tiprankstipranks
Trending News
More News >
Ams-Osram Ag (CH:AMS)
:AMS
Advertisement

ams-OSRAM (AMS) AI Stock Analysis

Compare
6 Followers

Top Page

CH:AMS

ams-OSRAM

(OTC:AMS)

Rating:56Neutral
Price Target:
CHF11.00
▲(1.29%Upside)
ams-OSRAM has a challenging financial position with declining revenues and persistent losses, which significantly impacts its overall score. Technical indicators provide some positive signs, but valuation concerns due to negative earnings weigh heavily. Earnings call insights about strategic improvements offer some optimism, yet financial and market uncertainties persist.
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 advanced sensor solutions and photonics products to a wide range of industries. Key revenue streams include the automotive sector, where the company supplies intelligent sensor systems for applications such as driver assistance and interior lighting. In the consumer electronics sector, ams-OSRAM provides optical sensors for mobile devices, enhancing features like facial recognition and ambient light detection. The company also generates revenue from the industrial and medical sectors by offering innovative solutions for automation and diagnostic equipment. Additionally, strategic partnerships and collaborations with technology companies and manufacturers contribute to its earnings by expanding market reach and driving technological advancements.

ams-OSRAM Earnings Call Summary

Earnings Call Date:Apr 30, 2025
(Q1-2025)
|
% Change Since: 58.66%|
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 significant financial challenges, including declining revenues and persistent net losses. The company has a high debt burden and negative cash flow, but efforts in deleveraging and some improvement in cash generation are noted.
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.43B3.59B4.82B5.04B3.50B
Gross Profit857.00M1.02B1.26B1.44B1.03B
EBITDA462.00M471.00M855.00M938.00M613.00M
Net Income-786.00M-1.61B-444.00M-32.00M-90.00M
Balance Sheet
Total Assets6.90B7.40B8.83B9.64B9.96B
Cash, Cash Equivalents and Short-Term Investments1.12B1.18B1.11B1.34B1.62B
Total Debt2.69B2.67B3.02B3.40B3.59B
Total Liabilities5.67B5.50B6.00B6.49B6.94B
Stockholders Equity1.23B1.90B2.83B3.14B3.09B
Cash Flow
Free Cash Flow-67.00M-375.00M62.00M482.00M525.00M
Operating Cash Flow435.00M674.00M599.00M792.00M702.00M
Investing Cash Flow-424.00M-826.00M-183.00M-560.00M-1.49B
Financing Cash Flow-98.00M245.00M-726.00M-534.00M1.95B

ams-OSRAM Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price10.86
Price Trends
50DMA
9.67
Positive
100DMA
8.67
Positive
200DMA
8.07
Positive
Market Momentum
MACD
0.58
Positive
RSI
47.12
Neutral
STOCH
18.47
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 10.86 is below the 20-day moving average (MA) of 11.73, above the 50-day MA of 9.67, and above the 200-day MA of 8.07, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 18.47 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
CHF11.43B21.0228.96%0.02%5.97%6.79%
72
Outperform
$4.93B45.2418.34%0.03%-25.15%-3.55%
63
Neutral
£505.90M23.87-8.45%173.32%4.53%-18.72%
63
Neutral
CHF1.49B
4.32%0.62%-107.20%
56
Neutral
CHF1.06B-13.29%-3.98%95.78%
54
Neutral
CHF752.30M-24.38%1.09%-54.43%-1090.31%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:AMS
ams-OSRAM
10.74
-1.52
-12.36%
CH:TEMN
Temenos
72.95
12.43
20.54%
CH:LOGN
Logitech
76.52
-1.07
-1.38%
CH:UBXN
u-blox Holding AG
101.80
21.50
26.77%
CH:SWON
SoftwareOne Holding Ltd.
6.85
-9.63
-58.43%

ams-OSRAM Corporate Events

ams OSRAM Issues €500M Bonds for Strategic Debt Management and Reports Strong Q2 Results
Jul 23, 2025

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
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.

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.Date of analysis: Jul 24, 2025