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u-blox Holding AG (CH:UBXN)
:UBXN

u-blox Holding AG (UBXN) AI Stock Analysis

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u-blox Holding AG

(OTC:UBXN)

Rating:60Neutral
Price Target:
CHF98.00
▼(-0.91%Downside)
The overall score reflects significant financial performance challenges and valuation concerns, partially offset by positive technical indicators and strategic improvements highlighted in the earnings call.
Positive Factors
Business Growth
Positioning business is expected to grow more than 10% in 2025.
Strategic Focus
A future strategic focus purely on Positioning would change the investment case for the better and improve sentiment on the stock.
Negative Factors
Auto and Industrial Demand
Persisting demand weakness in industrial applications and deteriorating auto demand will remain a burden going into 2025.
Financial Performance
Sales forecast is reduced significantly, leading to heavy losses also in 2025.
Guidance and Forecast
The disappointment today is the guidance for Q4 sales in a range of CHF 60m to CHF 70m with a negative EBIT margin of -25% to -15%.

u-blox Holding AG (UBXN) vs. iShares MSCI Switzerland ETF (EWL)

u-blox Holding AG Business Overview & Revenue Model

Company Descriptionu-blox Holding AG develops, manufactures, and markets products and services supporting GPS/GNSS satellite positioning systems for the automotive, industrial, and consumer markets worldwide. The company operates in two segments, Positioning and Wireless Products, and Wireless Services. The Positioning and Wireless Products segment develops and sells chips and modules designed for positioning and wireless connectivity. The Wireless Services segment offers wireless communication technology services in terms of reference designs and software. The company offers a range of GPS/GNSS positioning products, including satellite receiver chips and chipsets, receiver modules, receiver boards, antennas, and smart antennas, which are in used for navigation, automatic vehicle location, security, traffic control, location-based services, timing, and agriculture. u-blox Holding AG was founded in 1997 and is based in Thalwil, Switzerland.
How the Company Makes Moneyu-blox makes money primarily through the sale of its semiconductor products and modules, which are used in a wide range of applications from automotive systems to industrial machinery and consumer electronics. The company's revenue model includes direct sales of its GPS and wireless communication modules, as well as licensing of its technology to other manufacturers. Additionally, u-blox benefits from strategic partnerships with key players in the tech industry, which help to expand its market reach and drive sales. Its earnings are significantly influenced by the growing demand for IoT solutions and the increasing need for reliable connectivity and positioning technologies in various industries.

u-blox Holding AG Earnings Call Summary

Earnings Call Date:Feb 26, 2025
(Q4-2024)
|
% Change Since: 42.30%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a challenging year for u-blox, with significant revenue decline and losses. However, the company has made strategic decisions to streamline operations and focus on high-margin segments, positioning itself for future growth. Cost optimization efforts have been successful, and a strong cash position provides a solid foundation for recovery.
Q4-2024 Updates
Positive Updates
Cost Optimization Success
u-blox exceeded their cost optimization target, achieving total savings of CHF25 million versus the initial target of CHF20 million.
Positive Cash Flow Despite Challenges
In a challenging year, u-blox managed to achieve a solid free cash flow of CHF10 million.
Gross Margin Improvement
The company's gross margin improved by almost 200 basis points, reaching 46% in 2024.
Strong Cash Position
u-blox concluded the year with a strong net cash position of CHF91 million, higher than previous years.
Locate Business Focus
The strategic decision to focus on the Locate business, with expectations of double-digit growth in 2025.
Negative Updates
Revenue Halved
Revenue halved in 2024 due to overstocking at customers and continued softness in end markets.
EBIT Losses
EBIT went from CHF70 million in 2023 to negative CHF60 million in 2024.
Cellular Business Phaseout
Decision to phase out the Cellular business, which once contributed 1/3 of the revenue, resulting in a CHF31 million loss in 2024.
Workforce Reduction
A 20% reduction in workforce was necessary to achieve cost savings.
Challenging Automotive Market
Weak performance in the automotive market outside of China affected fourth-quarter results.
Company Guidance
In the u-blox Full Year 2024 Results Conference Call, the company provided several important metrics and updates. They reported a solid free cash flow of CHF10 million despite a challenging year, with significant cost reductions exceeding their CHF20 million target, achieving CHF25 million in savings. The company's gross margin improved by almost 200 basis points, reaching 46% in 2024. They also announced a strategic shift to focus on their Locate business, with a target financial model aiming for revenue of CHF350 million and a cash EBIT margin of over 25%. The company executed a 20% workforce reduction and plans to phase out their Cellular business, which previously contributed a third to their revenue. A significant reduction in R&D capitalization was made, with expectations of low single-digit capitalization in 2025. The balance sheet ended with a strong net cash position of CHF91 million, highlighting the company's financial resilience and strategic direction focused on driving future growth and profitability.

u-blox Holding AG Financial Statement Overview

Summary
u-blox Holding AG exhibits financial instability with declining revenues and negative profit margins, despite a strong equity base. Leverage is a concern, and cash flow management shows room for improvement.
Income Statement
45
Neutral
The income statement of u-blox Holding AG shows significant revenue volatility with a notable decline in recent years. The gross profit margin has decreased from historical highs, and net profit margins have turned negative, indicating profitability challenges. EBIT and EBITDA margins have also been negative for the most recent year, reflecting operational inefficiencies.
Balance Sheet
60
Neutral
The balance sheet demonstrates a strong equity position with a favorable equity ratio, suggesting financial stability. However, the debt-to-equity ratio indicates a manageable level of debt, which, combined with declining equity, suggests potential leverage risks. Return on equity has been negative recently, pointing to profitability issues.
Cash Flow
55
Neutral
u-blox Holding AG's cash flow statement reveals fluctuating free cash flow with recent improvements, yet operating cash flow remains modest compared to net income, indicating potential cash generation issues. The free cash flow to net income ratio demonstrates better cash management, but consistency is lacking.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue262.88M576.91M623.85M414.06M333.51M
Gross Profit120.09M253.89M270.65M158.03M127.81M
EBITDA-59.60M35.20M161.79M65.58M-45.13M
Net Income-88.91M-8.63M101.77M15.33M-64.63M
Balance Sheet
Total Assets437.92M593.11M673.17M508.70M521.89M
Cash, Cash Equivalents and Short-Term Investments90.95M126.88M137.75M83.75M94.37M
Total Debt29.66M31.88M95.05M92.63M153.67M
Total Liabilities116.96M191.25M261.18M206.69M239.21M
Stockholders Equity320.96M401.86M412.00M302.01M282.55M
Cash Flow
Free Cash Flow6.48M10.01M65.04M52.05M-5.72M
Operating Cash Flow36.75M59.17M116.05M95.16M37.07M
Investing Cash Flow-26.61M-48.31M-51.30M-42.00M-55.98M
Financing Cash Flow-46.69M-20.18M-9.25M-65.00M-8.84M

u-blox Holding AG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price98.90
Price Trends
50DMA
92.24
Positive
100DMA
82.92
Positive
200DMA
76.93
Positive
Market Momentum
MACD
1.96
Positive
RSI
58.81
Neutral
STOCH
64.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UBXN, the sentiment is Positive. The current price of 98.9 is above the 20-day moving average (MA) of 97.67, above the 50-day MA of 92.24, and above the 200-day MA of 76.93, indicating a bullish trend. The MACD of 1.96 indicates Positive momentum. The RSI at 58.81 is Neutral, neither overbought nor oversold. The STOCH value of 64.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:UBXN.

u-blox Holding AG Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
¥228.59B14.337.64%2.71%9.13%8.49%
60
Neutral
CHF730.87M-24.38%1.09%-54.43%-1090.31%
$1.49B-13.29%
CHF1.61B22.5211.32%2.18%
$96.16M5.65-52.12%
CHF1.69B
3.08%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CH:UBXN
u-blox Holding AG
98.90
6.70
7.27%
AUKUF
ams-OSRAM
9.65
-6.55
-40.43%
GB:0QNH
HUBER+SUHNER AG
86.00
10.26
13.55%
KDCXF
Kudelski SA
1.15
-0.02
-1.71%
CH:SWON
SoftwareOne Holding Ltd.
7.85
-8.53
-52.08%

u-blox Holding AG Corporate Events

u-blox Completes Cellular Business Divestment to Trasna
Jun 6, 2025

u-blox has completed the divestment of its Cellular business to Trasna, a strategic move to concentrate on its core positioning technologies. This transaction is expected to provide a strong foundation for the Cellular business’s growth under new ownership, while u-blox anticipates continued revenue growth and business recovery, excluding the Cellular segment, with a focus on its Locate and Short-Range divisions.

The most recent analyst rating on (CH:UBXN) stock is a Hold with a CHF77.00 price target. To see the full list of analyst forecasts on u-blox Holding AG stock, see the CH:UBXN Stock Forecast page.

u-blox Unveils Triple-Band GNSS Module for Robotics
May 20, 2025

u-blox has launched the ZED-F20P, a triple-band GNSS module designed for high-precision applications in ground and air robotics, offering centimeter-level RTK and PPP-RTK accuracy. This product enhances u-blox’s ZED portfolio, providing seamless integration and rapid deployment for OEMs, and is expected to accelerate market entry for autonomous platforms, particularly in the robotic lawnmower sector.

The most recent analyst rating on (CH:UBXN) stock is a Hold with a CHF77.00 price target. To see the full list of analyst forecasts on u-blox Holding AG stock, see the CH:UBXN Stock Forecast page.

u-blox Expands GNSS Correction Services with PointPerfect Global
May 13, 2025

u-blox has launched PointPerfect Global, a new addition to its GNSS correction services portfolio, offering seamless worldwide coverage and sub-decimeter positioning accuracy. This service is designed for precision applications in agriculture, UAVs, and autonomous robotics, providing reliable performance even in remote areas. PointPerfect Global enhances u-blox’s market position by enabling scalable deployment across continents, reducing operational complexity, and supporting mass-market autonomy in various sectors, including industrial automation and automotive.

The most recent analyst rating on (CH:UBXN) stock is a Hold with a CHF77.00 price target. To see the full list of analyst forecasts on u-blox Holding AG stock, see the CH:UBXN Stock Forecast page.

u-blox Reports Strong Q1 2025 Growth and Strategic Focus Shift
Apr 23, 2025

u-blox reported strong revenue growth in Q1 2025, with a 26% year-over-year increase, driven by demand in automotive and industrial sectors. The company is divesting its Cellular business to focus on its Locate segment, anticipating continued growth in GNSS products, particularly in China, where automated driving is gaining momentum. The strategic shift aims to improve profitability and market positioning, with expectations of double-digit revenue growth in Locate and Short-range segments throughout 2025.

u-blox Shareholders Approve Board Proposals at 2025 AGM
Apr 17, 2025

At the Ordinary General Meeting 2025, u-blox shareholders approved all motions proposed by the Board of Directors, including the re-election of André Müller as Chairman and other board members. The compensation report for 2024 was also approved, ensuring stability in the company’s governance and compensation structures. This approval reflects strong shareholder confidence in u-blox’s leadership and strategic direction, potentially reinforcing its position in the competitive technology market.

u-blox Launches ANNA-B5 Bluetooth LE Module for IoT
Apr 10, 2025

u-blox has launched the ANNA-B5, a compact and secure Bluetooth LE module optimized for IoT applications. Built on Nordic Semiconductor’s advanced SoC, the module offers robust performance, high security, and seamless connectivity, setting a new standard for wireless MCU solutions in various IoT segments. Its ultra-small design and low power consumption make it ideal for battery-powered applications, enhancing the company’s position in the IoT market.

u-blox Divests Dual Mode Cellular-Satellite Business to Trident IoT
Apr 7, 2025

u-blox has divested its dual mode cellular-satellite communications business to Trident IoT, Inc., as part of its strategic focus on its Locate business. This move allows u-blox to concentrate on its core competencies while ensuring continuity for its customers and innovation in satellite communication technologies. The acquisition positions Trident IoT to leverage growing opportunities in the IoT industry, enhancing its market presence with proven technology and expertise.

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: Jun 05, 2025