Introduction
COMET is a leading provider of state-of-the-art systems, providing high added value for its customers and their companies. Their products include components, e-beam and RF-Technologies. COMET’s mission is to help optimize the products and processes of its customers worldwide. To achieve this, it has developed a number of advanced products and procedures. COMET’s business concept is built around two products: COMET and YXLON; both enjoy an excellent reputation in the market. The product group COMET comprises Modules & Components, while the product group YXLON includes more complex solutions, systems, and software.
Strengths and weaknesses analysis / Fundamental analysis:
Strengths:
- Amongst Swiss industrial enterprises, COMET has one of the best and most promising product portfolios. The products are expected to provide superior growth figures for the next decade,
- The development of the e-beam system is progressing well and its commercialization is expected to help achieve the company’s growth objective (10-fold increase),
- The company has a target EBITDA-margin of 15% for 2017,
- The present share price includes only a small portion of the future growth potential. The share is currently trading without any premium compared to other Swiss industrial enterprises.
- The company is strategically well located in 3 continents (Europe, USA, and Asia).
Weaknesses:
- COMET is little known to the greater public, hence the security may lack liquidity on certain days,
- The future of e-beam depends primarily on a close collaboration with Tetra-Pak.
Investment opportunity / Portfolio management:
Operational risks: Medium to high
Expected growth: Well above average
Investment orientation: Group « Best-in-Class », Swiss Small and Mid-Cap