Schweizer Electronic (SCE) AI Stock Analysis

• Market Cap: €12.52M
• Dividend Yield: N/A
• Average Volume (3M): 1.00K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.40
• Revenue Growth: 9.83%
• EPS Growth: 45.16%
• Country: DE
• Employees: 498
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.68
• Shares Outstanding: 3,780,000
• 10 Day Avg. Volume: 1,055
• 30 Day Avg. Volume: 1,000
• PEG Ratio: <0.01
• Price to Book (P/B): 0.44
• Price to Sales (P/S): 0.07
• P/FCF Ratio: 1.70
• 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): -1.94
• Revenue Forecast (FY): €135.53M

• Rating: 45 Neutral
• Price Target: €3.00 ▼(-1.96% Downside)

The overall stock score is primarily influenced by financial challenges, including declining profitability and high leverage. Technical indicators suggest a bearish trend, while valuation metrics are unattractive due to negative earnings. Improvements in cash flow provide some positive outlook, but significant risks remain.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better financial management and operational efficiency, enhancing the company's ability to invest in growth and manage debt.

Revenue Growth

Positive revenue growth suggests sustained demand for SCE's products, supporting long-term business expansion and market presence.

Industry Position

Strong industry position in high-demand sectors ensures continued relevance and potential for strategic partnerships, bolstering competitive advantage.

Negative Factors

Declining Profitability

Declining profitability pressures operational efficiency and limits reinvestment capabilities, posing risks to long-term financial health.

High Leverage

High leverage increases financial risk, potentially impacting the company's ability to weather economic downturns and invest in growth.

Negative Earnings

Sustained negative earnings undermine investor confidence and restrict access to capital markets, challenging long-term viability.

Schweizer Electronic Business Overview & Revenue Model

Company Description

Schweizer Electronic AG, together with its subsidiaries, develops, produces, and distributes printed circuit boards (PCBs) worldwide. The company offers power electronics, including inlay, heavy copper, CU-IMS, combi, p2 pack embedding 48V boards. It also provides logic circuits, such as multilayer, HDI, mpedance, R4 Flex, and bond PCBs; and high frequency and sensor technologies comprising RF 6-24 GHz, RF 77 GHz, and embedded antenna PCBs. It serves automotive, aviation, industrial, medical, communication, and computing sectors. Schweizer Electronic AG was founded in 1849 and is headquartered in Schramberg, Germany.

How the Company Makes Money

Schweizer Electronic generates revenue primarily through the sale of its printed circuit boards and related electronic solutions. The company operates on a B2B model, supplying its products to manufacturers in key industries such as automotive, telecommunications, and industrial electronics. Key revenue streams include the production of standard and custom PCBs, which are critical components for various electronic applications. Additionally, SCE benefits from long-term contracts and partnerships with major players in the electronics industry, ensuring a steady flow of orders. Their focus on innovation and quality allows them to charge premium prices for advanced PCB technology, further contributing to their profitability.

Schweizer Electronic Financial Statement Overview

Summary

Schweizer Electronic is facing financial challenges with declining profitability and increased leverage. The income statement shows negative net profit margins and declining revenue growth. The balance sheet reflects high debt levels and negative return on equity, indicating financial instability. However, improvements in cash flow generation provide some relief.

Income Statement

The income statement shows a mixed performance. The Gross Profit Margin has decreased significantly from 2023 to TTM (Trailing-Twelve-Months), indicating pressure on profitability. The company has been experiencing negative Net Profit Margins, worsened in the latest TTM period. Revenue growth has slowed, and EBIT and EBITDA margins remain negative, which raises concerns about operational efficiency and profitability.

Balance Sheet

The balance sheet reflects financial instability, with a high Debt-to-Equity Ratio due to low equity levels. Return on Equity is negative, indicating a loss-making situation. Although the equity ratio has improved slightly over the years, it remains low, posing potential risks related to financial leverage and solvency.

Cash Flow

Cash flow analysis shows some positive signs, with a significant improvement in Free Cash Flow from the previous period. The Operating Cash Flow to Net Income ratio is positive, suggesting better cash earnings relative to accounting profits, despite negative net income. However, the Free Cash Flow to Net Income ratio highlights that the company is generating cash flow, which is a positive aspect amidst financial challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	152.49M	144.55M	139.44M	131.05M	122.66M	98.31M
Gross Profit	7.25M	9.74M	15.57M	-6.37M	-4.93M	369.00K
EBITDA	-1.51M	-1.60M	43.32M	-12.07M	-9.32M	-9.48M
Net Income	-8.74M	-9.05M	32.89M	-33.52M	-26.19M	-17.88M
Balance Sheet
Total Assets	110.90M	102.44M	106.12M	160.29M	182.30M	196.68M
Cash, Cash Equivalents and Short-Term Investments	13.36M	9.33M	7.68M	3.28M	15.25M	24.45M
Total Debt	20.43M	25.48M	28.17M	29.24M	94.38M	84.95M
Total Liabilities	95.29M	80.87M	80.33M	169.08M	172.58M	162.40M
Stockholders Equity	15.61M	21.57M	25.79M	-6.55M	9.72M	34.18M
Cash Flow
Free Cash Flow	9.10M	5.65M	8.97M	-14.90M	-38.85M	-28.24M
Operating Cash Flow	9.51M	6.99M	9.90M	-3.58M	-14.83M	-7.96M
Investing Cash Flow	-176.00K	-498.00K	3.43M	-10.03M	1.19M	-15.55M
Financing Cash Flow	-5.86M	-5.87M	-9.46M	2.92M	3.62M	12.90M

Schweizer Electronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.06
• 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:SCE, the sentiment is Positive. The current price of 3.06 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 3.16, and below the 200-day MA of 3.30, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 58.53 is Neutral, neither overbought nor oversold. The STOCH value of 74.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SCE.

Schweizer Electronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
P4O	64 Neutral	€18.88M	41.35	3.65%	―	-5.92%	-63.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
S188	60 Neutral	€32.01M	8.33	4.50%	3.56%	76.29%	347.70%
M7U	57 Neutral	€66.02M	-9.92	-2.71%	―	-14.11%	-170.11%
V6C	48 Neutral	€42.75M	―	-12.99%	1.06%	-23.69%	-123.57%
DAM	46 Neutral	€100.85M	―	-4.04%	0.42%	-12.13%	-178.13%
SCE	45 Neutral	€12.52M	―	-50.39%	―	9.83%	45.16%