May 11, 2023

Dottikon ES: Hazardous chemicals with a good 360° View

Dottikon ES: Hazardous chemicals with a good 360° View

Obermatt Coffee Break Zoom chat on May 4th brought us some interesting investment ideas. One of those is Dottikon ES, a Swiss chemical company specialized in dealing with hazardous chemicals. Here’s why we took it into account for our Swiss Value Wikifolio.

PRO: The following three points speak for a buy:

  1. All Obermatt ranks but the Value rank are green, meaning that the company performs very well. Its 360° View is 95, which makes it a better overall performer than 95% of similar companies in our coverage.
  2. The stock has recently brought high returns due to the industry’s high profit margin.
  3. Dottikon ES is a well-known name in the field of hazardous reactions - the safety protocols and waste treatment facility make them a to-go company for dangerous chemicals. Their long tradition confirms this, as the company’s been operating for more than 100 years.

CONTRA: The following three points argue against it:

  1. Expensive compared to its peers. Obermatt Value rank of 1 makes it the most expensive stock compared to a number of similar stocks we cover. The price seems to be lowering, though, so do mind this.
  2. A small company by the Obermatt size classification. We usually suggest investing into larger companies.
  3. As chemical stocks usually have a cyclical nature - they perform well during periods of economic expansion as different industries experience growth, and worse during recessions, they may not always be a great pick.

The pro points make us believe we are making the right decision investing into Dottikon ES for our Swiss Value Wikifolio. Make sure to join our free Coffee Break Zoom stock discussions to learn more about stock investing directly from our experienced investors and help us shape our Wikifolios. You can also invest in our Wikifolios yourself.

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