Quick Facts
- dormakaba is a Swiss company that specializes in access and security solutions
- They provide a wide range of products including door hardware, entrance systems, electronic access and data systems, interior glass systems, and more.
- Latest addition to the Obermatt Swiss Pearls ETP (OMSP1) portfolio.
- Tecan Group has been removed due to its low Obermatt 360° View.
Pros
- Diverse product range: dormakaba offers a wide variety of access and security solutions, which could provide stability through product diversification. ✔
- Global presence: The company operates globally, potentially benefiting from various markets and reducing dependence on a single region. ✔
- Established brand: Formed from the merger of two well-established companies, dormakaba likely has strong brand recognition in the industry. ✔
Cons
- Market competition: The security and access control industry is likely competitive, which could impact profit margins. ❌
- Economic sensitivity: Demand for dormakaba's products might be influenced by economic cycles, particularly in sectors like construction and hospitality. ❌
- Technological disruption: As a company dealing with security systems, rapid technological changes could require constant innovation and investment to stay competitive. ❌
As part of our regular monthly review, dormakaba has been added to our Obermatt Swiss Pearls (OMSP1) ETP portfolio. This Swiss company, a specialist in access and security solutions, not only brings a wealth of strengths to our portfolio but also significantly enhances its representation of the Swiss economy. The inclusion of dormakaba marks a notable development in our ongoing commitment to curating a portfolio that truly embodies the essence of Swiss business excellence.
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dormakaba offers several compelling advantages as an investment. The company boasts a diverse product range, including door hardware, entrance systems, and electronic access solutions, which provides stability through product diversification. Its global presence allows it to benefit from various markets, reducing dependence on a single region. Furthermore, as a result of the merger between Dorma and Kaba in 2015, dormakaba enjoys strong brand recognition in the industry.
However, like any investment, dormakaba also presents some challenges. The security and access control industry is highly competitive, which could impact profit margins. Additionally, the company's performance may be sensitive to economic cycles, particularly in sectors like construction and hospitality. As a company dealing with security systems, dormakaba must also contend with rapid technological changes, requiring constant innovation and investment to maintain its competitive edge.
Despite these challenges, we believe dormakaba's addition strengthens our portfolio. We are particularly proud of how this move enhances the "Swissness" of our OMSP1 portfolio. By including companies like dormakaba, we continue to offer investors a portfolio that better represents the Swiss economy than both the Swiss Market Index (SMI) and the Swiss Performance Index (SPI).
It's worth noting that this addition comes as we bid farewell to Tecan Group, which was removed from the portfolio due to its Obermatt 360° View score of 25, the lowest among all companies in the portfolio. This change underscores our commitment to maintaining a high-quality, performance-driven selection of Swiss companies.
We are confident that dormakaba's inclusion will contribute positively to our OMSP1 portfolio, offering our investors exposure to a well-established Swiss company with global reach and innovative solutions in the critical field of access and security. As always, we remain committed to providing a carefully curated selection of Swiss pearls that truly represent the strength and diversity of the Swiss economy.