LPKF Laser & Electronics (LPK) AI Stock Analysis

• Market Cap: €184.21M
• Dividend Yield: N/A
• Average Volume (3M): 39.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• Revenue Growth: -1.24%
• EPS Growth: 41.31%
• Country: DE
• Employees: 773
• Sector: Technology
• Sector Strength: 88
• Industry: Industrial - Machinery
• EPS (TTM): -0.09
• Shares Outstanding: 24,496,546
• 10 Day Avg. Volume: 32,564
• 30 Day Avg. Volume: 39,579
• PEG Ratio: 0.14
• Price to Book (P/B): 2.38
• Price to Sales (P/S): 1.78
• P/FCF Ratio: 32.93
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: €7.50 ▲(36.86% Upside)

The score is primarily constrained by weak profitability and cash-flow quality despite a conservative balance sheet and strong gross margin. Technicals show strong near-term momentum but are overbought, adding pullback risk. Valuation is also a headwind because the negative P/E indicates ongoing losses and there is no dividend yield data to offset it.

Positive Factors

High Gross Margin

A 57.5% gross margin indicates durable product-level profitability and cost efficiency in core laser and PCB equipment. This margin buffer supports continued R&D, spare-parts/service economics and pricing resilience versus input cost rises, aiding medium-term competitiveness.

Conservative Leverage

Very low debt-to-equity gives the company financial flexibility to fund capex, R&D and absorb demand cycles without near-term refinancing pressure. That balance-sheet strength supports investment in product development and customer support over the next 2–6 months.

Structural Market Tailwinds

Long-term trends toward miniaturization and automation in electronics and microelectronics expand LPKF's addressable market. Persistent demand from automotive, telecom and medical customers supports steady demand for prototyping and laser systems and recurring service revenue.

Negative Factors

Negative Profitability

Sustained negative net margin and ROE indicate the company is not converting its gross profitability into shareholder returns. This limits internal funding for growth initiatives and may necessitate external financing or restructuring, constraining strategic optionality.

Volatile Free Cash Flow

Inconsistent and negative free cash flow relative to net income reduces the firm's ability to reliably fund capex, R&D, and working-capital needs from operations. This weak cash generation increases execution risk and dependence on outside financing for investments.

Revenue and Margin Pressure

A declining revenue trend combined with falling EBIT/EBITDA margins signals operational or demand weaknesses that can erode scale benefits. If top-line softness and margin compression persist, it will be harder to leverage strong gross margins into sustainable profitability.

LPKF Laser & Electronics Business Overview & Revenue Model

Company Description

LPKF Laser & Electronics AG is a leading technology company based in Germany that specializes in the development and production of laser systems and electronic manufacturing equipment. The company operates primarily in the sectors of electronics manufacturing, laser technology, and PCB (Printed Circuit Board) prototyping. LPKF's core products include laser-based drilling and cutting systems, PCB prototyping systems, and equipment for the production of microelectronics, catering to industries such as automotive, telecommunications, and medical technology.

How the Company Makes Money

LPKF generates revenue through the sale of its advanced laser systems and electronic manufacturing equipment. The company's primary revenue streams include direct sales of machinery, which are often accompanied by maintenance contracts and spare parts sales. Additionally, LPKF offers services such as training and consulting for customers implementing their technologies. Significant partnerships with key players in various industries also bolster LPKF's earnings, as these collaborations can lead to increased demand for their innovative solutions. Furthermore, the company benefits from the growing trends in miniaturization and automation in electronics manufacturing, which drive the need for their cutting-edge technologies.

LPKF Laser & Electronics Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin (57.46%) and conservative leverage (debt-to-equity 0.18), but negative profitability (negative ROE and net margin) and volatile/free-cash-flow weakness in the TTM period weigh on the score.

Income Statement

The income statement shows mixed performance. The TTM data indicates a slight decline in revenue with a negative net profit margin, suggesting profitability challenges. However, the gross profit margin remains relatively strong at 57.46%, indicating efficient cost management. Historical data shows fluctuating revenue growth and profitability, with a notable decline in EBIT and EBITDA margins in recent periods.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.18 in the TTM period, indicating conservative leverage. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals volatility, with a significant decline in free cash flow growth in the TTM period. The operating cash flow to net income ratio is positive, indicating some operational cash generation, but the free cash flow to net income ratio is negative, pointing to cash flow challenges. Historical data shows inconsistent free cash flow performance.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.36M	122.89M	124.34M	123.70M	93.57M	96.23M
Gross Profit	56.71M	21.98M	85.93M	84.55M	68.39M	68.26M
EBITDA	8.96M	5.83M	12.82M	15.14M	7.86M	14.90M
Net Income	-1.01M	-4.51M	1.75M	1.39M	-114.00K	5.34M
Balance Sheet
Total Assets	124.69M	131.59M	148.47M	138.38M	132.24M	121.66M
Cash, Cash Equivalents and Short-Term Investments	5.60M	5.05M	10.68M	12.79M	15.17M	20.07M
Total Debt	14.61M	8.03M	13.61M	3.45M	5.20M	3.91M
Total Liabilities	37.69M	39.83M	53.36M	44.48M	40.04M	28.74M
Stockholders Equity	87.01M	91.76M	95.12M	93.92M	92.20M	92.91M
Cash Flow
Free Cash Flow	247.00K	6.64M	-11.07M	206.00K	-764.00K	-5.56M
Operating Cash Flow	5.40M	9.43M	-3.37M	8.50M	7.92M	3.97M
Investing Cash Flow	-7.88M	-7.48M	-7.74M	-8.24M	-8.62M	-9.51M
Financing Cash Flow	-12.21M	-12.98M	8.71M	-3.09M	-5.24M	-5.40M

LPKF Laser & Electronics Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.48
• 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:LPK, the sentiment is Positive. The current price of 5.48 is below the 20-day moving average (MA) of 7.03, below the 50-day MA of 6.20, and below the 200-day MA of 7.35, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 66.43 is Neutral, neither overbought nor oversold. The STOCH value of 67.00 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
TPE	70 Outperform	€463.27M	29.53	10.84%	―	-8.62%	-38.42%
GSC1	66 Neutral	€159.34M	21.76	2.79%	0.69%	-3.37%	15.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TTR1	61 Neutral	€239.01M	21.78	10.85%	1.56%	―	―
LPK	56 Neutral	€184.21M	-182.52	-1.16%	―	-1.24%	41.31%
SKB	52 Neutral	€160.13M	-10.40	-4.67%	―	4.81%	75.36%
F3C	49 Neutral	€234.52M	-635.85	-0.27%	―	5.15%	-101.58%