ams-OSRAM (AMS) AI Stock Analysis

• Market Cap: CHF754.80M
• Dividend Yield: N/A
• Average Volume (3M): 543.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.35
• Revenue Growth: -5.48%
• EPS Growth: 79.75%
• Country: CH
• Employees: 19,700
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.25
• Shares Outstanding: 99,844,390
• 10 Day Avg. Volume: 835,302
• 30 Day Avg. Volume: 543,554
• 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: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF9.33
• Price Target Upside: 23.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 45 Neutral
• Price Target: CHF7.00 ▼(-7.16% Downside)

The overall stock score of 45 reflects significant financial challenges, including declining revenues and high leverage, which weigh heavily on the company's prospects. Technical analysis indicates bearish momentum, further impacting the score. While valuation metrics are weak, the earnings call provides some optimism with improved profitability and strategic wins, but these are not enough to offset the broader financial and technical concerns.

Positive Factors

Market Leadership

Achieving market leadership in the LED sector solidifies the company's competitive position, enhancing its ability to influence market trends and secure long-term contracts.

Profitability Improvement

Improved profitability through enhanced EBITDA margins indicates effective cost management and operational efficiency, supporting sustainable financial health.

Significant Design Wins

Securing significant design wins ensures a robust pipeline of future revenue, reinforcing the company's market presence and innovation capabilities.

Negative Factors

Revenue Decline

A decline in revenue highlights challenges in demand and currency impacts, potentially affecting long-term growth and market competitiveness.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth and innovation.

Cash Flow Constraints

Cash flow constraints can hinder the company's ability to fund operations and strategic initiatives, affecting long-term sustainability and growth potential.

ams-OSRAM Business Overview & Revenue Model

Company Description

ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and the Asia/Pacific. The company operates through Semiconductor and Lamps & Systems segments. The Semiconductor segment offers semiconductor-based products and solutions, such as LEDs, lasers, and optical and image sensors for automotive, consumer, and industrial end markets. The Lamps & Systems segment provides lamps and lighting systems, such as spectral sensing, ambient and smart lighting, horticulture lighting, time-of-flight, presence detection, near-infrared, human-centric lighting, outdoor and indoor lighting solutions for automotive, industrial, and medical end markets. The company was formerly known as ams AG and changed its name to ams-OSRAM AG in January 2022. ams-OSRAM AG was founded in 1981 and is headquartered in Premstätten, Austria.

How the Company Makes Money

ams-OSRAM generates revenue primarily through the sale of its semiconductor and sensor products, which are used in various applications across multiple industries. Key revenue streams include automotive sensors, which are critical for advanced driver-assistance systems (ADAS), and industrial sensors that enhance automation and efficiency. Additionally, the company benefits from its lighting solutions, particularly in the automotive sector, where LED technology is increasingly favored. Significant partnerships with leading automotive manufacturers and electronic companies also play a crucial role in driving sales, as these collaborations enable AMS to integrate its technologies into a wide array of products, thus ensuring a steady demand for its offerings.

ams-OSRAM Financial Statement Overview

Summary

ams-OSRAM is facing financial challenges across all verticals. The income statement highlights declining revenue and profitability, while the balance sheet shows high leverage and negative returns on equity. Cash flow analysis indicates difficulties in generating free cash flow. The company needs to address these issues to improve financial stability and performance.

Income Statement

The income statement shows declining revenue and profitability. The TTM data indicates a negative net profit margin of -3.39%, and a slight decrease in revenue compared to the previous period. The gross profit margin is moderate at 24.42%, but the company is struggling with profitability as evidenced by the negative net income and EBIT margins. The revenue growth rate is negative, indicating a contraction in sales.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 2.09 in the TTM period, indicating significant reliance on debt. The return on equity is negative, reflecting the company's inability to generate profits from shareholders' equity. The equity ratio is not explicitly calculated, but the high debt levels suggest potential financial risk.

Cash Flow

Cash flow analysis shows a challenging situation with negative free cash flow growth of -240.91% in the TTM period. The operating cash flow to net income ratio is 0.18, indicating some ability to generate cash from operations despite net losses. However, the free cash flow to net income ratio is low, reflecting limited cash generation relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.43B	3.59B	4.82B	5.04B	3.50B
Gross Profit	811.00M	857.00M	1.02B	1.26B	1.44B	1.03B
EBITDA	597.00M	462.00M	471.00M	855.00M	938.00M	613.00M
Net Income	-166.00M	-786.00M	-1.61B	-444.00M	-32.00M	-90.00M
Balance Sheet
Total Assets	6.46B	6.90B	7.40B	8.83B	9.64B	9.96B
Cash, Cash Equivalents and Short-Term Investments	1.05B	1.12B	1.18B	1.11B	1.34B	1.62B
Total Debt	2.56B	2.69B	2.67B	3.02B	3.40B	3.59B
Total Liabilities	5.50B	5.67B	5.50B	6.00B	6.49B	6.94B
Stockholders Equity	955.00M	1.23B	1.90B	2.83B	3.14B	3.09B
Cash Flow
Free Cash Flow	-42.00M	-67.00M	-375.00M	62.00M	482.00M	525.00M
Operating Cash Flow	202.00M	435.00M	674.00M	599.00M	792.00M	702.00M
Investing Cash Flow	-201.00M	-424.00M	-826.00M	-183.00M	-560.00M	-1.49B
Financing Cash Flow	-116.00M	-98.00M	245.00M	-726.00M	-534.00M	1.95B

ams-OSRAM Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:AMS, the sentiment is Negative. The current price of 7.54 is below the 20-day moving average (MA) of 7.78, below the 50-day MA of 9.79, and below the 200-day MA of 9.40, indicating a bearish trend. The MACD of -0.66 indicates Negative momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 61.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	CHF2.84B	38.84	11.64%	1.32%	13.03%	20.38%
IFCN	69 Neutral	CHF2.44B	27.04	―	2.10%	-0.84%	-8.41%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UBXN	58 Neutral	CHF1.02B	-9.02	-20.37%	―	-27.51%	-36.15%
KUD	48 Neutral	CHF71.85M	-40.51	-52.82%	―	-41.32%	89.56%
AMS	45 Neutral	CHF754.80M	-4.78	-14.27%	―	-5.48%	79.75%
LEHN	45 Neutral	CHF332.71M	50.85	5.19%	―	-11.90%	-78.34%

ams-OSRAM Corporate Events

ams-OSRAM Reports Strong Q3 Performance and Strategic Progress

ams-OSRAM AG reported a strong free cash flow of 43 million EUR in the third quarter, with a 9% growth in its semiconductor core business, indicating the success of its strategic direction. The company is on track with its debt reduction plan and continues to invest in advanced technology platforms, which could enhance its market position and provide significant benefits to stakeholders.