ELMOS Semiconductor (ELG) AI Stock Analysis

• Market Cap: €1.50B
• Dividend Yield: 1.14%
• Average Volume (3M): 38.57K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 1.22
• Revenue Growth: -2.03%
• EPS Growth: 20.37%
• Country: DE
• Employees: 1,161
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 1.61
• Shares Outstanding: 17,700,000
• 10 Day Avg. Volume: 25,323
• 30 Day Avg. Volume: 38,573
• PEG Ratio: 0.30
• Price to Book (P/B): 2.07
• Price to Sales (P/S): 2.00
• P/FCF Ratio: -22.95
• 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: €101.75
• Price Target Upside: 16.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: €100.00 ▲(14.29% Upside)

ELMOS Semiconductor's strong financial performance and reasonable valuation are the primary drivers of its score. The technical analysis indicates moderate momentum, supporting a positive outlook. However, cash flow management needs improvement to enhance the overall financial health.

Positive Factors

Capacity Expansion

Elmos has significantly invested in capacity expansion over the past few years, which allows the company to scale capex back significantly.

Electrification and Vehicle Features

Elmos is expected to benefit significantly from continued electrification, ADAS, more comfort and premium features, and the new zonal architecture in vehicles.

Market Position

The company has a strong market position in three of its five main product categories, including the #1 position for motor control ICs, LED lighting, and ultrasonic parking.

Negative Factors

Automotive Industry Weakness

The stock has suffered significantly over the past months due to weakness in the automotive industry, which accounts for a majority of Elmos's sales.

Market Weakness Impact

The current market weakness in the automotive sector has caught up with Elmos, leading to growth of only 1%.

Preliminary Q4 Results

Elmos published its preliminary Q4 results, which are slightly below market expectations.

ELMOS Semiconductor Business Overview & Revenue Model

Company Description

ELMOS Semiconductor AG is a leading provider of semiconductor solutions, primarily focused on the automotive and industrial sectors. Founded in Germany, the company specializes in the development and manufacturing of high-quality microelectronic components, including sensors, actuators, and integrated circuits. ELMOS's core products cater to applications in vehicle electronics, industrial automation, and consumer electronics, positioning the company as a key player in the growing market for advanced semiconductor technologies.

How the Company Makes Money

ELMOS Semiconductor generates revenue through the design, production, and sale of its semiconductor products, primarily to customers in the automotive and industrial sectors. The company's revenue model is based on the sale of integrated circuits and custom solutions, which are often tailored to meet the specific needs of its clients. Key revenue streams include the sale of automotive sensors for safety and convenience applications, as well as microcontrollers and power management ICs for industrial applications. Significant partnerships with major automotive manufacturers and tier-one suppliers contribute to its earnings, as ELMOS provides essential components for various vehicle systems. Furthermore, the growing demand for electric vehicles and advanced driver-assistance systems (ADAS) enhances the company's market opportunities and potential for revenue growth.

ELMOS Semiconductor Financial Statement Overview

Summary

ELMOS Semiconductor shows strong revenue growth and profitability with a solid equity base. However, challenges in maintaining EBIT and free cash flow pose potential risks if not addressed.

Income Statement

ELMOS Semiconductor has demonstrated strong revenue growth over recent years, particularly notable from 2020 to 2022. The Gross Profit Margin remains robust and consistent, indicating effective cost management. However, the decline in EBIT from 2023 to 2024 is concerning, impacting the company's profitability metrics. Despite this, the Net Profit Margin remains healthy due to strong net income figures.

Balance Sheet

The company's balance sheet shows a solid equity base with an increasing trend in stockholders' equity. The Debt-to-Equity ratio is at a manageable level, suggesting prudent leverage usage. The Equity Ratio is strong, highlighting the company's reliance on equity rather than debt. However, the increase in total debt from 2020 to 2024 warrants monitoring.

Cash Flow

The cash flow statement reveals challenges in maintaining positive free cash flow, with significant capital expenditures impacting free cash flow negatively. Operating cash flow remains positive, albeit declining from 2023 to 2024. The company's ability to generate free cash flow relative to net income is under pressure, indicating potential constraints on liquidity if trends persist.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	574.92M	581.11M	575.01M	447.25M	322.09M	232.56M
Gross Profit	242.77M	254.54M	271.31M	207.54M	144.67M	92.55M
EBITDA	195.73M	211.20M	194.18M	154.39M	91.79M	40.09M
Net Income	125.97M	128.70M	99.15M	71.38M	39.81M	6.42M
Balance Sheet
Total Assets	796.69M	799.83M	812.40M	542.43M	418.01M	395.50M
Cash, Cash Equivalents and Short-Term Investments	87.47M	95.51M	92.38M	42.01M	25.39M	43.63M
Total Debt	102.82M	111.30M	116.64M	75.56M	74.18M	45.15M
Total Liabilities	204.27M	236.65M	364.45M	182.01M	117.85M	85.28M
Stockholders Equity	591.85M	562.72M	447.44M	359.79M	299.44M	309.58M
Cash Flow
Free Cash Flow	18.40M	-50.77M	-24.55M	14.78M	10.90M	4.74M
Operating Cash Flow	66.98M	16.27M	102.64M	98.64M	79.60M	27.28M
Investing Cash Flow	21.38M	-1.11M	-73.75M	-72.61M	-73.60M	-42.35M
Financing Cash Flow	-20.81M	-22.56M	22.94M	-7.45M	-28.72M	-39.46M

ELMOS Semiconductor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.50
• 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 DE:ELG, the sentiment is Neutral. The current price of 87.5 is below the 20-day moving average (MA) of 90.10, above the 50-day MA of 87.14, and above the 200-day MA of 70.91, indicating a neutral trend. The MACD of -0.23 indicates Positive momentum. The RSI at 47.38 is Neutral, neither overbought nor oversold. The STOCH value of 47.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:ELG.

ELMOS Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELG	75 Outperform	€1.50B	11.91	23.45%	1.14%	-2.03%	20.37%
SMHN	68 Neutral	€543.26M	9.57	22.01%	1.06%	42.54%	174.07%
IFX	63 Neutral	€47.65B	70.33	6.85%	0.95%	-3.60%	-67.86%
AIXA	61 Neutral	€1.53B	14.07	13.52%	1.11%	0.59%	-11.99%
Sector *	61 Neutral	€6.51B	18.05	3.81%	2.09%	2.46%	-30.42%
WAF	46 Neutral	€1.07B	36.55	1.51%	0.56%	-0.55%	-73.49%