Risk factor
Weak & very vulnerable to price shocks
Profitability factor
Greatly undervalued vs peers
About
Rieter Holding AG, together with its subsidiaries, supplies systems for short-staple fiber spinning in Switzerland and internationally. The company operates through three segments: Machines & Systems, Components, and After Sales. 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 and carding machines for fiber preparation; draw frames, combing machines, and rowing frames for spinning preparation; and ring, compact, rotor, and air jet spinning machines for end spinning. 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 Accotex, Bräcker, Graf, Novibra, SSM, Suessen, and Temco brands. The After Sales segment develops, produces, and distributes spare parts for the company's machines; sells technology components; and provides services that enable its customers to enhance their spinning mills, as well as building conversions and modernization services. The company was founded in 1795 and is headquartered in Winterthur, Switzerland.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E.
Target Price
The average target price of RIEN.SW is 3.4 and suggests 4% upside potential. Usually, this means a HOLD recommendation among investment firms. This neutral recommendation
Buy
Sell