Schlatter Industries AG (STRN) AI Stock Analysis

• Market Cap: CHF22.76M
• Dividend Yield: 4.85%
• Average Volume (3M): 1.12K
• Price to Earnings (P/E): 16.4
• Beta (1Y): 0.17
• Revenue Growth: -15.93%
• EPS Growth: -118.31%
• Country: CH
• Employees: 371
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): -0.69
• Shares Outstanding: 1,104,704
• 10 Day Avg. Volume: 1,032
• 30 Day Avg. Volume: 1,117
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: CHF23.00
• Price Target Upside: 11.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: CHF23.00 ▲(11.65% Upside)

Schlatter Industries AG's overall stock score reflects a challenging financial environment with recent profitability and cash flow issues. The technical analysis indicates a lack of strong momentum, and the valuation suggests potential overvaluation concerns due to negative earnings. However, the company's stable balance sheet and attractive dividend yield provide some support for potential recovery.

Schlatter Industries AG Business Overview & Revenue Model

Company Description

Schlatter Industries AG manufactures and sells welding systems and weaving machines worldwide. It offers welding machines for reinforcing and industrial mesh, and industrial fences; wire straightening and cutting machines; MeshStudio, a 3-dimensional drawing program for welded wire mesh; wire butt welding machines; and flash butt welding machines for rails. The company also provides warp preparation machines; weaving machines for press fabrics, dryer fabrics, and industrial filters; finishing machines for forming, press, and dryer fabrics; wire weaving machines for metal wire fabrics; wire crimping machines for sieves and screens; and screen assembly machines for sieves and screens under the Jäger brand name. In addition, it offers used machinery. The company was formerly known as Schlatter Holding AG and changed its name to Schlatter Industries AG in January 2013. Schlatter Industries AG was founded in 1916 and is based in Schlieren, Switzerland.

How the Company Makes Money

Schlatter Industries AG generates revenue through the sale of its advanced machinery and equipment designed for welding and weaving applications. The company's key revenue streams include direct sales of machinery, spare parts, and consumables, as well as maintenance and support services offered to its clients. Schlatter's products are used globally, allowing the company to tap into international markets and maintain a diverse client base across various industries. Additionally, the company engages in strategic partnerships and collaborations to enhance its product offerings and expand its market reach, contributing to its overall earnings.

Schlatter Industries AG Financial Statement Overview

Summary

Schlatter Industries AG shows a mixed financial performance with concerns in recent profitability and cash flow generation. Despite past growth and stability, current financial pressures, particularly in revenue and cash flow, highlight the need for strategic focus on improving operational efficiency and financial health. The balance sheet remains relatively solid, providing a foundation for potential recovery.

Income Statement

The company has displayed inconsistent revenue growth, with a notable decline in the most recent year. The gross profit margin has also significantly decreased, impacting overall profitability. Net profit margin and EBIT margin have also seen declines, indicating challenges in maintaining operational efficiency. Despite these setbacks, there was past revenue growth and consistent profitability, which suggests potential for recovery.

Balance Sheet

The balance sheet shows a reasonable debt-to-equity ratio, indicating moderate leverage. However, there has been a decline in stockholders' equity, affecting the equity ratio. The company has maintained a positive return on equity in previous years, but the declining equity base could pose challenges if not addressed. Overall, the balance sheet remains relatively stable compared to industry norms.

Cash Flow

The cash flow statement reflects negative free cash flow in the most recent period, primarily due to operating cash flow challenges. Historically, the company has managed positive operating cash flow, but recent trends indicate potential liquidity issues. The free cash flow to net income ratio has also been unfavorable, suggesting inefficiencies in converting profits to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	113.20M	128.57M	110.45M	94.64M	78.79M
Gross Profit	11.64M	56.05M	50.31M	48.23M	36.16M
EBITDA	4.31M	7.81M	5.46M	6.54M	-3.63M
Net Income	1.54M	5.89M	3.43M	4.82M	-5.48M
Balance Sheet
Total Assets	76.58M	84.11M	80.83M	71.71M	55.98M
Cash, Cash Equivalents and Short-Term Investments	2.75M	13.46M	8.98M	15.22M	3.24M
Total Debt	5.25M	5.43M	7.17M	7.03M	9.13M
Total Liabilities	40.67M	48.68M	49.50M	43.49M	32.56M
Stockholders Equity	35.64M	35.98M	31.15M	28.10M	23.42M
Cash Flow
Free Cash Flow	-8.57M	6.76M	-6.75M	13.82M	-292.00K
Operating Cash Flow	-7.45M	8.65M	-5.22M	14.53M	3.69M
Investing Cash Flow	-1.80M	-1.84M	-1.25M	-545.00K	-3.98M
Financing Cash Flow	-1.41M	-2.05M	318.00K	-1.93M	10.00K

Schlatter Industries AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:STRN, the sentiment is Negative. The current price of 20.6 is below the 20-day moving average (MA) of 21.49, below the 50-day MA of 22.17, and below the 200-day MA of 21.56, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 29.85 is Positive, neither overbought nor oversold. The STOCH value of 37.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CH:STRN.

Schlatter Industries AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STGN	61 Neutral	173.96M	-46.19	3.75%	3.13%	-1.46%	-115.85%
STRN	55 Neutral	CHF22.76M	16.45	―	4.85%	-15.93%	-118.31%
RIEN	51 Neutral	35.62M	-23.76	2.56%	3.37%	-28.40%	-117.97%
FTON	49 Neutral	156.92M	-3.36	-9.90%	―	-15.70%	-670.93%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Schlatter Industries AG Corporate Events

Schlatter Industries AG Reports Mixed Results Amid Challenging Market Conditions

Schlatter Industries AG reported a slightly positive operating result but a negative consolidated result for the first half of 2025, with challenges stemming from lower net sales, geopolitical issues, US import duties, and a strong Swiss franc. Despite these hurdles, the company secured sufficient orders to ensure capacity utilization for the year, with a focus on increasing efficiency and margins in the second half. The Welding segment faces significant impacts from US tariffs, while the Weaving segment sees potential growth in China. Overall, Schlatter aims for a profit for the year, albeit with lower sales compared to the previous year.

Schlatter Industries AG Reports Mixed Half-Year Results Amidst Challenging Market Conditions

Schlatter Industries AG reported a slightly positive operating result but a negative group result for the first half of 2025, with a targeted profit for the full year. The company faced challenges such as lower net sales, geopolitical disruptions, and the strong Swiss franc, impacting its financial performance. Despite these challenges, the order backlog remains strong, and the company is implementing measures to improve profitability and efficiency. The welding segment is particularly affected by high import tariffs in the US, which could have significant negative effects if maintained.

Schlatter Industries AG Faces Challenges but Targets Year-End Profit

Schlatter Industries AG anticipates a slightly positive operating result but a negative group result in the first half of 2025, largely due to challenges in the steel industry, restrained construction activity in Europe, geopolitical disruptions, and currency issues. Despite these challenges, the company has seen increased orders from emerging markets and is targeting a positive group result for the entire year, indicating a potential recovery in the latter half of 2025.

Schlatter Industries AG Faces Challenges but Expects Recovery in 2025

Schlatter Industries AG anticipates a slightly positive operating result but a negative consolidated result for the first half of 2025 due to challenges in the steel industry, subdued construction activity in Europe, and geopolitical issues. Despite these challenges, the company expects a recovery in earnings in the second half of the year, aiming for a positive consolidated result for the full year.