Over the past twenty years, the world leader in piston compressors has developed a recognized technological superiority, a diversified portfolio of systems in the petrochemical and marine sectors, and since 2017 a highly profitable services business.

The objectives of its five-year plans have all been met or exceeded. The latest plan, to 2027, targets sales of 1.1 billion Swiss francs and an operating margin of between 12% and 15%.

Much of the opportunity lies in the energy transition, since Burckhardt's equipment plays an essential role in the LNG value chain, and perhaps tomorrow in hydrogen.

The Group's business model is focused on the after-market. Rather like aircraft engine manufacturers, it consists of installing as many systems as possible - a very low-margin, sometimes even loss-making activity - in order to develop the service business, where profitability this time oscillates between 20% and 25%.

The results are clear to see: sales have doubled in ten years, reaching 830 million francs, while operating margins are comfortably in the double-digit zone.

This expansion of margins - as well as a comfortable recurrence of revenues - should continue as the installed base, and by extension the services business, grows.

The latter is also what enables Burckhardt to deliver a return on equity that is uncommon for an industrial company, despite its prudent financial leverage.

Analysts - whether budding or seasoned - will appreciate the perfectly transparent accounting, and the accounting results that can be reconciled to the penny with cash flow.

Over ten years, Burckhardt shares trade at an average valuation of x13 EBITDA and x22 (accounting) profit. The forward multiple is right in this range. A downturn, should it occur, could be skillfully exploited.

Burckhardt is 10% owned by its managers and employees.