| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 32.20 | -17 |
| Graham Formula | 112.70 | 191 |
Energiedienst Holding AG (EDHN.SW) is a Swiss renewable energy utility company specializing in the production, distribution, and sale of electricity generated from hydro, gas, solar, and wind sources. Headquartered in Laufenburg, Switzerland, the company serves approximately 295,000 network customers, including commercial clients, housing associations, municipalities, and district heating networks. As a subsidiary of EnBW Energie Baden-Württemberg AG, Energiedienst benefits from strong backing while maintaining a focus on sustainable energy solutions. The company operates in the Renewable Utilities sector, aligning with Switzerland’s commitment to clean energy and carbon neutrality. With a diversified energy portfolio and a strong regional presence, Energiedienst plays a crucial role in Switzerland’s transition to renewable energy. The company’s integrated approach—combining generation, distribution, and heating solutions—positions it as a key player in the Swiss utility market.
Energiedienst Holding AG presents a stable investment opportunity within the renewable utilities sector, supported by its diversified energy mix and strong regional market presence. The company’s low beta (0.316) suggests lower volatility compared to the broader market, making it an attractive option for risk-averse investors. With CHF 1.96 billion in revenue and CHF 107.1 million in net income for FY 2023, the company demonstrates solid profitability. However, its operating cash flow (CHF 80.1 million) is relatively modest compared to capital expenditures (CHF -103.4 million), indicating ongoing investment needs. The dividend yield (~2.8% based on a CHF 0.90 per share payout) is competitive but not exceptional. Risks include regulatory pressures in the Swiss energy market and dependence on hydroelectric generation, which can be affected by weather conditions. Overall, Energiedienst is a well-positioned, low-risk utility with steady growth potential in renewable energy.
Energiedienst Holding AG’s competitive advantage lies in its diversified renewable energy portfolio, strong regional integration, and backing by EnBW, a major German utility. The company’s reliance on hydroelectric power (a stable and low-cost renewable source) provides a cost advantage over peers dependent on fossil fuels or intermittent renewables like solar and wind. Its focus on district heating and municipal services further strengthens its customer retention and recurring revenue streams. However, Energiedienst operates in a highly regulated market with limited geographic diversification, exposing it to Swiss energy policies and regional demand fluctuations. Competitors with larger international footprints may benefit from economies of scale, while pure-play renewable firms might have more aggressive growth strategies. Energiedienst’s mid-sized market cap (CHF 1.28 billion) positions it as a niche player rather than a dominant force, but its integration across generation, distribution, and heating solutions provides resilience against market volatility. The company’s challenge will be balancing capital-intensive renewable investments with shareholder returns, especially as Switzerland accelerates its energy transition.