| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 31.21 | 510 |
| Graham Formula | 60.79 | 1087 |
Tornos Holding AG is a Swiss-based industrial machinery company specializing in the development, manufacture, and servicing of precision machining solutions. Founded in 1914 and headquartered in Moutier, Switzerland, Tornos is renowned for its Swiss-type automatic lathes, multispindle machines, and milling products, catering to high-precision industries such as automotive, micromechanics, electronics, and medical/dental sectors. The company also offers automation solutions, bar feeders, and machine communication software, complemented by a suite of services including preventive maintenance, machine upgrades, and training. Tornos operates globally, serving clients who demand ultra-precision machining for complex components. With a strong heritage in Swiss engineering, the company maintains a competitive edge in the industrial machinery sector, leveraging innovation and technical expertise to meet evolving industry demands.
Tornos Holding AG presents a niche investment opportunity in the precision machining sector, benefiting from its strong reputation in high-precision industrial applications. The company’s diversified revenue streams—spanning machine sales, spare parts, and services—provide stability, though its modest net income (CHF 11.85M in the latest period) and thin operating cash flow (CHF 7.72M) suggest limited margin flexibility. While its beta of 1.011 indicates market-aligned volatility, the dividend yield (CHF 0.30 per share) is modest. Key risks include exposure to cyclical industrial demand and competition from larger machinery manufacturers. Investors should weigh its specialized market position against capital expenditure pressures (CHF -17.93M) and debt levels (CHF 60.97M).
Tornos Holding AG competes in the precision machining market with a focus on Swiss-type lathes and multispindle machines, differentiating itself through high-precision engineering and a strong service network. Its competitive advantage lies in its Swiss heritage, which commands a premium in precision manufacturing, particularly in medical and automotive applications. However, the company faces stiff competition from global industrial machinery giants that benefit from economies of scale and broader product portfolios. Tornos’s smaller market cap (CHF 101M) limits its R&D and expansion capabilities compared to larger peers. Its automation and software offerings provide incremental value, but reliance on Europe-centric operations may constrain growth in emerging markets. The company’s ability to maintain margins in a capital-intensive industry will depend on its pricing power and aftermarket services, where it holds an edge in customer loyalty.