Stadler Rail AG (SRAIL) AI Stock Analysis

• Market Cap: CHF2.06B
• Dividend Yield: 0.97%
• Average Volume (3M): 143.60K
• Price to Earnings (P/E): 53.6
• Beta (1Y): 1.09
• Revenue Growth: -9.78%
• EPS Growth: -69.10%
• Country: CH
• Employees: 14,276
• Sector: Industrials
• Sector Strength: 89
• Industry: Railroads
• EPS (TTM): 0.14
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 127,528
• 30 Day Avg. Volume: 143,601
• PEG Ratio: -0.99
• Price to Book (P/B): 4.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.77
• 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: CHF23.25
• Price Target Upside: 12.54% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: CHF22.00 ▲(6.49%Upside)

The overall stock score of 59.5 reflects concerns about Stadler Rail AG's financial performance and valuation. Declining profitability and cash flow, combined with an overvalued stock, pose significant risks. Technical analysis suggests potential near-term corrections, further impacting the score.

Stadler Rail AG Business Overview & Revenue Model

Company Description

Stadler Rail AG (SRAIL) is a Swiss-based company specializing in the manufacturing of railway rolling stock. With a focus on innovation and quality, Stadler Rail designs, constructs, and provides a broad range of rail vehicles, including high-speed trains, suburban and intercity trains, light rail vehicles, metros, and trams. The company operates in several sectors, offering tailored solutions to meet the unique needs of its global clientele, including public transport operators and private railway companies.

How the Company Makes Money

Stadler Rail AG generates revenue through the sale of its diverse range of rail vehicles. The company's primary revenue streams include the design, manufacturing, and delivery of custom and standard rail vehicles tailored to client specifications. In addition to vehicle sales, Stadler Rail provides after-sales services, maintenance, and modernization of railway fleets, which contribute significantly to its earnings. The company also engages in strategic partnerships and collaborations with transport authorities and private operators worldwide, enhancing its market presence and revenue potential. Factors such as long-term service agreements and a strong reputation for delivering reliable and high-quality rail solutions contribute to Stadler Rail's financial success.

Stadler Rail AG Financial Statement Overview

Summary

Stadler Rail AG exhibits stable asset management and liquidity, but recent declines in revenue, profitability, and cash flow generation are concerning. The company needs to improve profitability and cash flow management to sustain financial stability and support future growth, especially given the competitive railroad industry landscape.

Income Statement

Stadler Rail AG has shown fluctuating revenue over the years, with a decline in 2024 compared to 2023. The gross profit margin for 2024 was approximately 11.39%, indicating moderate profitability. However, the net profit margin dropped significantly to about 1.18%, driven by lower net income. The EBIT and EBITDA margins for 2024 were 3.09% and 7.37%, respectively, showing thin operational profitability. While previous periods had higher profitability, the recent decline is a concern.

Balance Sheet

The company maintains a relatively stable balance sheet with a moderate debt-to-equity ratio of approximately 1.21 in 2024, indicating manageable leverage. The equity ratio was around 12.63%, showing a lower proportion of equity in total assets. Return on equity decreased to about 5.20%, reflecting reduced profitability and efficiency in using equity. Despite a solid liquidity position with significant cash reserves, the decrease in equity and ROE suggests potential risk.

Cash Flow

Stadler Rail AG experienced a sharp decline in operating cash flow from 2023 to 2024. The free cash flow also decreased significantly, indicating weaker cash generation. The free cash flow to net income ratio was roughly 1.20, suggesting adequate cash conversion. However, the overall decline in cash flow performance suggests potential liquidity risks if the trend continues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.26B	3.61B	3.75B	3.63B	3.08B
Gross Profit	370.91M	404.64M	385.41M	402.02M	315.34M
EBITDA	239.81M	320.14M	254.06M	324.44M	270.75M
Net Income	38.42M	124.32M	72.90M	133.66M	137.61M
Balance Sheet
Total Assets	5.86B	5.01B	4.40B	4.60B	4.51B
Cash, Cash Equivalents and Short-Term Investments	1.26B	1.09B	831.68M	1.15B	928.90M
Total Debt	892.83M	688.10M	1.06B	1.50B	1.54B
Total Liabilities	5.08B	4.19B	3.62B	3.72B	3.65B
Stockholders Equity	739.24M	790.28M	772.58M	875.21M	855.01M
Cash Flow
Free Cash Flow	46.09M	661.00M	256.87M	326.83M	-492.18M
Operating Cash Flow	286.40M	905.28M	441.35M	503.96M	-203.92M
Investing Cash Flow	-225.79M	-152.37M	-207.00M	-154.33M	-290.41M
Financing Cash Flow	99.16M	-447.43M	-526.98M	-110.29M	677.08M

Stadler Rail AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.66
• 50DMA: Negative
• 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:SRAIL, the sentiment is Negative. The current price of 20.66 is above the 20-day moving average (MA) of 19.74, above the 50-day MA of 20.45, and below the 200-day MA of 21.05, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 62.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:SRAIL.

Stadler Rail AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUCN	75 Outperform	CHF4.06B	17.92		2.77%	-11.73%	-35.55%
SUN	72 Outperform	CHF4.93B	18.87	22.45%	2.89%	7.58%	14.41%
DKSH	70 Neutral	CHF4.13B	19.24		3.68%	0.25%	18.00%
OERL	68 Neutral	CHF1.23B	18.70		5.27%	-11.92%	100.79%
Sector *	65 Neutral	$10.81B	15.25	5.26%	1.93%	3.11%	-26.99%
SRAIL	54 Neutral	CHF2.06B	53.62		0.97%	-9.78%	-69.10%
GF	52 Neutral	CHF5.24B	24.46		2.11%	-3.33%	-8.90%