SWX:ZEHN

Stock Analysis Report

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Executive Summary

Zehnder Group AG, through its subsidiaries, develops, produces, and markets indoor climate systems in Europe, North America, and China.


Snowflake Analysis

Undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Zehnder Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ZEHN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.4%

ZEHN

2.2%

CH Building

2.6%

CH Market


1 Year Return

9.7%

ZEHN

6.7%

CH Building

3.5%

CH Market

Return vs Industry: ZEHN exceeded the Swiss Building industry which returned 6.6% over the past year.

Return vs Market: ZEHN exceeded the Swiss Market which returned 3.6% over the past year.


Shareholder returns

ZEHNIndustryMarket
7 Day2.4%2.2%2.6%
30 Day4.0%14.0%4.7%
90 Day-11.6%3.8%5.8%
1 Year11.9%9.7%9.6%6.7%6.9%3.5%
3 Year17.2%10.8%12.5%4.4%21.4%9.0%
5 Year14.2%4.8%65.8%43.0%33.0%10.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zehnder Group undervalued compared to its fair value and its price relative to the market?

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZEHN (CHF38) is trading below our estimate of fair value (CHF52.1)

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


Price To Earnings Ratio

PE vs Industry: ZEHN is good value based on its PE Ratio (13.3x) compared to the Building industry average (24.9x).

PE vs Market: ZEHN is good value based on its PE Ratio (13.3x) compared to the Swiss market (19.8x).


Price to Earnings Growth Ratio

PEG Ratio: ZEHN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ZEHN is good value based on its PB Ratio (1.4x) compared to the CH Building industry average (5.4x).


Next Steps

Future Growth

How is Zehnder Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZEHN's forecast earnings growth (10.5% per year) is above the savings rate (-0.2%).

Earnings vs Market: ZEHN's earnings (10.5% per year) are forecast to grow faster than the Swiss market (8.5% per year).

High Growth Earnings: ZEHN's earnings are forecast to grow, but not significantly.

Revenue vs Market: ZEHN's revenue (1.8% per year) is forecast to grow slower than the Swiss market (2.3% per year).

High Growth Revenue: ZEHN's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ZEHN's Return on Equity is forecast to be low in 3 years time (13.7%).


Next Steps

Past Performance

How has Zehnder Group performed over the past 5 years?

17.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZEHN has high quality earnings.

Growing Profit Margin: ZEHN's current net profit margins (4.7%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: ZEHN's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: ZEHN's earnings growth over the past year (33.6%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: ZEHN earnings growth over the past year (33.6%) exceeded the Building industry 4%.


Return on Equity

High ROE: ZEHN's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Zehnder Group's financial position?


Financial Position Analysis

Short Term Liabilities: ZEHN's short term assets (€258.6M) exceed its short term liabilities (€134.7M).

Long Term Liabilities: ZEHN's short term assets (€258.6M) exceed its long term liabilities (€32.6M).


Debt to Equity History and Analysis

Debt Level: ZEHN's debt to equity ratio (7.7%) is considered satisfactory.

Reducing Debt: ZEHN's debt to equity ratio has increased from 3.5% to 7.7% over the past 5 years.

Debt Coverage: ZEHN's debt is well covered by operating cash flow (184.2%).

Interest Coverage: ZEHN's interest payments on its debt are well covered by EBIT (42.2x coverage).


Balance Sheet


Next Steps

Dividend

What is Zehnder Group's current dividend yield, its reliability and sustainability?

2.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ZEHN's dividend (2.62%) is higher than the bottom 25% of dividend payers in the Swiss market (1.94%).

High Dividend: ZEHN's dividend (2.62%) is low compared to the top 25% of dividend payers in the Swiss market (3.83%).


Stability and Growth of Payments

Stable Dividend: ZEHN's dividend payments have been volatile in the past 10 years.

Growing Dividend: ZEHN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35%), ZEHN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ZEHN's dividends in 3 years are forecast to be well covered by earnings (49.3% payout ratio).


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Matthias Huenerwadel (51yo)

1.58yrs

Tenure

€1,129,294

Compensation

Mr. Matthias P. Huenerwadel has been the Chairman of the Group Executive Committee and Chief Executive Officer of Zehnder Group AG since January 1, 2019 and November 12, 2018 respectively. Mr. Huenerwadel  ...


CEO Compensation Analysis

Compensation vs Market: Matthias's total compensation ($USD1.18M) is about average for companies of similar size in the Swiss market ($USD976.88K).

Compensation vs Earnings: Insufficient data to compare Matthias's compensation with company performance.


Board Members

NamePositionTenureCompensationOwnership
Riet Cadonau
Independent Non-Executive Director7.17yrs€144.89k0.071% 313.9k
Hans-Peter Zehnder
Chairman of the Board of Directors27.42yrs€593.36k1.79% 7.9m
Ivo Wechsler
Director1.25yrs€98.02kno data
Urs Buchmann
Independent Non-Executive Director10.42yrs€155.86k0.15% 645.7k
Jörg Walther
Independent Director4.42yrs€325.31k0.056% 248.1k
Milva Zehnder
Director4.42yrs€105.93k0.041% 180.5k

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: ZEHN's board of directors are considered experienced (5.8 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

Zehnder Group AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zehnder Group AG
  • Ticker: ZEHN
  • Exchange: SWX
  • Founded: 1895
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: CHF441.768m
  • Shares outstanding: 11.63m
  • Website: https://www.zehndergroup.com

Number of Employees


Location

  • Zehnder Group AG
  • Moortalstrasse 1
  • Granichen
  • Aargau
  • 5722
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZEHNSWX (SIX Swiss Exchange)YesRegistered Shares A SharesCHCHFJun 1994
ZEH2DB (Deutsche Boerse AG)YesRegistered Shares A SharesDEEURJun 1994
ZEH2BST (Boerse-Stuttgart)YesRegistered Shares A SharesDEEURJun 1994
0R6SLSE (London Stock Exchange)YesRegistered Shares A SharesGBCHFJun 1994

Biography

Zehnder Group AG, through its subsidiaries, develops, produces, and markets indoor climate systems in Europe, North America, and China. The company offers decorative radiators, heating and cooling ceiling systems, indoor ventilation systems, and clean air systems under the Zehnder, Runtal, Acova, Bisque, Rittling, Greenwood, Core, Enervent, Nather, and Paul brands. Its products have applications in production halls and warehouses, exhibition rooms and showrooms, sports halls, offices, schools, hospitals, detached houses, and apartments. The company was founded in 1895 and is headquartered in Granichen, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 00:15
End of Day Share Price2020/06/05 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.