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ams-OSRAM (CH:AMS)
:AMS
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ams-OSRAM
(AMS)
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Rating:48Neutral
Price Target:
CHF10.00
▼(-4.76% Downside)
The overall stock score is primarily impacted by financial performance challenges, including declining revenue and high leverage. Technical analysis indicates bearish momentum, while valuation metrics are unattractive due to negative profitability. The earnings call provides some optimism with improved profitability and strategic wins, but challenges remain.
Positive Factors
Improved Profitability
The improvement in EBITDA margin indicates better cost management and operational efficiency, enhancing long-term profitability and competitiveness.
Strong Sensor Business Growth
Growth in the sensor business reflects strong demand and market position, supporting future revenue streams and technological leadership.
Significant Design Wins
Winning significant design contracts ensures a steady pipeline of future revenue and strengthens customer relationships, bolstering market presence.
Negative Factors
Declining Revenue
A decline in revenue indicates challenges in maintaining sales momentum, which can impact long-term growth and financial health.
High Leverage
High leverage increases financial risk and limits flexibility, potentially affecting the company's ability to invest in growth opportunities.
Negative Free Cash Flow
Negative free cash flow indicates challenges in cash generation, which can hinder the company's ability to fund operations and strategic initiatives.
ams-OSRAM (AMS) vs. iShares MSCI Switzerland ETF (EWL)
Market Cap
$1.05B
Dividend YieldN/A
Average Volume (3M)414.00K
Price to Earnings (P/E)―
Beta (1Y)2.47
Revenue Growth-5.11%
EPS Growth88.12%
CountryCH
Employees19,700
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.17
Shares Outstanding99,844,390
10 Day Avg. Volume304,938
30 Day Avg. Volume414,000
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 Cap2.40
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit3.08
Enterprise Value/Ebitda3.87
Forecast
1Y Price Target
$13.70Price Target Upside30.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 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 Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 18, 2025
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
Neutral
10.50
Price Trends
10.96
Negative
10.90
Negative
9.44
Positive
Market Momentum
-0.28
Positive
43.97
Neutral
18.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:AMS, the sentiment is Neutral. The current price of 10.5 is below the 20-day moving average (MA) of 11.09, below the 50-day MA of 10.96, and above the 200-day MA of 9.44, indicating a neutral trend. The MACD of -0.28 indicates Positive momentum. The RSI at 43.97 is Neutral, neither overbought nor oversold. The STOCH value of 18.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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% | 1.31% | 13.03% | 20.38% | |
69 Neutral | CHF2.33B | 25.79 | ― | 2.07% | -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 | $1.05B | -9.82 | -9.68% | ― | -5.11% | 88.12% | |
48 Neutral | $76.91M | -44.05 | -52.82% | ― | -41.32% | 89.56% | |
45 Neutral | $495.08M | 58.99 | 5.19% | ― | -11.90% | -78.34% |
* Technology Sector Average
CH:AMS
ams-OSRAM
10.50
3.96
60.45%
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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.