| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 177.50 | -3 |
| Graham Formula | 950.60 | 420 |
Zwahlen & Mayr SA is a Swiss-based company specializing in the production of welded stainless-steel tubes and steel construction. Founded in 1881 and headquartered in Aigle, Switzerland, the company operates under the subsidiary of Cimolai SpA. Zwahlen & Mayr serves diverse industries, including conventional and nuclear power stations, chemical and petrochemical plants, petroleum refineries, pulp and paper, air treatment, dairy, automotive, aerospace, mechatronics, pneumatic, oil and gas, and instrumentation applications. Additionally, it caters to the pharma, food, and chemical industries. The company's steel construction division focuses on bridges, buildings, and special projects. With a market cap of CHF 12.8 million, Zwahlen & Mayr plays a niche role in the steel and basic materials sector, leveraging its long-standing expertise in high-performance stainless-steel solutions.
Zwahlen & Mayr SA presents a mixed investment profile. The company operates in a specialized segment of the steel industry, which could offer stability due to its diversified industrial applications. However, its financials reveal challenges, including a net loss of CHF 4.6 million in the latest fiscal year and negative diluted EPS of CHF -66.18. The company's operating cash flow of CHF 3.2 million is a positive sign, but capital expenditures of CHF -2.8 million indicate ongoing investment needs. With no dividend payouts and a modest market cap, Zwahlen & Mayr may appeal only to investors with a high-risk tolerance or those seeking exposure to niche steel manufacturing. The negative beta (-0.068) suggests low correlation with broader market movements, which could be attractive for portfolio diversification but also reflects limited growth prospects.
Zwahlen & Mayr SA competes in the specialized stainless-steel tubes and steel construction market, where differentiation is driven by technical expertise, product quality, and industry-specific applications. The company's competitive advantage lies in its long-standing reputation (founded in 1881) and its ability to serve high-demand sectors like nuclear power, petrochemicals, and aerospace. However, its small scale (CHF 40.7 million revenue) limits its ability to compete with larger global players in pricing and R&D. The company's subsidiary status under Cimolai SpA provides some financial and operational backing but may also constrain independent strategic decisions. Zwahlen & Mayr's focus on Switzerland and niche industrial applications shields it from broader steel industry volatility but also caps its growth potential. The negative net income and EPS highlight operational inefficiencies or pricing pressures, which could erode its competitive positioning if not addressed. The company's steel construction division adds diversification but faces stiff competition from larger European construction and engineering firms.