| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 129.31 | 325 |
| Intrinsic value (DCF) | 14.48 | -52 |
| Graham-Dodd Method | 31.21 | 3 |
| Graham Formula | 60.79 | 100 |
Starrag Group Holding AG (STGN.SW) is a Swiss-based leader in high-precision machine tools, serving industries such as aerospace, energy, transportation, and industrial manufacturing. Founded in 1885 and headquartered in Rorschacherberg, Switzerland, the company specializes in advanced milling, turning, boring, and grinding solutions under renowned brands like Berthiez, Bumotec, Dörries, and Heckert. Starrag’s product portfolio includes vertical and horizontal machining centers, blade and blisk machining centers, and automation solutions, complemented by integrated technology services and software. The company operates globally, with a strong presence in Europe and India, catering to high-value manufacturing sectors requiring ultra-precision engineering. As a key player in the industrial machinery sector, Starrag Group leverages Swiss engineering excellence to deliver mission-critical solutions for complex manufacturing processes, positioning itself as a trusted partner for industries demanding reliability and innovation.
Starrag Group Holding AG presents a niche investment opportunity in the high-precision machine tools sector, benefiting from its strong brand portfolio and specialized industrial applications. With a market cap of CHF 194 million and a beta of 0.37, the stock exhibits lower volatility relative to the broader market. However, its modest net income (CHF 11.85 million) and thin operating cash flow (CHF 7.72 million) suggest limited profitability, while capital expenditures (CHF -17.93 million) indicate ongoing reinvestment needs. The company’s exposure to cyclical industries like aerospace and energy could pose risks during economic downturns. A dividend yield of ~1.8% (CHF 1 per share) offers modest income appeal, but investors should weigh growth potential against sector-specific risks.
Starrag Group competes in the high-end precision machinery market, where technological expertise and brand reputation are critical differentiators. Its competitive advantage lies in its Swiss engineering heritage, diversified brand portfolio, and specialization in complex machining for aerospace and energy applications. The company’s integrated automation and software solutions enhance its value proposition, though it faces stiff competition from larger global players with broader manufacturing footprints. While Starrag’s focus on niche, high-margin segments provides pricing power, its relatively small scale limits economies of scale compared to multinational rivals. The company’s reliance on cyclical industries also exposes it to demand fluctuations, requiring agile operational adjustments. Strategic partnerships and after-sales services (maintenance, engineering) help retain customer loyalty, but innovation and automation investments remain essential to maintaining competitiveness against digitally advanced peers.