| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 348.80 | -35 |
| Intrinsic value (DCF) | 1538.22 | 187 |
| Graham-Dodd Method | 22.20 | -96 |
| Graham Formula | 566.50 | 6 |
Burckhardt Compression Holding AG is a global leader in the design, manufacture, and servicing of reciprocating compressors, serving industries such as oil and gas, marine, petrochemical, and industrial gas sectors. Founded in 1844 and headquartered in Winterthur, Switzerland, the company specializes in high-pressure and process gas compressors, including labyrinth piston compressors, API 618 compressors, and hyper compressors for low-density polyethylene plants. Burckhardt Compression also provides critical components and maintenance services, ensuring operational efficiency for clients worldwide. With a strong presence in upstream oil and gas, refinery, and chemical processing, the company plays a vital role in energy and industrial infrastructure. Its innovative compressor solutions cater to demanding applications, including hydrogen compression and natural gas transport, positioning it as a key player in sustainable industrial solutions. The company’s long-standing expertise and diversified product portfolio make it a trusted partner for high-performance compression technology.
Burckhardt Compression presents a stable investment opportunity with a well-established market position in specialized compressor manufacturing. The company’s revenue of CHF 982 million and net income of CHF 90 million reflect steady performance, supported by a diversified industrial client base. Its dividend payout of CHF 15.5 per share indicates shareholder-friendly policies. However, the relatively low operating cash flow (CHF 17.8 million) and significant capital expenditures (CHF -22.5 million) suggest ongoing reinvestment needs. The company’s beta of 0.917 indicates lower volatility compared to the broader market, appealing to risk-averse investors. Key risks include exposure to cyclical industrial demand and potential supply chain disruptions in the energy sector. Long-term growth prospects hinge on increasing demand for hydrogen and natural gas compression solutions.
Burckhardt Compression holds a competitive edge through its specialized reciprocating compressor technology, particularly in high-pressure and corrosive gas applications. Unlike turbine or screw compressor manufacturers, Burckhardt focuses on precision-engineered solutions for niche markets such as hydrogen fueling and petrochemical processing. Its long industry presence (since 1844) provides deep technical expertise and customer trust, differentiating it from newer entrants. The company’s comprehensive service offerings—including maintenance, component repair, and diagnostics—enhance customer retention and recurring revenue streams. However, competition from larger industrial conglomerates with broader product portfolios (e.g., Siemens, Atlas Copco) poses a challenge in terms of pricing and global reach. Burckhardt’s Swiss engineering reputation supports premium pricing but may limit cost competitiveness in price-sensitive markets. Strategic partnerships in emerging energy sectors (e.g., hydrogen infrastructure) could further solidify its market position.