SWX:TOHN

Stock Analysis Report

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Executive Summary

Tornos Holding AG, together with its subsidiaries, engages in the development, manufacture, marketing, sale, and servicing of machines and related spare parts worldwide.


Snowflake Analysis

Undervalued with adequate balance sheet.

Share Price & News

How has Tornos Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

19.8%

TOHN

3.4%

CH Machinery

2.3%

CH Market


1 Year Return

-32.5%

TOHN

2.5%

CH Machinery

3.2%

CH Market

Return vs Industry: TOHN underperformed the Swiss Machinery industry which returned 1.8% over the past year.

Return vs Market: TOHN underperformed the Swiss Market which returned 3.8% over the past year.


Shareholder returns

TOHNIndustryMarket
7 Day19.8%3.4%2.3%
30 Day39.2%12.7%4.9%
90 Day1.3%11.6%2.7%
1 Year-32.5%-32.5%6.1%2.5%6.6%3.2%
3 Year9.9%4.7%7.5%-1.2%21.1%8.7%
5 Year28.3%22.2%41.6%20.0%32.6%10.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Tornos Holding undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TOHN (CHF5.33) is trading below our estimate of fair value (CHF10.89)

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


Price To Earnings Ratio

PE vs Industry: TOHN is good value based on its PE Ratio (17.2x) compared to the Machinery industry average (19.5x).

PE vs Market: TOHN is good value based on its PE Ratio (17.2x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: TOHN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: TOHN is good value based on its PB Ratio (1x) compared to the CH Machinery industry average (2.1x).


Next Steps

Future Growth

How is Tornos Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TOHN's earnings are forecast to decline over the next 3 years (-15.3% per year).

Earnings vs Market: TOHN's earnings are forecast to decline over the next 3 years (-15.3% per year).

High Growth Earnings: TOHN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: TOHN's revenue (0.7% per year) is forecast to grow slower than the Swiss market (2.4% per year).

High Growth Revenue: TOHN's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TOHN's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

How has Tornos Holding performed over the past 5 years?

55.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TOHN has a high level of non-cash earnings.

Growing Profit Margin: TOHN's current net profit margins (2.9%) are lower than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: TOHN has become profitable over the past 5 years, growing earnings by 55.8% per year.

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

Earnings vs Industry: TOHN had negative earnings growth (-60.2%) over the past year, making it difficult to compare to the Machinery industry average (0.5%).


Return on Equity

High ROE: TOHN's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Tornos Holding's financial position?


Financial Position Analysis

Short Term Liabilities: TOHN's short term assets (CHF138.9M) exceed its short term liabilities (CHF57.4M).

Long Term Liabilities: TOHN's short term assets (CHF138.9M) exceed its long term liabilities (CHF2.3M).


Debt to Equity History and Analysis

Debt Level: TOHN's debt to equity ratio (13.9%) is considered satisfactory.

Reducing Debt: TOHN's debt to equity ratio has increased from 0.5% to 13.9% over the past 5 years.

Debt Coverage: TOHN's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: TOHN's interest payments on its debt are well covered by EBIT (110.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Tornos Holding's current dividend yield, its reliability and sustainability?

5.25%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TOHN's dividend (5.25%) is higher than the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: TOHN's dividend (5.25%) is in the top 25% of dividend payers in the Swiss market (3.84%)


Stability and Growth of Payments

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

Growing Dividend: TOHN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (90.6%), TOHN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.4yrs

Average management tenure


CEO

Michael Hauser (58yo)

8.75yrs

Tenure

CHF761,000

Compensation

Mr. Michael Hauser has been the Chief Executive Officer of Tornos Holding AG since September 1, 2011. Mr. Hauser served as Head of GF AgieCharmilles of Georg Fischer AG from August 31, 2008 to August 2010. ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD791.08K) is above average for companies of similar size in the Swiss market ($USD537.11K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Hauser
Chief Executive Officer8.75yrsCHF761.00k0.46% CHF478.7k
Bruno Edelmann
CFO & Secretary to the Board of Directors5.42yrsno data0.051% CHF53.3k
Bruno Allemand
Head of Sales & Marketing7.42yrsno data0.074% CHF77.3k
Luc Widmer
Head of Global Supply Chain Management5.42yrsno data0.25% CHF266.5k

6.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TOHN's management team is seasoned and experienced (6.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Walter Fust
Independent Non-Executive Director6.42yrsCHF100.00k48.8% CHF51.0m
François Frôté
Independent Chairmanno dataCHF192.00k1.06% CHF1.1m
Michel Rollier
Independent Non-Executive Director18.42yrsCHF103.00k14.55% CHF15.2m
Till Fust
Independent Director1.17yrsCHF67.00kno data

6.4yrs

Average Tenure

63yo

Average Age

Experienced Board: TOHN's board of directors are considered experienced (6.4 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

Tornos Holding AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tornos Holding AG
  • Ticker: TOHN
  • Exchange: SWX
  • Founded: 1914
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CHF104.539m
  • Shares outstanding: 19.61m
  • Website: https://www.tornos.com

Number of Employees


Location

  • Tornos Holding AG
  • Rue Industrielle 111
  • PO Box 960
  • Moutier
  • Bern
  • 2740
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TOHNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFMar 2001
TNSNDB (Deutsche Boerse AG)YesRegistered SharesDEEURMar 2001
0QK0LSE (London Stock Exchange)YesRegistered SharesGBCHFMar 2001

Biography

Tornos Holding AG, together with its subsidiaries, engages in the development, manufacture, marketing, sale, and servicing of machines and related spare parts worldwide. The company manufactures Swiss-type automatic lathes, multispindle machines, milling products, and bar feeders, as well as machine communication and programming software. It also provides various services, such as handling and programming, preventive maintenance, and online fault reporting services; spare parts; machine overhaul, updation, and upgradation, as well as used equipment; and training services. The company serves automotive, micromechanics, electronic, and medical and dental industries. Tornos Holding AG was founded in 1914 and is based in Moutier, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/04 21:20
End of Day Share Price2020/06/04 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.