One-glance verdict
Overvalued
$0.54 our estimate vs market $6.79
1146% above our estimate, beyond the bull case
Fundamentals snapshot
Schaeffler AG
SFFLY · PNK · Consumer Cyclical · Auto Parts
Current price
$6.79
52-week range
$6.00 - $14.44
Market cap
$6.42B
Balance sheet
Distressed
0.84x Concerning
Net debt $6.73B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 29.2% last year.
- Reward Free cash flow was positive in 4/10 years.
- Risk Net debt grew 115.8% over 3 years.
- Risk Return on equity was -10.7% last year — the company lost money on shareholders' equity.
What this company does
Schaeffler AG
Schaeffler AG makes parts for cars and factories, like components for electric car batteries and bearings that help machines run smoothly. Most of their money comes from selling these parts to other businesses that build cars and industrial equipment. This is important because their products are key for making vehicles more efficient and for keeping factories running without interruption.
How the company got here
Schaeffler AG was founded in 1946 in Herzogenaurach, Germany, by brothers Wilhelm and Georg Schaeffler. Initially, the company focused on repairing agricultural equipment and producing wooden goods. A key turning point came in 1949 when Georg Schaeffler invented the needle roller cage, which significantly improved the performance of needle roller bearings, leading to the success of their INA brand. Over the decades, Schaeffler expanded internationally and grew through strategic acquisitions, including key stakes in Continental AG and Vitesco Technologies. The company went public with an initial public offering in 2015. Today, it is a global supplier of motion technology, with the Schaeffler family remaining the majority owner.
What it actually does
Schaeffler AG is a company that makes precision components and systems for the automotive and industrial sectors. Think of them as a crucial supplier of the 'brains' and 'muscles' that make vehicles and machines move. Their products are essential for everything from the smooth rotation of a car's wheels to the complex workings of industrial machinery. They operate globally, providing these high-tech parts to manufacturers and also offering repair solutions for the automotive spare parts market.
E-Mobility
This division focuses on creating parts and systems for electric vehicles (EVs), including those that run on batteries, hybrid technology (a mix of gas and electric), and fuel cells. They develop and manufacture components like electric drives, control systems, and specialized battery parts. Essentially, they are building the essential hardware that makes electric cars and trucks move, aiming to support the global shift towards cleaner transportation.
Powertrain & Chassis
This segment is responsible for components and systems related to how a vehicle's power is managed and how it handles the road. This includes parts for both traditional internal combustion engines (gasoline and diesel) and for hybrid and electric powertrains. They also develop chassis technologies, which are the systems that support the vehicle's frame and allow it to steer and move smoothly. This division creates everything from engine and transmission parts to sophisticated steering and suspension components.
Vehicle Lifetime Solutions
This division provides components and repair solutions for a wide range of vehicles throughout their entire lifespan. This means they supply parts not only for new cars but also for the aftermarket, which is the market for replacement parts and repairs after a vehicle has been sold. They cater to passenger cars, commercial vehicles like trucks, tractors, and even two-wheeled vehicles, ensuring that these vehicles can be maintained and repaired effectively.
Bearings & Industrial Solutions
This is a core part of Schaeffler's business, focusing on the development and manufacturing of various types of bearings. Bearings (like ball bearings or roller bearings) are critical components that reduce friction and allow for smooth, efficient motion in machinery and vehicles. This division serves a broad range of industrial applications, from factory automation to aerospace, providing solutions that keep complex systems running reliably. They also offer related drive components and service solutions.
What management is betting on now
Schaeffler's main strategic focus is on becoming a leading 'Motion Technology Company,' emphasizing innovation and sustainability. They are heavily investing in technologies for electric mobility and CO2-efficient drives, recognizing the global shift towards greener transportation. Management is also prioritizing the integration of new technologies and expanding their offerings in areas like chassis systems and industrial solutions. The company aims to make motion smarter, cleaner, and safer by combining mechanics, electronics, and software into comprehensive system solutions.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $0.54 vs current price $6.79
Our most-likely fair value is $0.54 a share — about 92.0% below today's price of $6.79, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $6.7B. Interest coverage 0.8x.
Net debt
$6.73B
Interest coverage
0.84x
Schaeffler AG's profit covers its interest bill about 0.8 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
SFFLY
BASELINE
Schaeffler AG
Total debt $9.54B Interest coverage 0.84x This is the baseline the peer rows are being compared against.
Total debt $2.20B Interest coverage 5.13x +512% vs SFFLY Carries about 6.1x more debt cushion than SFFLY.
Total debt $4.06B Interest coverage 13.36x +1,495% vs SFFLY Carries about 15.9x more debt cushion than SFFLY.
Total debt $4.19B Interest coverage 9.88x +1,079% vs SFFLY Carries about 11.8x more debt cushion than SFFLY.
Total debt $1.74B Interest coverage 1.18x +40% vs SFFLY Carries about 1.4x more debt cushion than SFFLY.
Total debt $6.47B Interest coverage 7.67x +816% vs SFFLY Carries about 9.2x more debt cushion than SFFLY.
What you should know
The case for and against SFFLY
3 Rewards
3 Risks
Rewards
-
Revenue grew 29.2% last year.
-
Free cash flow was positive in 4/10 years.
-
Dividend yield is 5.3% with 6-year payout history.
Risks
-
Net debt grew 115.8% over 3 years.
-
Return on equity was -10.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from 6.3% to 3.2% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
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P/B
2.02x
P/S
0.28x
EV/EBITDA
7.83x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
18.7%
Operating margin
3.2%
Net margin
-1.6%
ROE
-10.7%
ROA
0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
2.87x
Current ratio
1.41x
Quick ratio
0.83x
Total debt
$9.54B
Total cash
$2.81B
Growth
How the business has been compounding
Revenue TTM
$26.02B
Revenue 5Y CAGR
14.1%
EPS TTM
-0.47
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$1.51B
Free CF TTM
$425.27M
FCF margin
1.6%
Dividend
Shareholder payout
Yield
5.3%
Payout ratio
262.2%
Last ex-div date
2026-04-27