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Stock Analysis & ValuationBucher Industries AG (BUCN.SW)

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CHF358.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, CHFUpside, %
Artificial intelligence (AI)360.781
Intrinsic value (DCF)149.05-58
Graham-Dodd Method92.05-74
Graham Formulan/a

Strategic Investment Analysis

Company Overview

Bucher Industries AG is a Swiss-based global leader in specialized machinery and industrial solutions, operating across five key divisions: Kuhn Group (agricultural machinery), Bucher Municipal (municipal vehicles), Bucher Hydraulics (hydraulic components), Bucher Emhart Glass (glass manufacturing technology), and Bucher Specials (equipment for beverages and automation). With a strong presence in Europe, the Americas, and Asia, Bucher Industries serves diverse sectors including agriculture, municipal services, glass production, and food & beverage processing. The company's diversified portfolio and focus on high-quality, innovative engineering solutions position it as a critical player in industrial machinery. Bucher's commitment to sustainability and efficiency is evident in its municipal and agricultural equipment, which supports modern farming and urban infrastructure maintenance. With a market capitalization of nearly CHF 4 billion and a solid financial foundation, Bucher Industries remains a resilient player in the industrials sector.

Investment Summary

Bucher Industries AG presents a stable investment opportunity with its diversified industrial machinery portfolio and strong market positioning. The company's revenue of CHF 3.16 billion and net income of CHF 226.8 million (FY 2024) reflect steady operational performance. A debt-free balance sheet and healthy operating cash flow (CHF 344.5 million) underscore financial stability. However, exposure to cyclical industries like agriculture and municipal spending could pose risks during economic downturns. The dividend yield (~2.8%) and low beta (0.952) suggest defensive characteristics, making it suitable for conservative investors. Long-term growth depends on innovation in sustainable machinery and expansion in emerging markets.

Competitive Analysis

Bucher Industries maintains a competitive edge through its diversified machinery segments, technological expertise, and strong brand reputation in niche markets. The Kuhn Group division competes with global agricultural machinery giants but differentiates itself with specialized equipment for forage and livestock farming. Bucher Municipal holds a strong position in European municipal vehicles, benefiting from stringent urban cleanliness regulations. Bucher Hydraulics faces competition from larger industrial players but thrives in customized hydraulic solutions. Bucher Emhart Glass is a key supplier to the glass container industry, leveraging proprietary manufacturing technology. The company’s decentralized structure allows agility in regional markets, while its Swiss engineering heritage ensures premium product quality. However, reliance on European markets (~60% of revenue) and limited scale compared to multinational conglomerates could constrain growth. Strategic acquisitions and partnerships in automation and digital services may enhance competitiveness.

Major Competitors

  • Deere & Company (DE): Deere dominates the global agricultural machinery market with broad-scale equipment, overshadowing Bucher's Kuhn Group in row-crop farming. However, Deere's larger scale comes with higher exposure to commodity price cycles. Bucher’s specialization in forage and livestock equipment provides niche advantages.
  • CNH Industrial N.V. (CNHI): CNH competes with Bucher’s Kuhn Group through brands like New Holland and Case IH. CNH has greater resources but lacks Bucher’s focus on specialized agricultural solutions. Bucher’s municipal and hydraulics divisions face minimal overlap with CNH.
  • Atlas Copco AB (ATCO-A.ST): Atlas Copco is a leader in industrial tools and compressors, overlapping slightly with Bucher Hydraulics. While Atlas Copco has superior global reach, Bucher’s hydraulic components cater to more specialized applications.
  • Kone Oyj (KNEBV.HE): Kone’s elevator and urban mobility solutions indirectly compete with Bucher Municipal’s cleaning vehicles. Kone’s larger service-oriented model contrasts with Bucher’s equipment-heavy approach.
  • KION Group AG (SDF.DE): KION’s forklifts and warehouse solutions diverge from Bucher’s core segments, but both compete in industrial hydraulics. KION’s logistics focus gives it scale, while Bucher excels in agricultural and municipal niches.
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