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Schaeffler AG (DE:SHA0)
:SHA0

Schaeffler (SHA0) AI Stock Analysis

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DE

Schaeffler

(LSE:SHA0)

Rating:66Neutral
Price Target:
€4.50
▼(-1.10%Downside)
Schaeffler's overall stock score is driven by mixed financial performance marked by revenue growth but high leverage and negative profitability. Positive technical indicators provide some optimism, while the valuation is impacted by a negative P/E ratio, though partially offset by a high dividend yield.

Schaeffler (SHA0) vs. iShares MSCI Germany ETF (EWG)

Schaeffler Business Overview & Revenue Model

Company DescriptionSchaeffler 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 MoneySchaeffler generates revenue primarily through the design, manufacture, and sale of components and systems used in automotive and industrial applications. In the automotive sector, the company supplies both original equipment manufacturers (OEMs) and the aftermarket with products such as engine components, transmission systems, and chassis modules. In the industrial sector, Schaeffler provides bearings and services for applications in diverse industries including wind, railway, and industrial automation. The company's earnings are significantly supported by strong relationships with large automotive manufacturers and industrial clients, as well as its continuous investment in research and development to drive innovation and maintain competitive advantage.

Schaeffler Financial Statement Overview

Summary
Schaeffler displays a mix of strengths and weaknesses in its financial statements. The company has shown solid revenue growth and maintains healthy cash flows, which support its operations. However, profitability metrics and high leverage pose significant risks. The negative net income and high debt levels indicate potential financial instability, which needs to be addressed for future growth and sustainability.
Income Statement
65
Positive
Schaeffler's revenue has shown consistent growth over the years, with a TTM increase to 20,026 million EUR, representing a 10.1% growth from the previous year. However, the company is facing profitability challenges, as indicated by the negative net profit margin of -3.9% TTM. The gross profit margin stands at 20.1% TTM, which shows a slight decline compared to previous periods. Despite a decrease in EBIT, the EBITDA margin remains stable at 7.4% TTM due to controlled depreciation and amortization.
Balance Sheet
58
Neutral
The balance sheet reflects a high debt-to-equity ratio of 1.67, indicating significant leverage. The equity ratio has decreased to 18.5% TTM, suggesting a potential risk due to higher liabilities compared to equity. Return on equity is negative at -19.8% TTM, which is concerning. The company's total assets have remained relatively stable, but the growing liabilities may pose a risk to financial stability.
Cash Flow
72
Positive
Schaeffler's cash flow performance is relatively strong, with a positive operating cash flow of 1,435 million EUR TTM. The free cash flow has grown by 4.2% TTM, indicating effective cash management despite the negative net income. The operating cash flow to net income ratio is favorable due to efficient operational performance, providing a buffer against profitability issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue20.03B18.19B16.31B15.81B13.85B12.59B
Gross Profit4.02B3.83B3.55B3.58B3.44B2.86B
EBITDA1.48B1.47B1.70B1.96B2.21B732.00M
Net Income-779.00M-632.00M310.00M557.00M756.00M-428.00M
Balance Sheet
Total Assets21.20B21.37B15.02B14.28B14.36B13.51B
Cash, Cash Equivalents and Short-Term Investments1.29B1.11B834.00M908.00M1.66B1.61B
Total Debt6.57B6.60B4.19B3.50B3.99B4.24B
Total Liabilities17.12B17.40B11.10B10.14B11.20B11.49B
Stockholders Equity3.93B3.81B3.77B4.02B3.05B1.93B
Cash Flow
Free Cash Flow451.00M433.00M410.00M348.00M605.00M621.00M
Operating Cash Flow1.44B1.39B1.35B1.14B1.28B1.25B
Investing Cash Flow-803.00M-2.08B-1.90B-990.00M-716.00M-642.00M
Financing Cash Flow-996.00M1.19B276.00M-891.00M-527.00M526.00M

Schaeffler Technical Analysis

Technical Analysis Sentiment
Positive
Last Price4.55
Price Trends
50DMA
4.13
Positive
100DMA
4.01
Positive
200DMA
4.09
Positive
Market Momentum
MACD
0.12
Negative
RSI
64.90
Neutral
STOCH
66.80
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 4.55 is above the 20-day moving average (MA) of 4.28, above the 50-day MA of 4.13, and above the 200-day MA of 4.09, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 66.80 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DECON
74
Outperform
$14.86B11.5310.07%3.36%-14.83%78.73%
DESFQ
68
Neutral
€780.78M12.1712.40%4.26%-14.58%-26.10%
68
Neutral
£2.94B10.248.40%3.45%2.87%-9.95%
66
Neutral
€4.29B22.28-19.48%4.74%23.27%-280.44%
DEHLE
66
Neutral
€9.58B30.7910.12%1.10%0.66%21.09%
DEKBX
65
Neutral
€13.14B30.8213.95%2.13%-1.57%-26.71%
50
Neutral
€290.19M-19.89%2.86%-3.49%-421.15%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:SHA0
Schaeffler
4.55
-0.53
-10.50%
DE:CON
Continental Aktiengesellschaft
75.04
23.07
44.39%
DE:HLE
Hella KGaA Hueck & Co
87.00
2.24
2.64%
DE:ZIL2
ElringKlinger
4.59
-0.37
-7.54%
DE:KBX
Knorr-Bremse AG
82.05
11.99
17.11%
DE:SFQ
SAF-HOLLAND SE
17.24
-0.32
-1.81%
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: Jun 21, 2025