VAT Group AG (VACN) AI Stock Analysis

• Market Cap: CHF15.22B
• Dividend Yield: 1.63%
• Average Volume (3M): 128.94K
• Price to Earnings (P/E): 68.1
• Beta (1Y): 1.21
• Revenue Growth: 19.22%
• EPS Growth: 11.62%
• Country: CH
• Employees: 3,202
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 3.52
• Shares Outstanding: 30,000,000
• 10 Day Avg. Volume: 110,134
• 30 Day Avg. Volume: 128,937
• PEG Ratio: 4.34
• Price to Book (P/B): 13.63
• Price to Sales (P/S): 10.91
• P/FCF Ratio: 55.56
• 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: CHF457.37
• Price Target Upside: -8.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: CHF556.00 ▲(11.51% Upside)

The score is driven primarily by solid financial health (notably the debt-free balance sheet and steady growth) and strong technical uptrend signals. These positives are tempered by expensive valuation (high P/E) and signs of overheated momentum (very high RSI/Stoch), plus a recent EBIT margin drop that warrants monitoring.

Positive Factors

Debt-free balance sheet

Zero total debt provides durable financial flexibility: it lowers default and refinancing risk, enables funding of R&D, capex, or strategic M&A from equity or cash, and helps the firm withstand cyclical downturns without pressure from interest expenses or covenant constraints.

Steady revenue growth and strong gross margins

Sustained revenue expansion paired with robust gross margins indicates durable demand and cost control in core products. This supports long-term cash generation, funds reinvestment into product development and services, and underpins competitive pricing power in capital equipment markets.

Market leadership and secular industry exposure

A leading position in vacuum technology and essential role in semiconductor and solar manufacturing create structural advantage: entrenched customer relationships, aftermarket service revenues, and exposure to long-term secular growth in chips and advanced manufacturing that support sustainable demand.

Negative Factors

Recent collapse in EBIT margin

An EBIT margin decline to zero is a significant deterioration in core profitability. If persistent, it undermines operating leverage, reduces retained earnings and reinvestment capacity, and raises questions about pricing, cost control, or adverse product-mix shifts that could impair long-term returns.

Weakening cash conversion and FCF growth

Slowing free-cash-flow growth and weaker cash conversion reduce financial optionality: they constrain organic investment, limit ability to sustain dividends or buybacks, and increase sensitivity to working-capital swings, elevating funding risk during cyclical downturns.

End-market cyclicality and concentration risk

Heavy reliance on semiconductor and solar markets exposes VAT to volatile capital spending cycles and customer concentration. Structural downturns or slowdowns in these sectors can materially reduce equipment orders and spare-parts/service revenue, amplifying earnings and cash-flow volatility.

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 to customers in the semiconductor and industrial manufacturing sectors. The company has a diversified revenue model that includes direct sales to end-users, as well as sales through distributors and partners. Key revenue streams include the sale of new equipment, aftermarket services, and maintenance contracts, which provide ongoing revenue from existing customers. Additionally, VAT Group AG benefits from strategic partnerships with major players in the semiconductor industry, which help enhance its market position and drive sales. The company's focus on research and development enables it to introduce innovative products that meet the evolving needs of its customers, further supporting its revenue growth.

VAT Group AG Financial Statement Overview

Summary

Solid overall fundamentals supported by a strong balance sheet (zero debt, healthy equity ratio, strong ROE) and steady revenue growth. Offsetting factors include EBIT margin dropping to zero in the most recent period and some deterioration in cash conversion/free-cash-flow momentum.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	942.20M	885.32M	1.15B	901.16M	692.43M
Gross Profit	547.83M	634.15M	299.64M	469.65M	336.00M	224.26M
EBITDA	324.48M	303.15M	255.99M	402.28M	306.86M	200.98M
Net Income	223.37M	211.80M	190.31M	306.78M	217.44M	127.94M
Balance Sheet
Total Assets	1.36B	1.29B	1.17B	1.28B	1.07B	993.96M
Cash, Cash Equivalents and Short-Term Investments	148.28M	158.15M	144.15M	174.40M	127.19M	137.90M
Total Debt	410.12M	241.79M	207.31M	214.33M	206.94M	266.34M
Total Liabilities	663.12M	540.87M	411.30M	496.58M	435.13M	449.39M
Stockholders Equity	694.32M	753.88M	757.16M	780.32M	634.37M	544.57M
Cash Flow
Free Cash Flow	216.72M	184.97M	187.17M	223.50M	192.00M	141.79M
Operating Cash Flow	266.52M	240.64M	256.41M	289.74M	234.97M	161.08M
Investing Cash Flow	-62.09M	-57.39M	-67.65M	-66.22M	-44.23M	-19.22M
Financing Cash Flow	-160.25M	-172.50M	-205.58M	-172.58M	-201.76M	-111.75M

VAT Group AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 498.60
• 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:VACN, the sentiment is Positive. The current price of 498.6 is above the 20-day moving average (MA) of 473.87, above the 50-day MA of 408.32, and above the 200-day MA of 337.73, indicating a bullish trend. The MACD of 31.49 indicates Positive momentum. The RSI at 65.13 is Neutral, neither overbought nor oversold. The STOCH value of 54.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:VACN.

VAT Group AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SUN	75 Outperform	CHF5.68B	20.83	23.37%	2.90%	5.79%	13.20%
VACN	71 Outperform	CHF15.22B	68.11	32.09%	1.63%	19.22%	11.62%
OERL	66 Neutral	CHF1.16B	-1,141.94	―	6.26%	-17.75%	83.94%
BUCN	65 Neutral	CHF3.65B	16.18	―	2.99%	-11.64%	-24.17%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
INRN	59 Neutral	CHF1.67B	28.13	―	1.46%	-3.67%	-12.95%
GF	54 Neutral	CHF4.25B	15.34	―	2.53%	-24.42%	32.48%

VAT Group AG Corporate Events

VAT Group Ends 2025 with Strong Orders on AI-Led Chip Demand and Solid Margin Performance

VAT Group AG reported a strong finish to 2025, with fourth-quarter order intake rising 28% quarter-on-quarter to around CHF 305 million and exceeding the prior year, supported by technology transitions in semiconductors, robust AI-related demand and continued strength from Chinese customers, though part of the surge reflects CHF 30–35 million of orders pulled forward ahead of 2026 price increases. Fourth-quarter sales were roughly flat sequentially at CHF 257 million but still above guidance, while for the full year 2025 net sales climbed about 14% to CHF 1.07 billion and the company sustained a solid EBITDA margin of around 30% and free cash flow above CHF 225 million; management highlighted that capex for AI data centers and fully utilized HBM/DRAM capacity underpin its view that the structural growth path toward a USD 1 trillion semiconductor market remains intact, reinforcing VAT’s positioning as a key beneficiary of next-generation chip investments despite currency headwinds and a lower year-end order backlog.

The most recent analyst rating on (CH:VACN) stock is a Sell with a CHF325.00 price target. To see the full list of analyst forecasts on VAT Group AG stock, see the CH:VACN Stock Forecast page.