| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 51.39 | -29 |
| Intrinsic value (DCF) | 33.35 | -54 |
| Graham-Dodd Method | 1.74 | -98 |
| Graham Formula | 21.59 | -70 |
Andritz AG is a leading global supplier of plants, equipment, and services for the pulp and paper industry, metalworking and steel sectors, hydropower stations, and solid/liquid separation solutions. Headquartered in Graz, Austria, the company operates through four key segments: Pulp & Paper, Metals, Hydro, and Separation. With a history dating back to 1852, Andritz has established itself as a trusted provider of advanced technologies, automation solutions, and comprehensive services across multiple industries. The company serves diverse markets, including chemical, environmental, food, mining, and minerals, with a strong presence in Europe, North America, South America, and Asia. Andritz AG's innovative solutions for pulp production, metal processing, hydropower generation, and separation technologies position it as a critical player in industrial infrastructure and sustainability. Its commitment to digitalization and automation further enhances its competitive edge in delivering efficient and eco-friendly industrial solutions.
Andritz AG presents a compelling investment case with its diversified industrial portfolio and strong market positioning in niche sectors like pulp & paper and hydropower. The company's revenue of €8.31 billion and net income of €496.5 million in the latest fiscal year reflect stable operational performance. With a market capitalization of approximately €5.98 billion and a beta of 1.18, Andritz offers moderate risk exposure relative to the broader market. The company's solid cash position (€1.16 billion) and manageable total debt (€812.3 million) provide financial flexibility. However, investors should consider sector-specific risks, including cyclical demand in metals and pulp industries, as well as geopolitical factors affecting global supply chains. The dividend yield, supported by a €2.6 per share payout, adds income appeal. Long-term growth prospects are tied to sustainability trends, particularly in hydropower and recycling technologies.
Andritz AG holds a competitive advantage through its specialized technology offerings and long-standing industry expertise, particularly in the pulp & paper and hydropower segments. The company's ability to provide integrated solutions—combining equipment, automation, and services—differentiates it from pure-play equipment manufacturers. In the Pulp & Paper segment, Andritz competes with advanced solutions for sustainable production, including recycling technologies, which align with global environmental trends. The Metals segment benefits from proprietary know-how in flat product processing and digital solutions for steel and aluminum industries. In Hydro, Andritz's electromechanical expertise for hydropower plants is a key strength, supported by the global push for renewable energy. The Separation segment's focus on eco-efficient technologies for waste and water treatment capitalizes on regulatory-driven demand. However, competition is intense across all segments, with rivals often offering lower-cost alternatives or localized service networks. Andritz mitigates this through innovation (e.g., digitalization) and a global footprint, though regional competitors in Asia and North America pose challenges in pricing and delivery speed.