Suss Microtec (SMHN) AI Stock Analysis

• Market Cap: €687.78M
• Dividend Yield: 0.85%
• Average Volume (3M): 140.91K
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.61
• Revenue Growth: 42.54%
• EPS Growth: 174.07%
• Country: DE
• Employees: 1,370
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.82
• Shares Outstanding: 19,115,538
• 10 Day Avg. Volume: 199,875
• 30 Day Avg. Volume: 140,911
• 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: 10.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: €34.00 ▼(-7.56% Downside)

Suss Microtec's strong financial performance, particularly in revenue growth and profitability, is a key strength. The stock's attractive valuation further supports its appeal. However, technical indicators suggest caution due to overbought conditions, and cash flow challenges remain a concern.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong demand for Suss Microtec's products, which supports long-term business expansion and market presence.

Balance Sheet Health

A low debt-to-equity ratio suggests financial stability and flexibility, allowing Suss Microtec to invest in growth opportunities without significant financial strain.

Profitability Margins

Strong profitability margins reflect efficient operations and pricing power, which can sustain competitive advantages and support future investments.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth indicates potential liquidity issues, which could limit Suss Microtec's ability to fund operations and strategic initiatives.

Net Profit Margin Pressure

The decline in net profit margin suggests increased costs or pricing pressures, which could affect long-term profitability if not addressed.

Cash Conversion Challenges

Challenges in converting income to cash can impact liquidity and operational flexibility, potentially hindering growth and strategic investments.

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 revenue growth and profitability margins, supported by a solid balance sheet with low leverage. However, cash flow challenges, particularly in free cash flow generation, present a potential risk. Overall, the company is financially stable with room for improvement in cash flow management.

Income Statement

Suss Microtec shows strong revenue growth with a TTM increase of 9.24%. The gross profit margin is healthy at 39.62%, and the EBIT margin is robust at 17.66%. However, the net profit margin has decreased from 24.73% in 2024 to 11.89% in TTM, indicating pressure on net profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.05, indicating prudent financial leverage. Return on equity is strong at 21.93% in TTM, reflecting efficient use of equity. The equity ratio is stable, suggesting a solid financial position.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth at -160.07% in TTM. The operating cash flow to net income ratio is low, indicating challenges in converting income into cash. However, the free cash flow to net income ratio remains relatively high, suggesting some resilience.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	519.81M	446.15M	304.26M	259.97M	263.44M	252.91M
Gross Profit	200.51M	178.35M	103.89M	110.07M	94.19M	84.49M
EBITDA	97.79M	86.17M	35.61M	37.65M	29.61M	28.21M
Net Income	56.74M	110.34M	4.70M	24.52M	16.02M	12.36M
Balance Sheet
Total Assets	532.88M	538.23M	369.73M	353.16M	279.17M	231.41M
Cash, Cash Equivalents and Short-Term Investments	99.59M	136.37M	49.02M	61.51M	53.60M	41.03M
Total Debt	55.82M	13.29M	15.18M	20.00M	18.32M	20.49M
Total Liabilities	235.37M	258.49M	193.12M	175.43M	122.29M	94.90M
Stockholders Equity	297.51M	279.75M	176.62M	177.73M	156.88M	136.50M
Cash Flow
Free Cash Flow	-23.59M	26.64M	434.00K	16.04M	14.71M	47.21M
Operating Cash Flow	-8.11M	33.49M	3.79M	23.94M	24.33M	55.16M
Investing Cash Flow	-7.56M	71.85M	-8.18M	-17.84M	-9.62M	-11.16M
Financing Cash Flow	-10.90M	-7.90M	-8.02M	-6.77M	-3.83M	-13.28M

Suss Microtec Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 36.78 is above the 20-day moving average (MA) of 34.15, above the 50-day MA of 30.01, and above the 200-day MA of 36.28, indicating a neutral trend. The MACD of 1.58 indicates Positive momentum. The RSI at 57.75 is Neutral, neither overbought nor oversold. The STOCH value of 38.98 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CTNK	82 Outperform	€113.22M	3.28	34.03%	―	94.73%	83.64%
SMHN	75 Outperform	€687.78M	11.77	22.01%	0.85%	42.54%	174.07%
ELG	75 Outperform	€1.42B	10.80	23.45%	1.22%	-2.03%	20.37%
AIXA	66 Neutral	€1.47B	13.63	13.52%	1.14%	0.59%	-11.99%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WAF	58 Neutral	€1.65B	55.97	1.51%	0.34%	-0.55%	-73.49%