| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 13.55 | 36 |
| Intrinsic value (DCF) | 223.69 | 2143 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Schaeffler AG is a leading global automotive and industrial supplier headquartered in Herzogenaurach, Germany. Specializing in high-precision components and systems for automotive and industrial applications, Schaeffler operates through three key divisions: Automotive Technologies, Automotive Aftermarket, and Industrial. The Automotive Technologies division focuses on powertrain electrification, offering electric motors, hybrid modules, and thermal management solutions, positioning Schaeffler at the forefront of the electric vehicle (EV) transition. The Automotive Aftermarket division provides repair solutions under well-known brands like LuK, INA, and FAG, catering to commercial and offroad vehicles. The Industrial division serves sectors such as wind energy, aerospace, and automation with advanced bearing and drive solutions. With a strong presence in Europe, the Americas, and Asia-Pacific, Schaeffler combines innovation with engineering excellence to support the evolving needs of mobility and industrial efficiency. As a key player in the Auto Parts sector, Schaeffler is strategically positioned to benefit from global trends in electrification and automation.
Schaeffler AG presents a mixed investment profile. On the positive side, the company is well-positioned in the growing EV and industrial automation markets, with strong technological capabilities and a diversified customer base. However, its recent financial performance has been weak, with a net loss of €632 million in the latest fiscal year, driven by high costs and market volatility. The company's high debt (€6.6 billion) and negative EPS (-€0.86) raise concerns, though its operating cash flow (€1.39 billion) and dividend payout (€0.25 per share) suggest some resilience. Investors should weigh Schaeffler's long-term growth potential in electrification against near-term financial risks and sector headwinds.
Schaeffler AG competes in the highly competitive automotive and industrial components market, where differentiation is driven by innovation, cost efficiency, and global reach. The company's competitive advantage lies in its strong R&D capabilities, particularly in electrification (e.g., electric motors, hybrid modules) and precision engineering (e.g., bearings, drive systems). Its diversified business model, spanning OEMs, aftermarket, and industrial applications, provides stability against cyclical downturns. However, Schaeffler faces intense competition from larger players like Bosch and Continental, which have greater scale and resources. In the industrial segment, rivals such as SKF and NSK offer similar bearing solutions, often with broader geographic reach. Schaeffler's aftermarket brands (LuK, INA, FAG) are well-regarded but compete with cheaper alternatives in emerging markets. The company's focus on high-value segments (e.g., EV components, aerospace) helps mitigate pricing pressures, but its high debt load could limit flexibility in a downturn. Overall, Schaeffler's niche expertise and electrification focus are strengths, but it must navigate margin pressures and leverage risks to maintain competitiveness.