Risk factor
Negligible price volatility
Profitability factor
Very strong margins and returns
About
Burckhardt Compression Holding AG (BCHN.SW), established in 1844 and headquartered in Winterthur, Switzerland, operates as a global leader in the manufacturing and distribution of advanced reciprocating compressors. The company's comprehensive product portfolio features a diverse range of compressors designed for various industrial needs. This includes the Laby labyrinth piston compressor, specifically engineered to manage extremely dry, dirty, or abrasive gases. For maritime and offshore operations, they provide Laby-GI compressors. Their robust API 618 process gas compressors are tailored for high-pressure applications involving hydrogen, hydrocarbons, and corrosive gases. Burckhardt also offers hyper compressors, high-pressure reciprocating units crucial for low-density polyethylene (LDPE) production, alongside standard high-pressure compressors capable of handling a broad spectrum of non-corrosive gases and mixtures such as air, hydrogen, nitrogen, helium, argon, and natural gas. Additionally, their specialized offerings encompass high-speed compressors for standardized natural gas production and transport, marine high-pressure compressors optimized for managing low boil-off gas (BOG) rates, and diaphragm compressors suitable for compact hydrogen fueling stations and the precise compression of small volumes of pure gases for medical or other specific uses. Beyond complete compressor systems, Burckhardt Compression supplies essential components like valves, rings, packings, capital parts, and specialized parts for both labyrinth piston and hyper/secondary compressors. The company complements its product line with an extensive array of services, including valve maintenance, efficient spare parts logistics, equipment revamping and upgrading, component repair, on-site field services, advanced condition monitoring and diagnostics, dedicated technical support, and professional training programs. Burckhardt's sophisticated compressor solutions are vital across numerous industries, including upstream oil and gas, marine, gas transportation and storage, refining, petrochemical and chemical processing, and the industrial gas sector.
Company Valuation
Based on key historical and expected multiples, the stock is slightly undervalued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair val
Target Price
The average target price of BCHN.SW is 594 and suggests 26% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incr