Stock Analysis & Valuation Bobst Group S.A. (BOBNN.SW)

• Previous Close: CHF57.30
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	63.89	11
Graham Formula	121.69	112

Strategic Investment Analysis

Company Overview

Bobst Group SA (BOBNN.SW) is a Swiss-based global leader in supplying machinery and services for the packaging and printing industries. Founded in 1890 and headquartered in Mex, Switzerland, the company specializes in equipment for printing, coating, laminating, cutting, folding, and gluing processes. Bobst operates through two key segments: Printing & Converting and Services & Performance. Its diverse product portfolio includes vacuum coaters, digital inkjet printing presses, flexo post-printing presses, die cutters, and converting lines, serving industries such as flexible packaging, corrugated boards, folding cartons, and e-commerce packaging. With a strong presence in Europe, the Americas, Asia, Oceania, and Africa, Bobst Group SA is a subsidiary of JBF Finance SA and continues to innovate in sustainable packaging solutions, catering to sectors like food, beverages, personal care, and industrial films. The company’s long-standing expertise and technological advancements position it as a critical player in the industrial machinery sector.

Investment Summary

Bobst Group SA presents a stable investment opportunity with solid financials, reporting CHF 1.56 billion in revenue and CHF 93.4 million in net income for FY 2021. The company maintains a healthy balance sheet with CHF 494.9 million in cash and equivalents, though it carries CHF 341 million in total debt. Operating cash flow was robust at CHF 185.9 million, supporting a dividend payout of CHF 23.5 per share. While the company operates in a competitive industrial machinery sector, its long-standing reputation, global footprint, and focus on packaging innovation provide resilience. However, investors should monitor macroeconomic factors affecting industrial demand and potential supply chain disruptions. The stock may appeal to income-focused investors due to its dividend yield, but growth prospects depend on continued technological adoption in packaging.

Competitive Analysis

Bobst Group SA holds a competitive edge in the packaging and printing machinery industry due to its extensive product portfolio, global reach, and strong after-sales service offerings. The company’s focus on digital and sustainable packaging solutions aligns with industry trends, giving it an advantage over less technologically advanced competitors. Its two-segment structure—Printing & Converting and Services & Performance—ensures diversified revenue streams, with the latter providing recurring income through maintenance and optimization services. However, Bobst faces stiff competition from larger industrial machinery firms with broader capabilities and greater financial resources. Its Swiss base also means higher operational costs compared to Asian competitors. The company’s niche expertise in packaging machinery differentiates it, but it must continue innovating to fend off rivals investing in automation and digital printing. Its strong relationships with key industries (food, beverages, e-commerce) provide stability, but reliance on cyclical sectors poses risks during downturns.

Major Competitors

• Heidelberger Druckmaschinen AG (HEI.DE): Heidelberger Druckmaschinen is a major competitor in printing machinery, specializing in offset and digital presses. While it has a strong brand in commercial printing, it lacks Bobst’s depth in packaging-specific solutions. Heidelberg has faced financial struggles, but its broader product range in printing technology makes it a key rival.
• Koenig & Bauer AG (KBA.DE): Koenig & Bauer competes in packaging and printing presses, with a focus on security printing and metal decorating. It has a strong R&D focus but is less diversified in packaging machinery compared to Bobst. Its financial performance has been volatile, though it remains a significant player in Europe.
• Kubota Corporation (6326.T): Kubota’s industrial machinery segment includes printing and packaging equipment, competing indirectly with Bobst. Its strength lies in agricultural and construction machinery, giving it financial stability, but it lacks Bobst’s specialization in high-end packaging solutions. Kubota’s Asian market presence is a competitive threat.
• Boskalis Westminster NV (BOKA.AS): Boskalis operates in heavy machinery and industrial services, overlapping with Bobst in some industrial applications. However, its focus on maritime and offshore industries limits direct competition. Bobst’s packaging specialization gives it an edge in its core markets.