| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 29.50 | 467 |
| Graham Formula | 57.40 | 1004 |
Tornos Holding AG is a Swiss-based industrial machinery company specializing in the development, manufacture, and servicing of precision machining solutions. Founded in 1914 and headquartered in Moutier, Switzerland, Tornos produces Swiss-type automatic lathes, multispindle machines, milling products, and automation solutions, along with related software and services. The company serves high-precision industries such as automotive, micromechanics, electronics, and medical/dental sectors, where tight tolerances and reliability are critical. Tornos operates globally, offering not only cutting-edge machinery but also value-added services like preventive maintenance, machine upgrades, and training. As a key player in the industrial machinery sector, Tornos leverages Swiss engineering expertise to maintain a strong reputation for quality and innovation. With a market capitalization of approximately CHF 99.9 million, the company remains a niche but important supplier in the precision manufacturing ecosystem.
Tornos Holding AG presents a mixed investment case. On the positive side, the company operates in a specialized segment of industrial machinery with high barriers to entry due to technical expertise and precision requirements. Its focus on high-growth industries like medical technology and electronics provides some resilience. However, the company's modest net income (CHF 11.85 million in the latest period) and thin operating cash flow (CHF 7.72 million) raise concerns about financial robustness. Additionally, capital expenditures (CHF -17.93 million) suggest ongoing investment needs, which may pressure cash reserves (CHF 60.7 million). The dividend yield is modest (CHF 0.3 per share), and with a beta of 1.011, the stock exhibits market-average volatility. Investors should weigh Tornos' niche positioning against its limited scale and exposure to cyclical industrial demand.
Tornos Holding AG competes in the precision machining sector, where its Swiss heritage and engineering excellence provide a competitive edge in high-accuracy applications. The company's Swiss-type lathes and multispindle machines are well-regarded in industries requiring micron-level precision, such as medical devices and aerospace. However, Tornos faces intense competition from larger industrial machinery firms with broader product portfolios and greater financial resources. Its focus on Swiss-type machines, while differentiating, also limits market reach compared to competitors offering a wider range of CNC solutions. The company's after-sales services and training programs add value but may not fully offset pricing pressures from Asian manufacturers. Tornos' relatively small scale (CHF 494 million revenue) means it lacks the R&D budget of industry giants, potentially hindering long-term innovation. Its strength lies in specialized applications, but broader industrial automation trends favor more versatile and integrated systems. The company must balance its niche expertise with the need to adapt to Industry 4.0 advancements to remain competitive.