Latest news with #SchindlerHolding
Bloomberg
9 hours ago
- Business
- Bloomberg
Will Robots Reflect a Nation's Character?
This is Bloomberg Opinion Today, an android-filled anthology of Bloomberg Opinion's opinions. Sign up here. In his latest column, Matthew Brooker laments the state of the UK robot industry. Even as the Labour government struggles to keep its promise to build 1.5 million homes in the next five years, a lack of workers both human and humanoid slows things down. There are non-human workers, some of whom — don't tell the Brexit part of the electorate — are distinctly foreign. Says Matthew: 'A construction automaton developed by Switzerland's Schindler Holding AG was deployed in the UK for the first time at a net-zero office building in central London.' In another part of the city, a robotic arm created by ABB Ltd., a UK company, 'is being used to cut and assemble timber-frame panels for sustainable homes below a railway line in an area that was once home to taxi-maintenance yards.' Otherwise, the British robot sector is far from what the industry is like in the US, Germany and Japan, much less global leader China.
Yahoo
17-05-2025
- Business
- Yahoo
Calculating The Fair Value Of Schindler Holding AG (VTX:SCHN)
The projected fair value for Schindler Holding is CHF351 based on 2 Stage Free Cash Flow to Equity Current share price of CHF290 suggests Schindler Holding is potentially trading close to its fair value The CHF285 analyst price target for SCHN is 19% less than our estimate of fair value How far off is Schindler Holding AG (VTX:SCHN) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by estimating the company's future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Don't get put off by the jargon, the math behind it is actually quite straightforward. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. If you still have some burning questions about this type of valuation, take a look at the Simply Wall St analysis model. We check all companies for important risks. See what we found for Schindler Holding in our free report. We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, and so the sum of these future cash flows is then discounted to today's value: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (CHF, Millions) CHF1.11b CHF1.21b CHF1.44b CHF1.56b CHF1.64b CHF1.69b CHF1.74b CHF1.77b CHF1.79b CHF1.81b Growth Rate Estimate Source Analyst x7 Analyst x7 Analyst x6 Analyst x5 Analyst x3 Est @ 3.36% Est @ 2.46% Est @ 1.83% Est @ 1.39% Est @ 1.08% Present Value (CHF, Millions) Discounted @ 4.8% CHF1.1k CHF1.1k CHF1.3k CHF1.3k CHF1.3k CHF1.3k CHF1.3k CHF1.2k CHF1.2k CHF1.1k ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = CHF12b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (0.4%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 4.8%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = CHF1.8b× (1 + 0.4%) ÷ (4.8%– 0.4%) = CHF41b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= CHF41b÷ ( 1 + 4.8%)10= CHF26b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CHF38b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Relative to the current share price of CHF290, the company appears about fair value at a 17% discount to where the stock price trades currently. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out. Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. If you don't agree with these result, have a go at the calculation yourself and play with the assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Schindler Holding as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 4.8%, which is based on a levered beta of 1.025. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. Check out our latest analysis for Schindler Holding Strength Earnings growth over the past year exceeded the industry. Currently debt free. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Machinery market. Opportunity Annual earnings are forecast to grow for the next 3 years. Current share price is below our estimate of fair value. Threat Annual earnings are forecast to grow slower than the Swiss market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. It's not possible to obtain a foolproof valuation with a DCF model. Instead the best use for a DCF model is to test certain assumptions and theories to see if they would lead to the company being undervalued or overvalued. For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. For Schindler Holding, there are three pertinent elements you should further research: Financial Health: Does SCHN have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk. Future Earnings: How does SCHN's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the SWX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Yahoo
08-04-2025
- Business
- Yahoo
The recent CHF1.9b market cap decrease is likely to have disappointed insiders invested in Schindler Holding AG (VTX:SCHN)
Schindler Holding's significant insider ownership suggests inherent interests in company's expansion 52% of the business is held by the top 5 shareholders Institutions own 23% of Schindler Holding Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A look at the shareholders of Schindler Holding AG (VTX:SCHN) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). And following last week's 6.7% decline in share price, insiders suffered the most losses. In the chart below, we zoom in on the different ownership groups of Schindler Holding. See our latest analysis for Schindler Holding Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Schindler Holding. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Schindler Holding's historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in Schindler Holding. Alfred Schindler is currently the largest shareholder, with 21% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 21% and 3.4%, of the shares outstanding, respectively. To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. It seems insiders own a significant proportion of Schindler Holding AG. It is very interesting to see that insiders have a meaningful CHF12b stake in this CHF27b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. The general public, who are usually individual investors, hold a 34% stake in Schindler Holding. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph . If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
08-04-2025
- Business
- Yahoo
The recent CHF1.9b market cap decrease is likely to have disappointed insiders invested in Schindler Holding AG (VTX:SCHN)
Schindler Holding's significant insider ownership suggests inherent interests in company's expansion 52% of the business is held by the top 5 shareholders Institutions own 23% of Schindler Holding Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. A look at the shareholders of Schindler Holding AG (VTX:SCHN) can tell us which group is most powerful. And the group that holds the biggest piece of the pie are individual insiders with 43% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). And following last week's 6.7% decline in share price, insiders suffered the most losses. In the chart below, we zoom in on the different ownership groups of Schindler Holding. See our latest analysis for Schindler Holding Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. As you can see, institutional investors have a fair amount of stake in Schindler Holding. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Schindler Holding's historic earnings and revenue below, but keep in mind there's always more to the story. Hedge funds don't have many shares in Schindler Holding. Alfred Schindler is currently the largest shareholder, with 21% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 21% and 3.4%, of the shares outstanding, respectively. To make our study more interesting, we found that the top 5 shareholders control more than half of the company which implies that this group has considerable sway over the company's decision-making. While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group. It seems insiders own a significant proportion of Schindler Holding AG. It is very interesting to see that insiders have a meaningful CHF12b stake in this CHF27b business. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. The general public, who are usually individual investors, hold a 34% stake in Schindler Holding. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. While it is well worth considering the different groups that own a company, there are other factors that are even more important. I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph . If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts . NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
20-02-2025
- Business
- Yahoo
We Like Schindler Holding's (VTX:SCHN) Earnings For More Than Just Statutory Profit
Schindler Holding AG's (VTX:SCHN) recent earnings report didn't offer any surprises, with the shares unchanged over the last week. We did some analysis to find out why and believe that investors might be missing some encouraging factors contained in the earnings. See our latest analysis for Schindler Holding Many investors haven't heard of the accrual ratio from cashflow, but it is actually a useful measure of how well a company's profit is backed up by free cash flow (FCF) during a given period. In plain english, this ratio subtracts FCF from net profit, and divides that number by the company's average operating assets over that period. This ratio tells us how much of a company's profit is not backed by free cashflow. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. That is not intended to imply we should worry about a positive accrual ratio, but it's worth noting where the accrual ratio is rather high. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Schindler Holding has an accrual ratio of -0.40 for the year to December 2024. That indicates that its free cash flow quite significantly exceeded its statutory profit. In fact, it had free cash flow of CHF1.5b in the last year, which was a lot more than its statutory profit of CHF950.0m. Schindler Holding's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Happily for shareholders, Schindler Holding produced plenty of free cash flow to back up its statutory profit numbers. Because of this, we think Schindler Holding's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! And the EPS is up 15% annually, over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. So feel free to check out our free graph representing analyst forecasts. This note has only looked at a single factor that sheds light on the nature of Schindler Holding's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
