Stock Analysis & Valuation Beiersdorf AG (BEI.SW)

• Previous Close: CHF111.95
• Sector Valuation Confidence Level: Low

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	50.70	-55
Graham Formula	45.90	-59

Strategic Investment Analysis

Company Overview

Beiersdorf AG is a global leader in the consumer goods sector, specializing in skin and body care products under well-known brands such as NIVEA, Eucerin, La Prairie, and Coppertone. Headquartered in Hamburg, Germany, the company operates through two key segments: Consumer Business and Tesa Business. The Consumer Business segment focuses on personal care, offering a diverse portfolio of skincare, lip care, and wound care products, while the Tesa Business segment provides adhesive solutions for industries like automotive, electronics, and construction. With a heritage dating back to 1882, Beiersdorf has established a strong presence in Europe, the Americas, Africa, Asia, and Australia. The company’s commitment to innovation, sustainability, and brand strength positions it as a key player in the Household & Personal Products industry. As a subsidiary of maxingvest ag, Beiersdorf benefits from stable ownership while maintaining operational agility in a competitive market.

Investment Summary

Beiersdorf AG presents a stable investment opportunity within the Consumer Defensive sector, supported by its strong brand portfolio and global market presence. The company’s diversified revenue streams, spanning both consumer and industrial segments, mitigate sector-specific risks. With a market capitalization of approximately €25.1 billion and a low beta of 0.276, Beiersdorf is relatively resilient to market volatility. The company reported solid financials for FY 2024, including €9.85 billion in revenue and €912 million in net income, translating to a diluted EPS of €4.03. Operating cash flow remains robust at €1.23 billion, supporting dividend payouts (€0.97 per share) and reinvestment in growth initiatives. However, competition from larger multinationals and private-label brands could pressure margins. Investors should weigh Beiersdorf’s steady performance against potential challenges in emerging markets and rising input costs.

Competitive Analysis

Beiersdorf AG holds a competitive edge through its strong brand equity, particularly with NIVEA, one of the world’s most recognized skincare brands. The company’s dual-segment approach—combining consumer skincare with industrial adhesives (Tesa)—provides diversification and reduces reliance on a single market. Beiersdorf’s focus on innovation, evidenced by its R&D-driven product launches (e.g., Eucerin’s dermatological solutions and La Prairie’s luxury skincare), helps maintain premium positioning. However, the company faces intense competition from global giants like L’Oréal and Unilever, which have broader portfolios and greater marketing budgets. Beiersdorf’s regional strength in Europe is both an advantage and a limitation, as it lags behind competitors in high-growth Asian markets. The Tesa segment, while niche, competes with 3M and Henkel in industrial adhesives, where scale and technological differentiation are critical. Sustainability initiatives, such as reducing plastic waste and carbon emissions, align with consumer trends but require ongoing investment. Overall, Beiersdorf’s mid-size scale allows agility but may limit pricing power in a consolidating industry.

Major Competitors

• L’Oréal SA (OR.PA): L’Oréal dominates the global beauty market with a vast portfolio spanning luxury (Lancôme), dermatology (La Roche-Posay), and mass-market brands (Maybelline). Its strong R&D capabilities and digital marketing prowess give it an edge in innovation and customer engagement. However, its premium focus exposes it to economic downturns, and its size can lead to slower decision-making compared to Beiersdorf.
• Unilever PLC (ULVR.L): Unilever’s personal care division (Dove, Vaseline) competes directly with Beiersdorf in mass-market skincare. Its extensive distribution network and economies of scale are strengths, but its diversified focus (food, home care) dilutes skincare specialization. Unilever’s sustainability commitments are industry-leading, but its sheer size can hinder agility in niche segments like dermatological skincare, where Beiersdorf excels.
• Henkel AG & Co. KGaA (HEN3.DE): Henkel overlaps with Beiersdorf in both consumer goods (Schwarzkopf, Dial) and adhesives (Loctite). Its industrial adhesives segment is larger than Tesa, but its skincare brands lack NIVEA’s global recognition. Henkel’s cost-cutting initiatives boost margins, but its recent restructuring has created uncertainty. Beiersdorf’s stronger skincare focus gives it an advantage in brand loyalty.
• Procter & Gamble Co. (PG): P&G’s Olay competes with NIVEA in anti-aging skincare, leveraging its massive US footprint and marketing spend. P&G’s scale and supply-chain efficiency are unmatched, but its skincare portfolio is narrower than Beiersdorf’s. P&G’s focus on premiumization (e.g., SK-II) aligns with La Prairie but lacks Beiersdorf’s dermatological expertise (Eucerin).
• The Estée Lauder Companies Inc. (EL): Estée Lauder’s luxury focus (Clinique, La Mer) competes with La Prairie in high-end skincare. Its strong Asia-Pacific growth contrasts with Beiersdorf’s heavier reliance on Europe. However, Estée Lauder’s reliance on travel retail and department stores makes it vulnerable to macroeconomic shifts, whereas Beiersdorf’s mass-market brands provide stability.
• 3M Company (MMM): 3M’s industrial adhesives division is a key rival to Tesa, with superior global reach and technological breadth. However, 3M’s recent spin-off of its healthcare business signals a strategic shift away from consumer-facing segments, potentially creating openings for Tesa in niche industrial applications where Beiersdorf can leverage its European expertise.