Intrinsic Value Interroll Holding AG (INRN.SW)

• Previous Close: CHF1,860.00
• Intrinsic Value: CHF1,015.84
• Upside potential: -45%

Stock Valuation Context

Business Model And Market Position

Interroll Holding AG is a global leader in internal logistics solutions, specializing in rollers, drives, conveyors, sorters, and pallet handling products. The company serves a diverse clientele across industries such as courier and parcel services, e-commerce, automotive, fashion, and food and beverage. Its solutions enhance efficiency in material handling, warehouse automation, and distribution, positioning Interroll as a critical enabler of modern supply chain operations. With a focus on innovation and reliability, the company caters to OEMs, system integrators, and end-users, reinforcing its reputation as a trusted partner in industrial automation. Operating since 1959, Interroll has established a strong market presence, leveraging Swiss engineering precision to deliver high-performance logistics components that optimize throughput and reduce operational costs for its clients worldwide.

Revenue Profitability And Efficiency

Interroll reported revenue of CHF 527.1 million in the latest fiscal period, with net income of CHF 62.5 million, reflecting a solid margin. The company generated CHF 92.0 million in operating cash flow, demonstrating efficient cash conversion. Capital expenditures were modest at CHF 13.6 million, indicating disciplined investment in maintaining and expanding its production capabilities.

Earnings Power And Capital Efficiency

The company's diluted EPS of CHF 75.6 underscores its earnings strength, supported by a lean operational structure and high-margin product offerings. With minimal total debt of CHF 9.3 million and robust cash reserves of CHF 204.1 million, Interroll maintains strong capital efficiency, allowing for reinvestment in R&D and strategic growth initiatives.

Balance Sheet And Financial Health

Interroll's balance sheet is notably healthy, with cash and equivalents significantly outweighing its modest debt load. This conservative financial structure provides ample liquidity and flexibility, reducing reliance on external financing. The company's low leverage and strong cash position underscore its financial stability and resilience in cyclical markets.

Growth Trends And Dividend Policy

Interroll has demonstrated consistent growth, supported by increasing demand for automation in logistics. The company pays a dividend of CHF 32 per share, reflecting a commitment to returning capital to shareholders while retaining sufficient funds for organic expansion. Its growth trajectory aligns with broader industry trends toward warehouse automation and efficient material handling.

Valuation And Market Expectations

With a market capitalization of approximately CHF 1.58 billion and a beta of 1.09, Interroll is viewed as a stable yet growth-oriented investment in the industrial machinery sector. The market appears to price in expectations of sustained demand for its logistics solutions, given the ongoing shift toward automation and supply chain optimization.

Strategic Advantages And Outlook

Interroll's strategic advantages lie in its long-standing expertise, innovative product portfolio, and global distribution network. The company is well-positioned to benefit from the increasing adoption of automated logistics solutions, particularly in e-commerce and manufacturing. Its outlook remains positive, supported by industry tailwinds and a strong competitive moat in niche logistics components.

Sources

Company filings, market data