| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 51.80 | -64 |
| Intrinsic value (DCF) | 635.96 | 348 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 40.40 | -72 |
Burkhalter Holding AG is a leading Swiss provider of electrical engineering services, specializing in the construction sector. Founded in 1959 and headquartered in Zürich, the company delivers comprehensive solutions including electrical installations for residential, commercial, industrial, and public infrastructure projects. Burkhalter also offers advanced communication and network solutions, automation systems for building management, and safety and security technologies such as fire alarms and access control. With a strong focus on servicing and maintenance, the company ensures long-term reliability for its clients. Operating exclusively in Switzerland, Burkhalter benefits from a stable domestic market and a reputation for high-quality engineering services. As a key player in the Swiss industrials sector, Burkhalter Holding AG is well-positioned to capitalize on infrastructure development and smart building trends.
Burkhalter Holding AG presents a stable investment opportunity with its strong market position in Switzerland's electrical engineering sector. The company's diversified service offerings, including high-margin automation and security solutions, provide resilience against economic fluctuations. With a market cap of CHF 1.35 billion and a beta of 0.489, Burkhalter demonstrates lower volatility compared to broader markets. The firm maintains healthy financials, reporting CHF 1.16 billion in revenue and CHF 57.2 million net income, supported by strong operating cash flow of CHF 89.3 million. A dividend yield of approximately 3.6% (CHF 4.85 per share) adds income appeal. However, investors should note the company's concentrated geographic exposure to Switzerland and potential margin pressures from labor costs in the engineering sector.
Burkhalter Holding AG maintains a strong competitive position in Switzerland's electrical engineering market through its full-service capabilities and established reputation. The company's vertically integrated model - combining installation, automation, and maintenance services - creates sticky customer relationships and recurring revenue streams. Its specialization in complex projects (industrial facilities, smart buildings) provides differentiation from general contractors. Burkhalter's Swiss focus allows deep local market knowledge and regulatory expertise, though this also limits geographic diversification. The company benefits from Switzerland's high construction standards and infrastructure investment, but faces competition from both large international engineering firms and local specialists. Its competitive advantages include: 1) Long-standing client relationships in stable sectors like public infrastructure, 2) Technical expertise in emerging areas like building automation, 3) Maintenance/service revenue providing stability (approximately 20% of business). Challenges include labor cost pressures in Switzerland's tight skilled-worker market and potential margin compression from larger EU-based competitors. The company's moderate debt (CHF 50.7 million against CHF 52.4 million cash) provides flexibility for selective acquisitions to bolster capabilities.