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1. Company Snapshot

1.a. Company Description

Mycronic AB (publ), together with its subsidiaries, develops, manufactures, and sells production equipment for electronics industry in Sweden, rest of Europe, the United States, other Americas, China, South Korea, rest of Asia, and internationally.The company operates through four segments: Pattern Generators, High Flex, High Volume, and Global Technologies.The Pattern Generators segment develops, manufactures, and markets mask writers and measuring machines for production of advanced photomasks for manufacturing of screens for TVs, cars, mobile phones, tablets, and computers, as well as the semiconductor components.


The High Flex segment develops, manufactures, and markets surface mount technology (SMT) and inspection equipment for flexible printed circuit board (PCBs) assembly.This segment offers MYPro Line, which integrates advanced jet printing and dispensing, pick-and-place, advanced process control solutions, and 3D inspection systems; MYTower material handling systems; and MYSmart dispensing and coating solutions.The High Volume segment develops, manufactures, and markets equipment for dispensing and conformal coating of circuit boards for manufacturers of mobile phones, tablets, computers, and electronics for electric vehicles, as well as automated screen printers.


The Global Technologies segment offers die-bonding services for microelectronics and optoelectronic applications; advanced electrical measurement of bare board PCBs and substrates; flying probe test system, an automated electrical measurement system for low to mid quantities and complex boards; and grid test systems for volume bare board verification.It sells its products through agents and distributors.The company serves industrial, aerospace, defense, automotive, energy, medical, and telecom sectors.


The company was formerly known as Micronic Mydata AB (publ) and changed its name to Mycronic AB (publ) in June 2014.Mycronic AB (publ) is headquartered in Täby, Sweden.

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1.b. Last Insights on MYCR

Mycronic AB faced challenges in recent months, marked by a decline in order intake. Despite this, the company demonstrated resilience through strong growth in its Global Technologies segment. However, the decrease in orders may raise concerns about future revenue streams. Additionally, the company's Q4 2025 earnings call highlighted its efforts to navigate these challenges through strategic initiatives. A dividend increase was also announced, signaling confidence in the company's financials. Nevertheless, the decline in order intake remains a pressing concern.

1.c. Company Highlights

2. Mycronic's Q4 Report: A Mixed Bag with Growth Prospects

Mycronic's Q4 report showed a decline in order intake by 19% to SEK 2 billion, largely due to lower orders in Pattern Generators. Sales were flat at around SEK 2 billion, with declines in Pattern Generators, PCB Assembly Solutions, and High Volume, offset by growth in Global Technologies. EBIT decreased to SEK 342 million, with a margin of 17%. EPS came in at 1.42, below estimates of 3.97. The company's backlog remains healthy at SEK 4.7 billion. A dividend of SEK 3.25 per share is proposed. The full-year sales were just below SEK 8 billion, with an EBIT margin of 24%.

Publication Date: Feb -13

📋 Highlights
  • Q4 Order Intake Decline: Orders fell 19% to SEK 2 billion, driven by Pattern Generators' 51% drop to SEK 545 million.
  • Global Technologies Growth: Division saw 70% YoY order intake rise to SEK 773 million and 41% sales increase to SEK 570 million, with EBIT of SEK 118 million.
  • Full-Year EBIT Margin: Annual EBIT margin hit 24% on SEK 8 billion sales, while backlog remained robust at SEK 4.7 billion.
  • Semiconductor Market Opportunity: New photomask inspection equipment targets a SEK 1 billion market, with first revenues expected in 2027 and R&D spending peaking in 2024.
  • Dividend and Guidance: Proposed dividend of SEK 3.25/share and 2024 sales guidance of SEK 8.25 billion, with Cowin acquisition closing in late Q1.

Segment Performance

In Pattern Generators, order intake dropped to SEK 545 million due to a strong comparison quarter. Sales were SEK 577 million, down 18%, with 6 equipment delivered. Gross margin was 58%, and EBIT was SEK 173 million. PCB Assembly Solutions saw a difficult market, especially in Europe, with order intake down 7% to SEK 362 million and sales down 10% to SEK 438 million. In contrast, Global Technologies showed a strong development, with order intake up 70% to SEK 773 million and sales up 41% to SEK 570 million, driven by AI-driven demand and acquired businesses.

Outlook and Guidance

Mycronic expects to reach SEK 8.25 billion in sales this year, with a small contribution from Cowin, expected to close towards the end of Q1. The company is investing in new product launches, including inspection equipment for photomask for semiconductor, which is expected to drive growth. The semicon market outlook is incrementally more positive, driven by AI and a more balanced approach with demand created in various places. Mycronic expects to deliver double-digit EBIT margin in all divisions and consistently above 20% as a group.

Valuation

With a P/E Ratio of 23.85 and an EV/EBITDA of 15.32, the market is pricing in a certain level of growth. The Dividend Yield is 1.97%, which is relatively attractive. ROIC is 19.06%, indicating a good return on invested capital. Given the company's growth prospects, particularly in Global Technologies, and the expected launch of new inspection equipment, the valuation appears reasonable. Analysts estimate next year's revenue growth at 7.7%, which is in line with the company's guidance.

3. NewsRoom

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Mycronic AB (FRA:MLT0) Q4 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...

Feb -10

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Mycronic AB (FRA:MLT0) Q3 2025 Earnings Call Highlights: Strong Order Intake Amid Sales Decline

Oct -23

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Weekly Picks: 🪙 USA's Silver and Gold Potential, DLO's Trusted Brand, and MYCR's Tailwinds

Jun -27

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Mycronic AB (STU:MLT) Q1 2025 Earnings Call Highlights: Record EBIT and Strategic Acquisitions ...

Apr -27

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3 European Stocks Estimated To Be Up To 39.5% Below Intrinsic Value

Mar -17

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Exploring Three High Growth Tech Stocks For Potential Portfolio Strength

Feb -26

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Mycronic AB (STU:MLT) Q2 2024 Earnings Call Highlights: Strong Growth in Pattern Generators ...

Oct -09

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Mycronic receives order for an SLX mask writer

Jun -01

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.32%)

6. Segments

Pattern Generators

Expected Growth: 8.5%

Mycronic AB's Pattern Generators segment growth of 8.5% is driven by increasing demand for high-precision printed circuit boards, adoption of Industry 4.0 and IoT technologies, and growing need for advanced semiconductor manufacturing. Additionally, the company's strategic investments in R&D, expansion into new markets, and strong customer relationships contribute to its growth momentum.

High Flex

Expected Growth: 8.5%

High Flex from Mycronic AB (publ) achieves 8.5% growth driven by increasing demand for high-precision dispensing solutions in the electronics industry, coupled with the company's strategic expansion into emerging markets, innovative product offerings, and operational efficiency improvements.

High Volume

Expected Growth: 8.5%

Mycronic AB's high volume with 8.5% growth is driven by increasing demand for its high-precision dispensing systems in the electronics industry, coupled with its expanding presence in the Asian market. Additionally, the company's strategic acquisitions and investments in research and development have enhanced its product offerings, contributing to its rapid growth.

Global Technologies

Expected Growth: 7.4%

Mycronic AB's Global Technologies segment growth of 7.4% is driven by increasing demand for high-precision dispensing and conformal coating solutions in the electronics industry, particularly in Asia. Strong sales of MY500 and MY600 mask writers, as well as growing demand for advanced packaging and 5G-related applications, also contribute to the segment's growth.

7. Detailed Products

MY500

A high-precision, high-volume assembly system for advanced packaging, including flip chip, chip scale packaging, and wafer-level packaging.

MY600

A high-volume, high-precision assembly system for advanced packaging, including flip chip, chip scale packaging, and wafer-level packaging.

SY50

A high-precision, high-volume assembly system for advanced packaging, including flip chip, chip scale packaging, and wafer-level packaging.

MJP50

A high-precision, high-volume jet printing system for advanced packaging, including flip chip, chip scale packaging, and wafer-level packaging.

SPI

A high-precision, high-volume surface mount technology (SMT) system for advanced packaging, including flip chip, chip scale packaging, and wafer-level packaging.

AOI

An automated optical inspection system for detecting defects and ensuring quality in advanced packaging, including flip chip, chip scale packaging, and wafer-level packaging.

8. Mycronic AB (publ)'s Porter Forces

Forces Ranking

Threat Of Substitutes

Mycronic AB (publ) operates in the semiconductor industry, where substitutes are limited. However, the company's products are not entirely unique, and customers may find alternative solutions from competitors.

Bargaining Power Of Customers

Mycronic AB (publ) has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are specialized, making it difficult for customers to switch to alternative suppliers.

Bargaining Power Of Suppliers

Mycronic AB (publ) relies on a few key suppliers for critical components. While the company has some bargaining power due to its size, suppliers may still exert some pressure on prices and delivery terms.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital expenditures and technological expertise. New entrants would face significant challenges in competing with established players like Mycronic AB (publ).

Intensity Of Rivalry

The semiconductor industry is highly competitive, with several established players competing for market share. Mycronic AB (publ) faces intense competition from companies like ASML Holding, Applied Materials, and KLA-Tencor.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.17%
Debt Cost 3.95%
Equity Weight 95.83%
Equity Cost 10.49%
WACC 10.22%
Leverage 4.35%

11. Quality Control: Mycronic AB (publ) passed 7 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
Smiths

A-Score: 6.3/10

Value: 3.0

Growth: 5.1

Quality: 7.0

Yield: 3.8

Momentum: 9.0

Volatility: 9.7

1-Year Total Return ->

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Valmet

A-Score: 6.0/10

Value: 5.6

Growth: 4.8

Quality: 5.2

Yield: 8.1

Momentum: 7.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
GEA

A-Score: 5.8/10

Value: 3.5

Growth: 5.1

Quality: 6.6

Yield: 3.8

Momentum: 7.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
IMI

A-Score: 5.3/10

Value: 1.5

Growth: 5.1

Quality: 6.4

Yield: 2.5

Momentum: 7.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Mycronic

A-Score: 4.9/10

Value: 1.6

Growth: 8.1

Quality: 8.0

Yield: 3.1

Momentum: 5.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Fluidra

A-Score: 4.8/10

Value: 3.2

Growth: 6.2

Quality: 6.0

Yield: 4.4

Momentum: 3.0

Volatility: 5.7

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

195.82$

Current Price

195.82$

Potential

-0.00%

Expected Cash-Flows