ELMOS Semiconductor (ELG) AI Stock Analysis

• Market Cap: €1.19B
• Dividend Yield: 1.24%
• Average Volume (3M): 26.69K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.33
• Revenue Growth: -1.67%
• EPS Growth: 18.77%
• Country: DE
• Employees: 1,161
• Sector: Technology
• Sector Strength: 77
• Industry: Semiconductors
• EPS (TTM): 1.08
• Shares Outstanding: 17,700,000
• 10 Day Avg. Volume: 30,854
• 30 Day Avg. Volume: 26,693
• PEG Ratio: -2.03
• Price to Book (P/B): 2.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 60.49
• 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: €92.00
• Price Target Upside: 33.33% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

ELMOS Semiconductor exhibits robust financial performance with significant revenue growth and effective cost management. The technical indicators suggest strong upward momentum. Although the P/E ratio indicates the stock is undervalued, challenges in maintaining free cash flow and EBIT require attention to sustain long-term 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 (ELG) is a leading provider in the semiconductor industry, specializing in the design, manufacture, and distribution of mixed-signal semiconductor solutions. The company focuses primarily on the automotive sector, offering a wide range of products including sensors, microcontrollers, and application-specific integrated circuits (ASICs) that enhance vehicle performance, safety, and comfort. ELMOS Semiconductor leverages its expertise in high-performance analog and digital technologies to deliver innovative solutions tailored to the evolving needs of the automotive industry.

How the Company Makes Money

ELMOS Semiconductor generates revenue through the sale of its semiconductor products, with a strong emphasis on the automotive market. The company's key revenue streams include the development and sale of custom ASICs and standard components used in vehicle electronics systems, such as sensor interfaces, lighting control units, and driver assistance systems. ELMOS maintains significant partnerships with automotive manufacturers and suppliers, enabling it to secure long-term contracts and access to new market opportunities. Additionally, the company's investment in research and development allows it to continuously innovate and introduce new products, further driving its revenue growth.

ELMOS Semiconductor Financial Statement Overview

Summary

ELMOS Semiconductor shows strong revenue growth and profitability with a solid equity base. Despite this, challenges in maintaining EBIT and free cash flow pose potential risks.

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
571.18M	581.11M	575.01M	447.25M	322.09M	232.56M
	Gross Profit
246.99M	254.54M	271.31M	207.54M	144.67M	92.55M
	EBIT
138.41M	140.28M	151.66M	110.89M	63.79M	8.64M
	EBITDA
202.05M	211.20M	194.18M	154.39M	91.79M	40.09M
	Net Income Common Stockholders
122.67M	128.70M	99.15M	71.38M	39.81M	6.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
45.48M	95.51M	92.38M	42.01M	25.39M	43.63M
	Total Assets
336.93M	799.83M	812.40M	542.43M	418.01M	395.50M
	Total Debt
51.16M	111.30M	116.64M	75.56M	74.18M	45.15M
	Net Debt
18.80M	30.49M	31.01M	38.91M	56.42M	4.83M
	Total Liabilities
96.81M	236.65M	364.45M	182.01M	117.85M	85.28M
	Stockholders Equity
239.53M	562.72M	447.44M	359.79M	299.44M	309.58M
Cash Flow		Free Cash Flow
19.64M	-50.77M	-24.55M	14.78M	10.90M	4.74M
	Operating Cash Flow
78.87M	16.27M	102.64M	98.64M	79.60M	27.28M
	Investing Cash Flow
11.43M	-1.11M	-73.75M	-72.61M	-73.60M	-42.35M
	Financing Cash Flow
-32.62M	-22.56M	22.94M	-7.45M	-28.72M	-39.46M

ELMOS Semiconductor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 69 is above the 20-day moving average (MA) of 62.82, above the 50-day MA of 61.27, and above the 200-day MA of 66.19, indicating a bullish trend. The MACD of 3.55 indicates Negative momentum. The RSI at 62.20 is Neutral, neither overbought nor oversold. The STOCH value of 66.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:ELG.

ELMOS Semiconductor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELG	81 Outperform	€1.19B	9.68	23.28%	1.24%	-1.67%	18.77%
SIE	75 Outperform	€173.71B	17.59	15.14%	2.36%	-0.04%	33.26%
IFX	69 Neutral	$43.58B	56.35	7.74%	1.03%	-6.01%	-69.47%
FRE	61 Neutral	€24.15B	58.77	6.28%	―	-18.90%	―
Sector *	60 Neutral	$11.59B	10.34	-7.15%	2.94%	7.49%	-10.88%
S92	52 Neutral	€769.65M	5.94	-19.00%	2.24%	-19.65%	-152.17%