| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.39 | 3595 |
OpenLimit Holding AG is a Switzerland-based software company specializing in secure data communication, electronic identity (eID), and authentication technologies. The company develops foundational technologies that enable secure, verifiable, and identifiable communication between people and machines. Its solutions include secure machine-to-machine data communication, electronic signatures, and long-term data storage with evidential value. These technologies are integrated into IT applications used by enterprises, public authorities, institutions, and private households. Operating in the Software - Infrastructure sector, OpenLimit Holding AG plays a critical role in digital security and identity verification, positioning itself as a niche player in the broader technology landscape. The company's focus on compliance and security makes it relevant in industries requiring stringent data protection, such as finance, healthcare, and government services.
OpenLimit Holding AG presents a high-risk, high-reward investment opportunity due to its niche focus on secure communication and eID technologies. The company reported a net loss of €2.26 million in FY 2019, with negative diluted EPS of -€0.0514, indicating financial challenges. However, its operating cash flow of €1.96 million suggests some operational resilience. The high beta of 4.092 reflects significant volatility, making it suitable only for risk-tolerant investors. The lack of dividends and reliance on debt (€4.25 million total debt) further heighten risk. Potential upside lies in the growing demand for secure digital identity solutions, but execution risks and competition remain key concerns.
OpenLimit Holding AG operates in a competitive segment dominated by larger players with broader product portfolios. Its competitive advantage lies in specialized secure communication and eID technologies, which cater to compliance-heavy industries. However, the company's small market cap (€400,806) limits its ability to scale compared to global competitors. Its financial instability (negative net income) further weakens its position against well-funded rivals. The company's focus on niche applications, such as long-term data storage with evidential value, provides differentiation but may limit market expansion. OpenLimit's reliance on integration into third-party IT applications could be both a strength (broad reach) and a weakness (dependency on partners). The high beta indicates market skepticism about its long-term viability, suggesting that competitive pressures and financial constraints are significant hurdles.