| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 106.47 | 267 |
| Intrinsic value (DCF) | 10.27 | -65 |
| Graham-Dodd Method | 48.23 | 66 |
| Graham Formula | n/a |
DATA MODUL AG is a leading German manufacturer and distributor of electronic systems, specializing in flatbed displays, monitors, and embedded computing solutions. Founded in 1972 and headquartered in Munich, the company operates through two key segments: Displays and Systems. Its product portfolio includes TFT, OLED, and e-paper displays, touch solutions, human-machine interfaces, and customized embedded computing components. DATA MODUL serves diverse industries such as automotive, medical technology, industrial automation, and gaming, leveraging its expertise in high-performance electronic subassemblies. As a subsidiary of Arrow Central Europe Holding Munich GmbH, the company benefits from strong supply chain integration and technological innovation. With a focus on B2B applications, DATA MODUL has established itself as a reliable partner for specialized display and embedded system solutions in Europe and beyond. The company's commitment to R&D and customization allows it to address niche industrial demands effectively.
DATA MODUL presents a specialized play in industrial electronics with a modest market cap of €80.4M. The company's low beta (0.246) suggests relative stability compared to broader tech markets, though this may limit upside potential. Financials show €226M revenue with thin net margins (2.5%), indicating competitive pressures in display manufacturing. Positive operating cash flow (€23.8M) and manageable debt (€25.9M) provide financial flexibility, but capex requirements (-€9M) constrain free cash flow. The niche focus on industrial applications provides some insulation from consumer electronics volatility, but dependence on German engineering sectors creates concentration risk. The minimal dividend (€0.12/share) suggests capital retention for growth initiatives. Investors may value the company's embedded position in industrial supply chains, but should weigh limited scale against larger display/embedded competitors.
DATA MODUL competes in the specialized industrial display and embedded systems segment, differentiating through customization capabilities and German engineering quality. The company's competitive advantage stems from: 1) Vertical integration in display solutions combining proprietary touch technologies with display manufacturing, 2) Strong relationships with German industrial customers requiring high-reliability components, and 3) Niche expertise in applications like medical devices and automation where certification matters. However, it faces scale disadvantages against Asian display giants in commodity products. The Systems segment shows more defensible positioning through application-specific designs, but requires ongoing R&D investment. DATA MODUL's subsidiary relationship with Arrow Electronics provides component sourcing advantages but may limit strategic flexibility. Pricing pressure from Chinese display manufacturers continues to challenge margins, forcing the company to emphasize higher-value solutions. Its Munich location aids European customer service but increases cost structure versus Eastern European or Asian competitors. The company's longevity (founded 1972) demonstrates resilience but must continually prove relevance against newer digital display technologies.