Schaeffler (SHA0) AI Stock Analysis

• Market Cap: €6.33B
• Dividend Yield: 3.15%
• Average Volume (3M): 738.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 45.16%
• EPS Growth: -790.24%
• Country: DE
• Employees: 113,682
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -1.00
• Shares Outstanding: 944,884,640
• 10 Day Avg. Volume: 821,042
• 30 Day Avg. Volume: 738,171
• PEG Ratio: 0.39
• Price to Book (P/B): 2.72
• Price to Sales (P/S): 0.34
• P/FCF Ratio: 19.36
• 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: €9.37
• Price Target Upside: 39.80% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.4
• Revenue Forecast (FY): €23.78B

• Rating: 45 Neutral
• Price Target: €6.50 ▼(-2.99% Downside)
• Action: Reiterated Date: 03/06/26
• Date: Action: Reiterated 03/06/26

The score is held down primarily by deteriorating fundamentals (net losses, sharply lower revenue, and materially higher leverage), alongside bearish technicals (below key moving averages with negative MACD). Positive operating and free cash flow and a moderate dividend yield provide partial support but are not enough to offset the profitability and balance-sheet risks.

Positive Factors

Diversified automotive + industrial end-markets and aftermarket

Schaeffler serves both automotive OEMs (powertrain, chassis, electrification) and industrial OEMs plus aftermarket channels. This diversification smooths cyclicality, embeds recurring replacement/service revenues, and strengthens resilience via engineering ties that lock in program-level content over multi-year cycles.

Consistent positive operating and free cash flow

Despite recent net losses, the company has generated persistent operating and free cash flow, which supports working capital, capex, and distributions. Positive cash generation provides a durable liquidity buffer, enabling operational continuity and targeted reinvestment even while profitability recovers.

Participation in vehicle electrification and engineered systems

Schaeffler's engineering focus on electromechanical systems and drivetrain components positions it to capture secular growth from vehicle electrification. Co-development capabilities and precision component expertise create technical barriers and program-level stickiness with OEMs, supporting longer-term content gains.

Negative Factors

Sharp revenue decline reducing visibility

A >50% revenue drop materially erodes predictability of future cash flows, undermines scale economics and pricing leverage, and raises questions about lost platform content or demand shifts. Recovery timelines are uncertain and reduced volumes can persistently depress margins and supplier negotiating power.

Materially higher leverage (debt-to-equity ~2.67)

Elevated leverage weakens financial flexibility and increases refinancing and interest-rate sensitivity. With operating cash covering only a modest portion of debt, higher debt levels constrain investment in R&D and capex, limit ability to weather demand cycles, and raise solvency risk if negative earnings persist.

Profitability deterioration and negative returns

Swinging to net losses and negative ROE signals structural pressure on profitability. Compressed margins reduce internal funding for growth and shareholder returns, may force cost cuts or asset sales, and imply the company must restore pricing power or mix to sustainably generate returns above its cost of capital.

Schaeffler Business Overview & Revenue Model

Company Description

Schaeffler AG, together with its subsidiaries, develops, manufactures, and sells components and system for industrial applications in Europe, the Americas, China, and the Asia Pacific. The Automotive Technologies division offers mechanical, mechatronic, and electronic components and systems for powertrain electrification used in passenger cars and commercial vehicles, such as electric motors, axle transmissions, axle drives, power electronics, hybrid modules, electromechanical and hydraulic actuators, and thermal management module; torque converters, hybrid dampers, clutches, variable valve train systems, valve-lash adjustment elements, balancer shafts, camshaft phasing systems, timing drives, and front end auxillary drives. This division provides rolling bearing application and products, such as wheel, ball, and needle roller bearings; and mechanical components and mechatronic systems for steering and other chassis applications, including Space Drive, a steer-by-wire system. The Automotive Aftermarket division offers components and repair solutions for light commercial vehicles, trucks and buses, and offroad sectors under the LuK, INA, and FAG brand names, as well as service for repair shops under the REPXPERT brand. The Industrial division develops and manufactures rotary and linear bearing solutions, drive technology components and systems, and service solutions, such as sensor-based condition monitoring systems. This division serves customers in the wind, raw materials, aerospace, rail, offroad, two wheelers, power transmission, and industrial automation sectors. The company was formerly known as INA Beteiligungsgesellschaft mit beschränkter Haftung and changed its name to Schaeffler AG in October 2014. The company was founded in 1946 and is headquartered in Herzogenaurach, Germany. Schaeffler AG is a subsidiary of IHO Verwaltungs GmbH.

How the Company Makes Money

Schaeffler makes money primarily by selling engineered components and systems to two broad customer groups: automotive customers and industrial customers. On the automotive side, revenue is generated through supply contracts with vehicle manufacturers and tier suppliers for high-volume series production of parts and systems used in powertrains/drivetrains, chassis, and vehicle electrification/electromechanical applications; pricing and volumes are driven by platform wins, vehicle production rates, and product mix (e.g., higher-value system content). On the industrial side, the company generates revenue by supplying bearings and related components, assemblies, and solutions to industrial OEMs and aftermarket/maintenance channels; demand is linked to industrial production, equipment builds, and replacement cycles where bearings and related parts are consumed over time. Across both segments, earnings are supported by (i) engineering and co-development work embedded in customer programs (typically captured through product pricing over contract lifecycles), (ii) scale manufacturing and procurement efficiencies, and (iii) aftermarket and service-related demand in industrial applications where replacement parts can provide recurring revenue. Specific partnership structures or customer contract terms are not available (null).

Schaeffler Financial Statement Overview

Summary

Financial profile has weakened: a sharp 2025 revenue decline (-56.7%) and net losses in 2024–2025 outweigh the benefit of still-positive EBIT margin (~2.7%). Balance-sheet risk is elevated as leverage rose materially (debt-to-equity ~2.67 in 2025) and ROE is negative. Offsetting factor is resilient liquidity, with consistently positive operating cash flow and free cash flow, though FCF momentum softened and cash flow covers only a modest portion of debt.

Income Statement

Revenue expanded from 2021–2024, but the latest annual period shows a sharp revenue decline (2025: -56.7%), raising visibility concerns. Profitability has deteriorated meaningfully versus earlier years: net income swung from profits in 2021–2023 to losses in 2024 and 2025, and net margin is negative in both years. Operating profitability is still positive (EBIT margin ~2.7% in 2025), but margins have compressed substantially versus 2021–2022, indicating weaker pricing/power or higher costs.

Balance Sheet

Leverage has increased materially, with debt-to-equity rising from ~1.11 (2023) to ~1.76 (2024) and ~2.67 (2025), while equity declined, reducing balance-sheet flexibility. Returns to shareholders are currently negative (return on equity is negative in 2024–2025), consistent with net losses. The combination of higher leverage and weaker earnings elevates risk, even though the company has a sizable asset base.

Cash Flow

Cash generation is a relative strength: operating cash flow has remained consistently positive (roughly €1.1–€1.4B annually), and free cash flow is also positive each year shown. However, free cash flow momentum weakened in the latest year (2025 free cash flow growth: -3.088), and cash flow covers only a modest portion of debt (operating cash flow to total debt ~0.18–0.26 historically and ~0.19 in 2025), which matters given the higher leverage. Despite net losses in 2024–2025, the business still produced positive free cash flow, suggesting non-cash charges and/or working-capital support are helping near-term liquidity.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	23.49B	18.19B	16.31B	15.81B	13.85B
Gross Profit	4.32B	3.83B	3.55B	3.58B	3.44B
EBITDA	2.22B	1.47B	1.70B	1.96B	2.21B
Net Income	-424.00M	-632.00M	310.00M	557.00M	756.00M
Balance Sheet
Total Assets	22.12B	21.37B	15.02B	14.28B	14.36B
Cash, Cash Equivalents and Short-Term Investments	2.37B	1.11B	834.00M	908.00M	1.66B
Total Debt	7.75B	6.73B	4.19B	3.50B	3.99B
Total Liabilities	19.07B	17.40B	11.10B	10.14B	11.20B
Stockholders Equity	2.90B	3.81B	3.77B	4.02B	3.05B
Cash Flow
Free Cash Flow	408.00M	433.00M	410.00M	348.00M	605.00M
Operating Cash Flow	1.35B	1.39B	1.35B	1.14B	1.28B
Investing Cash Flow	-988.00M	-2.08B	-1.90B	-990.00M	-716.00M
Financing Cash Flow	812.00M	1.19B	276.00M	-891.00M	-527.00M

Schaeffler Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SHA0, the sentiment is Negative. The current price of 6.7 is below the 20-day moving average (MA) of 8.37, below the 50-day MA of 9.70, and below the 200-day MA of 6.91, indicating a bearish trend. The MACD of -0.84 indicates Positive momentum. The RSI at 27.12 is Positive, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SHA0.

Schaeffler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KBX	70 Neutral	€15.46B	28.57	18.07%	1.85%	-1.77%	-28.68%
SFQ	62 Neutral	€744.47M	11.92	11.14%	5.70%	-12.01%	-28.10%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HLE	54 Neutral	€8.12B	61.52	5.24%	1.17%	<0.01%	-50.97%
CON	50 Neutral	€11.56B	-82.38	-1.10%	2.88%	-38.10%	-75.32%
ZIL2	46 Neutral	€281.95M	-16.43	-18.51%	3.51%	-6.21%	-995.53%
SHA0	45 Neutral	€6.33B	-18.63	-34.39%	3.15%	45.16%	-790.24%