| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 31.40 | -39 |
| Graham Formula | 26.30 | -49 |
HELLA GmbH & Co. KGaA (HLE.SW) is a leading global automotive supplier specializing in lighting systems and electronic components. Headquartered in Lippstadt, Germany, HELLA operates across three key segments: Automotive, Aftermarket, and Special Applications. The Automotive segment provides advanced lighting solutions, including headlamps and rear combination lamps, alongside electronic components such as driver assistance systems and energy management solutions. The Aftermarket segment delivers high-quality replacement parts and workshop solutions, catering to wholesalers and repair shops. The Special Applications segment focuses on lighting and electronic products for specialized vehicles like agricultural machinery and marine vessels. As a subsidiary of Faurecia S.E., HELLA benefits from strong industry integration and technological innovation. With a heritage dating back to 1899, HELLA is a trusted name in the automotive sector, serving OEMs and aftermarket customers worldwide. The company's commitment to R&D and sustainability positions it as a key player in the evolving automotive landscape, particularly in electric and autonomous vehicle technologies.
HELLA GmbH & Co. KGaA presents a mixed investment profile. On the positive side, the company operates in the resilient automotive parts sector, with diversified revenue streams across OEM and aftermarket segments. Its strong R&D focus and technological expertise in lighting and electronics align with industry trends toward electrification and autonomous driving. However, the company faces risks from cyclical automotive demand, supply chain disruptions, and competitive pressures. Financial metrics show moderate profitability (net income of €263.9M on €7.95B revenue) and reasonable liquidity (€1.09B cash). The beta of 1.12 indicates higher volatility than the market. Investors should weigh HELLA's technological strengths against sector headwinds and integration risks as part of Faurecia (now Forvia).
HELLA competes in the global automotive supplier market with a focus on lighting and electronics - areas requiring significant technical expertise and capital investment. The company's competitive advantage stems from: 1) Technological leadership in advanced lighting systems, particularly in adaptive and energy-efficient solutions; 2) Strong relationships with European automakers through its German heritage and Faurecia/Forvia connections; 3) Diversified business model balancing OEM supply with higher-margin aftermarket sales. However, HELLA faces intense competition from larger, more diversified suppliers that can offer complete systems rather than components. Its mid-size scale (€8B revenue) makes it vulnerable to pricing pressure from both OEM customers and larger competitors. The company's specialization in lighting could become a vulnerability as vehicle architectures shift toward centralized electronics platforms. HELLA's aftermarket presence provides stability but depends on brand recognition in competitive replacement parts markets. The company's R&D focus on ADAS and electrification components is strategically sound but requires sustained investment to maintain pace with industry leaders.