Schaltbau Holding

GR: SLT

Market Cap€366.9m

Last Close €38.55

Schaltbau Holding specialises in products for rail infrastructure and rolling stock and also road vehicles and other industrial applications. Rail represents 68% of revenues. The geographical spread of revenues in FY20 is Germany 36%, other Europe 47% and rest of the world 17%.

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Investment summary

Schaltbau Holding should benefit from trends towards digitalisation and interconnectivity in its core Rail segment (68% of FY20 revenues), while restoring profitability levels. The ability to leverage direct current (DC) switching expertise should provide opportunities in growth markets, such as new energy, e-mobility, the DC industry and smart grids. Schaltbau’s valuation offers re-rating potential now that the company is on the verge of restoring profitability after an extensive restructuring programme.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2019A 513.7 45.1 10.5 104.85 36.8 N/A
2020A 502.3 43.1 14.5 146.53 26.3 N/A
2021E 531.0 47.7 22.9 147.31 26.2 N/A
2022E 568.0 56.9 30.7 192.14 20.1 N/A
Industry outlook

Schaltbau expects to realise growth of around 5% in the modestly growing Railway market until 2026, driven by the modernisation of Rail, and to significantly improve EBIT margins towards 6–8% in 2026, up from an estimated 2–3% in FY20. Higher growth will come from the Components division with exposure to high growth markets such as new energy (wind and solar) and e-mobility. Growth in these segments is estimated at >20% per annum for the next couple of years.

Last updated on 18/06/2021
Content on Schaltbau Holding
Schaltbau Holding – executive interview
Industrials | Edison TV | 14 April 2021
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Share price graph
Balance sheet
Forecast net debt (€m) 48.9
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 14.7 14.4 48.3
Relative* 14.3 9.4 17.9
52-week high/low €39.2/€23.4
*% relative to local index
Key management
Jurgen Brandes CEO
Steffen Munz FD
Dr Kai Holtmann IRO