| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 135.80 | 101 |
| Intrinsic value (DCF) | 28.88 | -57 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
CPH Chemie + Papier Holding AG (0QNZ.L) is a Swiss-based company with a diversified portfolio in chemicals, paper, and pharmaceutical packaging films. Founded in 1818 and headquartered in Root, Switzerland, CPH operates through three key divisions: Chemistry, Paper, and Packaging. The Chemistry division, under the Zeochem brand, specializes in molecular sieves, special zeolites, and deuterated solvents, serving industries requiring high-purity materials. The Paper division, branded as Perlen Papier, produces newsprint and magazine paper while emphasizing sustainability through domestic paper recycling. The Packaging division, Perlen Packaging, provides high-barrier films for pharmaceutical applications, ensuring product safety and compliance. With operations spanning Switzerland, Europe, the Americas, and Asia, CPH leverages its long-standing expertise to serve global markets. As part of the Basic Materials sector, CPH plays a critical role in industries reliant on specialty chemicals and sustainable paper solutions.
CPH Chemie + Papier Holding AG presents a mixed investment profile. The company's diversified operations across chemicals, paper, and packaging provide stability, but its modest net income (CHF 4.6M) and diluted EPS (CHF 0.78) indicate limited profitability. A low beta (0.174) suggests lower volatility compared to the broader market, appealing to conservative investors. The dividend yield (CHF 2 per share) is a positive, but revenue (CHF 447.9M) and operating cash flow (CHF 45.7M) are offset by capital expenditures (CHF -23M). The company's strong cash position (CHF 31.6M) and manageable debt (CHF 18.9M) provide financial flexibility. However, exposure to cyclical industries like paper and chemicals may pose risks in economic downturns. Investors should weigh CPH's niche market strengths against its modest earnings growth.
CPH Chemie + Papier Holding AG competes in specialized segments where technical expertise and sustainability are key differentiators. In the Chemistry division, Zeochem's molecular sieves and deuterated solvents face competition from global chemical manufacturers, but its focus on high-purity applications provides a niche advantage. The Paper division's Perlen Papier competes in a declining newsprint market, where cost efficiency and recycling capabilities are critical; however, the shift toward digital media poses long-term challenges. The Packaging division's pharmaceutical films benefit from stringent industry regulations, creating high barriers to entry, but competitors with larger scale may exert pricing pressure. CPH's Swiss heritage and precision manufacturing bolster its reputation, but its relatively small size limits economies of scale compared to multinational rivals. The company’s ability to innovate in high-barrier films and sustainable paper recycling could strengthen its positioning, though reliance on European markets may limit growth compared to globally diversified peers.