Zehnder Group AG (ZEHN.SW) | Investment Case

1. Company Snapshot

1.a. Company Description

Zehnder Group AG, together with its subsidiaries, develops, manufactures, and sells indoor climate systems in Europe, North America, and China.The company offers decorative radiators, heating and cooling ceiling systems, indoor ventilation systems, heat exchangers, and clean air systems under the Zehnder, Runtal, Acova, Bisque, Greenwood, Paul, Core, Enervent, and Recair brands.Its products have applications in production halls and warehouses, exhibition rooms and showrooms, sports halls, offices, schools, hospitals, detached houses, and apartments.

Zehnder Group AG was founded in 1895 and is headquartered in Granichen, Switzerland.

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1.b. Last Insights on ZEHN

Zehnder Group AG's recent performance was driven by a 28% stock price increase over the past quarter, fueled by a surge in retail investor interest. The company's ownership structure, with 41% held by retail investors and 37% by institutions, suggests a strong connection with its shareholder base. Additionally, the company's recent earnings release highlighted a solid financial position, although the financials themselves appear ambiguous. Furthermore, the absence of any significant negative news or concerns suggests that the momentum may continue, driven by a combination of retail investor enthusiasm and a stable financial foundation.

1.c. Company Highlights

Last Price	71.7
Change Percentage	1.13%
Open	70.8
Previous Close	70.9
Market Cap ( Millions)	798
Volume	6729
Year High	76.4
Year Low	41.05
M A 50	69.43
M A 200	64.21

FCF Yield	6.21%
Dividend Yield	1.39%
ROE	7.73%
Debt / Equity	24.34%
Net Debt / EBIDTA	21.11%
Price To Book	3.61
Price Earnings Ratio	47.04
Price To FCF	16.1
Price To sales	1.14
EV / EBITDA	14.47

2. Transcript Summary

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3. NewsRoom

Is Zehnder Group AG (VTX:ZEHN) Trading At A 23% Discount?

Nov -01

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Why Zehnder Group AG (VTX:ZEHN) Could Be Worth Watching

Sep -12

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Zehnder Group (VTX:ZEHN) Is Looking To Continue Growing Its Returns On Capital

Aug -15

Source:

We Think You Can Look Beyond Zehnder Group's (VTX:ZEHN) Lackluster Earnings

Aug -01

Source:

Zehnder Group AG's (VTX:ZEHN) Stock Is Rallying But Financials Look Ambiguous: Will The Momentum Continue?

Jul -30

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Retail investors account for 41% of Zehnder Group AG's (VTX:ZEHN) ownership, while institutions account for 37%

Jul -07

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E.ON (ETR:EOAN) shareholders have earned a 10% CAGR over the last five years

Apr -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

Ventilation

Expected Growth: 4.78%

Zehnder Group AG's ventilation segment growth of 4.78% is driven by increasing demand for energy-efficient and healthy indoor air quality solutions, particularly in the residential and commercial construction markets. Additionally, government regulations and incentives for sustainable building practices, as well as growing awareness of the importance of indoor air quality, contribute to this growth.

Radiators

Expected Growth: 4.65%

Zehnder Group AG's radiator segment growth of 4.65% is driven by increasing demand for energy-efficient heating solutions, rising adoption of smart home technologies, and growing construction activities in Europe and Asia. Additionally, the company's focus on innovative products, strategic acquisitions, and expanding distribution networks also contribute to its growth momentum.

7. Detailed Products

Radiant Heating and Cooling Systems

Zehnder Group AG offers a range of radiant heating and cooling systems that provide comfortable and energy-efficient temperature control solutions for buildings.

Ventilation Systems

Zehnder Group AG provides ventilation systems that ensure a healthy indoor climate by supplying fresh air and removing stale air from buildings.

Heat Recovery Systems

Zehnder Group AG's heat recovery systems recover heat energy from exhaust air and transfer it to fresh air, reducing energy consumption and costs.

Air Purification Systems

Zehnder Group AG's air purification systems remove pollutants and contaminants from the air, improving indoor air quality and promoting a healthier environment.

Customized HVAC Solutions

Zehnder Group AG offers customized HVAC solutions tailored to specific building requirements, ensuring optimal energy efficiency and indoor climate control.

8. Zehnder Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Zehnder Group AG operates in a niche market with high barriers to entry, reducing the threat of substitutes.

Bargaining Power Of Customers

Zehnder Group AG has a diverse customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

Zehnder Group AG has a moderate level of dependence on its suppliers, but has implemented strategies to mitigate this risk.

Threat Of New Entrants

Zehnder Group AG operates in a highly specialized industry with high barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

Zehnder Group AG operates in a highly competitive industry with several established players, increasing the intensity of rivalry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	1.89%
Debt Cost	9.56%
Equity Weight	98.11%
Equity Cost	9.56%
WACC	9.56%
Leverage	1.92%

11. Quality Control: Zehnder Group AG passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Placoplatre

A-Score: 5.2/10

Value: 4.6

Growth: 0.3

Quality: 6.5

Yield: 5.6

Momentum: 6.5

Volatility: 7.7

1-Year Total Return ->

Franchi Umberto Marmi

A-Score: 5.1/10

Value: 7.9

Growth: 2.1

Quality: 5.5

Yield: 6.2

Momentum: 0.5

Volatility: 8.3

1-Year Total Return ->

FM Mattsson Mora

A-Score: 5.1/10

Value: 4.6

Growth: 4.7

Quality: 5.8

Yield: 8.1

Momentum: 6.0

Volatility: 1.3

1-Year Total Return ->

Zehnder

A-Score: 4.6/10

Value: 3.3

Growth: 2.7

Quality: 5.6

Yield: 3.8

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

Systemair

A-Score: 4.5/10

Value: 4.0

Growth: 6.6

Quality: 5.7

Yield: 2.5

Momentum: 3.5

Volatility: 5.0

1-Year Total Return ->

Forbo

A-Score: 4.4/10

Value: 6.2

Growth: 2.7

Quality: 6.1

Yield: 5.0

Momentum: 1.5

Volatility: 4.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

4.52%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.56%

Zehnder Group AG - CH0276534614

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on ZEHN

1.c. Company Highlights

Weak Momentum

Average Quality

Average Yield

Better Quality

Fairly Valued

Stable Momentum

Average Growth

Revenues Beats

Medium Volatility

Lower Growth

Expensive

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.73%)

6. Segments

Ventilation

Expected Growth: 4.78%

Radiators

Expected Growth: 4.65%

7. Detailed Products

Radiant Heating and Cooling Systems

Ventilation Systems

Heat Recovery Systems

Air Purification Systems

Customized HVAC Solutions

8. Zehnder Group AG's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Zehnder Group AG passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

71.7$

Current Price

71.7$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA