Stock Analysis & Valuation Cham Swiss Properties AG (CHAM.SW)

• Previous Close: CHF25.20
• Sector Valuation Confidence Level: Low

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	27.17	8
Intrinsic value (DCF)	19.97	-21
Graham-Dodd Method	20.41	-19
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Cham Swiss Properties AG (CHAM.SW) is a leading Swiss real estate company specializing in sustainable residential and commercial property development and management. Formed in April 2025 through the merger of Ina Invest AG and Cham Group AG, the company operates in Switzerland's most economically robust regions, including Basel, Cham, Geneva, Lausanne, Winterthur, and Zurich. With a market capitalization of CHF 1.03 billion, Cham Swiss Properties AG focuses on high-quality, eco-friendly real estate solutions, catering to both residential and commercial markets. The company's strategic locations and commitment to sustainability position it as a key player in Switzerland's competitive real estate sector. Despite recent financial challenges, including a net loss of CHF 15.08 million in the latest fiscal year, the company maintains a strong balance sheet with no debt and CHF 5.98 million in cash reserves. Cham Swiss Properties AG also offers a modest dividend of CHF 0.20 per share, appealing to income-focused investors.

Investment Summary

Cham Swiss Properties AG presents a mixed investment profile. On the positive side, the company operates in Switzerland's stable and high-demand real estate market, with a focus on sustainable development—a growing trend in the sector. Its debt-free balance sheet and cash reserves provide financial stability. However, the company reported a net loss of CHF 15.08 million and negative diluted EPS of CHF 1.10 in the latest fiscal year, raising concerns about profitability. The low beta of 0.066 suggests minimal correlation with broader market movements, which could appeal to risk-averse investors. The modest dividend yield may attract income seekers, but the lack of profitability and recent merger-related integration risks warrant caution. Investors should monitor the company's ability to turn around its earnings and capitalize on its strategic locations and sustainability focus.

Competitive Analysis

Cham Swiss Properties AG competes in Switzerland's highly competitive real estate market, where sustainability and prime locations are key differentiators. The company's merger with Ina Invest AG has expanded its portfolio and geographic reach, enhancing its competitive positioning. Its focus on eco-friendly developments aligns with increasing regulatory and consumer demand for sustainable properties. However, the company's recent financial losses highlight operational challenges, possibly due to merger integration costs or development delays. Competitively, Cham Swiss Properties AG benefits from its presence in high-growth Swiss regions, but it faces stiff competition from larger, more established players with greater financial resources and development pipelines. The company's zero-debt status is a strength, providing flexibility in a rising interest rate environment. To maintain competitiveness, Cham Swiss Properties AG must improve profitability, accelerate project completions, and leverage its sustainability credentials to attract tenants and buyers in a crowded market.

Major Competitors

• Sika AG (SIKA.SW): Sika AG is a global leader in construction chemicals and materials, with a strong presence in Switzerland. While not a direct competitor in property development, Sika's products are essential for sustainable building practices, giving it indirect influence over real estate companies like Cham Swiss Properties AG. Sika's extensive R&D capabilities and global reach provide a competitive edge, but its focus on materials rather than property management limits direct rivalry.
• PSP Swiss Property AG (PSPN.SW): PSP Swiss Property AG is a major player in Swiss commercial real estate, with a portfolio focused on office and retail properties. Its larger scale and established market presence give it an advantage over Cham Swiss Properties AG. However, PSP's higher leverage compared to Cham's debt-free status could be a vulnerability in rising rate environments. PSP's strong tenant relationships and prime locations make it a formidable competitor.
• Roche Holding AG (ROG.SW): Roche Holding AG is primarily a healthcare company, but its significant real estate holdings for offices and research facilities create indirect competition for prime Swiss properties. Roche's financial strength and long-term investment capacity overshadow Cham Swiss Properties AG's resources. However, Roche's focus on healthcare-related properties limits direct overlap with Cham's residential and commercial developments.
• Julius Baer Group Ltd. (BAER.SW): Julius Baer Group Ltd. is a private banking firm with substantial real estate investments in Switzerland. Its financial expertise and high-net-worth client base provide advantages in premium property markets. While not a direct developer like Cham Swiss Properties AG, Julius Baer's property investments compete for similar high-value assets, particularly in Zurich and Geneva. Its deep pockets and client relationships pose a competitive challenge.