Schaeffler (SHA0) AI Stock Analysis

• Market Cap: €6.45B
• Dividend Yield: 3.67%
• Average Volume (3M): 738.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 45.16%
• EPS Growth: -790.24%
• Country: DE
• Employees: 113,682
• Sector: Industrials
• Sector Strength: 72
• Industry: Auto - Parts
• EPS (TTM): 0.06
• Shares Outstanding: 944,884,640
• 10 Day Avg. Volume: 821,042
• 30 Day Avg. Volume: 738,171
• PEG Ratio: 0.02
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 7.21
• 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: €6.23
• Price Target Upside: -8.38% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: €5.50 ▼(-19.12% Downside)

Schaeffler's overall stock score reflects a mixed financial performance with strong revenue growth but negative profitability and high leverage. The technical analysis is positive, indicating potential upward momentum. However, valuation concerns due to negative earnings weigh on the score. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Schaeffler's robust revenue growth indicates strong demand for its products, particularly in the automotive and industrial sectors, supporting long-term business expansion.

Strategic Partnerships

Strategic partnerships enhance Schaeffler's market position and revenue potential by securing stable demand and fostering innovation in product offerings.

Innovation and Sustainability

Schaeffler's commitment to innovation and sustainability positions it well to capitalize on industry trends and improve operational efficiency, driving long-term growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting Schaeffler's ability to invest in growth and weather economic downturns.

Negative Profit Margins

Negative profit margins reflect ongoing profitability challenges, which may hinder Schaeffler's ability to reinvest in the business and sustain long-term growth.

Declining Free Cash Flow

Declining free cash flow limits Schaeffler's ability to fund new projects and manage debt, posing a risk to financial stability and future growth initiatives.

Schaeffler Business Overview & Revenue Model

Company Description

Schaeffler AG is a global automotive and industrial supplier based in Germany, renowned for its precision-engineered components and systems. The company operates in two main sectors: Automotive and Industrial. Schaeffler's core products include rolling bearings, linear guidance systems, and automotive transmission components, as well as electric mobility solutions. With a strong focus on innovation and sustainability, Schaeffler serves a diverse range of industries, including automotive, aerospace, and energy, positioning itself as a key player in the global market.

How the Company Makes Money

Schaeffler generates revenue through the sale of its high-precision components and systems across its Automotive and Industrial segments. The Automotive sector contributes significantly to revenue, driven by demand for components used in traditional and electric vehicles. Key revenue streams include original equipment manufacturing (OEM) sales and aftermarket services. The Industrial sector also plays a crucial role, providing products for sectors such as manufacturing, aerospace, and renewable energy. Strategic partnerships with automotive manufacturers and investments in research and development to innovate new products further bolster its earnings. Additionally, Schaeffler's focus on sustainability and digitalization initiatives aims to enhance operational efficiency and open new revenue opportunities.

Schaeffler Financial Statement Overview

Summary

Schaeffler's financial performance shows strong revenue growth but is hindered by negative net profit margins and high leverage. The company faces profitability challenges and needs to manage its debt levels to improve financial stability.

Income Statement

Schaeffler's income statement shows a mixed performance. The company has experienced a healthy revenue growth rate of 8.64% in the TTM, indicating positive sales momentum. However, the net profit margin is negative at -3.89%, reflecting ongoing profitability challenges. The gross profit margin has declined slightly over time, and EBIT and EBITDA margins have also decreased, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.67, indicating significant leverage, which could pose financial risks. Return on equity is negative, reflecting recent losses. However, the equity ratio is stable, suggesting a balanced asset structure. The company needs to manage its debt levels to improve financial stability.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative rate of -7.32% in the TTM. The operating cash flow to net income ratio is positive, indicating some cash generation capability despite net losses. The free cash flow to net income ratio is also positive, suggesting that the company is still generating cash relative to its net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.76B	18.19B	16.31B	15.81B	13.85B	12.59B
Gross Profit	4.28B	3.83B	3.55B	3.58B	3.44B	2.86B
EBITDA	1.50B	1.47B	1.70B	1.96B	2.21B	732.00M
Net Income	-852.00M	-632.00M	310.00M	557.00M	756.00M	-428.00M
Balance Sheet
Total Assets	21.51B	21.37B	15.02B	14.28B	14.36B	13.51B
Cash, Cash Equivalents and Short-Term Investments	2.28B	1.11B	834.00M	908.00M	1.66B	1.61B
Total Debt	7.75B	6.60B	4.19B	3.50B	3.99B	4.24B
Total Liabilities	18.14B	17.40B	11.10B	10.14B	11.20B	11.49B
Stockholders Equity	3.24B	3.81B	3.77B	4.02B	3.05B	1.93B
Cash Flow
Free Cash Flow	418.00M	433.00M	410.00M	348.00M	605.00M	621.00M
Operating Cash Flow	1.41B	1.39B	1.35B	1.14B	1.28B	1.25B
Investing Cash Flow	-750.00M	-2.08B	-1.90B	-990.00M	-716.00M	-642.00M
Financing Cash Flow	827.00M	1.19B	276.00M	-891.00M	-527.00M	526.00M

Schaeffler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SHA0, the sentiment is Positive. The current price of 6.8 is above the 20-day moving average (MA) of 6.52, above the 50-day MA of 6.10, and above the 200-day MA of 4.74, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 48.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SHA0.

Schaeffler Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CON	74 Outperform	$13.26B	8.90	―	2.87%	-38.10%	-75.32%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KBX	62 Neutral	€12.92B	29.70	14.52%	2.19%	-1.77%	-28.68%
HLE	59 Neutral	€8.91B	46.31	6.30%	1.16%	-0.29%	-41.38%
SFQ	58 Neutral	€622.81M	12.18	10.72%	6.28%	-15.69%	-45.20%
SHA0	55 Neutral	€6.45B	-5.65	-34.39%	3.67%	45.16%	-790.24%
ZIL2	43 Neutral	€255.34M	-1.53	-23.03%	3.79%	-4.26%	-412.06%