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Stock Analysis & ValuationBergbahnen Engelberg-Trübsee-Titlis AG (TIBN.SW)

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CHF61.00
Sector Valuation Confidence Level
Moderate
Valuation methodValue, CHFUpside, %
Artificial intelligence (AI)103.1769
Intrinsic value (DCF)32.47-47
Graham-Dodd Method70.7616
Graham Formula49.24-19

Strategic Investment Analysis

Company Overview

Bergbahnen Engelberg-Trübsee-Titlis AG (TIBN.SW) is a leading Swiss cableway and tourism company, operating in the picturesque Engelberg region. Founded in 1913, the company manages a diverse portfolio of winter and summer activities, including ski lifts, mountain excursions, hotels, restaurants, and retail shops. As a key player in Switzerland's leisure sector, Bergbahnen Engelberg-Trübsee-Titlis AG capitalizes on the country's robust tourism industry, attracting both domestic and international visitors. The company's integrated business model—combining transportation, hospitality, and retail—ensures multiple revenue streams while enhancing the visitor experience. With a strong presence in the Swiss Alps, the company benefits from Engelberg's reputation as a premier destination for skiing, hiking, and adventure tourism. Its strategic investments in infrastructure and sustainability further solidify its market position in the competitive European leisure market.

Investment Summary

Bergbahnen Engelberg-Trübsee-Titlis AG presents a stable investment opportunity within the leisure sector, supported by Switzerland's resilient tourism industry. The company's diversified revenue streams—spanning cableway operations, hospitality, and retail—provide financial stability. With a market cap of CHF 140.4M, diluted EPS of CHF 4.48, and a dividend yield of ~1.8%, the stock offers moderate growth potential. However, its heavy reliance on seasonal tourism and high capital expenditures (CHF -41.4M in FY 2024) pose risks, particularly in adverse weather conditions or economic downturns. The low beta (0.544) suggests lower volatility compared to the broader market, making it a defensive play in the consumer cyclical sector. Investors should weigh its steady cash flow (CHF 20.6M operating cash flow) against its debt levels (CHF 28M total debt).

Competitive Analysis

Bergbahnen Engelberg-Trübsee-Titlis AG holds a strong regional competitive advantage due to its prime location in Engelberg, a well-known Swiss alpine destination. Unlike larger international ski resort operators, the company benefits from a loyal customer base and a vertically integrated business model that includes transportation, lodging, and retail. However, its regional focus limits scalability compared to global competitors. The company's investments in modern cableway infrastructure enhance efficiency and visitor capacity, but it faces competition from other Swiss ski resorts such as Zermatt and St. Moritz, which have stronger international branding. Additionally, climate change poses a long-term risk to winter sports tourism, potentially affecting demand. The company's ability to diversify into year-round activities (e.g., summer hiking, events) mitigates some seasonality risks. Its financials indicate solid profitability (CHF 15M net income), but competitors with larger footprints may have better economies of scale. Overall, Bergbahnen Engelberg-Trübsee-Titlis AG is well-positioned in the Swiss market but lacks the global reach of major ski resort operators.

Major Competitors

  • Liesegang AG (LISN.SW): Liesegang AG operates in the Swiss leisure and real estate sector, with a focus on mountain railways and tourism infrastructure. While smaller than Bergbahnen Engelberg-Trübsee-Titlis, it competes in regional tourism markets. Its strengths include niche operations in lesser-known resorts, but it lacks the scale and brand recognition of Engelberg-Trübsee-Titlis.
  • Zermatt Bergbahnen AG (ZERM.SW): Zermatt Bergbahnen AG operates in the internationally renowned Zermatt ski region, giving it a competitive edge in attracting high-end tourists. Its global brand recognition surpasses Engelberg-Trübsee-Titlis, but as a privately held company, it lacks public financial transparency. Its infrastructure is more extensive, but it faces higher operational costs.
  • Vail Resorts Inc. (VWS.AS): Vail Resorts is a global leader in mountain resort operations, with properties across North America and Australia. Its scale, diversified portfolio, and strong brand give it a significant advantage over regional players like Bergbahnen Engelberg-Trübsee-Titlis. However, Vail's focus on the North American market limits direct competition in Switzerland.
  • Compagnie des Alpes (CMP.VI): Compagnie des Alpes operates ski resorts across France and internationally, competing indirectly with Swiss operators. Its strengths include a vast network of resorts and strong winter sports branding. However, it faces regulatory and climatic challenges in its core French market, unlike the more stable Swiss tourism environment.
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