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ams-OSRAM (CH:AMS)
:AMS

ams-OSRAM (AMS) AI Stock Analysis

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ams-OSRAM

(OTC:AMS)

Rating:51Neutral
Price Target:
CHF7.50
▼(-14.19%Downside)
ams-OSRAM's overall stock score reflects significant financial challenges and valuation concerns, partially offset by strategic improvements and neutral technical indicators. The financial performance is the most impactful factor, with ongoing losses and high leverage posing substantial risks. The earnings call provided some positive insights, but the lack of dividend yield and negative P/E ratio weigh heavily on the stock's attractiveness.
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 (AMS) vs. iShares MSCI Switzerland ETF (EWL)

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 makes money through the sale of its wide range of sensor solutions and optoelectronic products. Key revenue streams include the automotive sector, where the company provides advanced lighting and sensing solutions; the consumer electronics sector, supplying sensors for smartphones and wearable devices; and the industrial and medical sectors, offering components for automation and healthcare technology. The company also benefits from strategic partnerships and collaborations that expand its market reach and technological capabilities. Revenue is primarily generated through product sales, with additional income from licensing agreements and research and development services.

ams-OSRAM Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 27.68%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
While the company reported improved profitability metrics and positive order intake trends, challenges such as cash flow decline, continued net losses, and debt obligations remain. The company's strategic initiatives and successful product launches are promising, but uncertainties related to tariffs and market conditions pose significant risks.
Q1-2025 Updates
Positive Updates
Above Guidance Revenue
Revenues came in at €820 million, above the midpoint of the guidance, despite seasonality and cyclical weaknesses, with a year-over-year decline of only 3%.
Improved Profitability
Adjusted EBITDA margin improved year-over-year by almost 2 percentage points to 16.4%, with a 9% increase in adjusted EBITDA coming in €11 million higher at €135 million, despite lower revenues.
Book-to-Bill Ratio Improvement
Book-to-bill ratio improved to above 1 during the quarter across all business segments, indicating a positive trend in order intake.
Re-establish the Base Program
Realized run rate savings at €135 million by the end of the first quarter, significantly ahead of plan, contributing to structural improvement in profitability.
Successful New Product Launches
Further car models featuring EVIYOS headlamp product are being launched, with significant design wins in automotive, industrial, and consumer segments.
Negative Updates
Operating Cash Flow Decline
First-quarter operating cash flow declined to €10 million from €79 million in the December quarter due to several negative effects, including increased inventories and decreased accounts payable.
Net Earnings and Earnings Per Share
Adjusted net result remained negative at €23 million, with a quarter-over-quarter adjusted earnings per share turning negative from €0.03 in Q4 to minus €0.23 in Q1.
Debt and Liquidity Challenges
Net debt position slightly increased to €1.9 billion, with cash on hand reduced to €573 million by end of March due to planned payback and FX effects.
Tariff and Marketplace Uncertainties
There are uncertainties regarding global car production and sales of smartphones due to potential impacts from tariff wars.
Company Guidance
During the ams-OSRAM first-quarter 2025 earnings call, the company provided guidance highlighting a strategic focus on profitability and cash flow improvement. Revenues for the quarter came in at €820 million, exceeding the midpoint of guidance despite a 7% sequential decline and a 3% year-over-year decrease. The adjusted EBITDA margin improved by nearly 2 percentage points year-over-year to 16.4%. The company aims to achieve run-rate savings of €225 million by the end of 2026, with €135 million already realized by the end of the first quarter. For the full fiscal year 2025, ams-OSRAM expects free cash flow to exceed €100 million, supported by Re-establish the Base program savings and government subsidies. The company also plans to maintain CapEx below 8% of sales and is considering strategic asset sales to generate cash well above €500 million, aiding in debt reduction below 2 times net debt to adjusted EBITDA.

ams-OSRAM Financial Statement Overview

Summary
ams-OSRAM faces substantial financial challenges, highlighted by declining revenues, persistent net losses, and high leverage. While the company has shown some improvement in cash flow and efforts toward deleveraging, profitability remains a significant concern. The semiconductor industry is experiencing rapid changes, and ams-OSRAM must enhance its operational efficiency and financial stability to navigate these challenges effectively.
Income Statement
42
Neutral
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
55
Neutral
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
46
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.40B3.43B3.59B4.82B5.04B3.50B
Gross Profit
848.00M857.00M840.00M1.26B1.44B1.03B
EBIT
71.00M-547.00M-1.43B-323.00M-26.00M2.00M
EBITDA
545.00M462.00M471.00M855.00M938.00M613.00M
Net Income Common Stockholders
-157.00M-786.00M-1.61B-443.00M-32.00M-90.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
644.00M1.12B1.15B1.11B1.34B1.62B
Total Assets
6.18B6.90B7.40B8.83B9.64B9.96B
Total Debt
2.06B2.69B2.67B3.02B3.40B3.59B
Net Debt
1.48B1.59B1.52B1.93B2.06B2.00B
Total Liabilities
5.09B5.67B5.50B6.00B6.49B6.94B
Stockholders Equity
1.09B1.23B1.90B2.83B3.14B3.09B
Cash FlowFree Cash Flow
-44.00M-67.00M-375.00M62.00M482.00M525.00M
Operating Cash Flow
390.00M435.00M674.00M599.00M792.00M702.00M
Investing Cash Flow
-348.00M-424.00M-826.00M-183.00M-560.00M-1.49B
Financing Cash Flow
-556.00M-98.00M245.00M-726.00M-534.00M1.95B

ams-OSRAM Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.74
Price Trends
50DMA
7.24
Positive
100DMA
7.75
Positive
200DMA
7.98
Positive
Market Momentum
MACD
0.31
Negative
RSI
64.76
Neutral
STOCH
91.39
Negative
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 8.74 is above the 20-day moving average (MA) of 7.93, above the 50-day MA of 7.24, and above the 200-day MA of 7.98, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 91.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:AMS.

ams-OSRAM Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
CHAMS
51
Neutral
$776.40M-13.29%-3.98%95.78%
$12.74B20.6228.96%1.56%
$5.08B41.9718.34%1.94%
$843.08M-24.38%1.00%
CHF1.15B
4.04%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:AMS
ams-OSRAM
8.74
-5.38
-38.13%
LOGI
Logitech
85.98
-12.57
-12.75%
TMNSF
Temenos
76.42
11.39
17.51%
UBLXF
u-blox Holding AG
115.26
8.50
7.96%
CH:SWON
SoftwareOne Holding Ltd.
7.42
-9.32
-55.68%

ams-OSRAM Corporate Events

ams-OSRAM AG Announces 2025 Ordinary General Meeting
May 28, 2025

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
May 27, 2025

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.

ams OSRAM Exceeds Q1 Expectations and Plans Debt Reduction
Apr 30, 2025

ams OSRAM reported strong Q1 2025 financial results, with revenue of €820 million and an adjusted EBITDA margin of 16.4%, surpassing expectations. The company is implementing strategic measures to accelerate debt reduction, including potential business unit sales, aiming to improve its financial structure and reduce interest costs, despite economic uncertainties and new US tariff impacts.

ams OSRAM Publishes 2024 Annual and Sustainability Report
Mar 21, 2025

ams OSRAM has released its 2024 annual report, which for the first time includes a sustainability report, reflecting the company’s commitment to societal megatrends such as digitalization, smart living, and sustainability. This publication marks a significant step in the company’s operations, potentially enhancing its industry positioning and stakeholder engagement by aligning with global sustainability goals.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.