LEM Holding S.A.

LEHN.SW

Hardware, Equipment & Parts · Technology

Also trades as: 0QKB.L

Price

CHF 564.00

-9.00 (-1.57%)

Market Cap

CHF 642.1M

Exchange

SIX Swiss Exchange

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 10, 2026 · filings through Mar 31, 2026

LEM Holding S.A. is a Swiss company that makes sensors used to measure electrical current and voltage. Its products are small components built into larger machines like electric vehicle powertrains, solar inverters, industrial motor drives, and railway systems. LEM is one of the leading independent makers of these transducers globally, with customers mainly in the automotive, renewable energy, and industrial automation industries.

LEM earns money by selling its sensor components directly to manufacturers who embed them in their equipment. The company operates primarily in Europe and Asia, with significant production in China and Switzerland, and generates roughly half a billion dollars in market value. Its moat comes from deep engineering expertise, long customer qualification cycles, and the high cost of switching suppliers mid-production. The main risk LEM faces is its exposure to the electric vehicle market, where slowing EV adoption or pricing pressure from automakers could weigh on demand and margins.

Winston Score History

Share count broadly stable

+0.0% over 4y

The share count has stayed roughly flat over this period — little dilution or buyback activity.

Diluted shares outstanding: 1.1M (2022) → 1.1M (2026)

Score breakdown

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Quality

Gross Margin

40.4%

Healthy — 40.4% gross margin

Operating Margin

9.6%

Modest — 9.6% operating margin

ROCE

5.8%

Weak — 5.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

-6.3%

Shrinking sales (-6.3% YoY)

EPS YoY

+17.5%

Earnings growing fast (+17.5% YoY)

Healthy double-digit earnings growth — what compounders look like.

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion

405%

Turns 405% of profit into real cash

FCF Margin

11.0%

Modest free cash flow (11.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity

0.71

Moderate — manageable debt (0.71)

Interest Cover

5.21x

Adequate interest coverage (5.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)

65.1x

Expensive — P/E 65.1

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+42.1

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (65.1 → 23.1)

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Dividends

Not applicable for this business.

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