Bachem Holding AG (BCHMY)

Healthcare · PNK · US

USD9.65+2.88% today

Fundamentals

Market capUSD6.86B
P/E ratio38.1
Dividend yield1.26%
Revenue growth (YoY)+4.7%
Profit margin21.4%
Return on equity10.4%
52-week rangeUSD5.97 to USD12.54

Valuation and ratings

DCF fair valueUSD8.02
Upside to fair value-16.9%
Moat score51/100
Overall rating47/100, Hold

Bachem Holding AG trades at USD9.65, which is 17% above the USD8.02 our discounted cash flow model puts on the business. On that measure it screens as expensive, which is not the same as saying it will fall.

Our moat model scores it 51 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.

It changes hands at 38.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.

About Bachem Holding AG

Bachem Holding AG, together with its subsidiaries, provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide. It engages in the development, production, and regulatory support of peptide active pharmaceutical ingredients, such as peptide and oligonucleotide new chemical entities (NCEs). The company also offers commercial NCEs and generics; and project management, quality and regulatory, analytical, good manufacturing practice production, research grade production, and supply and vertical integration services. Bachem Holding AG was incorporated in 1971 and is headquartered in Bubendorf, Switzerland. Bachem Holding AG operates as a subsidiary of Ingro Finanz AG.

Industry: BiotechnologyEmployees: 2,130HQ: Switzerland

BCHMY passes 2 of our 30 screens today

Each screen prints the exact criteria it used, and the circumstances in which it is wrong.

Common questions

Is Bachem Holding AG (BCHMY) undervalued?

Against our discounted cash flow estimate of USD8.02, BCHMY at USD9.65 is 17% above fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.

What is BCHMY's P/E ratio?

BCHMY trades at 38.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.

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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.