Stock Analysis & Valuation Landis+Gyr Group AG (LAND.SW)

• Previous Close: CHF54.30
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	65.10	20
Intrinsic value (DCF)	20.57	-62
Graham-Dodd Method		n/a
Graham Formula	8.00	-85

Strategic Investment Analysis

Company Overview

Landis+Gyr Group AG (SIX: LAND) is a global leader in integrated energy management solutions, serving utilities across the Americas, Europe, the Middle East, Africa, and Asia Pacific. Founded in 1896 and headquartered in Cham, Switzerland, the company specializes in smart metering, grid optimization, and energy data management. Its product portfolio includes smart electricity, gas, heat, and water meters, alongside advanced metering infrastructure (AMI) software, EV charging solutions, and cybersecurity services. Landis+Gyr plays a pivotal role in the global transition to smart grids, enabling utilities to enhance efficiency, reduce energy waste, and integrate renewable energy sources. With a market cap of CHF 1.48 billion, the company is a key player in the Electrical Equipment & Parts sector, driving innovation in energy management for a sustainable future.

Investment Summary

Landis+Gyr presents a compelling investment case due to its strong position in the growing smart energy management market. The company's diversified product portfolio, including smart meters and grid solutions, aligns with global trends toward energy efficiency and decarbonization. With revenue of CHF 1.96 billion and net income of CHF 110 million in FY 2024, Landis+Gyr demonstrates stable financial performance. However, investors should consider risks such as regulatory changes in utility markets, competition from low-cost manufacturers, and potential supply chain disruptions. The company's beta of 1.097 suggests moderate volatility relative to the market. A dividend yield of ~1.5% (CHF 2.25 per share) adds income appeal, while its strong cash position (CHF 127.8 million) provides financial flexibility.

Competitive Analysis

Landis+Gyr holds a competitive advantage through its long-standing reputation, technological expertise, and comprehensive suite of energy management solutions. The company's deep relationships with utilities worldwide provide a stable revenue base and barriers to entry for smaller competitors. Its focus on integrated solutions (hardware + software) differentiates it from pure-play meter manufacturers. However, Landis+Gyr faces intensifying competition in the smart grid space, particularly from larger industrial conglomerates with greater R&D budgets. The company's Swiss base results in higher cost structures compared to Asian manufacturers, though this is partially offset by premium product positioning. Landis+Gyr's EV charging and cybersecurity offerings provide growth avenues but also expose it to competition from specialized tech firms. The company's ability to maintain margins while investing in next-gen grid technologies will be critical for sustaining its competitive position.

Major Competitors

• Itron, Inc. (ITRI): Itron is a major competitor with strong presence in North America, offering similar smart metering and grid solutions. Itron's strength lies in its large installed base and software capabilities, though it has faced profitability challenges. Compared to Landis+Gyr, Itron has greater exposure to the competitive North American market but less diversified geographically.
• EDP - Energias de Portugal, S.A. (EDP.LS): While primarily a utility, EDP competes through its grid management solutions in European markets. Its strength is vertical integration as both provider and user of smart grid tech. However, it lacks Landis+Gyr's global reach in metering hardware and third-party solutions.
• Holcim Ltd (HOLN.SW): Holcim is not a direct competitor but represents competition for investment capital within the Swiss industrial sector. Its construction materials business offers more stable cash flows but less growth potential than Landis+Gyr's smart energy solutions.
• Siemens AG (SIEGn.DE): Siemens' Energy division competes in smart grid solutions with greater scale and R&D resources. However, as a conglomerate, it lacks Landis+Gyr's focus on metering. Siemens often competes for large infrastructure projects where its broader portfolio is an advantage.
• Honeywell International Inc. (HON): Honeywell's building technologies compete in energy management, particularly for commercial/industrial applications. Its strength is in integrated control systems, though it has less focus on utility-scale metering compared to Landis+Gyr. Honeywell's larger balance sheet allows for more aggressive M&A.