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1. Company Snapshot

1.a. Company Description

Schindler Holding AG engages in the production, installation, maintenance, and modernization of elevators, escalators, and moving walks worldwide.It also offers digital media services for providing information, communication, and entertainment channels, such as Schindler Ahead DoorShow, which displays information, advertising, and announcements on the elevator landing doors; Schindler Ahead SmartMirror, a mirror and a screen for entertainment or information; Schindler Ahead AdScreen that delivers messages on screen inside the elevator; and Schindler Ahead MediaScreen, an in-car media solution for elevators.In addition, the company provides digital services, including Schindler Ahead ActionBoard that collates all the important statistics, activities, and performance data of elevators; and Schindler Ahead RemoteMonitoring which provides information about equipment's health.


Further, it also offers s digital solutions for transit and building management.The company provides its products and services to residential buildings, office buildings, hotels, healthcare facilities, malls and retail facilities, public transport locations, mixed-use buildings, institutional buildings, and marines, as well as stadiums, arenas, and convention centers.Schindler Holding AG was founded in 1874 and is based in Hergiswil, Switzerland.

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1.b. Last Insights on SCHP

Schindler Holding AG's recent performance was buoyed by a record net profit of CHF 1 billion in Q4 2024, despite revenue declines. This achievement underscores the company's operational resilience and strategic growth in the service and modernization segments. The company's ability to maintain profitability amidst a challenging market environment is a testament to its robust business model. Furthermore, Schindler's focus on high-margin service and modernization activities has yielded positive results, contributing to its impressive net profit.

1.c. Company Highlights

2. Schindler Delivers Resilient First Half 2025 Results Amid Challenging Market Conditions

Schindler reported a solid financial performance for the first half of 2025, with organic growth and strong operational execution. The company achieved order growth of over 5% in local currencies, driven by a robust 22% expansion in its Modernization business. Revenue growth, however, was muted, though the backlog increased by 4% in local currencies, signaling healthy demand. The operating margin stood at 12.3%, surpassing expectations, and operating cash flow reached CHF 703 million. EPS came in at 2.3, slightly above the consensus estimate of 2.19. Carla De Geyseleer, CFO, emphasized that the margin improvement was driven by "operational improvements, specifically SG&A cost reductions and procurement and supply chain savings," with no non-recurring items contributing to the upside.

Publication Date: Jul -19

📋 Highlights
  • Strong Organic Growth:: Order growth exceeded 5% in local currencies, with Modernization business surging 22%.
  • Healthy Backlog and Margin:: Backlog increased 4% in local currencies, with an operating margin of 12.3% and CHF 703 million in operating cash flow.
  • Market Outlook:: Service markets are growing steadily, while New Installations are expected to decline by high single digits.
  • Restructuring and Tariffs:: Restructuring costs rose to CHF 70 million, with tariffs impacting CHF 20 million, but operational efficiencies are mitigating these effects.
  • Modernization Business:: Despite being below group average profitability, Modernization is growing worldwide, with expectations of continued growth and potential market share gains.

Market Outlook and Segment Performance

Schindler's Service markets are expected to grow at a healthy pace, while New Installations are anticipated to decline by high single digits, reflecting broader market challenges. The Modernization business continues to outperform, with growth observed across all regions and market share gains in specific areas. However, its profitability remains below the group average, though not dilutive. Management highlighted ongoing efforts to improve Modernization's efficiency as it scales. In China, the Service market growth outlook was revised downward due to prolonged New Installation market contraction, but the company remains optimistic about the medium-term potential of its Service business in the region.

Valuation Analysis

With a P/E ratio of 45.42 and an EV/EBITDA of 26.62, Schindler's valuation reflects its premium positioning in the market. The stock's P/S ratio of 3.7 indicates investor confidence in its revenue growth prospects, despite near-term headwinds. The company's free cash flow yield of 4.76% and ROIC of 11.49% suggest strong cash generation and efficient capital allocation. While the stock appears richly valued, its ability to deliver consistent operational improvements and maintain a healthy cash flow trajectory supports its valuation multiples.

Margin Expansion and Cost Management

Schindler's focus on operational efficiency and cost savings has been a key driver of its margin performance. The company is on track to achieve its target EBIT margin of 12% for 2025, supported by progress on procurement and supply chain improvements. However, the increase in restructuring costs, up to CHF 70 million, primarily in China, highlights the ongoing challenges in realigning its operations. Management remains confident in its ability to offset tariff and currency headwinds, with significant savings expected in the second half of the year.

3. NewsRoom

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Energy Vault Secures Swiss Market Entry with Signed B-VAULT™ Deployment Contracts for Schindler and Energie Wettingen Projects, Launch of FlexGrid Product for Urban and Utility Applications

Dec -04

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Is Now The Time To Look At Buying Schindler Holding AG (VTX:SCHN)?

Nov -14

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The great AI buildout shows no sign of slowing

Oct -31

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An Intrinsic Calculation For Schindler Holding AG (VTX:SCHN) Suggests It's 22% Undervalued

Oct -29

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Owning 43% in Schindler Holding AG (VTX:SCHN) means that insiders are heavily invested in the company's future

Sep -15

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Otis Worldwide Stock Is Set to Get a Lift

Aug -14

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We Like The Quality Of Schindler Holding's (VTX:SCHN) Earnings

Jul -26

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BuildingMinds, Tishman Speyer, Schindler, GRESB and EQT Real Estate Drive Data-Driven Decarbonization Agenda at NYC Energy Week's Sustainable Real Estate Forum

Jul -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Elevators & Escalators (E&E)

Expected Growth: 4.5%

Schindler's Elevators & Escalators division is expected to grow driven by increasing urbanization, ageing population, and growing demand for energy-efficient solutions, supported by investments in digitalization and innovation.

Finance

Expected Growth: 4.5%

Schindler Holding AG's finance segment, managing company assets, is poised for growth driven by increasing urbanization, infrastructure development, and energy efficiency demands, leading to a steady growth hypothesis.

7. Detailed Products

Elevators

Schindler's elevators are designed to provide safe, reliable, and efficient vertical transportation in various types of buildings, including residential, commercial, and industrial.

Escalators

Schindler's escalators are designed to provide efficient and reliable horizontal or inclined transportation in high-traffic areas, such as shopping malls, airports, and public transportation hubs.

Moving Walks

Schindler's moving walks are designed to provide efficient and comfortable horizontal or inclined transportation in high-traffic areas, such as airports, train stations, and shopping malls.

Modernization

Schindler's modernization services are designed to upgrade and refurbish existing elevators, escalators, and moving walks to improve their performance, safety, and energy efficiency.

Service

Schindler's service offerings are designed to provide maintenance, repair, and maintenance contracts for elevators, escalators, and moving walks to ensure their safe and reliable operation.

PORT Technology

Schindler's PORT Technology is a destination control system that optimizes elevator traffic flow and reduces waiting times in high-rise buildings.

8. Schindler Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Schindler Holding AG faces moderate threat from substitutes, as customers have limited alternatives for elevator and escalator services.

Bargaining Power Of Customers

Schindler Holding AG has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Schindler Holding AG relies on a few key suppliers for components and materials, which gives them some bargaining power.

Threat Of New Entrants

The elevator and escalator industry has high barriers to entry, making it difficult for new entrants to compete with Schindler Holding AG.

Intensity Of Rivalry

The elevator and escalator industry is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.49%
Debt Cost 7.35%
Equity Weight 92.51%
Equity Cost 7.35%
WACC 7.35%
Leverage 8.10%

11. Quality Control: Schindler Holding AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Siemens

A-Score: 5.5/10

Value: 3.6

Growth: 5.0

Quality: 5.6

Yield: 5.0

Momentum: 7.5

Volatility: 6.3

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Alfa Laval

A-Score: 5.4/10

Value: 2.7

Growth: 6.9

Quality: 6.8

Yield: 3.8

Momentum: 3.0

Volatility: 9.0

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Schindler

A-Score: 5.3/10

Value: 1.1

Growth: 3.9

Quality: 7.2

Yield: 3.1

Momentum: 7.0

Volatility: 9.7

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Eaton

A-Score: 4.5/10

Value: 0.7

Growth: 5.9

Quality: 6.9

Yield: 2.5

Momentum: 6.0

Volatility: 5.0

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KONE

A-Score: 4.3/10

Value: 1.8

Growth: 3.3

Quality: 6.4

Yield: 5.6

Momentum: 6.0

Volatility: 2.7

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Schneider Electric

A-Score: 4.3/10

Value: 1.3

Growth: 5.6

Quality: 6.3

Yield: 2.5

Momentum: 5.0

Volatility: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

287.8$

Current Price

287.8$

Potential

-0.00%

Expected Cash-Flows