Schaeffler (SHA0) AI Stock Analysis

• Market Cap: €4.66B
• Dividend Yield: 4.88%
• Average Volume (3M): 620.25K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.10
• Revenue Growth: 23.27%
• EPS Growth: -280.44%
• Country: DE
• Employees: 113,682
• Sector: Industrials
• Sector Strength: 94
• Industry: Auto - Parts
• EPS (TTM): 0.10
• Shares Outstanding: 944,884,640
• 10 Day Avg. Volume: 565,573
• 30 Day Avg. Volume: 620,252
• PEG Ratio: 0.20
• Price to Book (P/B): 1.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.14
• 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: €4.86
• Price Target Upside: -5.08% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 63 Neutral
• Price Target: €5.00 ▼(-2.34%Downside)

The overall stock score reflects a balance of strong technical momentum and revenue growth against valuation concerns due to negative earnings and high leverage. The company's solid cash flow management provides a buffer, but profitability issues must be addressed for a stronger outlook.

Schaeffler Business Overview & Revenue Model

Company Description

Schaeffler AG is a leading global integrated automotive and industrial supplier headquartered in Germany. The company operates through three main sectors: Automotive Technologies, Automotive Aftermarket, and Industrial. Schaeffler is known for its precision components and systems for engines, transmissions, and chassis, as well as for its rolling and plain bearing solutions and linear products. It serves a wide range of industries, including automotive, aerospace, and industrial machinery.

How the Company Makes Money

Schaeffler generates revenue through the sale of its products and services across its three primary sectors. In the Automotive Technologies sector, the company supplies original equipment manufacturers (OEMs) with components and systems that enhance vehicle performance and efficiency. The Automotive Aftermarket sector provides spare parts and repair solutions to both independent repair shops and automotive manufacturers. The Industrial sector offers a broad range of bearing and system solutions for various industrial applications, catering to sectors such as wind power, railways, and manufacturing. Schaeffler's revenue model relies significantly on long-term partnerships with automotive manufacturers and industrial clients, and it benefits from ongoing investments in research and development to maintain its competitive edge in innovation and technology.

Schaeffler Financial Statement Overview

Summary

Schaeffler's financial performance shows revenue growth and strong cash flows, but significant challenges with profitability and high leverage. The negative net income and high debt-to-equity ratio are concerning, though cash management remains effective.

Income Statement

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

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

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.

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

Schaeffler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

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 5.12 is above the 20-day moving average (MA) of 4.73, above the 50-day MA of 4.40, and above the 200-day MA of 4.13, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 69.60 is Neutral, neither overbought nor oversold. The STOCH value of 80.16 is Negative, 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
SFQ	75 Outperform	€773.52M	12.05	12.40%	4.99%	-14.58%	-26.10%
CON	74 Outperform	$15.22B	11.80	10.07%	3.29%	-14.83%	78.73%
KBX	70 Neutral	€14.20B	33.32	13.95%	1.99%	-1.57%	-26.71%
HLE	67 Neutral	€9.67B	31.07	10.12%	1.08%	0.66%	21.09%
Sector *	67 Neutral	€8.36B	21.11	6.46%	2.82%	1.86%	-38.90%
SHA0	63 Neutral	€4.66B	22.28	-19.48%	4.88%	23.27%	-280.44%
ZIL2	51 Neutral	€280.05M	―	-19.89%	3.39%	-3.49%	-421.15%