investing Cash Flow	-476.00M	44.00M	-646.00M	-374.00M	-671.00M
Financing Cash Flow	-882.00M	-1.05B	-683.00M	-614.00M	-804.00M

Schindler Holding AG Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price296.20

Price Trends

50DMA

295.13

Positive

100DMA

288.39

Positive

200DMA

270.85

Positive

Market Momentum

MACD

0.78

Positive

RSI

49.45

Neutral

STOCH

26.41

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SCHP, the sentiment is Neutral. The current price of 296.2 is above the 20-day moving average (MA) of 295.99, above the 50-day MA of 295.13, and above the 200-day MA of 270.85, indicating a neutral trend. The MACD of 0.78 indicates Positive momentum. The RSI at 49.45 is Neutral, neither overbought nor oversold. The STOCH value of 26.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:SCHP.

Schindler Holding AG Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUCN	75 Outperform	CHF3.94B	17.45		2.86%	-11.64%	-24.17%
SCHP	73 Outperform	CHF31.14B	32.11	20.88%	2.01%	-2.07%	9.68%
KARN	70 Outperform	CHF2.42B	32.67		1.96%	10.38%	18.74%
INRN	68 Neutral	CHF1.89B	31.81		1.32%	-3.67%	-12.95%
VACN	67 Neutral	$8.62B	38.59	32.09%	2.17%	19.22%	11.62%
GF	61 Neutral	CHF5.24B	18.92		2.13%	-24.42%	32.48%
Sector *	61 Neutral	C$6.51B	7.64	2.76%	2.72%	6.06%	-10.89%

* Industrials Sector Average

Performance Comparison

CH:SCHP

Schindler Holding AG

295.20

69.79

30.96%

CH:KARN

Kardex AG

314.00

62.58

24.89%

CH:INRN

Interroll Holding AG

2,290.00

-302.54

-11.67%

CH:BUCN

Bucher Industries AG

385.00

54.97

16.66%

CH:GF

Georg Fischer AG

63.95

2.81

4.60%

CH:VACN

VAT Group AG

287.50

-92.65

-24.37%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jul 19, 2025