VAT Group AG (VACN) AI Stock Analysis

• Market Cap: CHF10.12B
• Dividend Yield: 1.85%
• Average Volume (3M): 81.15K
• Price to Earnings (P/E): 47.8
• Beta (1Y): 1.23
• Revenue Growth: 6.43%
• EPS Growth: 11.31%
• Country: CH
• Employees: 3,202
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 3.93
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 83,394
• 30 Day Avg. Volume: 81,151
• PEG Ratio: -1.46
• Price to Book (P/B): 9.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.46
• 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: CHF326.60
• Price Target Upside: -1.98% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: CHF369.00 ▲(10.74%Upside)

VAT Group's strong financial performance and positive earnings call sentiment drive the score. The technical analysis indicates stability, while high valuation poses some risk. Overall, the company's growth prospects in the semiconductor market are promising despite valuation concerns.

Positive Factors

Market Growth

China remains an important end market that should continue to see growth for VAT.

Potential Price Catalyst

A positive inflection in DRAM spot prices would be a catalyst for the share price.

Sales Guidance

VAT is guiding for sales of CHF275-295m in Q1-25, up 10% Q/Q on an adjusted basis.

Negative Factors

Consensus Expectations

Consensus expectations are much higher with +23% sales growth Y/Y, which was not confirmed by VAT in the press release.

Earnings Projection

Analyst expects that consensus for 2025 will be reduced >10% at the EPS level.

Revenue Headwinds

Lower China revenue for the non-Chinese OEMs is seen as a material headwind to the overall market, impacting the growth of VAT's main US customers.

VAT Group AG Business Overview & Revenue Model

Company Description

VAT Group AG, together with its subsidiaries, develops, manufactures, and supplies vacuum valves in Switzerland, rest of Europe, the United States, Japan, Korea, Singapore, China, rest of Asia, and internationally. The company operates through two segments, Valves and Global Service. The Valves segment offers vacuum valves for the semiconductor, displays, photovoltaics, and vacuum coating industries, as well as for the industrial and research sectors. The Global Service segment provides spare parts, repairs, and upgrades, as well as support services. It also offers gas inlet valves, multi valve modules, vacuum chambers with integrated valves, motion and mechanical components, and edge-welded metal bellows. VAT Group AG was founded in 1965 is headquartered in Sennwald, Switzerland.

How the Company Makes Money

VAT Group AG generates revenue primarily through the sale of its vacuum valves and related products. The company serves a diverse range of industries, including semiconductors, which is its largest market due to the high demand for precision vacuum technology in chip manufacturing. Revenue streams include direct product sales, maintenance services, and long-term supply agreements with major technology firms. VAT Group AG benefits from strategic partnerships with leading equipment manufacturers, which enhance its market reach and provide stable revenue through continuous demand for advanced vacuum solutions. Additionally, the company's focus on research and development ensures a steady pipeline of innovative products, further driving sales and profitability.

VAT Group AG Financial Statement Overview

Summary

VAT Group AG shows strong financial health with robust revenue growth and a solid balance sheet. The company's low leverage and positive cash flow indicate financial stability, despite a temporary dip in EBIT margin and cash conversion concerns.

Income Statement

VAT Group AG has shown steady revenue growth over the years, with significant improvements in income metrics. The Gross Profit Margin has been strong, indicating efficient cost management. However, EBIT Margin dropped to zero in the most recent period, raising concerns about operational efficiency.

Balance Sheet

The company presents a solid balance sheet with zero total debt in the latest period, indicating financial stability. The Equity Ratio is healthy, and Return on Equity is strong, reflecting effective use of shareholder funds. Overall, the balance sheet shows low leverage and high equity, minimizing financial risks.

Cash Flow

The cash flow statement reveals robust operating cash flow, with positive Free Cash Flow in recent years. However, there is a decline in Free Cash Flow growth rate, and the operating cash flow to net income ratio has decreased, highlighting potential cash conversion issues.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	942.20M	885.32M	1.15B	901.16M	692.43M
Gross Profit	634.15M	299.64M	469.65M	336.00M	224.26M
EBITDA	303.15M	255.99M	402.28M	306.86M	200.98M
Net Income	211.80M	190.31M	306.78M	217.44M	127.94M
Balance Sheet
Total Assets	1.29B	1.17B	1.28B	1.07B	993.96M
Cash, Cash Equivalents and Short-Term Investments	158.15M	144.15M	174.40M	127.19M	137.90M
Total Debt	241.79M	207.31M	211.18M	206.94M	266.34M
Total Liabilities	540.87M	411.30M	496.58M	435.13M	449.39M
Stockholders Equity	753.88M	757.16M	780.32M	634.37M	544.57M
Cash Flow
Free Cash Flow	184.97M	187.17M	223.50M	192.00M	141.79M
Operating Cash Flow	240.64M	256.41M	289.74M	234.97M	161.08M
Investing Cash Flow	-57.39M	-67.65M	-66.22M	-44.23M	-19.22M
Financing Cash Flow	-172.50M	-205.58M	-172.58M	-201.76M	-111.75M

VAT Group AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 333.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:VACN, the sentiment is Neutral. The current price of 333.2 is below the 20-day moving average (MA) of 335.02, above the 50-day MA of 318.24, and below the 200-day MA of 337.02, indicating a neutral trend. The MACD of 4.44 indicates Positive momentum. The RSI at 53.33 is Neutral, neither overbought nor oversold. The STOCH value of 53.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CH:VACN.

VAT Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BUCN	75 Outperform	CHF4.03B	17.78		2.28%	-11.73%	-35.55%
VACN	74 Outperform	CHF10.12B	47.76	27.81%	1.85%	6.43%	11.31%
INRN	71 Outperform	CHF1.69B	27.07		1.56%	-5.25%	-6.32%
KARN	70 Outperform	CHF2.16B	28.07		2.15%	10.38%	18.74%
Sector *	66 Neutral	€9.92B	16.62	3.59%	3.46%	3.75%	-21.04%
SUN	66 Neutral	CHF4.80B	18.36	22.45%	2.46%	7.58%	14.41%
GF	52 Neutral	CHF5.24B	24.46		1.73%	-3.33%	-8.90%

VAT Group AG Corporate Events

VAT Group AG Updates Strategic Priorities and Financial Targets for 2025-2029

VAT Group AG has updated its strategic priorities and financial targets for 2025 to 2029, aiming for sustainable and profitable growth driven by digitalization trends and the demand for advanced semiconductors. The company expects sales growth in the low to mid-teens, with an EBITDA margin between 30% and 37%, and aims to expand its market share through technological advancements and a strong focus on customer relationships. Despite short-term market challenges, VAT remains well-positioned to benefit from the growing semiconductor market, with a revised sales target of CHF 1.5 to 1.7 billion for 2027.

The most recent analyst rating on (CH:VACN) stock is a Buy with a CHF457.00 price target. To see the full list of analyst forecasts on VAT Group AG stock, see the CH:VACN Stock Forecast page.

VAT Group AG Shareholders Approve Board Proposals and Dividend at 2025 General Meeting

At the 2025 General Meeting, VAT Group AG’s shareholders approved all proposals from the Board of Directors, including an unchanged dividend of CHF 6.25 per share. The meeting saw the re-election of Dr. Martin Komischke as Chairman and the election of new board members Clara-Ann Gordon and Mike Allison, while Karl Schlegel stepped down. The shareholders also approved various compensation reports and plans for the Executive Board and Board of Directors, reflecting confidence in the company’s governance and strategic direction.

VAT Group AG Reports 5% Growth Amid Geopolitical Uncertainties

VAT Group AG reported a 5% adjusted growth in revenue for the first quarter of 2025, despite geopolitical uncertainties impacting semiconductor investments. The company anticipates a growth year driven by technological developments and increased demand from Chinese OEMs and hyperscalers, although order and revenue volatility is expected to persist.

VAT Group AG Announces Q1 2025 Results Conference Call

VAT Group AG has announced a media and analyst conference call and webcast scheduled for April 17, 2025, to discuss its Q1 2025 quarterly results. CEO Urs Gantner and CFO Fabian Chiozza will provide insights into market conditions and expectations for the remainder of the year, which could impact the company’s operations and industry positioning.