SWX:OERL

Stock Analysis Report

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Executive Summary

OC Oerlikon Corporation AG provides advanced materials, surface technologies, coating equipment, and services worldwide.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has OC Oerlikon's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OERL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

OERL

1.6%

CH Machinery

0.4%

CH Market


1 Year Return

-30.1%

OERL

1.1%

CH Machinery

2.5%

CH Market

Return vs Industry: OERL underperformed the Swiss Machinery industry which returned 1.1% over the past year.

Return vs Market: OERL underperformed the Swiss Market which returned 2.5% over the past year.


Shareholder returns

OERLIndustryMarket
7 Day1.2%1.6%0.4%
30 Day8.0%7.1%2.5%
90 Day-4.4%1.5%-2.7%
1 Year-20.3%-30.1%4.7%1.1%5.8%2.5%
3 Year-21.9%-38.1%3.0%-5.3%16.0%4.1%
5 Year-13.3%-35.2%36.5%15.5%28.7%7.1%

Price Volatility Vs. Market

How volatile is OC Oerlikon's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is OC Oerlikon undervalued compared to its fair value and its price relative to the market?

43.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OERL (CHF7.81) is trading below our estimate of fair value (CHF13.88)

Significantly Below Fair Value: OERL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OERL is poor value based on its PE Ratio (24.9x) compared to the Machinery industry average (19x).

PE vs Market: OERL is poor value based on its PE Ratio (24.9x) compared to the Swiss market (19.1x).


Price to Earnings Growth Ratio

PEG Ratio: OERL is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: OERL is good value based on its PB Ratio (1.5x) compared to the CH Machinery industry average (2x).


Next Steps

Future Growth

How is OC Oerlikon forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

21.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OERL's forecast earnings growth (21% per year) is above the savings rate (-0.2%).

Earnings vs Market: OERL's earnings (21% per year) are forecast to grow faster than the Swiss market (8.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: OERL's revenue (2% per year) is forecast to grow slower than the Swiss market (2.4% per year).

High Growth Revenue: OERL's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OERL's Return on Equity is forecast to be low in 3 years time (7.8%).


Next Steps

Past Performance

How has OC Oerlikon performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OERL has high quality earnings.

Growing Profit Margin: OERL's current net profit margins (4.1%) are lower than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: OERL's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: OERL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: OERL had negative earnings growth (-36.5%) over the past year, making it difficult to compare to the Machinery industry average (0.5%).


Return on Equity

High ROE: OERL's Return on Equity (6.2%) is considered low.


Next Steps

Financial Health

How is OC Oerlikon's financial position?


Financial Position Analysis

Short Term Liabilities: OERL's short term assets (CHF1.5B) exceed its short term liabilities (CHF997.0M).

Long Term Liabilities: OERL's short term assets (CHF1.5B) exceed its long term liabilities (CHF881.0M).


Debt to Equity History and Analysis

Debt Level: OERL's debt to equity ratio (8.8%) is considered satisfactory.

Reducing Debt: OERL's debt to equity ratio has reduced from 34.6% to 8.8% over the past 5 years.

Debt Coverage: OERL's debt is well covered by operating cash flow (98.1%).

Interest Coverage: OERL's interest payments on its debt are well covered by EBIT (15.1x coverage).


Balance Sheet


Next Steps

Dividend

What is OC Oerlikon's current dividend yield, its reliability and sustainability?

4.48%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OERL's dividend (4.48%) is higher than the bottom 25% of dividend payers in the Swiss market (1.91%).

High Dividend: OERL's dividend (4.48%) is in the top 25% of dividend payers in the Swiss market (3.93%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OERL has been paying a dividend for less than 10 years.

Growing Dividend: OERL's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (111.8%), OERL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OERL's dividends in 3 years are forecast to be covered by earnings (87% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Roland Fischer (57yo)

4.25yrs

Tenure

CHF3,566,000

Compensation

Dr. Roland Fischer has been the Chief Executive Officer at OC Oerlikon Corporation AG since March 1, 2016. Dr. Fischer has been the Chief Executive Officer of Surface Solutions Segment at OC Oerlikon Corpo ...


CEO Compensation Analysis

Compensation vs Market: Roland's total compensation ($USD3.71M) is above average for companies of similar size in the Swiss market ($USD1.70M).

Compensation vs Earnings: Roland's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Roland Fischer
CEO & CEO of Surface Solutions Segment4.25yrsCHF3.57m0.045% CHF1.2m
Philipp Müller
Chief Financial Officer0.42yrno datano data
Helmut Rudigier
Chief Technology Officer2.58yrsno data0.0061% CHF159.4k
Andreas Schwarzwälder
Head of Group Communicationsno datano datano data
Anna Ryzhova
Chief Human Resources Officer3.67yrsno data0.0018% CHF45.6k
Georg Stausberg
Chief Executive Officer of Manmade Fibers Segmentno datano datano data
Leng Wong
Head of External Communications & Public Affairsno datano datano data

3.1yrs

Average Tenure

56yo

Average Age

Experienced Management: OERL's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffery Merszei
Non-Executive Director3.17yrsCHF308.00k0.0057% CHF148.9k
Georg Färber
Member of Scientific Advisory Boardno datano datano data
Gerhard Pegam
Non-Executive Vice Chairman of the Board3.5yrsCHF375.00k0.0045% CHF118.1k
Albert Pisano
Member of Scientific Advisory Boardno datano datano data
Peter Chen
Member of Scientific Advisory Boardno datano datano data
Werner Martienssen
Chairman of Scientific Advisory Boardno datano datano data
Christian Brecher
Member of Scientific Advisory Boardno datano datano data
Suzanne Thoma
Independent Non-Executive Director1.17yrsCHF236.00kno data
Michael Süss
Non-Executive Chairman of the Board5.17yrsCHF690.00k0.36% CHF9.5m
Alexey Moskov
Non-Executive Director4.17yrsCHF265.00k0.0096% CHF251.2k

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: OERL's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

OC Oerlikon Corporation AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OC Oerlikon Corporation AG
  • Ticker: OERL
  • Exchange: SWX
  • Founded: 1906
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CHF2.608b
  • Shares outstanding: 334.16m
  • Website: https://www.oerlikon.com

Number of Employees


Location

  • OC Oerlikon Corporation AG
  • Churerstrasse 120
  • Pfäffikon
  • Zurich
  • 8808
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OERLSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFJun 1993
0QO3LSE (London Stock Exchange)YesRegistered SharesGBCHFJun 1993
OERL.FOTCPK (Pink Sheets LLC)YesRegistered SharesUSUSDJun 1993
OBHDB (Deutsche Boerse AG)YesRegistered SharesDEEURJun 1993
OERL.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDDec 2008

Biography

OC Oerlikon Corporation AG provides advanced materials, surface technologies, coating equipment, and services worldwide. The company operates through Surface Solutions and Manmade Fibers segments. The Surface Solutions segment supplies PVD coatings and other surface technologies for precision components, as well as metalworking and plastics processing tools under the Oerlikon Balzers brand; coating solutions, materials, and equipment for enhancing surfaces under the Oerlikon Metco brand name; and industrial additive manufacturing solutions under the Oerlikon AM brand. The Manmade Fibers segment offers filament spinning and winding systems; texturing machines; and bulked continuous filament carpet yarn, staple fiber spinning, and nonwovens and polycondensation solutions. It also provides manufacturing equipment and polycondensation plant design and project management, engineering, consulting, and digital solutions. The company serves aerospace, automotive, energy, tooling, general industries, additive manufacturing, manmade fibers, and medical markets. OC Oerlikon Corporation AG was founded in 1906 and is headquartered in Pfäffikon, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 08:40
End of Day Share Price2020/05/29 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.