Schindler Holding (SCHP.SW), mcap=chf20bn, chf187.2 vs chf195.10

Pitch: Leading global maker of elevators/escalators – a high-quality business that is likely operating at around trough margin levels. 40% of revenues and 75% of operating profit comes from maintenance – the value of aftermarket business alone supports SCHP’s current valuation. Margins are expected to inflect in ’23 with the recent return of senior leadership from 2014-16, a time when the business expanded margins above trend and the stock outperformed peers. Schindler family controls c. 70% of the vote.

Valuation: SCHP is trading ~12.5x ’22 EV/EBITDA, below its 10-year avg multiple of 14.4x, and at the low end of its typical 12x-18x range.

Exp. gain: Not specified.

Full SCHP.SW write-up (free guest account required):

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