Schindler Holding AG SCHN

Morningstar Rating
CHF 238.50 −2.00 (0.83%)
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Company Report

Schindler's Upgraded Dividend Payout Makes Sense Given the Cash Flow Generation of the Business

Schindler is an industry leader and one of the four largest globally active elevator and escalator original equipment manufacturers. As an integrated player, its operations span manufacturing, installation, and elevator and escalator servicing. Schindler also performs elevator modernization services for elevator systems at the end of their typical 15- to 20-year useful life. Schindler commands an approximate 15% share of the estimated $80 billion global elevator and escalator market.

Price vs Fair Value

SCHN is trading at a 578% premium.
Price
CHF 238.50
Fair Value
CHF 622.00
Uncertainty
Low
1-Star Price
CHF 321.00
5-Star Price
CHF 439.00
Economic Moat
Skk
Capital Allocation
Jqjcmthf

Bulls Say, Bears Say

Bulls

Schindler operates under an installed base business model that generates strong and steady free cash flows. It boasts the second-largest installed base globally.

Bears

Global new elevator installations have likely peaked structurally as the rate of urbanization slows in Asia-Pacific.

Trading Information

Previous Close Price
CHF 240.50
Day Range
CHF 237.50241.00
52-Week Range
CHF 171.70244.00
Bid/Ask
CHF 235.00 / CHF 242.00
Market Cap
CHF 25.65 Bil
Volume/Avg
15,775 / 17,683

Key Statistics

Price/Earnings (Normalized)
28.49
Price/Sales
2.26
Dividend Yield (Trailing)
1.68%
Dividend Yield (Forward)
1.68%
Total Yield
1.78%

Company Profile

Switzerland-based Schindler is a top-four global supplier of elevators and escalators. The business generates revenue in three ways: selling new elevators and escalators, modernizing old equipment, and servicing existing installations. Most of the company's profit comes from the last activity, where contracts are rolled over annually with built-in price increases. Ninety percent of its business is in elevators, which are more numerous globally than escalators. Its business model is similar to that of closest competitors Otis, Kone, and TK Elevator.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Large Core
Total Number of Employees
70,406

Competitors

Valuation

Metric
SCHN
KNEBV
OTIS
Price/Earnings (Normalized)
28.4924.6227.38
Price/Book Value
5.5811.67
Price/Sales
2.262.503.01
Price/Cash Flow
18.8122.0425.86
Price/Earnings
SCHN
KNEBV
OTIS

Financial Strength

Metric
SCHN
KNEBV
OTIS
Quick Ratio
1.140.730.67
Current Ratio
1.371.030.79
Interest Coverage
58.6814.60
Quick Ratio
SCHN
KNEBV
OTIS

Profitability

Metric
SCHN
KNEBV
OTIS
Return on Assets (Normalized)
8.34%11.64%15.31%
Return on Equity (Normalized)
21.57%41.81%
Return on Invested Capital (Normalized)
18.13%32.97%62.92%
Return on Assets
SCHN
KNEBV
OTIS

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