Stock Analysis & Valuation PIERER Mobility AG (PMAG.SW)

• Previous Close: CHF57.60
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	n/a	n/a
Intrinsic value (DCF)		n/a
Graham-Dodd Method	4482.40	7682
Graham Formula	12495.50	21594

Strategic Investment Analysis

Company Overview

PIERER Mobility AG (PMAG.SW) is a leading European motorcycle and e-bicycle producer, headquartered in Wels, Austria, and listed on the Swiss Exchange (SIX). The company operates under well-known brands such as KTM, Husqvarna Motorcycles, and GASGAS, specializing in off-road and street motorcycles, mini-motorcycles, and e-bikes. Additionally, PIERER Mobility manufactures high-performance chassis components under the WP brand, catering to both motorcycles and vehicles. With a diversified portfolio that includes digital strategy and business solutions, the company serves markets across Europe, North America, and Mexico. Formerly known as KTM Industries AG, PIERER Mobility AG rebranded in 2019 to reflect its broader mobility focus. As a subsidiary of PTW Holding AG, the company leverages strong brand equity and innovation to maintain its competitive edge in the recreational vehicle sector. With a market capitalization of CHF 1.95 billion (2022), PIERER Mobility is a key player in the consumer cyclical industry, capitalizing on the growing demand for premium motorcycles and e-bikes.

Investment Summary

PIERER Mobility AG presents an attractive investment opportunity due to its strong brand portfolio (KTM, Husqvarna, GASGAS) and diversified revenue streams across motorcycles, e-bikes, and chassis components. The company reported CHF 2.44 billion in revenue and CHF 169.9 million in net income for FY 2022, with a diluted EPS of CHF 5.03. Its operating cash flow of CHF 280.3 million indicates healthy liquidity, though capital expenditures (CHF -246.5 million) suggest ongoing investments in growth. A dividend yield of ~1.97 CHF per share adds shareholder appeal. However, risks include exposure to cyclical consumer demand, supply chain disruptions, and competition from larger automotive players expanding into electric mobility. The company’s beta of 1.16 suggests moderate volatility relative to the market.

Competitive Analysis

PIERER Mobility AG holds a strong position in the premium motorcycle and e-bike segments, competing with both traditional motorcycle manufacturers and emerging electric vehicle players. Its key competitive advantages include brand strength (KTM and Husqvarna are globally recognized in off-road and performance motorcycles), vertical integration through WP chassis components, and a growing e-bike division. The company’s focus on high-performance niches allows it to command premium pricing, though it lacks the scale of mass-market competitors like Honda or Yamaha. In e-bikes, PIERER competes with specialized manufacturers and traditional bicycle brands transitioning to electric mobility. Its R&D investments in lightweight chassis technology and electric drivetrains provide differentiation, but reliance on the European and North American markets exposes it to regional economic fluctuations. The company’s partnership with Bajaj Auto in India helps mitigate some geographic concentration risks. However, competition from electric motorcycle startups (e.g., Zero Motorcycles) and legacy automakers entering the recreational EV space could pressure margins long-term.

Major Competitors

• Honda Motor Co., Ltd. (HMC): Honda is a global leader in motorcycles with massive scale (over 20 million units sold annually) and a broad product range from commuter bikes to premium models. Its strengths include strong distribution in Asia and economies of scale, but it lacks PIERER’s focus on high-performance off-road segments. Honda’s R&D resources in electric mobility pose a long-term threat.
• Yamaha Motor Co., Ltd. (YAMHF): Yamaha competes directly in off-road and street motorcycles, with strong brand loyalty and racing heritage. Its weakness is slower e-bike expansion compared to PIERER’s Husqvarna and GASGAS lines. Yamaha’s marine and power equipment divisions provide diversification but dilute focus on premium motorcycles.
• Harley-Davidson, Inc. (HOG): Harley-Davidson dominates the heavyweight cruiser segment but struggles in off-road and electric markets (LiveWire spin-off). PIERER’s agility in off-road and performance categories gives it an edge, though Harley’s iconic brand and U.S. dealer network remain formidable.
• Polaris Inc. (PII): Polaris (owner of Indian Motorcycle) competes in premium motorcycles and off-road vehicles. Its strength lies in North American market penetration, but it trails PIERER in European presence and e-bike innovation. Polaris’s broader powersports portfolio (snowmobiles, ATVs) provides stability.
• Zero Motorcycles (ZERO): A private electric motorcycle specialist, Zero threatens PIERER’s electrification efforts with advanced battery technology. However, PIERER’s established brand ecosystem and hybrid (combustion + electric) strategy mitigate immediate disruption. Zero’s lack of scale and distribution outside the U.S. are weaknesses.