Stock Analysis & Valuation CPH Chemie + Papier Holding AG (CPHN.SW)

• Previous Close: CHF67.40
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	140.61	109
Intrinsic value (DCF)	28.02	-58
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

CPH Chemie + Papier Holding AG (CPHN.SW) is a Swiss industrial conglomerate specializing in chemicals, paper, and pharmaceutical packaging films. Founded in 1818 and headquartered in Root, Switzerland, the company operates through three key divisions: Chemistry (Zeochem brand), Paper (Perlen Papier brand), and Packaging (Perlen Packaging brand). Its Chemistry division produces molecular sieves, chromatography gels, and deuterated compounds, while the Paper division manufactures newsprint and magazine paper from recycled materials. The Packaging division supplies high-barrier films for pharmaceutical applications. CPHN serves markets across Switzerland, Europe, the Americas, and Asia, leveraging its long-standing expertise in niche industrial segments. As a player in the Basic Materials sector, CPHN combines traditional manufacturing with specialized chemical solutions, positioning itself as a resilient mid-cap firm with diversified revenue streams and a focus on sustainability through paper recycling.

Investment Summary

CPHN Chemie + Papier Holding AG presents a mixed investment profile. With a market cap of ~CHF 410M and a low beta (0.174), the company exhibits defensive characteristics, supported by stable revenue (CHF 447.9M in FY 2023) and a modest dividend (CHF 2/share). However, net income (CHF 4.6M) and diluted EPS (CHF 0.78) reflect thin margins, likely pressured by input costs in its Paper division and competition in packaging films. Positive operating cash flow (CHF 45.7M) and manageable debt (CHF 18.9M) suggest financial stability, but capital expenditures (CHF 23M) indicate ongoing reinvestment needs. Investors may value its niche chemical products and pharmaceutical packaging exposure, but reliance on cyclical paper markets and limited scale versus global peers temper growth expectations. Suitable for conservative portfolios seeking Swiss industrial exposure with moderate yield.

Competitive Analysis

CPHN’s competitive advantage lies in its vertical integration and specialization within niche markets. The Zeochem chemistry division benefits from technical expertise in molecular sieves and deuterated compounds, serving specialized industrial and laboratory applications with limited competition. Perlen Papier’s focus on recycled newsprint capitalizes on regional sustainability trends, though it faces secular declines in paper demand. The Perlen Packaging division competes in the pharmaceutical films segment, where high-barrier PVC/PVdC films require stringent quality certifications, creating moderate entry barriers. However, CPHN’s small scale compared to multinational chemical and packaging giants limits its pricing power and R&D resources. Its Swiss base ensures high operational standards but may increase cost disadvantages versus Asian or Eastern European rivals. The company’s multi-divisional structure provides diversification but risks underinvestment in high-growth segments. Competitively, CPHN thrives in specialized B2B niches but lacks the scale to dominate broader markets, relying instead on customer relationships and regulatory-compliant manufacturing.

Major Competitors

• Symrise AG (SY1.DE): Symrise (SY1.DE) is a global leader in flavors, fragrances, and functional chemicals, overlapping with CPHN’s chemistry segment. Its strengths include vast R&D resources and a broader product portfolio, but it lacks CPHN’s focus on molecular sieves. Symrise’s scale advantages come with higher exposure to consumer markets.
• UPM-Kymmene Oyj (UPM.HE): UPM (UPM.HE) is a paper and biomaterials giant with strong sustainability credentials, directly competing with CPHN’s Perlen Papier division. UPM’s global reach and pulp integration give it cost advantages, but CPHN’s regional recycling focus may appeal to local clients. UPM’s larger scale dwarfs CPHN’s paper operations.
• Amcor plc (AMCR): Amcor (AMCR) is a global leader in pharmaceutical and flexible packaging, competing with CPHN’s Perlen Packaging. Amcor’s strengths include massive production capacity and multinational clients, but CPHN’s Swiss-made films may hold niche appeal for high-quality requirements. Amcor’s scale makes it a dominant force in the sector.
• Clariant AG (CLN.SW): Clariant (CLN.SW) is a Swiss specialty chemicals firm with segments overlapping CPHN’s Zeochem unit. Clariant’s broader catalyst and additive portfolio gives it diversification, but CPHN’s focus on chromatography gels offers deeper expertise in select applications. Clariant’s larger size provides R&D advantages.