GICS Sector : Technology
ams-OSRAM AG designs, manufactures, and sells LED and optical sensor solutions in Europe, the Middle East, Africa, the Americas, and the Asia/Pacific.The company operates through Semiconductor and Lamps & Systems segments.The Semiconductor segment offers semiconductor-based products and solutions, such as LEDs, lasers, and optical and image sensors for automotive, consumer, and industrial end markets.
The company reported a revenue of EUR 853 million, above the midpoint of the guidance, with a significant growth in the semiconductor business and a double-digit seasonal upswing in the Auto Lamps aftermarket business. The adjusted EBITDA margin improved quarter-over-quarter and year-over-year by almost 1 percentage point to 19.5%. However, the EPS came out at EUR 0.2524, below the estimates of EUR 0.3192. The company's cash on hand position increased to EUR 979 million, and the operating cash flow was EUR 88 million in the third quarter.
Publication Date: Nov -20
The semiconductor business saw an almost double-digit percentage improvement, driving the overall revenue growth. The Auto Lamps aftermarket business also experienced a double-digit seasonal upswing. The company's core semi business grew by 9% year-over-year on a comparable basis, in line with the midterm target model. As Aldo Kamper mentioned, "We delivered strong cash flow and significant growth in the core portfolio on a like-for-like basis."
The company has made significant progress in its cost-saving program, with EUR 185 million in savings by the end of Q3, exceeding the target for '25. The company is on track to meet the EUR 225 million goal for next year and is considering extending the program further. For the fourth quarter, the company expects revenues to come in between EUR 790 million and EUR 890 million.
The company's current valuation metrics show a P/E Ratio of -7.65, P/B Ratio of 0.88, and EV/EBITDA of 3.76. The ROIC is 3.23%, and the Net Debt / EBITDA is 2.41. Analysts estimate next year's revenue growth at 3.0%. The company's Free Cash Flow Yield is 7.05%, indicating a relatively attractive valuation.
A Look at ams-OSRAM (SWX:AMS) Valuation After Cautious Q4 Outlook and Analyst Downgrades
Nov -20
ams OSRAM’s Strategic Focus Pays off With Strong FCF of EUR 43 m in Q3 and 9 % Comparable Growth in Its Core Semiconductor Business
Nov -18
ams-OSRAM AG Unsponsored ADR (AMSSY) Surges 11.3%: Is This an Indication of Further Gains?
Oct -09
ams-OSRAM AG Unsponsored ADR (AMSSY) Soars 13.9%: Is Further Upside Left in the Stock?
Sep -16
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The 9.03% growth in ams-OSRAM AG's semiconductor segment is driven by increasing demand for advanced driver-assistance systems (ADAS) and autonomous vehicles, as well as growing adoption of 5G and IoT devices. Additionally, the company's focus on optical sensing and imaging technologies has enabled it to capitalize on trends in augmented reality, virtual reality, and artificial intelligence.
The 7.3% growth in Lamps & Systems from ams-OSRAM AG is driven by increasing demand for energy-efficient lighting solutions, rising adoption of smart lighting technologies, and growing investments in infrastructure development. Additionally, the trend towards sustainable and eco-friendly products, as well as the company's strategic expansion into emerging markets, contribute to this growth.
ams-OSRAM's optical semiconductor devices are used in a wide range of applications, including automotive, industrial, and consumer electronics.
ams-OSRAM's LEDs are used in various applications, including automotive, industrial, and consumer electronics.
ams-OSRAM's laser diodes are used in a variety of applications, including industrial, automotive, and consumer electronics.
ams-OSRAM's optical sensor modules are used in various applications, including industrial, automotive, and consumer electronics.
ams-OSRAM's display and optical components are used in various applications, including automotive, industrial, and consumer electronics.
ams-OSRAM's advanced packaging solutions are used in various applications, including industrial, automotive, and consumer electronics.
The threat of substitutes for ams-OSRAM AG is moderate due to the presence of alternative technologies and products in the market.
The bargaining power of customers for ams-OSRAM AG is low due to the company's strong brand reputation and diversified customer base.
The bargaining power of suppliers for ams-OSRAM AG is moderate due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some bargaining power.
The threat of new entrants for ams-OSRAM AG is low due to the high barriers to entry in the semiconductor industry, including significant capital requirements and technological expertise.
The intensity of rivalry for ams-OSRAM AG is high due to the presence of several established players in the market, leading to intense competition and pricing pressure.
| Value | |
|---|---|
| Debt Weight | 58.01% |
| Debt Cost | 3.95% |
| Equity Weight | 41.99% |
| Equity Cost | 12.74% |
| WACC | 7.64% |
| Leverage | 138.18% |
Value: 6.2
Growth: 6.4
Quality: 3.8
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Momentum: 9.5
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