| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 22.76 | 543 |
| Intrinsic value (DCF) | 1.78 | -50 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
OC Oerlikon Corporation AG (OERL.SW) is a Swiss industrial leader specializing in advanced materials, surface technologies, and polymer processing solutions. With a heritage dating back to 1907, Oerlikon operates through two core segments: Surface Solutions, which provides high-performance coatings and materials for industries like aerospace, automotive, and energy, and Polymer Processing Solutions, offering cutting-edge systems for synthetic fiber production. The company serves a global clientele, leveraging its expertise in friction reduction, corrosion resistance, and additive manufacturing. Headquartered in Pfäffikon, Switzerland, Oerlikon is a key player in the industrial machinery sector, driving innovation in sustainable manufacturing and advanced material science. Its diversified portfolio and strong R&D capabilities position it as a critical enabler for industries demanding precision engineering and durability.
OC Oerlikon presents a mixed investment profile. Its strengths include a diversified industrial footprint, strong cash flow generation (CHF 272 million in operating cash flow for FY 2023), and exposure to high-growth sectors like additive manufacturing and renewable energy. However, the company's high leverage (CHF 1.51 billion total debt) and modest net income (CHF 66 million) raise concerns about financial flexibility. The beta of 1.166 suggests higher volatility than the market, which may deter risk-averse investors. Dividend yield is modest (CHF 0.20 per share), but the company's innovation pipeline in surface technologies and polymer processing could drive long-term growth. Investors should weigh its industrial diversification against cyclical exposure to sectors like automotive and aerospace.
OC Oerlikon competes in niche industrial markets where technological expertise and material science innovation are critical. Its Surface Solutions segment holds an edge in advanced coatings for extreme environments (e.g., aerospace turbines), while Polymer Processing Solutions benefits from proprietary fiber production technologies under brands like Oerlikon Barmag. The company's competitive moat lies in its integrated service offerings—combining equipment, materials, and lifecycle support—which fosters long-term client relationships. However, it faces pricing pressure from Asian manufacturers in polymer systems and competes with larger conglomerates in surface engineering. Oerlikon's Swiss precision engineering reputation aids in premium positioning, but its smaller scale (CHF 2.37 billion revenue) limits R&D firepower compared to global giants. Strategic focus on sustainability (e.g., coatings for wind turbines) differentiates it, but execution risks persist in scaling additive manufacturing solutions.