ams-OSRAM (AMS) AI Stock Analysis

• Market Cap: $1.06B
• Dividend Yield: N/A
• Average Volume (3M): 564.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.67
• Revenue Growth: -5.11%
• EPS Growth: 88.12%
• Country: CH
• Employees: 19,700
• Sector: Technology
• Sector Strength: 98
• Industry: Semiconductors
• EPS (TTM): 0.17
• Shares Outstanding: 99,844,390
• 10 Day Avg. Volume: 473,549
• 30 Day Avg. Volume: 564,078
• PEG Ratio: -0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.18
• P/FCF Ratio: -9.34
• Enterprise Value/Market Cap: 2.39
• Enterprise Value/Revenue: 0.75
• Enterprise Value/Gross Profit: 3.08
• Enterprise Value/Ebitda: 3.87
• 1Y Price Target: $11.87
• Price Target Upside: 11.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 52 Neutral
• Price Target: CHF11.00 ▲(3.00% Upside)

The overall stock score of 52 reflects a challenging financial performance with declining revenue and high leverage, which is partially offset by positive sentiment from the latest earnings call. Technical analysis provides mixed signals, and valuation metrics indicate potential overvaluation concerns. The company's strategic initiatives and improved profitability are positive, but financial stability remains a concern.

Positive Factors

Earnings

Q4 results were above consensus with a beat on adjusted EBITDA.

Financial Performance

Growth is expected in the second half of the year with positive free cash flow over €100m.

Financial Strategy

Disposals are expected to raise the margin and cash flow profile into 2025.

Negative Factors

Demand Environment

The ongoing weak demand environment in auto and industrial applications negatively impacts Ams-Osram's semiconductor business.

Earnings Forecast

Reduced earnings forecasts have led to a decrease in the price target from CHF 15.00 to CHF 9.50.

Inventory Management

Inventory corrections in the industrial business are likely to continue, impacting future performance.

ams-OSRAM Business Overview & Revenue Model

Company Description

ams-OSRAM (AMS) is a global leader in optical solutions, specializing in advanced sensor technology, lighting solutions, and power management. The company operates primarily in the semiconductor industry and serves various sectors, including automotive, consumer electronics, industrial applications, and healthcare. AMS is renowned for its innovative products such as light sensors, camera modules, and high-performance LED components, which enhance the functionality and performance of electronic devices.

How the Company Makes Money

ams-OSRAM generates revenue through the sale of its semiconductor products, which include sensors, LED modules, and other electronic components. The company's revenue model is primarily based on direct sales to original equipment manufacturers (OEMs) and distributors, with a focus on high-margin products in growing markets. Key revenue streams include automotive lighting solutions, consumer electronics sensors, and industrial applications, with significant contributions from partnerships with major technology firms and car manufacturers. Additionally, AMS benefits from recurring revenue through long-term contracts and collaborations, enhancing its financial stability and growth prospects.

ams-OSRAM Financial Statement Overview

Summary

ams-OSRAM faces significant financial challenges with declining revenues, persistent net losses, and a high leverage. However, there are some positive signs with improvements in cash flow and efforts toward deleveraging.

Income Statement

The income statement reveals a challenging environment for ams-OSRAM, with declining revenue and persistent net losses. The TTM gross profit margin stands at 24.92%, which is relatively stable compared to prior periods, but the company is struggling with negative net profit margins, currently at -4.61% TTM. Revenue growth is negative, with a decrease of approximately 6.26% compared to the previous year. Additionally, EBIT and EBITDA margins have shown signs of improvement but remain a concern due to ongoing losses.

Balance Sheet

The balance sheet highlights a high debt burden with a debt-to-equity ratio of 1.89 TTM, indicating significant leverage. However, the company's equity ratio is relatively low at 17.62% TTM, suggesting a modest level of financial stability. Return on Equity (ROE) is negative, reflecting ongoing profitability challenges. Despite these concerns, the reduction in total liabilities year-over-year signals some efforts toward deleveraging.

Cash Flow

Cash flow analysis shows volatility, with the TTM free cash flow remaining negative at -44 million. The operating cash flow to net income ratio is negative due to ongoing losses, while the free cash flow to net income ratio demonstrates the company's struggle to convert earnings into cash. The free cash flow growth rate is positive compared to the previous period, indicating some improvement in cash generation, although capital expenditures remain significant.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.36B	3.43B	3.59B	4.82B	5.04B	3.50B
Gross Profit	820.00M	857.00M	1.02B	1.26B	1.44B	1.03B
EBITDA	652.00M	462.00M	471.00M	855.00M	938.00M	613.00M
Net Income	-114.00M	-786.00M	-1.61B	-444.00M	-32.00M	-90.00M
Balance Sheet
Total Assets	6.04B	6.90B	7.40B	8.83B	9.64B	9.96B
Cash, Cash Equivalents and Short-Term Investments	602.00M	1.12B	1.18B	1.11B	1.34B	1.62B
Total Debt	2.08B	2.69B	2.67B	3.02B	3.40B	3.59B
Total Liabilities	5.04B	5.67B	5.50B	6.00B	6.49B	6.94B
Stockholders Equity	994.00M	1.23B	1.90B	2.83B	3.14B	3.09B
Cash Flow
Free Cash Flow	62.00M	-67.00M	-375.00M	62.00M	482.00M	525.00M
Operating Cash Flow	360.00M	435.00M	674.00M	599.00M	792.00M	702.00M
Investing Cash Flow	-213.00M	-424.00M	-826.00M	-183.00M	-560.00M	-1.49B
Financing Cash Flow	-516.00M	-98.00M	245.00M	-726.00M	-534.00M	1.95B

ams-OSRAM Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.68
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:AMS, the sentiment is Positive. The current price of 10.68 is below the 20-day moving average (MA) of 11.37, above the 50-day MA of 10.28, and above the 200-day MA of 8.10, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 47.52 is Neutral, neither overbought nor oversold. The STOCH value of 16.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:AMS.

ams-OSRAM Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUBN	78 Outperform	CHF2.06B	28.86	11.32%	1.70%	5.03%	11.32%
IFCN	75 Outperform	CHF2.39B	26.47		2.15%	-0.84%	-8.41%
UBXN	62 Neutral	CHF796.14M	―	-20.37%	1.09%	-27.51%	-36.15%
Sector *	61 Neutral	$36.04B	6.25	-9.40%	2.02%	7.67%	-3.03%
KUD	60 Neutral	CHF81.70M	8.51	-52.12%	―	-49.83%	―
AMS	52 Neutral	$1.06B	―	-9.68%	―	-5.11%	88.12%
LEHN	45 Neutral	$679.10M	80.91	5.60%	5.57%	-24.36%	-87.16%

ams-OSRAM Corporate Events

ams OSRAM Reports Strong Q2 2025 Results Amid Debt Reduction Efforts

ams OSRAM reported a solid performance in Q2 2025, achieving an adjusted EBITDA margin of 18.8% and revenue of €775 million, despite facing challenges such as negative currency effects. The company confirmed its 2025 free cash flow outlook of over €100 million and took initial steps in its accelerated debt reduction plan, including the sale of its Entertainment & Industrial Lamps business for €114 million. The company extended its revolving credit facility and issued private placement bonds to manage its debt effectively. These strategic moves are aimed at strengthening its financial position and reducing interest expenses, with expectations of a stronger second half of the year.

The most recent analyst rating on (CH:AMS) stock is a Hold with a CHF15.00 price target. To see the full list of analyst forecasts on ams-OSRAM stock, see the CH:AMS Stock Forecast page.

ams OSRAM Sells Lamp Business to Ushio Inc. for EUR 114 Million

ams OSRAM has announced the sale of its Entertainment and Industry Lamps business to Ushio Inc. for EUR 114 million as part of its debt reduction plan. This transaction marks the first step in a broader strategy to streamline operations and focus on core markets, with the aim of achieving proceeds significantly over EUR 500 million. The sale is expected to close by the first quarter of 2026, transferring approximately 500 employees to Ushio Inc., a global leader in optical technologies.

The most recent analyst rating on (CH:AMS) stock is a Hold with a CHF25.00 price target. To see the full list of analyst forecasts on ams-OSRAM stock, see the CH:AMS Stock Forecast page.

ams OSRAM Issues €500M Bonds for Strategic Debt Management and Reports Strong Q2 Results

ams OSRAM has successfully placed €500 million in bonds maturing in 2029 to pre-finance outstanding OSRAM shares and repurchase €150 million of the 2027 convertible bond. This strategic move aims to manage debt effectively and prepare for potential exercises of put options by OSRAM minority shareholders. The company also reported solid preliminary Q2 results with revenue of €775 million and an adjusted EBITDA margin of 18.8%. Looking ahead, ams OSRAM expects improved profitability and positive free cash flow for the fiscal year 2025, indicating a strong financial position and strategic focus on efficiency.

The most recent analyst rating on (CH:AMS) stock is a Hold with a CHF25.00 price target. To see the full list of analyst forecasts on ams-OSRAM stock, see the CH:AMS Stock Forecast page.

ams-OSRAM AG Announces 2025 Ordinary General Meeting

ams-OSRAM AG has announced the convening of its Ordinary General Meeting for June 26, 2025, where shareholders will discuss and vote on several key resolutions, including financial statements, remuneration policies, and the introduction of new authorized capital. This meeting is significant as it will address the company’s strategic financial decisions and governance, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (CH:AMS) stock is a Hold with a CHF25.00 price target. To see the full list of analyst forecasts on ams-OSRAM stock, see the CH:AMS Stock Forecast page.

ams OSRAM Announces 2025 General Meeting Proposals

ams OSRAM has announced the proposals for its 2025 General Meeting, including a resolution on a 10% Authorized Capital 2025 and a share buyback authorization. These proposals aim to enhance the company’s capital management and shareholder value, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (CH:AMS) stock is a Hold with a CHF25.00 price target. To see the full list of analyst forecasts on ams-OSRAM stock, see the CH:AMS Stock Forecast page.