Schaeffler (SHA0) AI Stock Analysis

• Market Cap: €8.65B
• Dividend Yield: 3.15%
• Average Volume (3M): 738.17K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: 45.16%
• EPS Growth: -790.24%
• Country: DE
• Employees: 113,682
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): -0.30
• 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: €6.58
• Price Target Upside: -28.09% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €8.00 ▼(-12.57% Downside)

Schaeffler's overall stock score is primarily impacted by its financial performance and valuation concerns. While technical analysis shows bullish momentum, the company's high leverage, negative profitability, and overbought technical indicators suggest caution. The attractive dividend yield provides some support, but the negative P/E ratio highlights earnings challenges.

Positive Factors

Revenue Growth

Schaeffler's robust revenue growth indicates strong demand for its products and effective market penetration, supporting long-term business expansion.

Free Cash Flow Growth

The significant increase in free cash flow enhances Schaeffler's ability to invest in growth opportunities and manage debt, contributing to financial resilience.

Diverse Revenue Streams

Schaeffler's diverse revenue streams from both OEMs and the aftermarket provide stability and reduce dependency on any single market segment.

Negative Factors

High Leverage

High leverage indicates significant reliance on debt, which can limit financial flexibility and increase risk during economic downturns.

Negative Profit Margin

The negative profit margin suggests challenges in cost management and operational efficiency, potentially impacting long-term profitability.

Profitability Challenges

The negative return on equity highlights ongoing profitability issues, which could hinder Schaeffler's ability to generate shareholder value.

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 generates revenue primarily through the sale of its automotive and industrial products. The company's revenue model is based on both direct sales to original equipment manufacturers (OEMs) and the aftermarket, where it provides replacement parts and services. Key revenue streams include automotive components for electric vehicles, internal combustion engines, and hybrid systems, as well as industrial solutions for sectors like renewable energy, rail, and machine tools. Significant partnerships with major automotive manufacturers enhance its market presence and contribute to stable earnings. Additionally, Schaeffler invests in research and development to innovate and expand its product offerings, which drives long-term growth and profitability.

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	23.63B	18.19B	16.31B	15.81B	13.85B	12.59B
Gross Profit	4.49B	3.83B	3.55B	3.58B	3.44B	2.86B
EBITDA	1.61B	1.47B	1.70B	1.96B	2.21B	1.03B
Net Income	-1.13B	-632.00M	310.00M	557.00M	756.00M	-428.00M
Balance Sheet
Total Assets	21.32B	21.37B	15.02B	14.28B	14.36B	13.51B
Cash, Cash Equivalents and Short-Term Investments	2.18B	1.11B	834.00M	908.00M	1.66B	1.61B
Total Debt	7.75B	6.73B	4.19B	3.50B	3.99B	4.24B
Total Liabilities	18.20B	17.40B	11.10B	10.14B	11.20B	11.49B
Stockholders Equity	2.98B	3.81B	3.77B	4.02B	3.05B	1.93B
Cash Flow
Free Cash Flow	421.00M	433.00M	410.00M	348.00M	605.00M	621.00M
Operating Cash Flow	1.43B	1.39B	1.35B	1.14B	1.28B	1.25B
Investing Cash Flow	-702.00M	-2.08B	-1.90B	-990.00M	-716.00M	-642.00M
Financing Cash Flow	753.00M	1.19B	276.00M	-891.00M	-527.00M	526.00M

Schaeffler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 9.15 is above the 20-day moving average (MA) of 8.08, above the 50-day MA of 7.30, and above the 200-day MA of 5.41, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 81.40 is Negative, neither overbought nor oversold. The STOCH value of 96.80 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
KBX	70 Neutral	€15.93B	36.63	14.52%	1.85%	-1.77%	-28.68%
SFQ	68 Neutral	€741.74M	13.31	11.63%	5.70%	-12.01%	-28.10%
HLE	62 Neutral	€9.27B	57.39	5.24%	1.17%	<0.01%	-50.97%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CON	58 Neutral	€13.88B	55.98	-1.10%	2.88%	-38.10%	-75.32%
SHA0	52 Neutral	€8.65B	-6.13	-34.39%	3.15%	45.16%	-790.24%
ZIL2	46 Neutral	€270.86M	-2.35	-16.55%	3.51%	-6.21%	-995.53%