| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 10300.23 | 7053 |
| Intrinsic value (DCF) | 60.00 | -58 |
| Graham-Dodd Method | 187.96 | 31 |
| Graham Formula | 1006.55 | 599 |
Zwahlen & Mayr SA is a Swiss-based company specializing in the production of welded stainless-steel tubes and steel construction services. Founded in 1881 and headquartered in Aigle, Switzerland, the company operates under the subsidiary of Cimolai SpA. Zwahlen & Mayr serves a diverse range of industries, including conventional and nuclear power stations, chemical and petrochemical plants, petroleum refineries, pulp and paper, air treatment, dairy, automotive, aerospace, mechatronics, and more. The company's ZM Tubes brand is recognized for high-quality welded and redrawn tubes, catering to demanding applications in pharma, food, and chemical industries. Additionally, Zwahlen & Mayr is involved in steel construction projects such as bridges, buildings, and specialized infrastructure. With a strong legacy in steel manufacturing, the company plays a crucial role in Switzerland's industrial supply chain while maintaining an international presence.
Zwahlen & Mayr SA presents a niche investment opportunity in the specialized stainless-steel tube and steel construction market. However, the company's financials indicate challenges, with a negative net income of CHF -4.65 million and diluted EPS of -66.18 for the latest fiscal period. The company operates in a capital-intensive industry, reflected in its capital expenditures of CHF -2.8 million. While its beta of 0.045 suggests low volatility relative to the market, the lack of dividend payouts and modest market capitalization (CHF 10.32 million) may deter income-focused investors. The company's competitive positioning in high-demand industrial applications could offer long-term growth potential, but investors should weigh its financial performance against sector peers.
Zwahlen & Mayr SA operates in a highly specialized segment of the steel industry, focusing on welded stainless-steel tubes and niche steel construction projects. Its competitive advantage lies in its long-standing expertise (since 1881) and its ability to serve demanding industries such as nuclear power, petrochemicals, and aerospace. The company's ZM Tubes brand is a key differentiator, offering precision-engineered solutions for critical applications. However, its small scale (CHF 40.69 million revenue) compared to global steel giants limits its pricing power and R&D capabilities. The company's subsidiary status under Cimolai SpA provides some financial stability but may also constrain independent strategic decisions. Zwahlen & Mayr's Swiss base ensures high manufacturing standards but could result in higher production costs versus competitors in lower-cost regions. The company's negative profitability raises concerns about its ability to compete effectively against larger, more diversified steel producers. Its focus on high-value applications provides some insulation from commoditized steel markets, but reliance on cyclical industries like energy and construction remains a risk.