Schindler SCHN.SW
What does Schindler do?
Schindler is a Swiss industrial group and one of the world's leading providers of elevators, escalators and moving walkways. The company develops, manufactures, installs, maintains and modernizes these systems. Its customers include property developers, real estate owners, operators of transport infrastructure and public-sector clients.
Schindler earns money in two ways: through the new installations business, which depends heavily on construction activity, and through the service and modernization business, which generates recurring revenue from the installed base. The offering is complemented by digital solutions such as traffic management systems, robot-assisted installation methods and building analytics software. In terms of competition, Schindler mainly faces a small number of large global manufacturers, as well as regional providers, particularly in Asia. Scale, a dense service network and the large installed base are regarded as key competitive advantages.
Score profile
Rank vs. Specialty Industrial Machinery (49 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Schindler ranks above average in the group Specialty Industrial Machinery (6.4/10). On growth, the company ranks in the middle in the group Specialty Industrial Machinery (5.3/10). On valuation (higher = cheaper), the stock ranks below average in the group Specialty Industrial Machinery (2.3/10). On financial strength, Schindler ranks in the middle in the group Specialty Industrial Machinery (4.4/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 26.1x | 18.4x | better than 5 % |
| Trailing P/E | 30.6x | 26.2x | better than 39 % |
| PEG ratio | 3.4x | 1.7x | better than 8 % |
| EV/EBITDA | 19.3x | 16.5x | better than 30 % |
| Price/sales | 3.0x | 3.0x | better than 49 % |
| Price/book | 6.8x | 4.1x | better than 11 % |
| Revenue growth | 6.2% | 7.1% | better than 42 % |
| Earnings growth | 19.1% | 12.9% | better than 64 % |
| Gross margin | 74.1% | 40.2% | better than 99 % |
| Operating margin | 14.2% | 16.5% | better than 39 % |
| Net margin | 9.8% | 10.3% | better than 40 % |
| Return on equity | 23.0% | 13.5% | better than 79 % |
| Debt/equity | 0.0% | 47.2% | better than 97 % |
| Current ratio | 1.4x | 1.9x | better than 24 % |
| Free cash flow yield | 0.0% | 3.1% | better than 11 % |
| Dividend yield | 2.0% | 1.2% | – |
| Payout ratio | 64.0% | 32.4% | – |
| Beta | 0.78 | 1.06 | – |
Valuation: what is Schindler worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Schindler a model range of 211.49 CHF to 258.15 CHF per share.
13 analysts, average rating “Hold”, average price target 305.38 CHF (+2.0%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The new installations business depends on construction activity in the residential, commercial and infrastructure sectors in the respective regions.
- The growing installed base secures recurring revenue through maintenance contracts that is comparatively insensitive to the economic cycle.
- Modernization of aging systems and regulatory requirements for safety and energy efficiency support demand.
Risks
- A weak construction cycle, for example in the real estate sector of individual markets, directly weighs on the cyclical new installations business.
- Price pressure from regional competitors and fluctuations in raw material and component costs can reduce margins.
- As a globally active group, Schindler is exposed to currency effects as well as geopolitical and regulatory risks.
What to look for with Schindler
The ratio of service revenue to new installation revenue and the operating margin show how stable earnings are and how strongly the construction cycle feeds through.