Announcement • Dec 09
Tornos Holding AG(SWX:TOHN) dropped from Swiss Performance Index (Price Return) Tornos Holding AG has been dropped from Swiss Performance Index (Price Return) Index Announcement • Oct 28
Starrag Group Holding AG (SWX:STGN) entered into a merger agreement to acquire Tornos Holding AG (SWX:TOHN) for approximately CHF 100 million. Starrag Group Holding AG (SWX:STGN) entered into a merger agreement to acquire Tornos Holding AG (SWX:TOHN) for approximately CHF 100 million on October 25, 2023. Pursuant to transaction, 1 share of Tornos will be exchanged to 0.1059 Starrag shares. As a result of the merger, Starrag Group will absorb Tornos, registered shares of Tornos will be delisted and Starrag Group to be renamed StarragTornos Group Ltd. After the merger, the existing Starrag and Tornos shareholders will hold 61.5% and 38.5% of the combined group.
Michael Hauser intended to become Chairman and CEO of StarragTornos Group Ltd. The merger has been approved by the Boards of Directors of Starrag Group and Tornos. The transaction is subject to shareholders’ approval of Starrag and Tornos to vote on merger agreement the extraordinary general meetings to be held on November 29 and 30, 2023 respectively. The merger is expected to be completed on December 7, 2023. The new StarragTornos Group expects sales synergies in the range of CHF 10 to 15 million in the medium term as a result of the merger. The expected cost synergies, in particular from higher purchasing volumes, optimized infrastructure costs and efficiency gains in logistics and distribution, are estimated at CHF 5 to 10 million. The merger is expected to have a positive impact on profit from 2025 onwards.
Zürcher Kantonalbank acts as financial advisors on this transaction. IFBC AG provided fairness opinion to the board of Starrag Group and Tornos. Major Estimate Revision • Aug 02
Consensus EPS estimates increase by 13% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has improved. 2023 revenue forecast increased from CHF175.0m to CHF180.0m. EPS estimate increased from CHF0.53 to CHF0.60 per share. Net income forecast to grow 9.3% next year vs 13% growth forecast for Machinery industry in Switzerland. Consensus price target of CHF6.50 unchanged from last update. Share price was steady at CHF5.70 over the past week. Reported Earnings • Jul 28
First half 2023 earnings released: EPS: CHF0.32 (vs CHF0.45 in 1H 2022) First half 2023 results: EPS: CHF0.32 (down from CHF0.45 in 1H 2022). Revenue: CHF95.7m (up 2.2% from 1H 2022). Net income: CHF6.22m (down 29% from 1H 2022). Profit margin: 6.5% (down from 9.4% in 1H 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 3.9% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Machinery industry in Switzerland. Over the last 3 years on average, earnings per share has increased by 93% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Announcement • Jun 02
Tornos Holding AG, Annual General Meeting, Apr 10, 2024 Tornos Holding AG, Annual General Meeting, Apr 10, 2024. Announcement • May 31
Tornos Holding Explores Merger with Starrag Group Holding Tornos Holding AG (SWX:TOHN) said on May 30, 2023 that its board of directors has decided to evaluate a possible merger with Starrag Group Holding AG (SWX:STGN) to expand its market presence. The two companies are currently in talks which are at a very early stage. Tornos said it will inform in due course about the results of the evaluation of the merger project and about the next steps of negotiations with Starrag. The potential tie up would provide “significant synergies in all business areas” and would bring both partners a “greater market presence and stronger market penetration”. This would result in growth opportunities in all target markets, Tornos said. In case of a merger, Tornos and Starrag brands are to be retained. No job cuts would be planned in this context either. Upcoming Dividend • Apr 05
Upcoming dividend of CHF0.30 per share at 4.7% yield Eligible shareholders must have bought the stock before 12 April 2023. Payment date: 14 April 2023. Payout ratio is a comfortable 41% but the company is not cash flow positive. Trailing yield: 4.7%. Within top quartile of Swiss dividend payers (4.2%). Higher than average of industry peers (2.2%). Price Target Changed • Mar 14
Price target increased by 8.3% to CHF6.50 Up from CHF6.00, the current price target is provided by 1 analyst. New target price is 14% above last closing price of CHF5.70. Stock is down 25% over the past year. The company is forecast to post earnings per share of CHF0.53 for next year compared to CHF0.73 last year. Reported Earnings • Mar 07
Full year 2022 earnings: EPS misses analyst expectations Full year 2022 results: EPS: CHF0.73 (down from CHF1.03 in FY 2021). Revenue: CHF181.4m (up 5.8% from FY 2021). Net income: CHF14.4m (down 29% from FY 2021). Profit margin: 8.0% (down from 12% in FY 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.6%. Revenue is forecast to grow 3.1% p.a. on average during the next 2 years, compared to a 4.8% growth forecast for the Machinery industry in Switzerland. Over the last 3 years on average, earnings per share has increased by 79% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Board Change • Nov 16
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 3 highly experienced directors. Independent Vice-Chairman Till Fust was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 12
First half 2022 earnings released First half 2022 results: Revenue: (down 100% from 1H 2021). Net income: (down CHF11.6m from profit in 1H 2021). Profit margin: (down from 14% in 1H 2021). The decrease in margin was driven by lower expenses. Over the next year, revenue is forecast to grow 3.7%, compared to a 11% growth forecast for the industry in Switzerland. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Announcement • Aug 11
Tornos Holding AG, Annual General Meeting, Apr 05, 2023 Tornos Holding AG, Annual General Meeting, Apr 05, 2023. Announcement • Aug 10
Tornos Holding AG to Report Fiscal Year 2022 Results on Mar 06, 2023 Tornos Holding AG announced that they will report fiscal year 2022 results on Mar 06, 2023 Price Target Changed • Jun 03
Price target decreased to CHF6.50 Down from CHF10.00, the current price target is provided by 1 analyst. New target price is approximately in line with last closing price of CHF6.30. The company is forecast to post earnings per share of CHF0.81 for next year compared to CHF1.03 last year. Board Change • Jun 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 3 highly experienced directors. Independent Vice-Chairman Till Fust was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Board Change • May 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 1 experienced director. 3 highly experienced directors. Independent Vice-Chairman Till Fust was the last director to join the board, commencing their role in 2019. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Apr 27
Price target increased to CHF10.00 Up from CHF6.25, the current price target is provided by 1 analyst. New target price is 41% above last closing price of CHF7.08. Stock is up 8.6% over the past year. The company is forecast to post earnings per share of CHF0.83 for next year compared to CHF1.03 last year. Major Estimate Revision • Mar 19
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate increased from CHF0.68 to CHF0.83. Revenue forecast unchanged at CHF195.0m. Net income forecast to shrink 19% next year vs 12% growth forecast for Machinery industry in Switzerland . Consensus price target of CHF10.00 unchanged from last update. Share price rose 3.2% to CHF7.64 over the past week. Reported Earnings • Mar 08
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: CHF1.03 (up from CHF1.52 loss in FY 2020). Revenue: CHF171.5m (up 66% from FY 2020). Net income: CHF20.3m (up CHF50.2m from FY 2020). Profit margin: 12% (up from net loss in FY 2020). The move to profitability was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 7.2%. Over the next year, revenue is forecast to grow 14%, compared to a 9.7% growth forecast for the industry in Switzerland. Over the last 3 years on average, earnings per share has fallen by 42% per year but the company’s share price has only fallen by 4% per year, which means it has not declined as severely as earnings. Buying Opportunity • Mar 01
Now 22% undervalued Over the last 90 days, the stock is up 7.0%. The fair value is estimated to be CHF9.38, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 23% per annum over the last 3 years. The company became loss making over the last 3 years. Buying Opportunity • Jan 25
Now 22% undervalued after recent price drop Over the last 90 days, the stock is down 7.4%. The fair value is estimated to be CHF8.94, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has declined by 23% per annum over the last 3 years. The company became loss making over the last 3 years. Reported Earnings • Aug 11
First half 2021 earnings released: EPS CHF0.59 (vs CHF0.71 loss in 1H 2020) The company reported a strong first half result with improved earnings, revenues and profit margins. First half 2021 results: Revenue: CHF84.4m (up 50% from 1H 2020). Net income: CHF11.6m (up CHF25.6m from 1H 2020). Profit margin: 14% (up from net loss in 1H 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 80 percentage points per year, which is a significant difference in performance. Is New 90 Day High Low • Mar 16
New 90-day high: CHF6.70 The company is up 61% from a price of CHF4.16 on 16 December 2020. Outperformed the Swiss market which is up 6.0% over the last 90 days. Exceeded the Machinery industry, which is up 14% over the same period. Reported Earnings • Mar 10
Full year 2020 earnings released: CHF1.52 loss per share (vs CHF0.31 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: CHF103.4m (down 50% from FY 2019). Net loss: CHF29.9m (down CHF35.9m from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 90% per year but the company’s share price has only fallen by 21% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Mar 10
Revenue misses expectations Revenue missed analyst estimates by 0.01%. Over the next year, revenue is forecast to grow 35%, compared to a 6.3% growth forecast for the Machinery industry in Switzerland. Is New 90 Day High Low • Jan 07
New 90-day high: CHF4.49 The company is up 14% from its price of CHF3.95 on 09 October 2020. The Swiss market is up 4.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Machinery industry, which is up 9.0% over the same period. Is New 90 Day High Low • Nov 22
New 90-day high: CHF4.15 The company is up 7.0% from its price of CHF3.89 on 24 August 2020. The Swiss market is up 2.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Machinery industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CHF1.43 per share. Is New 90 Day High Low • Sep 24
New 90-day low: CHF3.77 The company is down 17% from its price of CHF4.52 on 26 June 2020. The Swiss market is up 4.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Machinery industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is CHF1.41 per share.