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1. Company Snapshot

1.a. Company Description

u-blox Holding AG develops, manufactures, and markets products and services supporting GPS/GNSS satellite positioning systems for the automotive, industrial, and consumer markets worldwide.The company operates in two segments, Positioning and Wireless Products, and Wireless Services.The Positioning and Wireless Products segment develops and sells chips and modules designed for positioning and wireless connectivity.


The Wireless Services segment offers wireless communication technology services in terms of reference designs and software.The company offers a range of GPS/GNSS positioning products, including satellite receiver chips and chipsets, receiver modules, receiver boards, antennas, and smart antennas, which are in used for navigation, automatic vehicle location, security, traffic control, location-based services, timing, and agriculture.u-blox Holding AG was founded in 1997 and is based in Thalwil, Switzerland.

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1.b. Last Insights on UBXN

U-blox Holding AG's recent performance was driven by the announcement of a $1.3 billion acquisition by private equity group Advent. The 135 Swiss francs per share offer represents a 53% premium to the undisturbed volume-weighted average share price of the last six months. This deal, carried out by Advent's indirect subsidiary ZI Zenith, has sparked optimism among investors. As a maker of microchips and software for car navigation, U-blox's positioning in the automotive sector may benefit from growing demand for navigation solutions.

1.c. Company Highlights

2. u-blox Surprises with Strong H1 2025 Results

u-blox reported a robust financial performance in the first half of 2025, with revenues growing by 32% year-over-year, driven by a recovery in the automotive and industrial businesses. The company's gross margin expanded to 58.2%, a 6 percentage point increase from the previous year, resulting in a gross profit of CHF 71.9 million. The cash EBIT margin turned positive at 2.4%, a significant improvement from the same period last year. The company's EPS came in at CHF 1.89, beating estimates of CHF 0.21. The strong financial performance was accompanied by a generation of CHF 5.4 million in free cash flow, driven by cost discipline and working capital improvements.

Publication Date: Aug -23

📋 Highlights
  • Revenue Growth:: 32% year-over-year increase driven by automotive and industrial sector recovery.
  • Cash EBIT Margin:: Positive at 2.4%, up 30 percentage points from the prior year.
  • Free Cash Flow:: Generated CHF 5.4 million due to cost discipline and working capital improvements.
  • OpEx Reduction:: Cut operating expenses by 30% to CHF 155 million, with workforce reduced to under 850 employees.
  • Gross Profit Surge:: Increased to CHF 71.9 million (CHF 23 million YoY growth) with a 58.2% gross margin (up 6pp).

Operational Highlights

The company's efforts to reshape its business are yielding results, with a focus on structurally growing market segments. According to Stephan Zizala, "60% of that growth in Locate will come from 3 applications: automated driving, automated agriculture and construction, and mobile robotics." The company has taken decisive actions to reduce its OpEx base by nearly 30% and streamline its organization, resulting in a more lean and focused company.

Guidance and Outlook

Looking ahead to the third quarter, u-blox is guiding for revenue between CHF 60 million and CHF 70 million, reflecting an 11% year-on-year growth and a 6% sequential growth at the midpoint. The company continues to expect double-digit growth for the full-year 2025, supported by its core markets. Camila Japur noted that R&D as a percentage of sales is high, but expects revenue growth to bring it down to a more market-standard level.

Valuation

With a P/E Ratio of -11.38 and an EV/EBITDA of -13.51, the company's valuation multiples indicate that the market is still cautious about the company's prospects. However, the significant improvement in earnings and the generation of free cash flow are positive signs. The company's ROE and ROIC are still negative, but the trend is improving. The market seems to be pricing in a challenging environment, but the company's efforts to reshape its business and drive growth in key segments could lead to a re-rating of the stock.

3. NewsRoom

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Canyon Partners anchors Advent's financing for its $1.3BN take private of u-blox Holding AG

Dec -03

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u-blox Shareholders Approve all Motions Proposed by the Board of Directors at the Extraordinary General Meeting 2025

Oct -28

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u-blox Launches UBX-M10150-KB and MAX-M10N: Firmware-Upgradeable Meter-Level GNSS With up to 50% Lower Power Consumption

Oct -17

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u-blox Holding (SWX:UBXN): Revisiting Valuation After Strong 2024 Share Performance

Sep -09

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Advent International to Buy U-blox For $1.3 Billion

Aug -18

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Private equity group Advent to acquire U-Blox for $1.3 billion

Aug -17

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Introducing RUBY-W2: u-blox's first Wi-Fi 7 module for superior Apple(R) CarPlay and Android(R) Auto user experience

Jan -16

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Introducing RUBY-W2: u-blox's first Wi-Fi 7 module for superior Apple(R) CarPlay and Android(R) Auto user experience

Jan -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.97%)

6. Segments

Module

Expected Growth: 10.98%

The 10.98% growth of the module from u-blox Holding AG is driven by increasing demand for IoT and 5G applications, expansion in the automotive and industrial sectors, and the company's strategic investments in research and development, enabling it to capitalize on emerging trends such as autonomous vehicles and smart cities.

Chips

Expected Growth: 10.95%

U-blox Holding AG's 10.95% growth in chip sales is driven by increasing demand for IoT devices, autonomous vehicles, and precision agriculture. The company's strategic partnerships, innovative product offerings, and expanding presence in Asia also contribute to its growth. Furthermore, the rising need for accurate positioning and navigation in various industries fuels the demand for u-blox's high-performance chips.

Services

Expected Growth: 10.93%

U-blox Holding AG's 10.93% growth is driven by increasing demand for IoT and autonomous vehicle technologies, expansion into new markets, and strategic partnerships. The company's focus on 5G and LPWA technologies, as well as its strong presence in the automotive and industrial sectors, are also contributing to its growth.

7. Detailed Products

GNSS Modules

u-blox's GNSS modules provide accurate and reliable positioning, velocity, and time information, enabling a wide range of applications such as navigation, tracking, and IoT devices.

Cellular Modules

u-blox's cellular modules provide wireless communication capabilities for IoT devices, enabling M2M and IoT applications such as smart energy management, industrial automation, and transportation systems.

Positioning Modules

u-blox's positioning modules provide high-accuracy positioning and navigation capabilities for a wide range of applications, including automotive, industrial, and consumer electronics.

Short Range Modules

u-blox's short-range modules provide wireless communication capabilities for IoT devices, enabling applications such as smart home automation, industrial automation, and wearable devices.

Services

u-blox's services provide a range of solutions for IoT device management, data analytics, and security, enabling customers to deploy and manage IoT devices at scale.

8. u-blox Holding AG's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for u-blox Holding AG is moderate, as there are alternative technologies and products available in the market, but the company's strong brand reputation and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low, as u-blox Holding AG operates in a niche market with a limited number of customers, and the company has a strong relationship with its customers, which reduces their bargaining power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as u-blox Holding AG relies on a few key suppliers for its components, but the company's strong relationships with its suppliers and its ability to negotiate prices mitigate this threat to some extent.

Threat Of New Entrants

The threat of new entrants is low, as the market for positioning and wireless semiconductors is highly specialized and requires significant investment in research and development, which creates a barrier to entry for new companies.

Intensity Of Rivalry

The intensity of rivalry is high, as the market for positioning and wireless semiconductors is highly competitive, with several established players competing for market share, and the company needs to continuously innovate and invest in research and development to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.30%
Debt Cost 3.95%
Equity Weight 84.70%
Equity Cost 8.68%
WACC 7.96%
Leverage 18.06%

11. Quality Control: u-blox Holding AG passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
BOS

A-Score: 5.2/10

Value: 7.4

Growth: 5.7

Quality: 6.6

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Hexatronic

A-Score: 3.8/10

Value: 7.1

Growth: 9.1

Quality: 4.6

Yield: 0.6

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Ceragon Networks

A-Score: 3.6/10

Value: 6.3

Growth: 6.9

Quality: 4.9

Yield: 0.0

Momentum: 3.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Eutelsat

A-Score: 3.5/10

Value: 8.3

Growth: 0.4

Quality: 1.2

Yield: 5.0

Momentum: 6.0

Volatility: 0.0

1-Year Total Return ->

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Stock-Card
u-blox

A-Score: 3.5/10

Value: 4.4

Growth: 0.6

Quality: 3.3

Yield: 0.6

Momentum: 10.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Napatech

A-Score: 2.3/10

Value: 6.0

Growth: 0.0

Quality: 4.4

Yield: 0.0

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

134.8$

Current Price

134.8$

Potential

-0.00%

Expected Cash-Flows