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Stock Analysis & ValuationBertrandt AG (BDT.SW)

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CHF71.40
Sector Valuation Confidence Level
Moderate
Valuation methodValue, CHFUpside, %
Artificial intelligence (AI)n/an/a
Intrinsic value (DCF)n/a
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Bertrandt AG (BDT.SW) is a leading German engineering services provider specializing in automotive, aerospace, and industrial engineering solutions. Headquartered in Ehningen, Germany, the company operates through three core segments: Digital Engineering, Physical Engineering, and Electrical Systems/Electronics. Bertrandt offers comprehensive services, including vehicle component design, validation testing, electronic module development, and software solutions for autonomous driving. Founded in 1974, Bertrandt serves a diverse clientele across the automotive, aerospace, mechanical engineering, and medical technology sectors. With a strong presence in Germany and international markets, Bertrandt leverages its expertise in digital and physical engineering to drive innovation in mobility and industrial applications. Despite recent financial challenges, the company remains a key player in the engineering services industry, supported by its deep technical capabilities and long-standing industry relationships.

Investment Summary

Bertrandt AG presents a mixed investment profile. The company operates in a high-growth sector with increasing demand for engineering services, particularly in automotive electrification and autonomous driving. However, recent financial performance has been weak, with a net loss of €77.2 million in the last fiscal year and negative diluted EPS of -7.64. The company's beta of 1.181 suggests higher volatility compared to the market. Positive aspects include a respectable dividend yield (€1.14 per share) and €76.9 million in operating cash flow, indicating some underlying business strength. Investors should weigh Bertrandt's strong industry positioning against its recent profitability challenges and exposure to cyclical automotive markets.

Competitive Analysis

Bertrandt AG competes in the highly specialized engineering services market, where technical expertise and long-term client relationships are critical advantages. The company's competitive position stems from its 50-year heritage in automotive engineering, full-service capabilities across digital and physical engineering, and strong presence in the German automotive ecosystem - home to premium OEMs like BMW, Mercedes, and Volkswagen. Bertrandt's integrated service model covering design, validation, and electronics development provides cross-selling opportunities. However, the company faces intensifying competition from larger global engineering firms with greater scale and digital transformation capabilities. Bertrandt's recent financial struggles (-€77M net income) may limit its ability to invest in next-gen technologies like AI-driven engineering tools compared to better-capitalized rivals. The company's mid-size scale positions it between niche specialists and mega-engineering firms, requiring careful strategic focus. Its deep automotive expertise remains valuable as the industry transitions to electric and autonomous vehicles, but Bertrandt must improve profitability to fund necessary R&D and compete effectively against both established players and new digital-native engineering providers.

Major Competitors

  • Altran Technologies (ALT.F): Now part of Capgemini after acquisition, Altran is a larger global engineering services provider with stronger digital transformation capabilities. It competes directly with Bertrandt in automotive engineering but has broader aerospace and technology sector exposure. Altran's scale and parent company resources give it advantages in large, complex projects, though Bertrandt maintains deeper German automotive relationships.
  • AKKA Technologies (AKRN.ME): AKKA is another European engineering services firm with significant automotive exposure. It has greater international presence than Bertrandt but similar financial challenges recently. AKKA's mobility-focused strategy aligns with Bertrandt's, though AKKA has been more aggressive in digital engineering acquisitions.
  • Ferrovial (FER.MC): While primarily an infrastructure company, Ferrovial's engineering services division competes with Bertrandt in some transportation and mobility segments. Ferrovial has stronger government and large project capabilities but less automotive specialization than Bertrandt.
  • Tech Mahindra (TECHM.NS): This Indian IT services firm provides competing engineering services, particularly in automotive electronics and digital engineering. Tech Mahindra offers cost advantages through offshore delivery but lacks Bertrandt's physical engineering and local German market expertise.
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