Burckhardt Compression BCHN.SW
What does Burckhardt Compression do?
Burckhardt Compression is a Swiss manufacturer of reciprocating compressors that compress gases at high pressure. Its range extends from labyrinth piston compressors to process gas compressors for hydrogen, hydrocarbons and corrosive gases, as well as hypercompressors for polyethylene plants and diaphragm compressors for hydrogen refueling stations. Customers include operators of gas transport and gas processing, refineries, chemical plants and ships, as well as providers of hydrogen infrastructure.
The company earns money on one hand from the project-driven sale of new compressor systems, and on the other from its service business. This covers spare parts, repairs, maintenance and modernization of the installed base and is considered less sensitive to the economic cycle. Competitively, Burckhardt positions itself as a specialist in large, technically demanding reciprocating compressors in a niche market. Reliability, engineering know-how and long-standing customer relationships play a central role. Competitors are international industrial groups and other compressor specialists.
Score profile
Rank vs. Specialty Industrial Machinery (49 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Burckhardt Compression ranks in the middle in the group Specialty Industrial Machinery (4.6/10). On growth, the company ranks in the bottom fifth in the group Specialty Industrial Machinery (0.8/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Specialty Industrial Machinery (5.6/10). On financial strength, Burckhardt Compression ranks above average in the group Specialty Industrial Machinery (6.2/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 18.4x | 18.4x | better than 51 % |
| Trailing P/E | 16.8x | 26.2x | better than 90 % |
| PEG ratio | 9.0x | 1.7x | better than 3 % |
| EV/EBITDA | 10.6x | 16.5x | better than 86 % |
| Price/sales | 1.8x | 3.0x | better than 83 % |
| Price/book | 5.2x | 4.1x | better than 24 % |
| Revenue growth | -11.1% | 7.1% | better than 9 % |
| Earnings growth | -11.5% | 12.9% | better than 7 % |
| Gross margin | 29.0% | 40.2% | better than 11 % |
| Operating margin | 12.1% | 16.5% | better than 26 % |
| Net margin | 10.5% | 10.3% | better than 54 % |
| Return on equity | 32.6% | 13.5% | better than 93 % |
| Debt/equity | 45.1% | 47.2% | better than 54 % |
| Current ratio | 1.5x | 1.9x | better than 38 % |
| Free cash flow yield | 9.2% | 3.1% | better than 93 % |
| Dividend yield | 3.5% | 1.2% | – |
| Payout ratio | 58.2% | 32.4% | – |
| Beta | 0.86 | 1.06 | – |
Valuation: what is Burckhardt Compression worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Burckhardt Compression a model range of 520.99 CHF to 1,053.98 CHF per share.
6 analysts, average rating “Buy”, average price target 579.00 CHF (+11.3%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Willingness to invest in gas, chemical and energy facilities largely determines how many new compressor systems are ordered.
- The growing installed base provides recurring revenue from service, spare parts and modernization.
- The expansion of hydrogen and liquefied gas infrastructure as well as gas transport creates additional fields of application for high-pressure compressors.
Risks
- New-equipment business is project-based and cyclical; postponed or cancelled large projects can significantly weigh on order intake and capacity utilization.
- Demand for hydrogen technology depends heavily on political support and on market development that is hard to predict.
- Raw material and supply chain costs as well as exchange rates, in particular the Swiss franc, could put pressure on margins.
What to look for with Burckhardt Compression
Order intake together with the service business's share of revenue shows how well project capacity utilization is secured and how stable revenue is.