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Stock Analysis & ValuationHIAG Immobilien Holding AG (HIAG.SW)

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CHF124.40
Sector Valuation Confidence Level
Low
Valuation methodValue, CHFUpside, %
Artificial intelligence (AI)78.68-37
Intrinsic value (DCF)58.35-53
Graham-Dodd Method102.09-18
Graham Formula63.34-49

Strategic Investment Analysis

Company Overview

HIAG Immobilien Holding AG is a leading Swiss real estate company specializing in site and project development, property management, and capital recycling strategies. Founded in 1876 and headquartered in Basel, HIAG operates across three key segments: Yielding Portfolio, Development Portfolio, and Transaction. The company focuses on managing and maintaining properties while driving value through strategic development projects and interim use solutions. Additionally, HIAG offers metal recycling services, adding a unique dimension to its diversified real estate operations. With a strong presence in Switzerland's dynamic real estate market, HIAG leverages its long-standing expertise to optimize asset performance and deliver sustainable returns. The company's commitment to innovation and efficient capital deployment makes it a notable player in the Swiss real estate sector, appealing to investors seeking stable income and growth opportunities in a resilient market.

Investment Summary

HIAG Immobilien Holding AG presents a compelling investment case with its diversified real estate portfolio and strategic focus on development and capital recycling. The company's solid financial performance, evidenced by a net income of CHF 75.2 million and diluted EPS of CHF 7.44 in the latest fiscal year, underscores its profitability. Additionally, HIAG's strong operating cash flow of CHF 94.3 million and a dividend yield supported by a CHF 3.3 per share payout enhance its attractiveness for income-focused investors. However, the high total debt of CHF 725 million and a beta of 0.375 indicate moderate financial leverage and lower volatility compared to the market, which may appeal to risk-averse investors. The Swiss real estate market's stability further bolsters HIAG's investment appeal, though investors should monitor debt levels and development project execution risks.

Competitive Analysis

HIAG Immobilien Holding AG competes in Switzerland's real estate sector with a unique blend of yielding assets, development projects, and transactional expertise. Its competitive advantage lies in its integrated approach to property management and development, allowing it to unlock value across the asset lifecycle. The company's long-standing presence since 1876 provides deep market knowledge and a robust network, enhancing its ability to identify and capitalize on high-potential projects. HIAG's capital recycling strategy further differentiates it, enabling efficient resource allocation and risk mitigation. However, the company faces competition from larger Swiss real estate firms with greater scale and international reach. HIAG's focus on Switzerland limits geographic diversification but ensures concentrated expertise in a stable market. The inclusion of metal recycling services adds a niche dimension, though it remains a minor segment. Overall, HIAG's strategic positioning and operational efficiency make it a strong regional player, but it must continue to innovate and manage debt levels to sustain competitiveness against larger peers.

Major Competitors

  • Swiss Prime Site AG (SREN.SW): Swiss Prime Site AG is a major competitor with a broader portfolio including commercial, residential, and retail properties. Its larger scale and diversified assets provide stability, but HIAG's focused development strategy offers higher growth potential in niche segments. Swiss Prime Site's strong brand and liquidity are advantages, though HIAG's capital recycling approach may yield better returns in targeted markets.
  • Swiss Properties AG (SPSN.SW): Swiss Properties AG focuses on high-quality residential and commercial properties, competing directly with HIAG's yielding portfolio. While Swiss Properties has a reputation for premium assets, HIAG's development projects provide additional growth avenues. HIAG's metal recycling segment also offers a unique edge absent in Swiss Properties' operations.
  • Roche Holding AG (ROG.SW): Roche Holding AG is not a direct competitor but represents the broader Swiss market context. HIAG's real estate focus contrasts with Roche's healthcare dominance, highlighting HIAG's sector-specific risks and opportunities. Investors comparing asset classes may consider Roche's global reach versus HIAG's localized real estate expertise.
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