Quick Facts
- 335 Schindler shares have been added to the OMSP1 portfolio.
- At the same time, Swiss Prime Site has been removed from the portfolio, due to a low 360° View.
- Schindler is a world leader in elevator and escalator production, based in Switzerland.
Pros
- Strong sentiment, financial performance and growth ✔
- Global market leader with very strong brand recognition ✔
- Diverse and innovative products range ✔
Cons
- Strong competition from both market leaders and young businesses ❌
- High growth comes at a price, as indicated by a low Obermatt Value Rank ❌
Switzerland’s most famous elevator producer Schindler finds its way into the Obermatt Swiss Pearls Index, with the latest stock swap from the end of February. It was the best overall performing stock with an Obermatt 360° View of 75 that was not yet included in the OMSP1 portfolio.
At the same time, Swiss Prime Site shares were sold from the index, as the 360° View dropped to 12 at the time of analysis, making it the worst rated stock by the Obermatt method.
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Schindler has a global presence with key sites in North and South America, Europe, and Asia, and employs a global team of 70’000. Schindler's products are found all over the world (in fact, I just used one this morning to get up to my office), and benefit from strong brand recognition due to high quality, a good service network, and continued innovation. The value created by Schindler doesn’t end at the production, assembly and installation of elevators, escalators and moving walks; it also includes maintenance, repair and modernization of those products. They have been able to connect more than 30% of installations to the cloud for increased uptime and efficiency thanks to remote monitoring.
The company enjoys a high Obermatt growth rank of 68 due to its 41.9% jump in net income, high return on equity of 20.4% and an increase in cash flow by +84.7%. Schindler enjoyed increased operational efficiency, the recovery of supply chains, and positive impacts of its pricing strategies. This is why Obermatt Ranks show it as an overall better performer than nearly 75% of the competitors in the same industry. The Market Pulse Rank of 93 and strong Sentiment Rank of 84 show that we’re not alone in our positive opinion of Schindler.
However, there is a lot of competition in the field, and young businesses want to revolutionize the market potentially putting the position of Schindler as a world leader at risk. In addition, a low Obermatt Value Rank of 18 shows that the high growth comes at a price.