Education
About Us
Working with TipRanks
Follow Us
Suss Microtec (DE:SMHN)
XETRA:SMHN
Top Page
Suss Microtec
(XETRA:SMHN)
Select Model
Select Model
Rating:70Outperform
Price Target:
€55.00
▲(18.28% Upside)
The score is driven mainly by solid underlying profitability and a strong, low-leverage balance sheet, partially offset by negative operating/free cash flow and margin compression. Technicals are supportive (strong trend and positive MACD) but appear overextended (high RSI/Stoch). Valuation is reasonable on P/E but offers limited income support, while the latest earnings call signals a potential Q4 order rebound but highlights a weaker order book, margin pressure, and recent cash flow strain.
Positive Factors
Low leverage and strong ROE
SUSS's low leverage and 20% ROE indicate a conservative capital structure and efficient equity use. This durability supports capacity to fund R&D and capex internally, reduces refinancing risk in downturns, and preserves strategic optionality for partnerships or selective M&A over the medium term.
Sustained operating profitability
Consistent revenue growth and a robust EBIT margin show the business earns solid operating returns across cycles. Durable operating profitability underpins reinvestment, funds incremental product development, and provides a buffer while management addresses order and mix volatility.
Product strength and capacity expansion
Rapid growth in Imaging and Coating and a new Taiwan facility strengthen SUSS's position in advanced packaging and photolithography. Added clean-room capacity and strong sub-segment demand are structural advantages that expand addressable markets and support long-term revenue and service streams.
Negative Factors
Weakened order book
A sharply lower order book and reduced quarterly intake signal reduced near-term visibility and backlog replenishment risk. This weakens revenue predictability, can force pricing concessions, and may defer high-margin projects, pressuring medium-term growth and capacity utilization.
Negative operating and free cash flow
Persistent negative operating and free cash flow despite profitability constrains internal funding for capex and working capital. Over months this increases reliance on liquidity or financing, limits flexibility for strategic investments, and raises execution risk on margin recovery plans.
Margin compression and product-mix headwinds
Falling gross and net margins driven by unfavorable product mix and postponed high-margin projects erode long-term profitability. If sustained, mix shifts and margin pressure reduce free-cash-flow conversion, limit reinvestment capacity, and necessitate structural cost or portfolio adjustments to restore returns.
Suss Microtec (SMHN) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€941.63M
Dividend Yield0.78%
Average Volume (3M)140.91K
Price to Earnings (P/E)17.8
Beta (1Y)1.63
Revenue Growth34.77%
EPS Growth52.20%
CountryUS
Employees1,370
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.48
Shares Outstanding19,115,538
10 Day Avg. Volume199,875
30 Day Avg. Volume140,911
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)3.32
Price to Sales (P/S)2.08
P/FCF Ratio34.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€53.83Price Target Upside15.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Suss Microtec Business Overview & Revenue Model
Company DescriptionSÜSS MicroTec SE, together with its subsidiaries, develops, manufactures, and markets machines for the production of microelectronics, microelectromechanical systems, and related applications. It operates through five divisions: Photomask Equipment, Lithography, Bonder, Microoptics, and Others. The company develops, manufactures, and sells mask aligners, coaters and developers, UV projection scanners, and laser processing tool. It develops, produces, and sells bonder systems, including microelectromechanical systems, compound semiconductors, and 3D integration markets. In addition, the company develops, manufactures, and sells specialized tools for the cleaning and processing of photomasks for the semiconductor industry. Further, it is involved in the production and sale of micro lenses and specialized optics for various industrial applications. It operates in Europe, the Middle East, Africa, North America, and the Asia Pacific. The company distributes its products through production facilities, as well as through distribution companies and trade representatives. SÜSS MicroTec SE was founded in 1949 and is headquartered in Garching, Germany.
How the Company Makes MoneySuss Microtec generates revenue primarily through the sale of its specialized equipment and systems used in semiconductor manufacturing. The company offers a range of products that cater to various stages of the microelectronics production process, including development and high-volume manufacturing. Key revenue streams include direct sales of equipment, maintenance services, and consumables. Additionally, Suss Microtec benefits from long-term partnerships with major semiconductor manufacturers and research institutions, which provide a stable customer base and opportunities for collaborative development projects. The company's focus on innovation and technology advancement also positions it favorably for growth in emerging markets, such as the automotive electronics sector, further contributing to its earnings.
Suss Microtec Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 30, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with positive developments in sales performance and cost management, but significant challenges remain in terms of order intake, margin pressure, and cash flow. The company is optimistic about future orders and new product launches, but current figures indicate areas of concern.Q3-2025 Updates
Positive Updates
Sales and Revenue On Track
After 3 quarters, the company reached EUR 384 million, which is 78% of the midpoint of their sales forecast, indicating they are on track to meet their expectations for the year.
Strong Performance in Imaging and Coating Systems
Imaging and Coating Systems showed year-on-year sales growth of over 50% each, indicating robust demand in these areas.
New Facility in Taiwan
The opening of a new site in Zhubei, Taiwan, with large clean rooms, indicates readiness for future growth and received strong support from key industry figures.
Cost Management Success
Short-term cost-cutting measures resulted in savings of over EUR 5 million compared to Q2, demonstrating effective financial management.
Negative Updates
Decreased Order Intake
The order intake was EUR 70 million in Q3, and the order book is down 35.9% compared to the previous year, indicating a significant drop in demand.
Pressure on Margins
Gross profit margin faced significant pressure, with a decrease to 31.7% in Q3 due to an unfavorable product mix and postponed high-margin projects.
Challenges in Photomask Solutions
The Photomask Solutions segment experienced a very low order intake, with orders from China down EUR 32 million compared to the previous year.
Negative Free Cash Flow
Free cash flow from continuing operations was minus EUR 0.7 million in the third quarter, with a total of minus EUR 28.2 million after 3 quarters.
Company Guidance
In the recent conference call, SUSS MicroTec SE provided guidance for its financial performance, highlighting several key metrics. The company reported a low order intake of EUR 70 million in Q3 but anticipates orders exceeding EUR 100 million in Q4. Year-to-date sales reached EUR 384 million, or 78% of the midpoint of their sales forecast, with a Q3 sales figure of EUR 118 million. For Q4, sales are expected to range between EUR 85 million and EUR 125 million to meet their annual forecast. The current gross profit margin stands at 31.7%, impacted by an unfavorable product mix, while the EBIT margin has been adjusted following cost management efforts. The order book at the end of September was EUR 276.1 million, down 35.9% from the previous year. Free cash flow for the first three quarters was negative EUR 28.2 million, with expectations to end the year slightly positive. SUSS anticipates a CapEx level of EUR 25 million for the year, driven mainly by their new facility in Taiwan. The company remains optimistic about future growth and improving its cost structure, with details to be discussed at their Capital Markets Day on November 17.Suss Microtec Financial Statement Overview
Summary
Solid profitability and revenue growth with a strong balance sheet (low debt-to-equity of 0.19 and ROE of 20.05%), but weakened quality of earnings due to negative operating and free cash flow in the TTM and declining net margin (24.73% to 10.92%).Income Statement
Suss Microtec demonstrates solid revenue growth with a TTM revenue increase of 2.98% and consistent EBIT and EBITDA margins. However, the gross profit margin has slightly decreased from 39.98% to 38.57% in the TTM, and the net profit margin has also declined from 24.73% to 10.92%. Despite these declines, the company maintains a healthy EBIT margin of 17.26%.75
Positive
Balance Sheet
The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.19 in the TTM, indicating low leverage. Return on equity is robust at 20.05%, showcasing effective utilization of equity. The equity ratio remains stable, reflecting a solid financial position.80
Positive
Cash Flow
Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is high at 2.91, indicating cash flow issues despite profitability. The operating cash flow to net income ratio is negative, highlighting potential liquidity concerns.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 535.29M | 446.15M | 304.26M | 259.97M | 263.44M | 252.91M |
| Gross Profit | 199.44M | 178.35M | 103.89M | 110.07M | 94.19M | 84.49M |
| EBITDA | 93.50M | 86.17M | 35.61M | 37.65M | 29.61M | 28.21M |
| Net Income | 53.00M | 110.34M | 4.70M | 24.52M | 16.02M | 12.36M |
Balance Sheet | ||||||
| Total Assets | 522.94M | 538.23M | 369.73M | 353.16M | 279.17M | 231.41M |
| Cash, Cash Equivalents and Short-Term Investments | 94.94M | 136.37M | 49.02M | 61.51M | 53.60M | 41.03M |
| Total Debt | 50.53M | 13.29M | 15.18M | 20.00M | 18.32M | 20.49M |
| Total Liabilities | 218.69M | 258.49M | 193.12M | 175.43M | 122.29M | 94.90M |
| Stockholders Equity | 304.25M | 279.75M | 176.62M | 177.73M | 156.88M | 136.50M |
Cash Flow | ||||||
| Free Cash Flow | -25.46M | 26.64M | 434.00K | 16.04M | 14.71M | 47.21M |
| Operating Cash Flow | -6.32M | 33.49M | 3.79M | 23.94M | 24.33M | 55.16M |
| Investing Cash Flow | -24.77M | 71.85M | -8.18M | -17.84M | -9.62M | -11.16M |
| Financing Cash Flow | -10.39M | -7.90M | -8.02M | -6.77M | -3.83M | -13.28M |
Suss Microtec Technical Analysis
Positive
46.50
Price Trends
40.54
Positive
36.00
Positive
36.00
Positive
Market Momentum
2.68
Positive
62.63
Neutral
62.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SMHN, the sentiment is Positive. The current price of 46.5 is above the 20-day moving average (MA) of 46.46, above the 50-day MA of 40.54, and above the 200-day MA of 36.00, indicating a bullish trend. The MACD of 2.68 indicates Positive momentum. The RSI at 62.63 is Neutral, neither overbought nor oversold. The STOCH value of 62.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:SMHN.
Suss Microtec Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | €224.32M | 6.49 | 34.03% | ― | 94.73% | 83.64% | |
78 Outperform | €2.21B | 24.44 | 10.99% | 0.88% | -3.93% | -20.93% | |
74 Outperform | €1.94B | 15.65 | 22.08% | 1.08% | -5.55% | 21.30% | |
70 Outperform | €941.63M | 17.75 | 19.94% | 0.78% | 34.77% | 52.20% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | €1.68B | -57.35 | -1.40% | 0.43% | -5.17% | -128.32% |
* Technology Sector Average
DE:SMHN
Suss Microtec
46.50
2.94
6.75%
DE:AIXA
AIXTRON
19.43
6.09
45.66%
DE:ELG
ELMOS Semiconductor
108.80
39.46
56.90%
DE:M5Z
Manz AG
0.09
-0.38
-81.28%
DE:WAF
Siltronic
51.80
7.78
17.69%
DE:CTNK
centrotherm international AG
10.60
7.24
215.48%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.