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Stock Analysis & ValuationAevis Victoria S.A. (AEVS.SW)

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CHF13.70
Sector Valuation Confidence Level
High
Valuation methodValue, CHFUpside, %
Artificial intelligence (AI)18.2934
Intrinsic value (DCF)7.06-48
Graham-Dodd Method6.14-55
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Aevis Victoria SA is a diversified Swiss company operating in healthcare, hospitality, lifestyle, and infrastructure sectors. Headquartered in Fribourg, Switzerland, the company is a subsidiary of M.R.S.I. Medical Research, Services and Investments S.A. Aevis Victoria operates 22 hospitals with 1,496 beds, making it a significant player in Switzerland's healthcare sector. Additionally, the company manages hospitality assets with 941 rooms and a rentable surface of 188,109 sqm. Beyond traditional healthcare, Aevis Victoria provides telemedicine, ambulance services, and day clinic operations. The company also engages in patient hotels, better aging solutions, radiology, pharmacy, ophthalmology, real estate management, stem cell research, cosmetics, and publishing. With a strong presence in Switzerland, Aevis Victoria combines healthcare expertise with lifestyle and infrastructure investments, positioning itself as a unique player in the Swiss market.

Investment Summary

Aevis Victoria SA presents a mixed investment profile. The company operates in stable sectors like healthcare and hospitality, which benefit from Switzerland's strong economy and aging population. However, its financials show challenges, with a net loss of CHF 2.87 million in the latest fiscal year and negative diluted EPS of CHF -0.03. The company has a high total debt of CHF 1.07 billion against cash reserves of CHF 36.88 million, raising concerns about leverage. On the positive side, Aevis Victoria generates CHF 101.04 million in revenue and maintains a diversified business model across healthcare and hospitality. The stock's beta of -0.155 suggests low correlation with broader market movements, which could appeal to risk-averse investors. Given its mixed financial performance, investors should weigh the company's sector diversification against its debt load and profitability challenges.

Competitive Analysis

Aevis Victoria SA holds a unique position in the Swiss market by combining healthcare, hospitality, and infrastructure under one corporate umbrella. Its competitive advantage stems from its extensive hospital network (22 facilities) and integrated healthcare services, including telemedicine and specialized clinics. The company's diversification into hospitality (patient hotels) and lifestyle services provides additional revenue streams that pure-play healthcare providers lack. However, Aevis Victoria faces competition from specialized healthcare providers and larger hospital operators in Switzerland. Its real estate holdings provide asset backing but may also tie up capital that could be deployed more efficiently. The company's negative beta suggests it operates somewhat independently of market cycles, which could be advantageous in economic downturns. Challenges include high debt levels and the capital-intensive nature of its hospital operations. Aevis Victoria's subsidiary structure under M.R.S.I. Medical Research provides potential synergies in medical research and innovation, though this relationship may also create complexity. The company's ability to integrate its diverse business lines will be key to maintaining its competitive edge.

Major Competitors

  • Hocheng AG (HOCN.SW): Hocheng AG operates in Swiss healthcare with a focus on rehabilitation clinics. While smaller than Aevis Victoria in hospital operations, Hocheng has stronger profitability metrics. The company specializes in post-acute care, differentiating itself from Aevis Victoria's broader acute care hospital network. Hocheng's more focused approach may give it operational efficiencies but lacks Aevis Victoria's diversification benefits.
  • Roche Holding AG (ROG.SW): As a global pharmaceutical giant, Roche competes indirectly with Aevis Victoria in some healthcare services. Roche's vast resources and research capabilities give it advantages in medical innovation, but it doesn't operate hospitals directly in Switzerland. Aevis Victoria's hospital network provides local healthcare delivery that Roche doesn't match, though Roche's diagnostic divisions may compete in some testing services.
  • Sonova Holding AG (SONN.SW): Sonova specializes in hearing care solutions, overlapping with Aevis Victoria's healthcare services in some areas. Sonova's global reach and focus on hearing technology give it advantages in its niche, but it lacks Aevis Victoria's broad hospital network and hospitality operations. The companies may collaborate in some patient care pathways while competing in audiology services.
  • Julius Baer Group Ltd. (BAER.SW): While primarily a private bank, Julius Baer competes with Aevis Victoria in the luxury hospitality segment through its high-end property investments. Julius Baer's stronger financial position allows for more aggressive hospitality investments, but it lacks Aevis Victoria's healthcare synergies. The competition is most relevant in upscale Swiss hospitality properties.
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