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Stock Analysis & ValuationCALIDA Holding AG (0QP3.L)

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£12.10
Sector Valuation Confidence Level
Moderate
Valuation methodValue, £Upside, %
Artificial intelligence (AI)39.10223
Intrinsic value (DCF)8.78-27
Graham-Dodd Methodn/a
Graham Formula0.20-98

Strategic Investment Analysis

Company Overview

CALIDA Holding AG is a Swiss-based apparel company specializing in underwear, sleepwear, loungewear, and outdoor clothing. Founded in 1941 and headquartered in Sursee, Switzerland, the company operates through three key segments: CALIDA (underwear and loungewear), AUBADE (luxury lingerie), and LAFUMA MOBILIER (outdoor and leisure equipment). CALIDA serves markets across Europe, Asia, and the U.S., leveraging both traditional retail and e-commerce channels. The company’s diversified brand portfolio allows it to cater to different consumer segments, from everyday essentials to high-end lingerie and outdoor gear. As part of the consumer cyclical sector, CALIDA competes in the competitive apparel industry, where brand loyalty and product innovation are crucial. With a market cap of CHF 139.8 million, the company maintains a niche presence in Europe while expanding its digital footprint to enhance global reach.

Investment Summary

CALIDA Holding AG presents a mixed investment profile. The company benefits from a diversified brand portfolio, including premium lingerie (AUBADE) and functional outdoor gear (LAFUMA MOBILIER), which provides resilience against market fluctuations. However, its modest market cap (CHF 139.8M) and beta of 0.559 suggest lower volatility but also limited growth momentum. Revenue (CHF 231M) and net income (CHF 14.9M) indicate stable operations, though diluted EPS (CHF 0.0631) is thin. Positive operating cash flow (CHF 37.1M) and a manageable debt load (CHF 34.5M) support financial health, but the dividend (CHF 0.17647/share) is modest. Risks include intense competition in apparel and reliance on European markets. Investors may find value in its niche positioning but should weigh growth constraints.

Competitive Analysis

CALIDA Holding AG competes in the fragmented apparel industry with a focus on differentiated segments: everyday basics (CALIDA), luxury lingerie (AUBADE), and outdoor gear (LAFUMA MOBILIER). Its competitive advantage lies in brand diversification and Swiss heritage, which lends credibility in quality-conscious markets. However, it lacks the scale of global giants like Hanesbrands or PVH Corp. The AUBADE segment competes with high-end lingerie brands (e.g., Chantelle), while LAFUMA MOBILIER faces outdoor specialists like Decathlon. CALIDA’s direct-to-consumer e-commerce strategy helps mitigate retail dependency, but digital penetration lags behind pure-play e-tailers. Geographic concentration in Europe (particularly Switzerland, France, Germany) limits exposure to faster-growing APAC markets. The company’s smaller size restricts marketing budgets, making brand-building challenging against rivals with deeper pockets. Strengths include a loyal customer base and operational efficiency, but innovation and international expansion remain critical to long-term competitiveness.

Major Competitors

  • Hanesbrands Inc. (HBI): Hanesbrands dominates the global basics market with economies of scale and strong wholesale distribution. Its Champion brand competes with CALIDA’s casualwear, but Hanes lacks a luxury lingerie segment. Weaknesses include high debt and reliance on North America.
  • PVH Corp. (PVH): PVH owns Calvin Klein and Tommy Hilfiger, giving it premium positioning in underwear and apparel. Its global reach dwarfs CALIDA’s, but PVH’s complexity and licensing dependencies pose risks. CALIDA’s AUBADE has a niche edge in European lingerie.
  • Damartex Group (0HVP.L): A French competitor in thermalwear and lingerie, Damartex overlaps with CALIDA’s functional apparel. It has a stronger senior demographic focus but weaker outdoor segment. Both face similar challenges in digital transformation.
  • Decathlon (DEC.PA): Decathlon’s mass-market outdoor gear competes with LAFUMA MOBILIER. Its vast retail network and low-cost model pressure CALIDA’s margins, but Decathlon lacks premium lingerie or underwear offerings.
  • Chantelle Group (0NQM.L): A private luxury lingerie rival to AUBADE, Chantelle excels in design and French craftsmanship. CALIDA’s challenge is scaling AUBADE’s prestige without Chantelle’s heritage. Both target similar high-end demographics.
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