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Suss Microtec (DE:SMHN)
XETRA:SMHN
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Suss Microtec
(XETRA:SMHN)
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Rating:66Neutral
Price Target:
€28.00
▼(-0.21% Downside)
Suss Microtec's overall stock score is driven by its strong financial performance, particularly in revenue growth and profitability margins, despite cash flow challenges. The technical analysis indicates a bearish trend, but potential for a rebound exists due to oversold conditions. The valuation is reasonable, providing a balanced risk-reward profile.
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 (SMHN) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€532.94M
Dividend Yield1.08%
Average Volume (3M)140.91K
Price to Earnings (P/E)9.4
Beta (1Y)1.63
Revenue Growth42.54%
EPS Growth174.07%
CountryDE
Employees1,370
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)0.82
Shares Outstanding19,115,538
10 Day Avg. Volume199,875
30 Day Avg. Volume140,911
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€37.67Price Target Upside34.25% Upside
Rating ConsensusHold
Number of Analyst Covering7
Suss Microtec Business Overview & Revenue Model
Company DescriptionSÜSS 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 MoneySuss 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 Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance in 2024 with record sales and profitability, driven by strategic growth in Photomask and Bonding segments. However, challenges persist with a decline in Chinese orders, high operational costs, and potential market saturation in HBM. Despite these issues, the company maintains a positive outlook with strategic investments and growth plans.Q4-2024 Updates
Positive Updates
Record Sales and Profitability
Achieved record sales of €446 million, a 46.6% increase from 2023, and exceeded planned targets for 2025 with a sales goal of €400 million and an EBIT margin of 15% already met.
Strong Performance in Photomask and Bonding Business
Order intake reached a record €147.5 million in Q4, driven by strong performance in Photomask and Bonding businesses. Bonding sales more than tripled compared to the previous year.
Improved Gross and EBIT Margins
Gross profit margin increased by 5.9 percentage points, and EBIT margin improved by 7.7 percentage points from 2023. Advanced Backend Solutions saw a gross profit margin increase of 6 percentage points to 42.2% and an EBIT margin increase of 9.8 percentage points to 19.2%.
Net Profit and Cash Flow
Net profit amounted to €110.3 million, with a strong net cash position of €122 million and a free cash flow of €96.1 million.
Upcoming Production Site in Taiwan
New production site in Taiwan is on track, scheduled to open in October 2025, with anticipated investments of approximately €20 million.
Dividend Increase
Proposed to increase the dividend by 50% to €0.30 per share, representing approximately 23% of free cash flow from continuing operations.
Negative Updates
Decline in Chinese Orders
Orders from China fell by €41.4 million compared to the previous year, with a notable decrease in the Photomask business segment.
High OpEx and IT Costs
OpEx ratio decreased by 2.5 percentage points, but concerns remain about continued high spending, particularly in IT projects, which are expected to increase costs by €4 million to €7 million in 2025.
Potential HBM Market Saturation
While demand for AI-related bonding orders drove growth, there are signs of market saturation in HBM, which could affect future order volumes.
Capacity Utilization Concerns
Concerns about capacity utilization in 2025, especially in the Photomask segment, with potential order intake decline due to normalized demand from China.
Company Guidance
In the earnings call for SÜSS MicroTec SE, the management provided guidance for the fiscal year 2025, highlighting a sales range of €470 million to €510 million, which represents an approximate 10% growth from 2024's record sales of €446 million. The company reported a significant increase in profitability, with gross profit margins rising by 5.9 percentage points to 42.2% and EBIT margins up by 9.8 percentage points to 19.2%. Demand for their Photomask and Bonding business, particularly for UV projection scanners, was a key driver of their record order intake of €147.5 million in Q4 2024. The book-to-bill ratio stood at 0.95%. SÜSS MicroTec's net profit was noted at €110.3 million, with a strong net cash position of €122 million. The company also announced plans to invest approximately €20 million in a new facility in Taiwan, contributing to an overall expected CapEx volume of €30 million in 2025. They anticipate an EBIT margin of 15% to 17% for 2025, considering several one-off expenses and strategic growth investments.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.78
Positive
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.82
Very Positive
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.65
Positive
| 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
Negative
28.06
Price Trends
30.39
Negative
33.97
Negative
35.88
Negative
Market Momentum
-0.66
Positive
37.39
Neutral
15.30
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 28.06 is below the 20-day moving average (MA) of 33.87, below the 50-day MA of 30.39, and below the 200-day MA of 35.88, indicating a bearish trend. The MACD of -0.66 indicates Positive momentum. The RSI at 37.39 is Neutral, neither overbought nor oversold. The STOCH value of 15.30 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | €107.93M | 3.12 | 34.03% | ― | 94.73% | 83.64% | |
| ― | €1.40B | 11.13 | 23.45% | 1.26% | -2.03% | 20.37% | |
| ― | €1.81B | 19.93 | 10.99% | 1.08% | -3.93% | -20.93% | |
| ― | €532.94M | 9.39 | 22.01% | 1.08% | 42.54% | 174.07% | |
| ― | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
| ― | €1.59B | -58.67 | -1.40% | 0.37% | -5.17% | -128.32% |
* Technology Sector Average
DE:SMHN
Suss Microtec
28.06
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.