Elma Electronic AG (ELMN) AI Stock Analysis

• Market Cap: CHF287.90M
• Dividend Yield: 0.16%
• Average Volume (3M): 8.00
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.02
• Revenue Growth: -0.64%
• EPS Growth: -5.79%
• Country: CH
• Employees: 828
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): 19.46
• Shares Outstanding: 228,492
• 10 Day Avg. Volume: 15
• 30 Day Avg. Volume: 8
• PEG Ratio: 0.41
• Price to Book (P/B): 3.67
• Price to Sales (P/S): 1.35
• P/FCF Ratio: 18.79
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: CHF1,399.00 ▲(10.16% Upside)

Elma Electronic AG's stock score is primarily driven by its strong financial performance and positive technical indicators. The company's robust revenue growth, profitability, and cash flow generation are significant strengths. However, the high P/E ratio and low dividend yield present valuation concerns, slightly offsetting the overall positive outlook.

Positive Factors

Financial Health

A lower debt-to-equity ratio indicates reduced leverage, enhancing financial stability and providing greater flexibility for future investments.

Cash Generation

Strong cash generation supports operational needs and strategic investments, ensuring the company can sustain growth and manage economic fluctuations.

Profitability

Improved profitability margins indicate effective cost management and pricing strategies, enhancing the company's competitive position and financial resilience.

Negative Factors

Revenue Growth

Negative revenue growth suggests challenges in market expansion or product demand, potentially impacting long-term business sustainability and competitive standing.

EPS Growth

Declining EPS growth may indicate inefficiencies or increased costs, affecting investor confidence and the company's ability to reinvest in growth opportunities.

Dividend Yield

A low dividend yield may deter income-focused investors, potentially limiting the attractiveness of the stock and impacting market perception of the company's financial health.

Elma Electronic AG Business Overview & Revenue Model

Company Description

Elma Electronic AG is a leading global provider of modular electronic packaging solutions and systems for various industries, including telecommunications, military, aerospace, and industrial automation. Established in Switzerland, the company specializes in the design and manufacture of enclosures, backplanes, and other electronic components, offering both standard and customized products to meet diverse customer needs. With a focus on quality and innovation, Elma serves a wide range of clients, ensuring reliable and efficient solutions for complex electronic systems.

How the Company Makes Money

Elma Electronic AG primarily generates revenue through the sale of its electronic packaging products, which include enclosures, backplanes, and related components. The company operates on a business model that combines standard product offerings with customized solutions tailored to specific client requirements. Key revenue streams include direct sales to clients in sectors such as telecommunications and defense, as well as partnerships with distributors and system integrators who expand their market reach. Additionally, Elma benefits from long-term contracts and collaborations with major industry players, enhancing its financial stability and growth prospects.

Elma Electronic AG Financial Statement Overview

Summary

Elma Electronic AG demonstrates robust financial health with steady revenue growth, improved profitability, and strong cash generation. The balance sheet reflects a solid equity position with manageable debt levels. While the company shows impressive operational improvements, continued focus on maintaining cash flow stability will be crucial for sustained growth.

Income Statement

Elma Electronic AG has shown consistent revenue growth over the years, with a notable increase of 6.37% from 2023 to 2024. The gross profit margin improved to 32.88% in 2024, indicating effective cost management. Net profit margin increased to 4.78%, reflecting enhanced profitability. The EBIT and EBITDA margins also improved, reaching 6.60% and 8.49%, respectively, highlighting operational efficiency.

Balance Sheet

The company's debt-to-equity ratio improved to 0.36 in 2024, indicating reduced leverage and a stronger equity position. The return on equity (ROE) increased to 12.99%, showcasing efficient use of shareholders' equity to generate profits. The equity ratio improved to 52.81%, reflecting a solid financial foundation with over half of the assets financed by equity.

Cash Flow

The free cash flow showed a significant recovery, moving from negative to positive $12.77 million in 2024. The operating cash flow to net income ratio was 2.23, suggesting strong cash generation relative to reported earnings. The free cash flow to net income ratio also improved to 1.50, indicating effective conversion of income into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	178.28M	177.77M	167.14M	154.66M	149.28M	147.04M
Gross Profit	59.31M	58.48M	50.33M	40.98M	43.08M	38.70M
EBITDA	14.88M	15.09M	10.24M	8.68M	12.48M	10.31M
Net Income	8.44M	8.50M	5.01M	4.16M	7.54M	5.58M
Balance Sheet
Total Assets	115.75M	123.86M	110.87M	104.20M	97.58M	91.80M
Cash, Cash Equivalents and Short-Term Investments	17.67M	22.21M	8.95M	8.94M	6.50M	10.62M
Total Debt	23.11M	23.30M	22.95M	19.50M	20.79M	27.50M
Total Liabilities	51.95M	58.47M	56.96M	50.33M	47.00M	49.21M
Stockholders Equity	63.80M	65.40M	53.91M	53.87M	50.58M	42.59M
Cash Flow
Free Cash Flow	7.27M	12.77M	-2.60M	4.27M	2.50M	7.38M
Operating Cash Flow	13.77M	18.99M	176.00K	6.91M	5.74M	10.33M
Investing Cash Flow	-6.71M	-5.96M	-2.77M	-2.65M	-3.09M	-2.92M
Financing Cash Flow	183.00K	-198.00K	3.00M	-1.74M	-6.69M	-3.71M

Elma Electronic AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1270.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:ELMN, the sentiment is Positive. The current price of 1270 is above the 20-day moving average (MA) of 1262.50, above the 50-day MA of 1252.60, and above the 200-day MA of 1159.77, indicating a neutral trend. The MACD of 3.22 indicates Positive momentum. The RSI at 51.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:ELMN.

Elma Electronic AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELMN	72 Outperform	CHF287.90M	34.11	―	0.16%	-0.64%	-5.79%
MIKN	67 Neutral	CHF331.59M	10.69	14.20%	2.47%	-1.94%	6.63%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STGN	54 Neutral	CHF167.98M	-44.74	―	3.42%	-1.46%	-115.85%
FTON	45 Neutral	$139.98M	-3.01	-9.74%	―	-15.70%	-670.93%