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Hidden Stock Market Gems: Chr. Hansen

Jun. 04, 2020 5:26 PM ETChr. Hansen Holding A/S (CHYHY), CRTSF3 Comments
Daniel Schönberger profile picture
Daniel Schönberger


  • Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical, and agricultural industries.
  • The company's patents, as well as the high switching costs, create a wide economic moat.
  • The intrinsic value for Chr. Hansen is €48, and at around €45, we find a strong support level for the stock.

After writing about Novo Nordisk (NVO) several times on Seeking Alpha, I am now analyzing three additional great businesses from Denmark that seem to be undercovered at Seeking Alpha although these are great companies with a wide economic moat. Very recently, I published my article about Coloplast (OTCPK:CLPBF) and now I will continue my series "Hidden Stock Market Gems" with an article about Chr. Hansen (OTCPK:CHYHY) - a bioscience company that is developing natural solutions for the food, pharmaceutical, and agricultural industry.

(Source: Pixabay)

And like many of the companies in this little series, Chr. Hansen seems undercovered but is actually a mid-cap (or even: large-cap) company with a market capitalization of DKK 83 billion (about $12.5 billion).

Business Description

Chr. Hansen is a global bioscience company that develops natural ingredient solutions for the food, nutritional, pharmaceutical, and agricultural industries. Chr. Hansen develops and produces cultures, enzymes, probiotics, and natural colors for a rich variety of foods, confectionery, beverages, dietary supplements, and even animal feed and plant protection. The company was founded in 1874 and is listed on the Nasdaq OMX Copenhagen since June 2010.

(Source: Chr. Hansen Investor Presentation)

The company is reporting in three different business segments:

  • Food Cultures & Enzymes: Chr. Hansen is assisting in optimizing the production processes with microbial and enzymatic solutions that help to produce great-tasting and consistent products (i.e. wine, meats, or dairy products). The company provides the dairy industry with a wide selection of food cultures & enzymes solutions used in meat and fish, in cheese and fresh dairy, and also in fermented beverages. Last year, the segment was responsible for 59% of total revenue.
  • Health & Nutrition: Chr. Hansen is a leader in the development and production of probiotics for dietary supplements and infant formula. These probiotics might have beneficial effects on

This article was written by

Daniel Schönberger profile picture
Part-time investor and contributor for Seeking Alpha since 2016. My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap companies). My academic background is in sociology and I hold a Master’s Degree in Sociology (with main emphasis on organizational and economic sociology) and a Bachelor’s Degree in Sociology and History.I also write about investing, economy and similar topics on Medium: https://medium.com/@danielschonberger

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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