Burckhardt Compression $BCHN (-1,12 %) is a Swiss machine and plant manufacturer with a focus on reciprocating compressors for gas and industrial sectors (e.g. energy infrastructure, petrochemicals, industrial gases). The company combines new machine business with a growing service and spare parts business. In recent years, Burckhardt has steadily increased its sales and profits, exceeding CHF 1 billion in sales for the first time; in addition, the dividend has been increased for several consecutive years.
Why interesting for long-term investors (arguments for buying):
✔️ Stable and specialized business model: Burckhardt operates in a clear niche with a high barrier to entry for competitors - this creates recurring orders, especially in the service segment.
✔️ Profit and dividend growth: The company has recently shown growth in sales, earnings per share and dividends, which speaks for long-term dividend income.
✔️ Global demand for infrastructure: Applications such as gas transportation/LNG, energy and industrial gases will also be needed in the long term, which will support demand for compressors.
✔️ Relative valuation: Key figures such as P/E ratios are often moderate compared to industry peers, which may indicate value potential.
✔️ Service and aftermarket business: The share of recurring revenue from service, spare parts and digital solutions ensures stability in earnings.
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