Schaeffler (SHA0) AI Stock Analysis

• Market Cap: €3.60B
• Dividend Yield: 6.38%
• Average Volume (3M): 1.30M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 1.08
• Revenue Growth: 23.27%
• EPS Growth: -280.44%
• Country: DE
• Employees: 115,055
• Sector: Industrials
• Sector Strength: 82
• Industry: Auto - Parts
• EPS (TTM): 0.09
• Shares Outstanding: 944,884,640
• 10 Day Avg. Volume: 698,234
• 30 Day Avg. Volume: 1,299,358
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: €4.65
• Price Target Upside: 18.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

Schaeffler's overall stock score is 58, driven primarily by strong revenue growth and cash flow generation, which are offset by significant profitability challenges and increased financial leverage. The technical analysis suggests short-term bearish trends, while the valuation is hampered by a negative P/E ratio, despite an attractive dividend yield.

Schaeffler Business Overview & Revenue Model

Company Description

Schaeffler AG is a global automotive and industrial supplier headquartered in Herzogenaurach, Germany. The company operates in two main sectors: Automotive Technologies and Industrial, offering a wide array of products including high-precision components and systems for engines, transmissions, and chassis applications, as well as rolling and plain bearing solutions, linear and direct drive technology, and services for industrial applications. Schaeffler is renowned for its innovation and engineering excellence, providing solutions that enhance the efficiency and sustainability of machinery and vehicles worldwide.

How the Company Makes Money

Schaeffler generates revenue primarily through the design, manufacture, and sale of components and systems used in automotive and industrial applications. In the automotive sector, the company supplies both original equipment manufacturers (OEMs) and the aftermarket with products such as engine components, transmission systems, and chassis modules. In the industrial sector, Schaeffler provides bearings and services for applications in diverse industries including wind, railway, and industrial automation. The company's earnings are significantly supported by strong relationships with large automotive manufacturers and industrial clients, as well as its continuous investment in research and development to drive innovation and maintain competitive advantage.

Schaeffler Financial Statement Overview

Summary

Schaeffler shows promising revenue growth and solid cash flow generation, yet faces profitability challenges with a negative net income in 2024. The increased leverage heightens financial risk, though the equity position has slightly improved. Overall, the company needs to address operational inefficiencies and manage debt levels to enhance financial stability.

Income Statement

Revenue saw a strong growth of 11.5% from 2023 to 2024, indicating positive momentum. However, the company faced challenges with profitability as its net income turned negative in 2024, resulting in a net profit margin decline from 1.9% in 2023 to -3.5% in 2024. The gross profit margin remained stable, yet the absence of EBIT in 2024 suggests operational inefficiencies.

Balance Sheet

The debt-to-equity ratio rose from 1.11 in 2023 to 1.73 in 2024, indicating increased leverage which may pose a financial risk. Despite this, the equity ratio improved to 17.8% in 2024, showing a slight increase in equity relative to total assets. Return on equity turned negative, reflecting the negative net income.

Cash Flow

Operating cash flow remained strong, with a slight increase from 2023 to 2024. Free cash flow also grew by 5.6%, which is a positive indicator of cash generation capability. However, the free cash flow to net income ratio was impacted by the negative net income, highlighting potential cash flow sustainability issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
18.19B	16.31B	15.81B	13.85B	12.59B
	Gross Profit
3.83B	3.60B	3.58B	3.44B	2.86B
	EBIT
876.00M	1.11B	996.00M	1.22B	138.00M
	EBITDA
1.47B	1.70B	1.96B	2.21B	732.00M
	Net Income Common Stockholders
-632.00M	310.00M	557.00M	756.00M	-428.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.11B	834.00M	908.00M	1.66B	1.61B
	Total Assets
21.37B	15.02B	14.28B	14.36B	13.51B
	Total Debt
6.60B	4.19B	3.50B	3.99B	4.24B
	Net Debt
5.63B	3.68B	2.68B	2.39B	2.74B
	Total Liabilities
17.40B	11.10B	10.14B	11.20B	11.49B
	Stockholders Equity
3.81B	3.77B	4.02B	3.05B	1.93B
Cash Flow		Free Cash Flow
433.00M	410.00M	348.00M	605.00M	621.00M
	Operating Cash Flow
1.39B	1.35B	1.14B	1.28B	1.25B
	Investing Cash Flow
-2.08B	-1.90B	-990.00M	-716.00M	-642.00M
	Financing Cash Flow
1.19B	276.00M	-891.00M	-527.00M	526.00M

Schaeffler Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.91
• 50DMA: Positive
• 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 DE:SHA0, the sentiment is Positive. The current price of 3.91 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.79, and below the 200-day MA of 4.11, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 71.75 is Neutral, 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
BMW	78 Outperform	$46.37B	6.46	7.02%	7.41%	-10.13%	-37.28%
VOW3	73 Outperform	€49.01B	5.21	5.52%	9.04%	1.62%	-38.38%
FRA	67 Neutral	€5.49B	12.22	9.85%	―	10.66%	14.62%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
CON	61 Neutral	$14.36B	12.00	10.07%	3.32%	-14.83%	78.73%
SHA0	58 Neutral	€3.60B	22.28	-16.64%	6.38%	23.27%	-280.44%