LEM Holding SA: history, ownership, mission, how it works & makes money

A Brief History of LEM Holding SA

Founded in 1972 in Switzerland, LEM Holding SA specializes in the design and manufacture of sensors for measuring electrical parameters. The company initially focused on the emerging field of power electronics, quickly establishing its reputation for quality and reliability.

Throughout the late 1990s, LEM expanded its product range, establishing a strong foothold in the automotive and industrial sectors. By 1999, the company went public, listing its shares on the SIX Swiss Exchange under the ticker symbol LEHN.

In the 2000s, LEM's growth trajectory continued with significant investments in research and development. In fiscal year 2002-2003, the company reported sales of approximately CHF 99 million, which indicated a growing demand for its sensor technology. The company's emphasis on innovation has led to the introduction of several groundbreaking products, including the Hall-effect sensor technology.

By 2010, LEM had achieved a solid market presence, reporting CHF 141 million in sales. The company also began expanding its global reach, opening subsidiaries in markets such as China and the USA, allowing it to serve a growing client base effectively.

In 2015, the company launched its "Digital Power" product line, tapping into the renewable energy market. In the fiscal year 2015-2016, LEM reported sales of CHF 162.4 million, reflecting its ability to adapt to industry trends and customer needs.

The year 2018 marked a significant milestone as LEM celebrated its 45th anniversary and reported a record sales figure of CHF 214.2 million, with a notable increase in demand for its high-performance solutions across various sectors.

As of the fiscal year 2020-2021, LEM's revenue reached CHF 235 million, supported by the growing importance of electric mobility and renewable energy solutions. The company’s net profit for this fiscal year was reported at CHF 36.9 million.

In 2022, LEM announced its new strategic plan aiming for a revenue target of CHF 400 million by 2025, focusing on further enhancing its capabilities in the electric vehicle market and smart grid solutions.

As of October 2023, LEM Holding SA continues to be a leader in its industry, with ongoing investments in technology and innovation. The company remains committed to expanding its product offerings in high-growth areas, particularly in the domains of renewable energy and electric vehicles.

A Who Owns LEM Holding SA

LEM Holding SA is a company that specializes in precision sensors for the electrical measurement industry. As of October 2023, the ownership of LEM Holding SA is characterized by a mix of institutional investors, private shareholders, and management. The following table summarizes the major shareholders of LEM Holding SA based on the latest data:

As indicated in the table, the largest shareholder type in LEM Holding SA is the free float, which constitutes approximately 73.9% of the shares. The other significant shareholders include institutional investors such as UBS Group AG and BlackRock, Inc., which hold 9.3% and 5.2% respectively. Additionally, Stiftung LEM, a private foundation, has an ownership stake of 10.1%.

The company’s management team, including Gianfranco Cattani, holds a smaller portion of shares, with ownership at 1.5%. This distribution of shares highlights the significant involvement of institutional investors while maintaining a broad free float that allows for liquidity in trading.

In terms of market capitalization, LEM Holding SA has seen fluctuations in its valuation. As of late 2022, the market capitalization was around CHF 1.5 billion. Recent figures show a slight increase in stock price, attributed to improvements in operational efficiency and growth in demand for their sensor products.

LEM's latest earnings report for the first half of fiscal year 2023 indicated a revenue of CHF 120 million, representing a year-over-year increase of 15%. The company reported a net profit margin of 12%, contributing to a favorable outlook for shareholders.

The company's strong fundamentals are reflected in its earnings before interest and taxes (EBIT), which stood at CHF 26 million for the same period, demonstrating effective cost management and strategic growth initiatives within the electrical sensor market.

LEM Holding SA Mission Statement

LEM Holding SA, a leader in the field of electrical measurement, aims to provide innovative solutions that enable customers to enhance their operations' efficiency and reliability. Their mission emphasizes sustainability and safety in electrical measurements, facilitating a greener energy future.

The company's strategic focus is reflected in its product offerings, which cater to a diverse range of industries including automotive, renewable energy, and industrial automation. As of their latest financial report, LEM Holding SA recorded a turnover of CHF 206 million for the fiscal year 2022, marking a growth of 8% compared to the previous year.

In alignment with their mission, LEM emphasizes the importance of innovation. In 2022, they invested approximately CHF 14 million in research and development, representing about 6.8% of total sales. This investment underlines their commitment to developing advanced sensing solutions that meet the evolving needs of their clientele.

LEM’s relentless pursuit of excellence is characterized by their long-standing commitment to quality and customer satisfaction. Their mission statement resonates deeply throughout the organization, fostering a culture centered on delivering high-quality products and services.

In the context of environmental responsibility, LEM’s mission also aligns with global sustainability trends. The company is dedicated to reducing the carbon footprint of its operations and products, actively participating in initiatives designed to promote renewable energy sources. As of 2022, LEM has reported a reduction of 15% in greenhouse gas emissions from their manufacturing processes.

Furthermore, LEM’s strategic priorities include expanding their market presence in Asia and North America, regions identified as critical for future growth. The company reported a revenue increase of 10% in Asia and 5% in North America in 2022, reflecting increased demand for their innovative sensing solutions.

With a clear mission and a robust strategy, LEM Holding SA positions itself as a pivotal player in the electrical measurement industry, focusing on creating value for its stakeholders through sustainable practices and technological advancements.

How LEM Holding SA Works

LEM Holding SA operates in the specialized field of current and voltage measurement, producing sensors for various applications including electric vehicles, renewable energy, industrial automation, and rail infrastructure. The company’s core products utilize Hall Effect technology and aim to provide high-precision measurement solutions.

In the fiscal year ending March 31, 2023, LEM Holding reported a revenue of CHF 204.8 million, reflecting an increase of 14% compared to the prior year. The operating profit (EBIT) for the same period rose to CHF 38.2 million, resulting in an EBIT margin of 18.6%.

The company's main markets include Europe, Asia, and the Americas, with a diversified customer base across various sectors. In FY 2023, LEM generated CHF 92 million in sales from Asia, which accounted for approximately 45% of total revenue. This reflects the growing demand for electric vehicle components in markets like China and Japan.

LEM’s research and development (R&D) expenditures were CHF 15 million in FY 2023, equivalent to about 7.3% of total revenue, highlighting its commitment to innovation. The company actively invests in enhancing its existing product lines, as well as developing new technologies to meet evolving market demands.

To address high market volatility and supply chain challenges, LEM Holding has executed strategic initiatives to optimize its logistics and inventory management. In FY 2023, its inventory turnover ratio stood at 4.2, reflecting more efficient inventory management and production alignment to demand cycles.

In terms of stock performance, LEM Holding SA has shown resilience in the equity markets. As of October 2023, LEM shares were trading at CHF 5,200, with a year-to-date increase of 25%. The P/E ratio for LEM is currently at 23.5, which is slightly above the industry average, indicating investor confidence in the company’s long-term growth prospects.

Overall, LEM Holding SA demonstrates robust operational performance, backed by significant R&D investment, global market presence, and strategic adaptability in a competitive and rapidly evolving industry landscape.

How LEM Holding SA Makes Money

LEM Holding SA, a key player in the field of electronic measurement solutions, primarily generates revenue through the design and manufacturing of current and voltage transducers. These devices are essential for applications in a variety of sectors including renewable energy, industrial automation, and automotive systems.

For the fiscal year ending March 31, 2023, LEM reported a total revenue of CHF 205.5 million, reflecting a solid increase of 15% compared to CHF 178.5 million in the previous year. The growth can be attributed to rising demand for electric vehicle components, renewable energy solutions, and energy efficiency applications.

The company's revenue streams can be broken down into several categories:

• Current Transducers: Accounting for approximately 60% of total revenues, these devices are critical in power electronics.
• Voltage Transducers: Making up about 25% of revenue, these transducers are essential in high-precision applications.
• Services and Other Products: This segment, which includes additional services and solutions, contributes roughly 15%.

In terms of geographical performance, LEM has seen significant sales from different regions:

The demand for LEM's products is primarily driven by the global transition towards electrification, particularly in automotive and renewable sectors. The company has benefitted from trends in electric mobility, with a noted increase in orders for its products intended for electric vehicles, contributing to a robust order intake of CHF 209.6 million in 2023.

Operating income saw an increase to CHF 40.2 million in 2023, representing an operating margin of 19.6%. The company's effective cost management strategies and operational efficiencies have played a crucial role in enhancing profitability despite rising raw material costs.

Furthermore, LEM has been investing significantly in Research & Development (R&D) to innovate and expand its product offerings, which reached CHF 15.8 million in 2023, or 7.7% of total sales. This strategic investment aims to develop next-generation transducers and maintain a competitive edge in the technology market.

In summary, LEM Holding SA’s revenue model is intricately linked to market trends favoring electrification and energy efficiency. The company’s diverse product range, geographic presence, and commitment to R&D position it well for sustained growth in a dynamic market landscape.