Intrinsic Value BELIMO Holding AG (BEAN.SW)

• Previous Close: CHF845.00
• Intrinsic Value: CHF417.68
• Upside potential: -51%

Stock Valuation Context

Business Model And Market Position

BELIMO Holding AG is a leading player in the HVAC (heating, ventilation, and air conditioning) industry, specializing in damper actuators, control valves, sensors, and meters. The company operates globally, serving Europe, the Americas, and the Asia Pacific, with a strong focus on energy-efficient solutions. Its product portfolio includes advanced IoT-enabled valves and sensors, catering to both new installations and retrofit applications, positioning BELIMO as a key innovator in smart building technologies. BELIMO’s market position is reinforced by its vertically integrated manufacturing and R&D capabilities, allowing it to deliver high-performance, reliable components for complex HVAC systems. The company targets commercial and industrial buildings, where energy efficiency and automation are critical. Its emphasis on IoT integration and system optimization aligns with global trends toward sustainable infrastructure, giving BELIMO a competitive edge in a growing market. With a reputation for quality and innovation, the company maintains strong relationships with HVAC system integrators and building automation providers.

Revenue Profitability And Efficiency

In its latest fiscal year, BELIMO reported revenue of CHF 943.9 million, with net income reaching CHF 146.8 million, reflecting a solid margin profile. The company’s operating cash flow stood at CHF 194.8 million, demonstrating efficient working capital management. Capital expenditures of CHF 58.7 million indicate ongoing investments in production and technology, supporting long-term growth.

Earnings Power And Capital Efficiency

BELIMO’s diluted EPS of CHF 11.94 underscores its earnings strength, driven by high-margin products and operational efficiency. The company’s capital-light model, combined with disciplined R&D spending, enhances return on invested capital. Its ability to generate consistent cash flow supports reinvestment and shareholder returns without excessive leverage.

Balance Sheet And Financial Health

BELIMO maintains a robust balance sheet, with CHF 97.2 million in cash and equivalents and modest total debt of CHF 25.4 million. The low debt-to-equity ratio highlights financial stability, providing flexibility for strategic initiatives. Strong liquidity ensures resilience against macroeconomic fluctuations.

Growth Trends And Dividend Policy

The company has demonstrated steady growth, supported by demand for energy-efficient HVAC solutions. Its dividend policy is shareholder-friendly, with a dividend per share of CHF 9.5, reflecting confidence in sustained profitability. Future growth is expected to be driven by IoT adoption and regulatory tailwinds favoring green buildings.

Valuation And Market Expectations

With a market capitalization of approximately CHF 9.76 billion and a beta of 1.07, BELIMO is valued as a stable yet growth-oriented industrial player. Investors likely price in continued margin expansion and market share gains in smart HVAC systems.

Strategic Advantages And Outlook

BELIMO’s strategic advantages include its technological leadership in HVAC automation and a strong global distribution network. The outlook remains positive, supported by urbanization, energy efficiency mandates, and the increasing adoption of IoT in building management. Risks include supply chain disruptions and competitive pressures, but the company’s innovation pipeline mitigates these challenges.

Sources

Company filings, market data