| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 376.09 | -30 |
| Intrinsic value (DCF) | 1613.88 | 202 |
| Graham-Dodd Method | 23.54 | -96 |
| Graham Formula | 599.81 | 12 |
Burckhardt Compression Holding AG (BCHN.SW) is a globally recognized leader in the design, manufacture, and servicing of reciprocating compressors, serving industries such as oil & gas, petrochemical, marine, and industrial gas sectors. Founded in 1844 and headquartered in Winterthur, Switzerland, the company specializes in high-pressure and process gas compressors, including labyrinth piston compressors (Laby), API 618 compressors, hyper compressors, and diaphragm compressors. Burckhardt Compression provides mission-critical solutions for demanding applications, including hydrogen compression, natural gas transport, and offshore installations. With a strong aftermarket service division offering maintenance, upgrades, and spare parts, the company ensures long-term customer relationships. Its Swiss engineering heritage, combined with a global footprint, positions it as a trusted partner for industrial gas compression needs. The company operates in a niche but essential segment of the industrial machinery sector, benefiting from increasing demand for energy-efficient and specialized compression solutions.
Burckhardt Compression presents a compelling investment case due to its specialized expertise in high-pressure reciprocating compressors, a market with high barriers to entry. The company's strong aftermarket services (contributing to recurring revenue) and exposure to growing sectors like hydrogen energy and LNG provide stability and growth potential. However, risks include cyclical exposure to oil & gas capex, supply chain dependencies, and currency fluctuations (given its Swiss franc reporting). With a market cap of ~CHF 2.02B, a P/E of ~22.5x (based on diluted EPS of CHF 26.63), and a dividend yield of ~2.3%, it trades at a premium reflecting its niche leadership. Investors should monitor order book trends in hydrogen and marine segments for growth signals.
Burckhardt Compression holds a strong competitive position in the reciprocating compressor market, particularly in high-pressure and corrosive gas applications. Its key advantages include: (1) **Technical specialization** – Proprietary designs like Laby compressors for abrasive gases and hyper compressors for polyethylene production are difficult to replicate. (2) **Aftermarket dominance** – A high-margin service business (~30% of revenue) creates sticky customer relationships. (3) **Swiss engineering reputation** – Critical for securing contracts in safety-intensive industries like petrochemicals. However, the company faces competition from larger industrial conglomerates with broader product portfolios and stronger balance sheets. Unlike screw or centrifugal compressor manufacturers, Burckhardt focuses solely on reciprocating technology, which limits diversification but enhances expertise. Its smaller scale compared to giants like Siemens Energy means it must compete on customization and reliability rather than pricing. The company’s growth in hydrogen compression aligns with energy transition trends, but rivals are also investing heavily in this space. Geographic exposure (strong in Europe/Asia, weaker in North America) remains a relative weakness versus global peers.