Bossard Holding AG (BOSN.SW) fair value

ACCE thesis

Bossard Holding AG is a Swiss supplier of fasteners and related assembly technology, selling standard and customised screws, nuts, washers and inserts, along with its BOSSARD Assembly Technology and vendor-managed inventory services that run on-site at customer plants. Its edge is in the service layer rather than the parts themselves: embedded inventory management and supply logistics for automotive, electronics and machinery manufacturers create switching costs that a pure catalogue distributor does not have. Revenue growth of 5.3% and a 23.4% return on equity suggest the model is compounding capital well, though the 12.7% operating margin against a 33.4% gross margin shows the cost base absorbs much of the gross profit. The stock trades at 19.1 times trailing and 18.9 times forward earnings, a modest step-down in the multiple that implies the market expects earnings to grow. At roughly 2.0 billion CHF in market capitalisation with no index membership, it is a small, under-followed Swiss industrial whose valuation and returns are worth checking against the price in the house model before going further.