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ams-OSRAM (CH:AMS)
:AMS
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ams-OSRAM
(AMS)
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Rating:42Neutral
Price Target:
CHF7.00
▼(-0.99% Downside)
The overall stock score is primarily impacted by the company's financial challenges and bearish technical indicators. The financial performance is weak, with declining revenue, high leverage, and negative cash flow growth. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and oversold conditions. Valuation metrics are also unfavorable, with a negative P/E ratio and no dividend yield. While the earnings call provided some positive insights, it was not enough to significantly offset the negative factors.
Positive Factors
Improved Profitability
The improvement in EBITDA margin indicates enhanced operational efficiency and cost management, which can lead to better long-term profitability and financial health.
Strong Sensor Business Growth
Growth in the sensor business reflects strong demand and market position, supporting revenue stability and expansion in a key segment.
Market Leadership Achieved
Achieving market leadership in LEDs strengthens competitive advantage, enhancing brand reputation and customer trust, which can drive future sales.
Negative Factors
Revenue Decline
A decline in revenue indicates potential challenges in market demand and pricing power, affecting long-term growth prospects and financial performance.
High Leverage
High leverage increases financial risk and limits flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.
Negative Free Cash Flow Growth
Negative free cash flow growth indicates difficulties in generating cash, which can constrain operations and strategic investments, impacting long-term sustainability.
ams-OSRAM (AMS) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$751.33M
Dividend YieldN/A
Average Volume (3M)543.55K
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth-5.48%
EPS Growth79.75%
CountryCH
Employees19,700
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.25
Shares Outstanding99,844,390
10 Day Avg. Volume835,302
30 Day Avg. Volume543,554
Financial Highlights & Ratios
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 Cap3.44
Enterprise Value/Revenue0.77
Enterprise Value/Gross Profit3.15
Enterprise Value/Ebitda3.96
Forecast
1Y Price Target
$9.33Price Target Upside31.94% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
ams-OSRAM Business Overview & Revenue Model
Company Descriptionams-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 Moneyams-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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 10, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several achievements such as improved profitability, strong sensor business growth, and significant design wins. However, challenges were noted in revenue decline, currency impact, and uncertainty in the supply chain. The overall sentiment leans towards a cautious optimism as positives slightly outweigh the negatives.Q2-2025 Updates
Positive Updates
Improved Profitability
Adjusted EBITDA margin improved by more than 2 percentage points to 18.8% quarter-over-quarter and year-over-year.
Strong Sensor Business Growth
Sensors and ASICs business grew by 7% year-over-year, with adjusted EBITDA increasing to EUR 43 million, showing structural improvement in profitability.
Market Leadership Achieved
The company is now considered the #1 in market share in the LED market according to TrendForce.
Significant Design Wins
Secured designs with a cumulated lifetime value of EUR 2.5 billion, with over 2,000 individual designs won.
Reestablish-the-Base Program Ahead of Schedule
Achieved EUR 160 million in implemented run-rate savings, 6 months ahead of schedule.
Deleveraging and Financing Progress
Extended revolving EUR 800 million credit facility and secured long-term financing until 2029.
Negative Updates
Revenue Decline
Revenues year-over-year are down 5% due to cyclical inventory correction in automotive LEDs and weaker U.S. dollar.
Challenges in Automotive Lamps
Steep inventory correction in U.S. automotive lamps aftermarket contributed to revenue decline.
Currency Impact
Weaker U.S. dollar resulted in a EUR 35 million top-line reduction compared to the previous quarter.
Uncertainty in Supply Chain
Continued uncertainty in the supply chain with short-term ordering affecting automotive segment.
Industrial Automation Demand Muted
Demand in industrial automation remains muted due to inventories at customers.
Company Guidance
During the call, the company provided extensive guidance on its second-quarter results, emphasizing key financial metrics and strategic progress. Revenues for the quarter were reported at EUR 775 million, aligning with the midpoint of the guidance, and reflected a 5% year-over-year decline mainly due to cyclical inventory corrections and currency impacts. Despite lower revenues, the adjusted EBITDA margin improved by over 2 percentage points to 18.8%, showcasing an enhanced earnings profile facilitated by the Reestablish-the-Base program, which has already achieved its 2025 year-end savings target of EUR 160 million. In the semiconductor segment, revenues increased slightly by 2% quarter-over-quarter, with adjusted EBITDA surging by more than 60% to EUR 79 million, resulting in a 23% margin. The company also highlighted a strong book-to-bill ratio above 1 in the automotive sector, signaling potential stabilization post-inventory corrections. Additionally, the company secured design wins with a cumulative lifetime value of EUR 2.5 billion, maintaining its momentum in the semiconductor market. Looking forward, for the third quarter, revenue is expected to range between EUR 790 million and EUR 890 million, with an adjusted EBITDA margin forecasted at 19.5% plus or minus 1.5 percentage points, despite anticipated currency headwinds. For fiscal year 2025, the company remains optimistic about surpassing the previous year's performance, driven by stronger second-half revenues, continued cost savings, and strategic growth initiatives.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.45
Neutral
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.40
Negative
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.50
Neutral
| 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
Negative
7.07
Price Trends
10.41
Negative
10.49
Negative
9.50
Negative
Market Momentum
-0.90
Positive
26.60
Positive
26.39
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 7.07 is below the 20-day moving average (MA) of 8.90, below the 50-day MA of 10.41, and below the 200-day MA of 9.50, indicating a bearish trend. The MACD of -0.90 indicates Positive momentum. The RSI at 26.60 is Positive, neither overbought nor oversold. The STOCH value of 26.39 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | CHF2.73B | 37.28 | 11.64% | 1.30% | 13.03% | 20.38% | |
69 Neutral | CHF2.33B | 25.79 | ― | 2.09% | -0.84% | -8.41% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $1.02B | -8.98 | -20.37% | ― | -27.51% | -36.15% | |
48 Neutral | $76.91M | -44.05 | -52.82% | ― | -41.32% | 89.56% | |
45 Neutral | $495.08M | 58.99 | 5.19% | ― | -11.90% | -78.34% | |
42 Neutral | $751.33M | ― | -14.27% | ― | -5.48% | 79.75% |
* Technology Sector Average
CH:AMS
ams-OSRAM
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17.21%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.