ELMOS Semiconductor (ELG) AI Stock Analysis

• Market Cap: €1.55B
• Dividend Yield: 1.11%
• Average Volume (3M): 20.25K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 1.36
• 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: €104.25
• Price Target Upside: 15.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: €108.00 ▲(20.13% 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

Strong Profitability

ELMOS Semiconductor's strong profitability margins indicate efficient operations and a competitive advantage in cost management, supporting long-term financial health.

Low Leverage

Prudent leverage management with a low debt-to-equity ratio enhances financial stability and provides flexibility for future investments or downturns.

Revenue Model Strength

ELMOS's focus on automotive and industrial semiconductors positions it well in growing markets, driven by demand for electric vehicles and automation.

Negative Factors

Declining Revenue Growth

A negative revenue growth rate suggests potential challenges in market demand or competition, which could impact future financial performance if not addressed.

Cash Flow Efficiency

Inefficient cash conversion from operations to net income may limit the company's ability to reinvest in growth opportunities or manage debt effectively.

Gross Profit Margin Decline

A declining gross profit margin could indicate rising costs or pricing pressures, which may affect long-term profitability if not managed properly.

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 exhibits robust growth and profitability, particularly in revenue and net income margins. The balance sheet is strong with low leverage, though asset management requires attention. Cash flow management shows room for improvement, especially in converting income to cash. Overall, the company is well-positioned in the semiconductor industry, but should focus on enhancing cash flow efficiency.

Income Statement

ELMOS Semiconductor demonstrates strong revenue growth with a TTM growth rate of 65.5%, significantly higher than the previous annual growth rates. The company maintains healthy profitability with a TTM net profit margin of 21.9% and an EBIT margin of 27.8%. However, there is a slight decline in gross profit margin compared to previous years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.17 in TTM, indicating prudent leverage management. The return on equity remains strong at 22.5%, showcasing efficient use of equity. However, the equity ratio has slightly decreased, suggesting a need for careful monitoring of asset management.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth, with a negative growth rate in TTM. The operating cash flow to net income ratio is below 1, indicating that cash generation from operations is not fully covering net income. Despite this, the free cash flow to net income ratio has improved compared to the previous year, suggesting better cash management.

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: Neutral
• Last Price: 89.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 89.9 is below the 20-day moving average (MA) of 95.35, above the 50-day MA of 89.42, and above the 200-day MA of 79.15, indicating a neutral trend. The MACD of 0.88 indicates Positive momentum. The RSI at 41.87 is Neutral, neither overbought nor oversold. The STOCH value of 3.20 is Positive, 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
AIXA	76 Outperform	€1.85B	20.46	10.99%	0.91%	-3.93%	-20.93%
ELG	74 Outperform	€1.55B	12.48	22.08%	1.11%	-5.55%	21.30%
SMHN	73 Outperform	€730.98M	13.78	19.94%	0.77%	34.77%	52.20%
IFX	67 Neutral	€45.67B	45.79	5.98%	0.99%	-1.96%	-21.55%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAF	52 Neutral	€1.37B	-51.12	-1.40%	0.44%	-5.17%	-128.32%