Stock Analysis & Valuation Vaudoise Assurances Holding S.A. (VAHN.SW)

• Previous Close: CHF735.00
• Sector Valuation Confidence Level: High

Valuation method	Value, CHF	Upside, %
Artificial intelligence (AI)	291.73	-60
Intrinsic value (DCF)	589.22	-20
Graham-Dodd Method	831.89	13
Graham Formula	1053.95	43

Strategic Investment Analysis

Company Overview

Vaudoise Assurances Holding SA is a leading Swiss insurance provider specializing in diversified insurance products for individuals and small to medium-sized enterprises (SMEs). Founded in 1895 and headquartered in Lausanne, Switzerland, the company offers a comprehensive range of insurance solutions, including vehicle, household, public liability, foresight, mortgage, and business insurance. Operating under the cooperative model as a subsidiary of Mutuelle Vaudoise, Vaudoise Assurances serves its customers through an extensive network of agencies across Switzerland. With a market capitalization of CHF 1.77 billion, the company is a key player in the Swiss insurance sector, known for its stability and customer-centric approach. Its strong regional presence and diversified product portfolio make it a reliable choice for insurance seekers in Switzerland.

Investment Summary

Vaudoise Assurances Holding SA presents a stable investment opportunity within the Swiss insurance market, supported by its long-standing history and cooperative structure. The company's diversified product offerings and strong regional presence provide resilience against market volatility, as evidenced by its low beta of 0.389. Financial metrics, including a net income of CHF 147 million and diluted EPS of CHF 50.78, reflect steady profitability. However, the company operates in a highly competitive and regulated market, which may limit growth potential. The attractive dividend yield (CHF 24 per share) could appeal to income-focused investors, but investors should weigh this against modest revenue growth prospects and the challenges of the Swiss insurance landscape.

Competitive Analysis

Vaudoise Assurances Holding SA competes in the Swiss insurance market with a focus on regional strength and cooperative values. Its competitive advantage lies in its deep-rooted presence in Switzerland, particularly in the French-speaking regions, where it benefits from strong brand recognition and customer loyalty. The company's cooperative structure allows it to prioritize long-term stability over short-term profit maximization, differentiating it from publicly traded competitors. However, its regional focus may limit scalability compared to larger national and international insurers. Vaudoise's product diversification across personal and SME insurance segments provides some resilience, but it lacks the global reach and digital innovation capabilities of larger rivals. The company's conservative financial management, reflected in its low debt levels (CHF 157 million) and solid cash position (CHF 271 million), supports its stability but may also indicate slower adaptation to industry disruptions like insurtech advancements.

Major Competitors

• Zurich Insurance Group AG (ZURN.SW): Zurich Insurance Group is a global insurance giant with a strong presence in Switzerland and internationally. Its scale and diversified operations across life, property & casualty, and reinsurance give it a significant advantage over regional players like Vaudoise. However, Zurich's larger size may lead to less personalized customer service compared to Vaudoise's regional approach. Zurich's global footprint provides revenue diversification but also exposes it to more geopolitical risks.
• Credit Suisse Group AG (CSGN.SW): While primarily a bank, Credit Suisse offers insurance products that compete with Vaudoise in certain segments. Its strong brand and financial resources pose competition, but recent instability in its core banking business has weakened its competitive position. Vaudoise's insurance specialization and regional focus give it an edge in service quality for insurance customers.
• Julius Baer Gruppe AG (BAER.SW): Julius Baer is primarily a wealth manager but offers some insurance products that compete with Vaudoise's offerings. Its high-net-worth client focus differentiates it from Vaudoise's broader customer base. While Julius Baer has stronger international private banking capabilities, Vaudoise maintains an advantage in general insurance services for the Swiss middle market.
• Swiss Re AG (SREN.SW): Swiss Re operates primarily in reinsurance, putting it in a different market segment than Vaudoise's direct insurance business. However, as a major global reinsurer, Swiss Re's performance can influence the broader Swiss insurance market. Vaudoise's direct customer relationships and regional specialization provide insulation from some of the volatility Swiss Re faces in global reinsurance markets.