Suss Microtec (SMHN) AI Stock Analysis

• Market Cap: €507.71M
• Dividend Yield: 1.09%
• Average Volume (3M): 158.69K
• Price to Earnings (P/E): 8.9
• Beta (1Y): 1.59
• Revenue Growth: 42.54%
• EPS Growth: 174.07%
• Country: DE
• Employees: 1,370
• Sector: Technology
• Sector Strength: 84
• Industry: Semiconductors
• EPS (TTM): 0.64
• Shares Outstanding: 19,115,538
• 10 Day Avg. Volume: 156,143
• 30 Day Avg. Volume: 158,688
• 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: €40.67
• Price Target Upside: 47.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 68 Neutral
• Price Target: €30.00 ▲(8.77% Upside)

Suss Microtec's overall stock score is driven by its strong financial performance and attractive valuation, which are offset by negative technical indicators. The company's solid balance sheet and low P/E ratio suggest potential for long-term value, but current market momentum is a concern.

Positive Factors

Order Growth

Order growth was strong, with orders reaching around €147 million, indicating positive market reception and demand for the company's products.

Sales Performance

The company's quarterly sales reached approximately €150 million, marking a 47% year-over-year increase and significantly surpassing consensus expectations of €110 million.

Negative Factors

Book-to-Bill Ratio

The book-to-bill ratio remains below 1, which could be interpreted as a potential concern despite strong sales figures.

Suss Microtec Business Overview & Revenue Model

Company Description

SÜSS 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 Money

Suss Microtec generates revenue primarily through the sale of its semiconductor manufacturing equipment and systems, which are essential for the production of integrated circuits and other microelectronic components. The company has multiple revenue streams, including direct sales of equipment, recurring revenue from service and maintenance contracts, and sales of consumables and accessories related to its machinery. Additionally, Suss Microtec benefits from strategic partnerships with key players in the semiconductor industry, which not only helps bolster its market presence but also contributes to joint development projects that can lead to new revenue opportunities. The company also invests in R&D to innovate and expand its product offerings, ensuring it stays competitive and meets the evolving needs of its customers.

Suss Microtec Financial Statement Overview

Summary

Suss Microtec demonstrates strong financial performance with substantial revenue growth and improved profitability margins. The company maintains a robust balance sheet with low debt levels and a high return on equity, indicating effective financial management. Remarkable growth in free cash flow highlights strong cash generation capabilities, though there is potential for enhanced asset utilization.

Income Statement

Suss Microtec has demonstrated strong revenue growth, with a significant increase from €304 million in 2023 to €446 million in 2024, indicating robust expansion in the semiconductor industry. The gross profit margin improved to 40.0%, reflecting efficient cost management. The net profit margin increased substantially to 11.6%, highlighting enhanced profitability. EBIT and EBITDA margins of 16.8% and 19.3% respectively further demonstrate the company's operational efficiency.

Balance Sheet

The company maintains a strong financial position with a low debt-to-equity ratio of 0.05, suggesting prudent financial leverage. The return on equity improved to 18.5%, indicating effective use of shareholder funds to generate earnings. An equity ratio of 52.0% reflects a healthy balance between debt and equity in funding its assets, though there is room for improvement in asset utilization.

Cash Flow

Suss Microtec has shown remarkable growth in free cash flow, increasing from €434 thousand in 2023 to €26.6 million in 2024, signaling strong cash generation capabilities. The operating cash flow to net income ratio of 0.65 indicates strong cash conversion from earnings. Additionally, a free cash flow to net income ratio of 0.52 underscores the company's ability to generate surplus cash after capital expenditures.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	446.15M	304.26M	259.97M	263.44M	252.91M
Gross Profit	178.35M	103.89M	110.07M	94.19M	84.49M
EBITDA	86.17M	35.61M	37.65M	29.61M	28.21M
Net Income	110.34M	4.70M	24.52M	16.02M	12.36M
Balance Sheet
Total Assets	538.23M	369.73M	353.16M	279.17M	231.41M
Cash, Cash Equivalents and Short-Term Investments	136.37M	49.02M	61.51M	53.60M	41.03M
Total Debt	13.29M	15.18M	20.00M	18.32M	20.49M
Total Liabilities	258.49M	193.12M	175.43M	122.29M	94.90M
Stockholders Equity	279.75M	176.62M	177.73M	156.88M	136.50M
Cash Flow
Free Cash Flow	26.64M	434.00K	16.04M	14.71M	47.21M
Operating Cash Flow	33.49M	3.79M	23.94M	24.33M	55.16M
Investing Cash Flow	71.85M	-8.18M	-17.84M	-9.62M	-11.16M
Financing Cash Flow	-7.90M	-8.02M	-6.77M	-3.83M	-13.28M

Suss Microtec Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:SMHN, the sentiment is Negative. The current price of 27.58 is below the 20-day moving average (MA) of 30.38, below the 50-day MA of 37.55, and below the 200-day MA of 40.33, indicating a bearish trend. The MACD of -3.11 indicates Positive momentum. The RSI at 29.71 is Positive, neither overbought nor oversold. The STOCH value of 10.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:SMHN.

Suss Microtec Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	¥240.40B	15.22	6.64%	2.40%	9.16%	-0.15%
SMHN	68 Neutral	€507.71M	8.94	22.01%	1.09%	42.54%	174.07%
0NP9	―	€1.44B	13.27	13.52%	―	―	―
0N9K	―	€1.47B	11.70	23.45%	―	―	―
0J9O	―	€1.83M	―	-39.23%	―	―	―
0R8P	―	€1.08B	36.70	1.51%	―	―	―
CTNK	78 Outperform	€97.35M	3.75	26.96%	―	57.50%	38.81%