| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 78.80 | -51 |
| Intrinsic value (DCF) | 49.19 | -69 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 7.80 | -95 |
Dätwyler Holding AG is a Swiss-based industrial leader specializing in high-precision elastomer components for critical applications across healthcare, mobility, oil and gas, and food and beverage industries. Founded in 1915 and headquartered in Altdorf, Switzerland, the company operates through two key segments: Healthcare Solutions and Industrial Solutions. The Healthcare Solutions segment provides essential rubber components for medical devices, including prefilled syringes, blood collection systems, and IV administration sets, catering to stringent regulatory standards. The Industrial Solutions segment focuses on advanced elastomer products for electromobility, brake systems, fuel management, and sealing solutions for various industrial applications. With a strong global presence in Europe, North America, South America, and Asia, Dätwyler leverages its expertise in elastomer technology to serve high-growth markets. The company’s commitment to innovation and quality positions it as a trusted partner in industries where precision and reliability are paramount.
Dätwyler Holding AG presents a compelling investment case with its diversified portfolio in high-growth sectors like healthcare and electromobility. The company’s revenue of CHF 1.11 billion and operating cash flow of CHF 171.7 million in the latest fiscal year underscore its financial stability. However, investors should note the relatively low net income of CHF 31.1 million and a diluted EPS of CHF 1.83, which may reflect margin pressures or high operational costs. The company’s beta of 1.235 indicates higher volatility compared to the market, which could be a concern for risk-averse investors. On the positive side, Dätwyler’s dividend yield, with a dividend per share of CHF 3.2, offers income potential. The company’s strategic focus on healthcare and industrial solutions aligns with global trends, but competitive pressures and regulatory challenges in these sectors could pose risks.
Dätwyler Holding AG competes in the highly specialized elastomer components market, where its competitive advantage lies in its deep expertise in precision engineering and regulatory compliance, particularly in the healthcare sector. The company’s Healthcare Solutions segment benefits from long-term contracts and high barriers to entry due to stringent quality standards, providing a stable revenue stream. In the Industrial Solutions segment, Dätwyler’s focus on electromobility and advanced sealing solutions positions it well in the growing green energy and automotive markets. However, the company faces intense competition from larger multinationals with broader product portfolios and greater economies of scale. Dätwyler’s relatively smaller size (market cap of ~CHF 2.09 billion) may limit its ability to compete on price in commoditized segments. Its Swiss base also means higher operational costs compared to competitors in lower-cost regions. The company’s innovation pipeline and customer-centric approach are key strengths, but it must continuously invest in R&D to maintain its edge against rivals like Freudenberg and Trelleborg.