Stock Analysis & Valuation Banque Cantonale du Jura S.A. (BCJ.SW)

• Previous Close: CHF74.00
• Sector Valuation Confidence Level: High

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	624.93	744
Intrinsic value (DCF)	40.15	-46
Graham-Dodd Method	96.82	31
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Banque Cantonale du Jura SA (BCJ.SW) is a regional Swiss bank headquartered in Porrentruy, Switzerland, specializing in retail and commercial banking services. Operating in the financial services sector, the bank offers a comprehensive suite of products, including personal and mortgage loans, wealth management, asset management, and digital banking solutions. With a strong regional presence, BCJ serves individuals and businesses in the Jura region, emphasizing personalized advisory services and local market expertise. The bank’s conservative risk profile and stable earnings reflect its focus on traditional banking operations. As a cantonal bank, BCJ benefits from regional loyalty and regulatory support, reinforcing its position in Switzerland’s competitive banking landscape. With CHF 182.6 million in market capitalization and a beta of 0.209, BCJ is a low-volatility investment option in the Swiss financial sector.

Investment Summary

Banque Cantonale du Jura SA presents a stable investment opportunity with low market volatility (beta: 0.209) and consistent profitability, evidenced by a net income of CHF 13.48 million in the latest fiscal period. The bank’s strong liquidity position (CHF 644.36 million in cash and equivalents) and conservative lending practices mitigate downside risks. However, its regional focus limits growth potential compared to larger Swiss banks, and its modest market cap (CHF 182.59 million) suggests lower liquidity for investors. The dividend yield, with a payout of CHF 2.25 per share, adds appeal for income-focused investors. Given its niche positioning, BCJ is best suited for conservative portfolios seeking exposure to Swiss regional banking stability.

Competitive Analysis

Banque Cantonale du Jura SA operates in a highly competitive Swiss banking sector dominated by global players and larger cantonal banks. Its competitive advantage lies in its regional focus, fostering strong customer relationships and localized service offerings. Unlike multinational banks, BCJ benefits from lower exposure to international risks and a stable deposit base from the Jura region. However, its small scale limits economies of scale in technology and product diversification, putting it at a disadvantage against larger peers like UBS and Credit Suisse. The bank’s conservative approach ensures resilience but may hinder innovation in digital banking, where fintechs and larger banks are investing heavily. BCJ’s asset management and wealth advisory services face competition from private banks and cantonal rivals with broader reach. While its capital adequacy and liquidity are strengths, BCJ must navigate regulatory pressures and margin compression common in the low-interest-rate European banking environment.

Major Competitors

• UBS Group AG (UBSG.SW): UBS is Switzerland’s largest bank with global wealth management and investment banking operations. Its scale and diversified revenue streams dwarf BCJ’s regional focus, but UBS faces higher systemic risks and complexity. UBS’s recent acquisition of Credit Suisse further consolidates its dominance, though integration risks persist.
• Credit Suisse Group AG (CSGN.SW): Credit Suisse, now part of UBS, was a major competitor with a strong private banking franchise. Its historical struggles with risk management highlight BCJ’s relative stability, but Credit Suisse’s international reach and investment banking capabilities were unmatched by BCJ’s regional model.
• Banque Cantonale Vaudoise (BCVN.SW): Another cantonal bank, BCV operates in the larger Vaud region with similar services but greater scale (CHF 11.3B market cap). Its broader geographic footprint and stronger digital offerings pose a competitive threat to BCJ’s regional dominance in Jura.
• Luzerner Kantonalbank (LUZN.SW): A peer cantonal bank, LUKB benefits from a larger customer base in Lucerne. Its higher profitability and digital banking investments contrast with BCJ’s smaller, traditional operations, though both share a regional banking ethos.
• Zurich Cantonal Bank (ZURN.SW): Switzerland’s largest cantonal bank, ZKB, outperforms BCJ in scale, innovation, and market reach. Its CHF 30B+ balance sheet and urban focus create competitive pressure for smaller cantonal banks like BCJ in attracting high-net-worth clients.