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Rieter Holding

SWX:RIEN
Snowflake Description

Flawless balance sheet with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RIEN
SWX
CHF623M
Market Cap
  1. Home
  2. CH
  3. Capital Goods
Company description

Rieter Holding AG, together with its subsidiaries, supplies systems for short-staple fiber spinning Switzerland and internationally. The last earnings update was 123 days ago. More info.


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RIEN Share Price and Events
7 Day Returns
0.8%
SWX:RIEN
-0.3%
CH Machinery
-0%
CH Market
1 Year Returns
5.7%
SWX:RIEN
14.4%
CH Machinery
13.3%
CH Market
RIEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Rieter Holding (RIEN) 0.8% 4.2% 7.9% 5.7% -22% -19.1%
CH Machinery -0.3% 7.6% 15.7% 14.4% 26.5% 41.5%
CH Market -0% 3.2% 4.8% 13.3% 21.9% 13%
1 Year Return vs Industry and Market
  • RIEN underperformed the Machinery industry which returned 14.4% over the past year.
  • RIEN underperformed the Market in Switzerland which returned 13.3% over the past year.
Price Volatility
RIEN
Industry
5yr Volatility vs Market

Value

 Is Rieter Holding undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Rieter Holding to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Rieter Holding.

SWX:RIEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year CH Government Bond Rate 3.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SWX:RIEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CH Govt Bond Rate 3.3%
Equity Risk Premium S&P Global 6%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.078 (1 + (1- 18%) (20.05%))
1.171
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 3.28% + (1.171 * 5.96%)
10.26%

Discounted Cash Flow Calculation for SWX:RIEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Rieter Holding is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

SWX:RIEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CHF, Millions) Source Present Value
Discounted (@ 10.26%)
2020 41.55 Analyst x2 37.69
2021 55.95 Analyst x2 46.03
2022 47.89 Est @ -14.41% 35.73
2023 43.53 Est @ -9.1% 29.46
2024 41.19 Est @ -5.39% 25.28
2025 40.04 Est @ -2.79% 22.29
2026 39.65 Est @ -0.97% 20.02
2027 39.77 Est @ 0.3% 18.21
2028 40.24 Est @ 1.19% 16.71
2029 40.98 Est @ 1.82% 15.43
Present value of next 10 years cash flows CHF266.00
SWX:RIEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CHF40.98 × (1 + 3.28%) ÷ (10.26% – 3.28%)
CHF606.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CHF606.18 ÷ (1 + 10.26%)10
CHF228.34
SWX:RIEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CHF266.00 + CHF228.34
CHF494.34
Equity Value per Share
(CHF)
= Total value / Shares Outstanding
= CHF494.34 / 4.48
CHF110.32
SWX:RIEN Discount to Share Price
Calculation Result
Value per share (CHF) From above. CHF110.32
Current discount Discount to share price of CHF140.00
= -1 x (CHF140.00 - CHF110.32) / CHF110.32
-26.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Rieter Holding is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Rieter Holding's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Rieter Holding's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SWX:RIEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in CHF CHF3.85
SWX:RIEN Share Price ** SWX (2019-11-15) in CHF CHF140
Switzerland Machinery Industry PE Ratio Median Figure of 25 Publicly-Listed Machinery Companies 23.34x
Switzerland Market PE Ratio Median Figure of 171 Publicly-Listed Companies 19.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Rieter Holding.

SWX:RIEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SWX:RIEN Share Price ÷ EPS (both in CHF)

= 140 ÷ 3.85

36.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rieter Holding is overvalued based on earnings compared to the CH Machinery industry average.
  • Rieter Holding is overvalued based on earnings compared to the Switzerland market.
Price based on expected Growth
Does Rieter Holding's expected growth come at a high price?
Raw Data
SWX:RIEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 36.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-15.2%per year
Switzerland Machinery Industry PEG Ratio Median Figure of 23 Publicly-Listed Machinery Companies 1.18x
Switzerland Market PEG Ratio Median Figure of 124 Publicly-Listed Companies 2.17x

*Line of best fit is calculated by linear regression .

SWX:RIEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 36.34x ÷ -15.2%

-2.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rieter Holding earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Rieter Holding's assets?
Raw Data
SWX:RIEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in CHF CHF94.75
SWX:RIEN Share Price * SWX (2019-11-15) in CHF CHF140
Switzerland Machinery Industry PB Ratio Median Figure of 25 Publicly-Listed Machinery Companies 2.3x
Switzerland Market PB Ratio Median Figure of 214 Publicly-Listed Companies 1.66x
SWX:RIEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SWX:RIEN Share Price ÷ Book Value per Share (both in CHF)

= 140 ÷ 94.75

1.48x

* Primary Listing of Rieter Holding.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rieter Holding is good value based on assets compared to the CH Machinery industry average.
X
Value checks
We assess Rieter Holding's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Rieter Holding has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Rieter Holding expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-15.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Rieter Holding expected to grow at an attractive rate?
  • Rieter Holding's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 3.3%.
Growth vs Market Checks
  • Rieter Holding's earnings are expected to decrease over the next 1-3 years, this is below the Switzerland market average.
  • Rieter Holding's revenue growth is expected to exceed the Switzerland market average.
Annual Growth Rates Comparison
Raw Data
SWX:RIEN Future Growth Rates Data Sources
Data Point Source Value (per year)
SWX:RIEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -15.2%
SWX:RIEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.6%
Switzerland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
Switzerland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.4%
Switzerland Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Switzerland Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SWX:RIEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in CHF Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SWX:RIEN Future Estimates Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 952 1
2022-12-31 928 1
2021-12-31 925 77 39 5
2020-12-31 867 83 19 5
2019-12-31 798 21 67 5
2019-11-18
SWX:RIEN Past Financials Data
Date (Data in CHF Millions) Revenue Cash Flow Net Income *
2019-06-30 976 116 17
2019-03-31 1,026 97 25
2018-12-31 1,076 78 32
2018-09-30 1,071 30 23
2018-06-30 1,066 -18 13
2018-03-31 1,016 1 13
2017-12-31 966 21 13
2017-09-30 945 43 28
2017-06-30 924 66 42
2017-03-31 935 84 42
2016-12-31 946 102 42
2016-09-30 934 105 37

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Rieter Holding's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Rieter Holding's revenue is expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SWX:RIEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Rieter Holding Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:RIEN Future Estimates Data
Date (Data in CHF Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 11.57 24.22 7.16 6.00
2020-12-31 5.71 9.24 3.55 5.00
2019-12-31 14.66 15.07 13.87 5.00
2019-11-18
SWX:RIEN Past Financials Data
Date (Data in CHF Millions) EPS *
2019-06-30 3.85
2019-03-31 5.46
2018-12-31 7.07
2018-09-30 4.99
2018-06-30 2.92
2018-03-31 2.92
2017-12-31 2.92
2017-09-30 6.13
2017-06-30 9.35
2017-03-31 9.37
2016-12-31 9.39
2016-09-30 8.18

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Rieter Holding is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Rieter Holding's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Switzerland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Switzerland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Rieter Holding has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Rieter Holding performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Rieter Holding's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Rieter Holding's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Rieter Holding's 1-year earnings growth exceeds its 5-year average (31.1% vs -23.1%)
  • Rieter Holding's earnings growth has exceeded the CH Machinery industry average in the past year (31.1% vs 2.7%).
Earnings and Revenue History
Rieter Holding's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Rieter Holding Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SWX:RIEN Past Revenue, Cash Flow and Net Income Data
Date (Data in CHF Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 976.40 17.30 295.10 -0.20
2019-03-31 1,026.00 24.60 301.15 -0.10
2018-12-31 1,075.60 31.90 307.20
2018-09-30 1,070.85 22.55 260.45 26.70
2018-06-30 1,066.20 13.20 260.30 26.70
2018-03-31 1,016.25 13.20 273.70 13.35
2017-12-31 966.30 13.20 287.10
2017-09-30 945.20 27.75 277.40
2017-06-30 924.10 42.30 267.70
2017-03-31 934.95 42.35 270.55
2016-12-31 945.80 42.40 273.40
2016-09-30 933.95 36.95 277.95
2016-06-30 922.10 31.50 282.50
2016-03-31 980.65 40.60 285.70
2015-12-31 1,039.20 49.70 288.90
2015-09-30 1,113.00 58.65 296.10
2015-06-30 1,186.80 67.60 303.30
2015-03-31 1,171.00 60.20 305.20
2014-12-31 1,155.20 52.80 307.10
2014-09-30 1,118.40 49.75 303.45
2014-06-30 1,081.60 46.70 299.80
2014-03-31 1,059.45 43.05 298.25
2013-12-31 1,037.30 39.40 296.70
2013-09-30 960.00 25.80 290.20
2013-06-30 882.70 12.20 283.70
2013-03-31 888.00 20.45 281.75
2012-12-31 893.30 28.70 279.80

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Rieter Holding has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Rieter Holding used its assets less efficiently than the CH Machinery industry average last year based on Return on Assets.
  • Rieter Holding's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Rieter Holding's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Rieter Holding has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Rieter Holding's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Rieter Holding's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Rieter Holding is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Rieter Holding's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Rieter Holding's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Rieter Holding Company Filings, last reported 4 months ago.

SWX:RIEN Past Debt and Equity Data
Date (Data in CHF Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 424.30 125.00 222.60
2019-03-31 424.30 125.00 222.60
2018-12-31 446.60 106.90 257.10
2018-09-30 446.60 106.90 257.10
2018-06-30 431.40 107.00 154.20
2018-03-31 431.40 107.00 154.20
2017-12-31 457.50 113.90 244.40
2017-09-30 457.50 113.90 244.40
2017-06-30 442.40 106.20 207.50
2017-03-31 442.40 106.20 207.50
2016-12-31 460.70 109.10 372.60
2016-09-30 460.70 109.10 372.60
2016-06-30 432.70 111.60 305.40
2016-03-31 432.70 111.60 305.40
2015-12-31 443.80 121.60 334.00
2015-09-30 443.80 121.60 334.00
2015-06-30 423.90 126.20 265.20
2015-03-31 423.90 126.20 265.20
2014-12-31 441.90 273.90 445.60
2014-09-30 441.90 273.90 445.60
2014-06-30 387.90 181.80 300.40
2014-03-31 387.90 181.80 300.40
2013-12-31 389.70 228.40 369.70
2013-09-30 389.70 228.40 369.70
2013-06-30 367.20 259.80 323.00
2013-03-31 367.20 259.80 323.00
2012-12-31 375.90 256.30 351.90
  • Rieter Holding's level of debt (29.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (47.1% vs 29.5% today).
  • Debt is well covered by operating cash flow (93%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 11.8x coverage).
X
Financial health checks
We assess Rieter Holding's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Rieter Holding has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Rieter Holding's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.57%
Current annual income from Rieter Holding dividends. Estimated to be 3.47% next year.
If you bought CHF2,000 of Rieter Holding shares you are expected to receive CHF71 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Rieter Holding's pays a higher dividend yield than the bottom 25% of dividend payers in Switzerland (1.85%).
  • Rieter Holding's dividend is below the markets top 25% of dividend payers in Switzerland (3.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SWX:RIEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
Switzerland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 2.2%
Switzerland Market Average Dividend Yield Market Cap Weighted Average of 163 Stocks 2.9%
Switzerland Minimum Threshold Dividend Yield 10th Percentile 1.2%
Switzerland Bottom 25% Dividend Yield 25th Percentile 1.8%
Switzerland Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SWX:RIEN Future Dividends Estimate Data
Date (Data in CHF) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 5.17 6.00
2020-12-31 4.83 6.00
2019-12-31 4.50 5.00
2019-11-18
SWX:RIEN Past Annualized Dividends Data
Date (Data in CHF) Dividend per share (annual) Avg. Yield (%)
2019-03-13 5.000 3.591
2018-03-13 5.000 3.249
2017-04-05 5.000 2.243
2016-03-15 4.500 2.300
2015-03-18 4.500 2.805
2014-03-18 3.500 1.938
2013-03-21 2.500 1.409
2012-03-20 6.000 3.924
2012-01-16 6.000 3.280
2009-06-30 0.000 0.000
2009-03-02 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Rieter Holding has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Rieter Holding has only been paying a dividend for 8 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Rieter Holding's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Rieter Holding's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Rieter Holding afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Rieter Holding has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Rieter Holding's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Norbert Klapper
COMPENSATION CHF1,082,160
AGE 56
TENURE AS CEO 5.8 years
CEO Bio

Dr. Norbert Klapper has been Chief Executive Officer at Rieter Holding AG since January 1, 2014 and served as a.i. Head of Business Group After Sales until 2019. Dr. Klapper had been Chief Financial Officer of Rieter Holding AG from March 2019 to 2019. Dr. Klapper served as Head of the Business Group Machine & Systems at Rieter Holding AG since January 2014 until April 1, 2016. Dr. Klapper served as the Head of the Spun Yarn Systems Business Group at Rieter Holding AG since January 1, 2014. Dr. Klapper served as Chairman of the Management Board of Voith Turbo, an affiliate of Voith GmbH until November 2013. Dr. Klapper served as a Member of the Management Board of Voith Industrial Services Holding GmbH. Dr. Klapper served as a Member of the Management Board of DIW Deutsche Industriewartung AG since July 2004. Dr. Klapper served as Head of Sales & Marketing Paint, Head of Assembly Systems, Head of Quality Management, Head of Patents for Dürr Aktiengesellschaft from March 1, 2005 to September 30, 2005. Dr. Klapper served as Member of the Board of Management of Durr AG until September 30, 2005. Dr. Klapper's other Memberships: Services, INTX; Goodex AG and Premier Manufacturing Support Services L.P. Dr. Klapper has been a Member of Board of Dürr Paintshop Systems Engineering (Shanghai) Co. Ltd., since March 1, 2004 and Dürr Systems Spain S.A., since February 1, 2004. Dr. Klapper serves as a Member of Board of Voith Industrial Services Mechanical Engineering GmbH & Co. K.G. Dr. Klapper studied Industrial Engineering at Darmstadt Technical University after finishing high school in Germany. Following his graduation, he worked as scientific researcher under Professor Dr. Horst Wildemann at Passau University and Munich Technical University, where he obtained a PhD (Dr. oec.) in 1993. He holds a PhD in Economics from Munich Technical University, Germany.

CEO Compensation
  • Norbert's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Norbert's remuneration is about average for companies of similar size in Switzerland.
Management Team Tenure

Average tenure and age of the Rieter Holding management team in years:

3.7
Average Tenure
53
Average Age
  • The tenure for the Rieter Holding management team is about average.
Management Team

Norbert Klapper

TITLE
Chief Executive Officer
COMPENSATION
CHF1M
AGE
56
TENURE
5.8 yrs

Kurt Ledermann

TITLE
Chief Financial Officer
AGE
51
TENURE
0.8 yrs

Stephan Mörgeli

TITLE
Head of Group Accounting & Reporting and Head of Internal Audit

Thomas Anwander

TITLE
General Secretary & General Counsel
AGE
59
TENURE
26.8 yrs

Relindis Wieser

TITLE
Head of Group Communication

Carsten Liske

TITLE
Head of Business Group Machines & Systems
AGE
46
TENURE
4.8 yrs

Serge Entleitner

TITLE
Head of Business Group Components
AGE
55
TENURE
2.6 yrs

Rico Randegger

TITLE
Head of Business Group After Sales
AGE
46
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Rieter Holding board of directors in years:

7
Average Tenure
60.5
Average Age
  • The tenure for the Rieter Holding board of directors is about average.
Board of Directors

Bernhard Jucker

TITLE
Chairman of the Board
COMPENSATION
CHF380K
AGE
65
TENURE
2.6 yrs

This Schneider

TITLE
Vice Chairman & Lead Director
COMPENSATION
CHF204K
AGE
67
TENURE
10.5 yrs

Roger Baillod

TITLE
Non-Executive Director
COMPENSATION
CHF170K
AGE
61
TENURE
3.6 yrs

Peter Spuhler

TITLE
Non-Executive Director
COMPENSATION
CHF163K
AGE
60
TENURE
10.6 yrs

Hans-Peter Schwald

TITLE
Non-Executive Director
COMPENSATION
CHF186K
AGE
60
TENURE
10.5 yrs

Michael Pieper

TITLE
Non-Executive Director
COMPENSATION
CHF124K
AGE
73
TENURE
10.5 yrs

Carl Illi

TITLE
Director
COMPENSATION
CHF181K
AGE
58
TENURE
2.6 yrs

Luc Tack

TITLE
Non-Executive Director
COMPENSATION
CHF163K
AGE
58
TENURE
2.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CHF) Value (CHF)
X
Management checks
We assess Rieter Holding's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Rieter Holding has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Rieter Holding AG (VTX:RIEN) Can Impact Your Portfolio Volatility

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta greater than one is more sensitive to broader market movements than a stock with a beta of less than one. … What this means for you: One potential advantage of owning low beta stocks like Rieter Holding is that your overall portfolio won't be too sensitive to overall market movements.

Simply Wall St -

How Does Rieter Holding AG (VTX:RIEN) Fare As A Dividend Stock?

With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Rieter Holding is a new dividend aristocrat in the making. … It's disappointing to see that the dividend was not covered by profits, but cash is more important from a dividend sustainability perspective, and Rieter Holding fortunately did generate enough cash to fund its dividend. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. Over the past five years, it looks as though Rieter Holding's EPS have declined at around 15% a year. With this kind of significant decline, we always wonder what has changed in the business. Dividends are about stability, and Rieter Holding's earnings per share, which support the dividend, have been anything but stable. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing.

Simply Wall St -

What Does Rieter Holding AG's (VTX:RIEN) P/E Ratio Tell You?

See our latest analysis for Rieter Holding How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Rieter Holding: P/E of 33.88 = CHF130.5 ÷ CHF3.85 (Based on the year to June 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Does Rieter Holding's P/E Ratio Compare To Its Peers?

Simply Wall St -

Does Rieter Holding AG's (VTX:RIEN) 31% Earnings Growth Reflect The Long-Term Trend?

See our latest analysis for Rieter Holding Commentary On RIEN's Past Performance RIEN's trailing twelve-month earnings (from 30 June 2019) of CHF17m has jumped 31% compared to the previous year. … Let's take a look at whether it is merely attributable to an industry uplift, or if Rieter Holding has experienced some company-specific growth. … You should continue to research Rieter Holding to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for RIEN’s future growth?

Simply Wall St -

Here's Why Rieter Holding (VTX:RIEN) Can Manage Its Debt Responsibly

SWX:RIEN Historical Debt, July 12th 2019 How Strong Is Rieter Holding's Balance Sheet? … While Rieter Holding has net cash on its balance sheet, it's still worth taking a look at its ability to convert earnings before interest and tax (EBIT) to free cash flow, to help us understand how quickly it is building (or eroding) that cash balance. … Over the most recent three years, Rieter Holding recorded free cash flow worth 70% of its EBIT, which is around normal, given free cash flow excludes interest and tax.

Simply Wall St -

A Closer Look At Rieter Holding AG's (VTX:RIEN) Uninspiring ROE

Our data shows Rieter Holding has a return on equity of 7.2% for the last year. … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Rieter Holding: 7.2% = CHF32m ÷ CHF447m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Rieter Holding Have A Good Return On Equity?

Simply Wall St -

Rieter Holding AG (VTX:RIEN) Might Not Be A Great Investment

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Rieter Holding: 0.066 = CHF45m ÷ (CHF1.0b - CHF321m) (Based on the trailing twelve months to December 2018.) So, Rieter Holding has an ROCE of 6.6%. … Do Rieter Holding's Current Liabilities Skew Its ROCE? … Rieter Holding's ROCE is improved somewhat by its moderate amount of current liabilities.

Simply Wall St -

What Should You Know About The Future Of Rieter Holding AG's (VTX:RIEN)?

After Rieter Holding AG's (VTX:RIEN) earnings announcement in December 2018, it seems that analyst forecasts are substantially optimistic, with a bottom line expansion of more than 100% in the upcoming year, compared with the past 5-year average growth rate of -18%. … Check out our latest analysis for Rieter Holding Can we expect Rieter Holding to keep growing? … SWX:RIEN Past and Future Earnings, June 9th 2019 This results in an annual growth rate of 4.4% based on the most recent earnings level of CHF32m to the final forecast of CHF53m by 2022.

Simply Wall St -

Is Rieter Holding AG's (VTX:RIEN) 3.5% Dividend Worth Your Time?

Could Rieter Holding AG (VTX:RIEN) be an attractive dividend share to own for the long haul? … Looking at the data, we can see that Rieter Holding has been paying a dividend for the past seven years. … In the last five years, Rieter Holding's earnings per share have shrunk at approximately 3.8% per annum.

Simply Wall St -

Should We Worry About Rieter Holding AG's (VTX:RIEN) P/E Ratio?

This article is written for those who want to get better at using price to earnings ratios (P/E ratios). … Looking at earnings over the last twelve months, Rieter Holding has a P/E ratio of 21.16. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

Company Info

Description

Rieter Holding AG, together with its subsidiaries, supplies systems for short-staple fiber spinning Switzerland and internationally. The company operates through three segments: Machines & Systems, After Sales, and Components. The Machines & Systems segment develops and manufactures machinery and systems for processing natural and man-made fibers, as well as their blends into yarns. This segment offers blowrooms, carding machines, draw frames, and combing machines for preparation; and ring, compact, rotor, and air jet spinning machines for end spinning. The After Sales segment develops, produces, and distributes spare parts for the company's machines, such as drives, sensors, or controllers; sells technology components; and provides services that enable the company's customers to enhance their spinning mills. The Components segment supplies technology components to spinning mills and textile machinery manufacturers, as well as precision winding machines. This segment offers its products under the Bräcker, Graf, Novibra, SSM, and Suessen brands. The company was founded in 1795 and is based in Winterthur, Switzerland.

Details
Name: Rieter Holding AG
RIEN
Exchange: SWX
Founded: 1795
CHF623,300,979
4,480,956
Website: http://www.rieter.com
Address: Rieter Holding AG
Klosterstrasse 32,
Winterthur,
Zurich, 8406,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SWX RIEN Registered Shares SIX Swiss Exchange CH CHF 02. Jan 1992
DB RIHN Registered Shares Deutsche Boerse AG DE EUR 02. Jan 1992
LSE 0QKA Registered Shares London Stock Exchange GB CHF 02. Jan 1992
Number of employees
Current staff
Staff numbers
4,743
Rieter Holding employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/18 20:37
End of day share price update: 2019/11/15 00:00
Last estimates confirmation: 2019/11/17
Last earnings filing: 2019/07/18
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.