LPKF Laser & Electronics (LPK) AI Stock Analysis

• Market Cap: €205.28M
• Dividend Yield: N/A
• Average Volume (3M): 12.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -1.16%
• EPS Growth: -357.12%
• Country: DE
• Employees: 773
• Sector: Technology
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): -0.17
• Shares Outstanding: 24,496,546
• 10 Day Avg. Volume: 8,815
• 30 Day Avg. Volume: 12,438
• PEG Ratio: -3.55
• Price to Book (P/B): 2.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 62.75
• 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: €11.70
• Price Target Upside: 39.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 51 Neutral
• Price Target: €8.50 ▲(1.67%Upside)

The overall stock score of 51 reflects significant financial challenges, particularly in profitability and cash flow management, despite a stable balance sheet. Technical analysis shows some market stabilization, but valuation concerns persist due to the negative P/E ratio and lack of dividend yield. These factors contribute to a cautious outlook for the stock.

Positive Factors

Client Confidence

LIDE interest is significantly ahead of expectations and that LIDE clients do not doubt the application of glass as a substrate carrier anymore.

Technology Adoption

LIDE adoption is progressing well, with no significant impact anticipated from capex cuts in the semiconductor space.

Negative Factors

Profitability Outlook

The recommendation includes a lower price target as profitability expectations have become more conservative for 2024.

LPKF Laser & Electronics Business Overview & Revenue Model

Company Description

LPKF Laser & Electronics AG, together with its subsidiaries, designs and manufactures laser-based solutions for the technology industry in Germany, rest of Europe, the United States, rest of North America, China, Malaysia, Vietnam, rest of Asia, and internationally. The company operates through four segments: Development, Electronics, Welding, and Solar. The Development segment offers circuit board plotters and ProtoLasers primarily for development departments of industrial companies, as well as public organizations, such as research institutes, universities, and schools. The Electronics segment provides production systems for cutting print stencils, rigid and flexible circuit boards, ultra-thin glass, and the etching of plastic circuit carriers, as well as the sale of components manufactured with laser systems. The Welding segment offers systems for laser beam welding of plastic components. The Solar segment develops and produces laser scribers for the etching of thin-film solar cells and laser systems for the digital printing of functional pastes and inks, which are used in production. Its products are used in the electronics, automotive supply, solar, and semiconductor industries, as well as medical technology, research institutions, and universities. The company was founded in 1976 and is headquartered in Garbsen, Germany.

How the Company Makes Money

LPKF Laser & Electronics generates revenue primarily through the sale of its laser systems and related services. Key revenue streams include the direct sales of laser equipment for PCB prototyping and manufacturing, as well as systems for laser plastic welding and other industrial applications. The company also earns from service contracts, spare parts, and maintenance services for its installed laser systems. Significant partnerships with industrial clients and ongoing research and development efforts contribute to the company's earnings by fostering technological advancements and expanding its market reach.

LPKF Laser & Electronics Financial Statement Overview

Summary

LPKF Laser & Electronics faces challenges in revenue growth and profitability, with a declining income statement. The balance sheet is relatively strong with low debt, but declining assets suggest liquidity concerns. Cash flow shows some improvement but remains inconsistent. Overall, financial performance is moderate, with a need for improved operational efficiency.

Income Statement

LPKF Laser & Electronics has experienced declining revenue and profitability in recent years. The gross profit margin has deteriorated, and the company reported a negative net profit margin in the latest year. Revenue has decreased slightly from 2023 to 2024, with significant fluctuations in EBIT and EBITDA margins. This indicates challenges in maintaining stable operations and profitability.

Balance Sheet

The balance sheet shows a relatively stable equity position and a manageable level of debt. The debt-to-equity ratio remains low, indicating limited leverage risk. However, the decline in total assets and cash reserves over the years suggests potential liquidity concerns. The company maintains a healthy equity ratio, indicative of a solid capital structure.

Cash Flow

Cash flow performance has been mixed, with fluctuations in operating cash flow and free cash flow. The recent positive free cash flow in 2024 is a positive sign, but previous years showed negative free cash flow. The operating cash flow to net income ratio has improved, but consistent cash generation remains a concern for long-term sustainability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
122.84M	122.89M	124.34M	123.70M	93.57M	96.23M
	Gross Profit
53.74M	21.98M	26.00M	84.55M	68.39M	68.26M
	EBIT
-2.08M	-2.54M	3.41M	6.78M	126.00K	7.54M
	EBITDA
6.41M	5.83M	12.82M	15.14M	7.86M	15.09M
	Net Income Common Stockholders
-3.69M	-4.51M	1.75M	1.39M	-114.00K	5.34M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
3.92M	5.05M	10.68M	12.79M	15.17M	20.07M
	Total Assets
137.26M	131.59M	148.47M	138.38M	132.24M	121.66M
	Total Debt
12.54M	8.03M	13.61M	2.92M	5.20M	3.91M
	Net Debt
8.61M	2.98M	2.93M	-9.87M	-9.97M	-16.16M
	Total Liabilities
46.81M	39.83M	53.36M	43.87M	40.04M	28.74M
	Stockholders Equity
90.45M	91.76M	95.12M	94.52M	92.20M	92.91M
Cash Flow		Free Cash Flow
3.21M	1.88M	-11.07M	206.00K	-764.00K	-5.56M
	Operating Cash Flow
8.99M	8.38M	-3.37M	8.50M	7.92M	3.97M
	Investing Cash Flow
-6.88M	-7.48M	-7.74M	-8.24M	-8.62M	-9.51M
	Financing Cash Flow
-12.15M	-12.98M	8.71M	-3.09M	-5.24M	-5.40M

LPKF Laser & Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.36
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LPK, the sentiment is Positive. The current price of 8.36 is above the 20-day moving average (MA) of 8.27, above the 50-day MA of 8.25, and below the 200-day MA of 8.62, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:LPK.

LPKF Laser & Electronics Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$11.75B	10.58	-7.10%	2.91%	7.47%	-7.95%
LPK	51 Neutral	€205.28M	―	-4.83%	―	-1.16%	-357.12%
0Q4C		€190.23M	40.80	2.50%	2.23%	―	―
0G15		€217.14M	―	-21.69%	―	―	―
0NL1		€388.24M	15.09	18.64%	―	―	―
0MVY		€371.10M	61.46	4.70%	―	―	―
0JMU		€141.61M	15.11	10.02%	2.58%	―	―