Buy signal on Belimo Holdings (BEAN-CH)
Belimo is a CHF 4.8 bn market which specializes in the design, manufacturing and marketing of actuators solutions, control valves and sensors. The products are used for monitoring ventilation and air conditioning (56% of sales) and heating systems (44%) in Europe (47%), the Americas (40%) and the Asia- Pacific (13%). The company offers HVAC damper actuators for use in various on/off, modulating, or communicating damper and life safety applications, including air handlers, economizer and variable air volume terminal units. It also provides various pressure dependent valves, such as the characterized control, quick compact, and butterfly valves; mechanical pressure independent valves for complex flow challenges and Internet of Things cloud-connected pressure independent valves. In addition, the company provides accurate sensors for measuring temperature, humidity, pressure, CO2, and volatile compounds in pipe and duct applications.
Belimo benefit from megatrend such as energy efficiency, healthy air monitoring and safety. Revenue growth should reach high single digit in 2021, and resume the double digit historical trend from 2022. The expected operating margin level for 2021 is 16.7%, a level that is expected to increase steadily and to trend towards 20% in the next few years.
Belimo is a quality growth business linked to the Building & Construction sector, led by innovation and growing trend in Indoor Air Quality (IAQ) monitoring and and energy efficencies. The company enjoys a strong balance sheet and offers a dividend yield of c.2%.
Short term catalyst : China & India increasing contribution .
This signal looks consistent with the Major Bullish Trend in the European Capital Goods sector.