| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 19953.42 | 1459 |
| Intrinsic value (DCF) | 427.22 | -67 |
| Graham-Dodd Method | 442.20 | -65 |
| Graham Formula | 530.13 | -59 |
Elma Electronic AG is a Swiss-based leader in electronic packaging solutions, specializing in embedded systems for industries such as aerospace, defense, industrial automation, and medical technology. Founded in 1960 and headquartered in Wetzikon, Switzerland, the company designs and manufactures high-performance backplanes, chassis platforms, embedded computing systems, and power solutions. Elma Electronic serves a global clientele, providing mission-critical components for applications requiring reliability, ruggedness, and precision. With a strong focus on innovation, the company caters to sectors like communications, transportation, and energy, ensuring its products meet stringent industry standards. As a key player in the computer hardware sector, Elma Electronic AG combines Swiss engineering excellence with a diversified product portfolio, positioning itself as a trusted partner for complex electronic packaging needs.
Elma Electronic AG presents a niche investment opportunity in the electronic packaging and embedded systems market, with a stable revenue base of CHF 177.8 million (FY 2024) and net income of CHF 8.5 million. The company maintains a solid balance sheet with CHF 22.2 million in cash and equivalents, though it carries CHF 23.3 million in debt. Its beta of -0.14 suggests low correlation with broader market movements, potentially offering defensive characteristics. However, the company operates in a highly specialized and competitive segment, where technological obsolescence and supply chain risks could impact margins. The dividend yield, based on a CHF 2 per share payout, may appeal to income-focused investors, but growth prospects depend on sustained demand from aerospace, defense, and industrial sectors.
Elma Electronic AG competes in the electronic packaging and embedded systems market, where differentiation is driven by product reliability, customization capabilities, and industry certifications. The company's Swiss engineering heritage provides a competitive edge in precision manufacturing, particularly for defense and medical applications requiring ruggedized solutions. Its vertically integrated production allows for tailored designs, a key advantage in niche markets. However, Elma faces competition from larger global players with broader R&D budgets and economies of scale. The company's focus on high-margin, low-volume specialized products helps mitigate pricing pressures but limits scalability. Its diversified customer base across aerospace, industrial, and medical sectors reduces dependency on any single industry, though this also means exposure to cyclical downturns in multiple end markets. Elma's ability to maintain profitability (CHF 8.5 million net income in FY 2024) despite its modest size reflects efficient operations and strong customer relationships. The challenge lies in balancing innovation investments with margin preservation in a capital-intensive industry.