LPKF Laser & Electronics (LPK) AI Stock Analysis

• Market Cap: €194.26M
• Dividend Yield: N/A
• Average Volume (3M): 13.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.45
• Revenue Growth: -3.59%
• EPS Growth: -122.47%
• Country: DE
• Employees: 773
• Sector: Technology
• Sector Strength: 81
• Industry: Industrial - Machinery
• EPS (TTM): 0.06
• Shares Outstanding: 24,496,546
• 10 Day Avg. Volume: 11,121
• 30 Day Avg. Volume: 13,589
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €8.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: €8.00 ▲(0.00% Upside)

The overall stock score is primarily influenced by weak financial performance and technical indicators. The company's declining revenue and profitability, coupled with bearish technical signals, weigh heavily on the score. The negative P/E ratio and lack of dividend yield further contribute to a low valuation score, reinforcing the stock's unattractiveness.

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 generates revenue through the sale of its laser systems and associated equipment, which are used in the production and prototyping of printed circuit boards and other electronic components. Key revenue streams include direct sales of machinery, maintenance and support services, and consumables related to the laser systems. The company also benefits from strategic partnerships with electronics manufacturers and educational institutions, which help to expand its market reach and enhance its product offerings. Furthermore, LPKF invests in R&D to innovate and develop new technologies, ensuring a steady stream of revenue from advanced solutions tailored to emerging market needs.

LPKF Laser & Electronics Financial Statement Overview

Summary

LPKF Laser & Electronics faces challenges in sustaining revenue growth and profitability, as evidenced by declining income statement metrics. The balance sheet remains relatively strong, with a low debt burden and stable equity. Cash flow management shows some improvement but remains inconsistent, posing a risk to financial stability. Overall, the company needs to focus on enhancing operational efficiency and cash generation to strengthen its financial position.

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	85.93M	84.55M	68.39M	68.26M
EBITDA	6.41M	5.83M	12.82M	15.14M	7.86M	15.09M
Net Income	-3.69M	-4.51M	1.75M	1.39M	-114.00K	5.34M
Balance Sheet
Total Assets	126.01M	131.59M	148.47M	138.38M	132.24M	121.66M
Cash, Cash Equivalents and Short-Term Investments	3.54M	5.05M	10.68M	12.79M	15.17M	20.07M
Total Debt	0.00	8.03M	13.61M	3.45M	5.20M	3.91M
Total Liabilities	38.62M	39.83M	53.36M	44.48M	40.04M	28.74M
Stockholders Equity	87.39M	91.76M	95.12M	93.92M	92.20M	92.91M
Cash Flow
Free Cash Flow	3.21M	6.64M	-11.07M	206.00K	-764.00K	-5.56M
Operating Cash Flow	8.99M	9.43M	-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: Negative
• Last Price: 8.00
• 50DMA: Negative
• 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 Negative. The current price of 8 is below the 20-day moving average (MA) of 8.00, below the 50-day MA of 8.33, and below the 200-day MA of 8.49, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 40.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 *	61 Neutral	$35.56B	8.62	-10.46%	1.86%	8.47%	-8.26%
LPK	45 Neutral	€194.26M	―	-0.56%	―	-3.59%	-122.47%
0Q4C	―	€186.98M	26.64	2.65%	0.57%	―	―
0G15	―	€224.08M	―	-15.05%	―	―	―
0NL1	―	€643.36M	30.19	15.04%	―	―	―
0MVY	―	€287.15M	85.12	2.42%	―	―	―
0JMU	―	€180.98M	17.71	10.52%	2.04%	―	―