Quantitative Rating: ★★★★☆

Profitability: ★★★☆☆

EBITDA margin averaged 13 – 14 % in five of the last six years and ROIC (ex‑goodwill) stayed above 15 %, peaking near 25 %. This indicates an attractive, asset‑light service mix, yet margins compressed in pandemic‑hit 2022 before rebounding, showing the business is solid but not best‑in‑class.

Balance Sheet – 10/ 10

Schindler carries consistent net cash: net‑debt‑to‑EBITDA sits between –1.1× and –2.1×, giving ample financial flexibility. Goodwill is modest (≈ 1 bn CHF) versus invested capital, so tangible capital is preserved and refinancing risk is negligible.

Earnings Stability – 7 / 10

Revenues fell only once (–5.6 % in 2020) and EBITDA recovered quickly, but EPS swung with currency and restructuring charges (–26 % in 2022, +42 % in 2023). Service contracts cushion downturns, yet cyclical new‑equipment sales still add volatility.

Qualitative Rating – 6 / 10

Intangible Assets – 7 / 10

A 150‑year brand, global installed base of >1.6 million units and proprietary PORT destination‑control tech reinforce customer trust and unlock high‑margin service revenue.

Switching Costs: ★★★★☆

Elevators are safety‑critical and regulated; building owners prefer the OEM for parts, software and 24/7 call‑out service contracts that are customised by usage profile, locking clients in for decades.

Network Effects – 5 / 10

Schindler’s IoT‑enabled fleet improves remote diagnostics and route density, yielding better uptime and data‑driven upsells, but benefits are largely internal and don’t materially attract new external users.

Cost Advantage – 6 / 10

Global scale (China megafactory, modular components) and dense service routes cut unit costs relative to smaller rivals, yet competitor giants (Otis, KONE) enjoy similar leverage, keeping advantage moderate.

Natural Monopoly – 4 / 10

Installation is one‑off, but regulation allows third‑party maintenance and most markets have at least three large players, limiting monopoly power to specific legacy systems and landmark projects.

Corporate Governance Rating – 5 / 10

Board Structure – 5 / 10

The eight‑member board now counts five independent directors, but the Schindler family retains two seats and the chair is a former CEO, creating some entrenchment risk despite improved independence.

Incentive Structure – 4 / 10

Executives receive a balanced mix of fixed pay, annual cash bonus tied to EBIT, and a three‑year performance‑share plan based on EPS and ROIC, encouraging profitable growth while capping windfalls.

Shareholder Rights – 6 / 10

A dual‑class structure lets the Schindler/Bonnard families control 68.6 % of votes with <20 % economic stake, limiting minority influence; otherwise Swiss law grants pre‑emptive rights and say‑on‑pay.

Overall Rating – 6 / 10