February 2, 2023

Arbonia - good products for climate change

Arbonia - good products for climate change

Dr. Hermann Stern’s guests at the Obermatt Zoom Coffee Break stock chat always have surprising investment ideas. That's one of the main reasons Obermatt maintains these chats and the Wikifolios. During last week’s chat on climate change, one company came into perspective: Arbonia.

As the climate around Europe doesn’t stop to surprise, and may only get worse, many will adapt their homes to the new future. That’s where eco-friendly air conditioning units and heaters step in. One of our guests especially praised Arbonia’s heat pumps and that made us believe in the quality of their products. It’s always good to hear experiences first hand.

Let’s look into our decision in more detail.

PRO: The following three points speak for a buy:

  1. Obermatt’s new 360° View is at 90, which means Arbonia has an all-around good performance. Their Safety Rank is very good compared to its peers at 96 and the Value Rank is at 80, making Arbonia cheaper than 80% of their European competitors.
  2. We think that climatization equipment producers have a bright future, especially considering climate change. Also, it is believed that the European windows and doors market will grow significantly in the next couple of years. Arbonia has products that are eco-friendly and their production is sustainable. They employ more than 6000 people in several countries.
  3. First hand opinion of their products is usually good and that’s a good sign when it comes to quality.

CONTRA: The following three points argue against it:

  1. Obermatt Analyst Opinions rank is quite low and in yellow, which is probably due to the fact the company is going through a transformation. This may also be a reason why the stock price and Obermatt Value Rank are quite good. The Market Pulse rank is better, and that is encouraging.
  2. Increased material and logistics costs hit Arbonia hard, just like other manufacturers, which can be seen in their financial report. On the other hand, this has also affected the share price, so this may be a good time to buy.
  3. Some of our guests doubted the quality of Arbonia’s doors, while praising their climatization products. Maybe that’s a sign one of their divisions isn’t doing their job well.

In our opinion, Arbonia’s pro points outweigh the cons, so we have confirmed our decision to buy the shares for our Swiss Value Wikifolio. We invite you to be a part of our future Zoom Coffee Break chats, help us shape our investment decisions together and learn something from experienced investors.

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