Stadler Rail AG (SRAIL) AI Stock Analysis

• Market Cap: CHF2.01B
• Dividend Yield: 1%
• Average Volume (3M): 146.22K
• Price to Earnings (P/E): 63.0
• Beta (1Y): 0.95
• Revenue Growth: -6.87%
• EPS Growth: -74.29%
• Country: CH
• Employees: 14,276
• Sector: Industrials
• Sector Strength: 72
• Industry: Railroads
• EPS (TTM): 0.17
• Shares Outstanding: 100,000,000
• 10 Day Avg. Volume: 118,901
• 30 Day Avg. Volume: 146,224
• PEG Ratio: -0.75
• Price to Book (P/B): 2.69
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 43.17
• 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: CHF20.30
• Price Target Upside: 1.75% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 57 Neutral
• Price Target: CHF21.50 ▲(7.77% Upside)

Stadler Rail AG's overall stock score is primarily influenced by its financial performance and technical analysis. The company's recent declines in profitability and cash flow, combined with bearish technical indicators, weigh heavily on the score. The high P/E ratio suggests potential overvaluation, further impacting the stock's attractiveness.

Stadler Rail AG Business Overview & Revenue Model

Company Description

Stadler Rail AG, through its subsidiaries, engages in the manufacture and sale of trains in Switzerland, Germany, Austria, Western and Eastern Europe, the Americas, the CIS countries, and internationally. It operates through two segments, Rolling Stock; and Service and Components. The company's Rolling Stock segment manufactures high-speed and intercity trains, suburban and regional transport trains, passenger coaches, light rails, trams, and metros locomotives, as well as city transport and tailor-made vehicles. Its Service and Component segment provides modernization and revision, spare parts, vehicle repair, upgrading and overhauling, and maintenance services; and supplies vehicle components, such as car bodies or bogies. The company was founded in 1942 and is headquartered in Bussnang, Switzerland.

How the Company Makes Money

Stadler Rail AG generates revenue primarily through the sale of rolling stock, which includes various types of trains and trams tailored to meet the specific needs of different customers. This revenue stream is bolstered by long-term contracts with governmental and private transport operators across Europe and beyond. Additionally, the company earns income from providing maintenance and repair services for its products, ensuring ongoing revenue from existing customers. Significant partnerships with railway operators and participation in public transport projects also contribute to its earnings, as these collaborations often lead to substantial orders for new vehicles. Furthermore, Stadler Rail invests in research and development to enhance its product offerings, which helps in securing competitive contracts and expanding its market presence.

Stadler Rail AG Financial Statement Overview

Summary

Stadler Rail AG demonstrates solid asset management and liquidity, but recent declines in revenue, profitability, and cash flow generation pose concerns. The company needs to enhance its profitability and cash flow management to maintain financial stability and support future growth, especially given the competitive railroad industry landscape.

Income Statement

Stadler Rail AG has shown fluctuating revenue over the years, with a decline in 2024 compared to 2023. The gross profit margin for 2024 was approximately 11.39%, indicating moderate profitability. However, the net profit margin dropped significantly to about 1.18%, driven by lower net income. The EBIT and EBITDA margins for 2024 were 3.09% and 7.37%, respectively, showing thin operational profitability. While previous periods had higher profitability, the recent decline is a concern.

Balance Sheet

The company maintains a relatively stable balance sheet with a moderate debt-to-equity ratio of approximately 1.21 in 2024, indicating manageable leverage. The equity ratio was around 12.63%, showing a lower proportion of equity in total assets. Return on equity decreased to about 5.20%, reflecting reduced profitability and efficiency in using equity. Despite a solid liquidity position with significant cash reserves, the decrease in equity and ROE suggests potential risk.

Cash Flow

Stadler Rail AG experienced a sharp decline in operating cash flow from 2023 to 2024. The free cash flow also decreased significantly, indicating weaker cash generation. The free cash flow to net income ratio was roughly 1.20, suggesting adequate cash conversion. However, the overall decline in cash flow performance suggests potential liquidity risks if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	3.26B	3.61B	3.75B	3.63B	3.08B
Gross Profit	379.76M	370.91M	404.64M	385.41M	402.02M	315.34M
EBITDA	223.31M	239.81M	320.14M	254.06M	324.44M	270.75M
Net Income	31.54M	38.42M	124.32M	72.90M	133.66M	137.61M
Balance Sheet
Total Assets	5.58B	5.86B	5.01B	4.40B	4.60B	4.51B
Cash, Cash Equivalents and Short-Term Investments	517.71M	1.26B	1.09B	831.68M	1.15B	928.90M
Total Debt	924.51M	892.83M	688.10M	1.06B	1.50B	1.54B
Total Liabilities	4.81B	5.08B	4.19B	3.62B	3.72B	3.65B
Stockholders Equity	724.23M	739.24M	790.28M	772.58M	875.21M	855.01M
Cash Flow
Free Cash Flow	-189.69M	46.09M	661.00M	256.87M	326.83M	-492.18M
Operating Cash Flow	-4.37M	286.40M	905.28M	441.35M	503.96M	-203.92M
Investing Cash Flow	-252.67M	-225.79M	-152.37M	-207.00M	-154.33M	-290.41M
Financing Cash Flow	933.00K	99.16M	-447.43M	-526.98M	-110.29M	677.08M

Stadler Rail AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 19.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:SRAIL, the sentiment is Neutral. The current price of 19.95 is above the 20-day moving average (MA) of 19.87, below the 50-day MA of 20.61, and below the 200-day MA of 20.64, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 63.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:SRAIL.

Stadler Rail AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	73 Outperform	$4.40B	15.95	23.37%	3.22%	5.79%	13.20%
KARN	70 Outperform	CHF2.26B	31.21	―	2.05%	11.43%	6.46%
BUCN	67 Neutral	CHF3.80B	17.08	―	2.96%	-11.64%	-24.17%
INRN	65 Neutral	CHF1.96B	33.47	―	1.35%	-3.67%	-12.95%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GF	62 Neutral	CHF4.76B	17.16	―	2.31%	-24.42%	32.48%
SRAIL	57 Neutral	CHF2.01B	62.97	―	1.00%	-6.87%	-74.29%