ELMOS Semiconductor (ELG) AI Stock Analysis

• Market Cap: €1.94B
• Dividend Yield: 1.08%
• Average Volume (3M): 20.25K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 1.41
• Revenue Growth: -5.55%
• EPS Growth: 21.30%
• Country: DE
• Employees: 1,161
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 1.37
• Shares Outstanding: 17,700,000
• 10 Day Avg. Volume: 22,808
• 30 Day Avg. Volume: 20,252
• 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: €108.00
• Price Target Upside: -0.74% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €122.00 ▲(12.13% Upside)

ELMOS Semiconductor's strong technical indicators and solid financial performance are the primary drivers of its score. The stock's reasonable valuation further supports its attractiveness. However, challenges in revenue growth and cash flow generation slightly temper the overall outlook.

Positive Factors

Balance Sheet Strength

A very low debt-to-equity ratio and healthy equity base give ELMOS durable financial flexibility, supporting multi-year R&D and customer programs. Strong ROE (22.5%) indicates efficient capital use, enabling resilience through automotive cycles and funding strategic investments.

High Profitability and Margins

Sustained high net and EBIT margins reflect structural cost efficiency and differentiated, higher-value products. Robust margins provide capacity to invest in product development, support long-term OEM programs, and maintain returns even if top-line growth moderates.

OEM Partnerships & Specialized Product Mix

A business model built on long-term OEM relationships and bespoke IC solutions creates durable revenue stickiness and high switching costs. Specialization in ADAS, EV and industrial SoCs aligns with structural industry trends, supporting steady product demand over years.

Negative Factors

Negative Revenue Trend

Negative trailing revenue growth signals weakening demand or lost share, which can erode scale advantages over months. If sustained, it pressures margins, limits reinvestment capacity for new product development, and risks undermining long-term OEM program expansion.

Declining Free Cash Flow

A 20% drop in FCF growth and low FCF-to-income reduce internal funding for capex, dividends and strategic initiatives. Persistently weaker FCF constrains the company’s ability to invest in next-gen products or pursue M&A without increasing leverage or diluting shareholders.

Moderate Cash Conversion

Operating cash converts to only ~72% of reported net income, indicating working-capital or collection inefficiencies. Lower cash conversion heightens sensitivity to cyclical downturns and can limit the firm’s short-to-medium term capacity to self-fund R&D, capex or customer support.

ELMOS Semiconductor Business Overview & Revenue Model

Company Description

Elmos Semiconductor SE, together with its subsidiaries, develops, produces, and markets semiconductors and sensors primarily for use in the automotive industry worldwide. It offers sensor ICs, which include ultrasonic distance, sensor signal processor, integrated absolute pressure system, optical IR sensor, ToF imager, and passive infrared ICs; interface ICs, such as PSI5 transceivers, LIN/CAN, and KNX/EIB transceivers; and special project products comprising ASIC design, as well as automotive safety, engine management, and relay driver ICs. The company also provides motor control ICs, including stepper, brushless DC, and DC motor controller ICs; and power management ICs, such as LED driver, DC/DC converter, and low dropout regulator ICs. Its products are used in automotive applications comprising ADAS and safety, body and convenience, infotainment, lighting, and powertrain; and smart home and industrial automation applications. The company was founded in 1984 and is headquartered in Dortmund, Germany.

How the Company Makes Money

ELMOS Semiconductor generates revenue primarily through the sale of its semiconductor products, which include microcontrollers, sensor ICs, and mixed-signal ICs. The company operates on a business model that focuses on long-term partnerships with automotive manufacturers and suppliers, providing customized solutions that meet specific client needs. Key revenue streams include direct sales to automotive customers, royalties from licensing agreements, and revenue from research and development projects. Additionally, ELMOS benefits from strategic collaborations with other technology firms and automotive OEMs, which help expand its market reach and enhance its product offerings.

ELMOS Semiconductor Financial Statement Overview

Summary

ELMOS Semiconductor demonstrates strong profitability and a solid balance sheet, with low leverage and high return on equity. However, recent negative revenue growth and declining free cash flow growth highlight potential challenges in sustaining growth and cash flow generation.

Income Statement

ELMOS Semiconductor shows strong profitability with a consistent net profit margin of over 21% in recent years, and an impressive EBIT margin of 27.8% TTM. However, the revenue growth rate has turned negative in the TTM period, indicating potential challenges in maintaining growth momentum.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.17 TTM, indicating prudent financial management. Return on equity remains robust at 22.5%, reflecting efficient use of equity capital. The equity ratio is healthy, suggesting a stable financial position.

Cash Flow

Cash flow performance is mixed, with a decline in free cash flow growth by 20.2% TTM. The operating cash flow to net income ratio is moderate at 0.72, indicating reasonable cash generation relative to net income. However, free cash flow to net income is relatively low, suggesting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	559.08M	581.11M	575.01M	447.25M	322.09M	232.56M
Gross Profit	230.50M	254.54M	271.31M	207.54M	144.67M	92.55M
EBITDA	189.17M	211.20M	194.18M	154.39M	91.79M	40.09M
Net Income	124.04M	128.70M	99.15M	71.38M	39.81M	6.42M
Balance Sheet
Total Assets	811.00M	799.83M	812.40M	542.43M	418.01M	395.50M
Cash, Cash Equivalents and Short-Term Investments	115.45M	95.51M	92.38M	42.01M	25.39M	43.63M
Total Debt	99.90M	111.30M	116.64M	75.56M	74.18M	45.15M
Total Liabilities	194.68M	236.65M	364.45M	182.01M	117.85M	85.28M
Stockholders Equity	615.76M	562.72M	447.44M	359.79M	299.44M	309.58M
Cash Flow
Free Cash Flow	14.68M	-50.77M	-24.55M	14.78M	10.90M	4.74M
Operating Cash Flow	54.48M	16.27M	102.64M	98.64M	79.60M	27.28M
Investing Cash Flow	19.24M	-1.11M	-73.75M	-72.61M	-73.60M	-42.35M
Financing Cash Flow	-21.40M	-22.56M	22.94M	-7.45M	-28.72M	-39.46M

ELMOS Semiconductor Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.80
• 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 Positive. The current price of 108.8 is above the 20-day moving average (MA) of 107.41, above the 50-day MA of 99.68, and above the 200-day MA of 85.27, indicating a bullish trend. The MACD of 3.16 indicates Positive momentum. The RSI at 56.82 is Neutral, neither overbought nor oversold. The STOCH value of 66.52 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
AIXA	78 Outperform	€2.21B	24.44	10.99%	0.88%	-3.93%	-20.93%
ELG	74 Outperform	€1.94B	15.65	22.08%	1.08%	-5.55%	21.30%
SMHN	70 Outperform	€941.63M	17.75	19.94%	0.78%	34.77%	52.20%
IFX	67 Neutral	€56.51B	56.65	5.98%	0.95%	-1.96%	-21.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAF	52 Neutral	€1.68B	-57.35	-1.40%	0.43%	-5.17%	-128.32%