Latest news with #StadlerRailAG
Business Insider
6 days ago
- Business
- Business Insider
Stadler Rail AG (SRAIL) Gets a Hold from Kepler Capital
Kepler Capital analyst William Mackie maintained a Hold rating on Stadler Rail AG (SRAIL – Research Report) on June 2 and set a price target of CHF22.50. The company's shares closed yesterday at CHF20.60. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Mackie is a 5-star analyst with an average return of 8.3% and a 59.38% success rate. Mackie covers the Industrials sector, focusing on stocks such as ABB Ltd, Rexel SA, and Alstom SA. The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Stadler Rail AG with a CHF20.33 average price target.
Yahoo
19-05-2025
- Business
- Yahoo
Should You Be Worried About Stadler Rail AG's (VTX:SRAIL) 7.1% Return On Equity?
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine Stadler Rail AG (VTX:SRAIL), by way of a worked example. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Our free stock report includes 1 warning sign investors should be aware of before investing in Stadler Rail. Read for free now. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Stadler Rail is: 7.1% = CHF55m ÷ CHF774m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. That means that for every CHF1 worth of shareholders' equity, the company generated CHF0.07 in profit. Check out our latest analysis for Stadler Rail One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. Importantly, this is far from a perfect measure, because companies differ significantly within the same industry classification. As is clear from the image below, Stadler Rail has a lower ROE than the average (12%) in the Machinery industry. Unfortunately, that's sub-optimal. Although, we think that a lower ROE could still mean that a company has the opportunity to better its returns with the use of leverage, provided its existing debt levels are low. A company with high debt levels and low ROE is a combination we like to avoid given the risk involved. Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the first and second cases, the ROE will reflect this use of cash for investment in the business. In the latter case, the debt required for growth will boost returns, but will not impact the shareholders' equity. That will make the ROE look better than if no debt was used. Stadler Rail clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 1.12. With a fairly low ROE, and significant use of debt, it's hard to get excited about this business at the moment. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. If two companies have the same ROE, then I would generally prefer the one with less debt. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company. But note: Stadler Rail may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. 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
21-03-2025
- Business
- Yahoo
The five-year loss for Stadler Rail (VTX:SRAIL) shareholders likely driven by its shrinking earnings
While it may not be enough for some shareholders, we think it is good to see the Stadler Rail AG (VTX:SRAIL) share price up 13% in a single quarter. But if you look at the last five years the returns have not been good. In fact, the share price is down 51%, which falls well short of the return you could get by buying an index fund. The recent uptick of 3.3% could be a positive sign of things to come, so let's take a look at historical fundamentals. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During the five years over which the share price declined, Stadler Rail's earnings per share (EPS) dropped by 21% each year. This fall in the EPS is worse than the 13% compound annual share price fall. So investors might expect EPS to bounce back -- or they may have previously foreseen the EPS decline. With a P/E ratio of 57.53, it's fair to say the market sees a brighter future for the business. You can see below how EPS has changed over time (discover the exact values by clicking on the image). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Stadler Rail the TSR over the last 5 years was -44%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return. While the broader market gained around 12% in the last year, Stadler Rail shareholders lost 20% (even including dividends). However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 8% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Stadler Rail has 3 warning signs we think you should be aware of. If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swiss exchanges. 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
