Stock Analysis & Valuation OHB SE (OHB.DE)

• Previous Close: €299.00
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	290.17	-3
Intrinsic value (DCF)	52.53	-82
Graham-Dodd Method	11.04	-96
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

OHB SE is a leading German space and technology company specializing in aerospace, satellite systems, and digital solutions. Headquartered in Bremen, Germany, OHB operates through three core segments: Space Systems, Aerospace, and Digital. The Space Systems segment focuses on developing and manufacturing small satellites for navigation, communication, earth observation, and scientific missions, including contributions to the International Space Station and deep-space exploration. The Aerospace segment engages in aviation and space product assembly, while the Digital segment delivers mechatronic systems, radio telescope projects, and cybersecurity solutions. OHB serves European and international markets, positioning itself as a key player in the growing space economy. With a strong emphasis on innovation, OHB collaborates with government agencies, research institutions, and private enterprises to advance space technology. The company’s diversified portfolio in satellite manufacturing, space exploration, and digital applications makes it a strategic player in the global aerospace and defense sector.

Investment Summary

OHB SE presents a mixed investment profile with both opportunities and risks. The company operates in the high-growth space and satellite industry, benefiting from increasing demand for earth observation, communication satellites, and space exploration. However, its recent financials show a net loss (€-196,000 in FY 2023) and negative diluted EPS (-€0.01), raising concerns about profitability. Positive aspects include a solid operating cash flow (€159.8M) and a manageable debt level (€195.4M). The company’s beta of 0.608 suggests lower volatility compared to the broader market, making it a relatively stable play in the aerospace sector. Investors should weigh OHB’s technological expertise and government contracts against its profitability challenges and capital-intensive business model. The dividend yield (€0.6 per share) may appeal to income-focused investors, but sustained earnings growth will be critical for long-term value creation.

Competitive Analysis

OHB SE competes in the specialized aerospace and satellite manufacturing sector, where technological expertise and government contracts are key differentiators. The company’s competitive advantage lies in its strong positioning in small satellite production and its involvement in high-profile space missions, including contributions to the International Space Station and deep-space exploration. Unlike larger aerospace conglomerates, OHB focuses on niche segments, allowing it to maintain agility and innovation. However, it faces stiff competition from global aerospace giants with greater financial resources and broader product portfolios. OHB’s reliance on European institutional contracts (e.g., ESA, EU) provides stability but may limit diversification. The Digital segment’s cybersecurity and satellite data applications offer growth potential, though competition from IT and defense firms is intense. OHB’s ability to secure long-term contracts and expand into commercial space ventures will determine its future competitiveness. While its German engineering reputation is an asset, scaling operations and improving margins remain critical challenges.

Major Competitors

• Airbus SE (AIR.PA): Airbus is a global aerospace leader with a dominant position in commercial aircraft, defense, and space systems. Its scale and diversified portfolio give it an advantage over OHB in terms of R&D funding and market reach. However, Airbus’s focus on large-scale projects may leave room for OHB in specialized small satellite markets. Airbus’s stronger financials and global supply chain make it a formidable competitor.
• Boeing Company (BA): Boeing is a major player in defense, space, and commercial aviation, with significant resources and government contracts. While Boeing competes in satellite and space exploration, its primary focus on large aircraft and defense systems differs from OHB’s niche in small satellites. Boeing’s recent operational challenges could create opportunities for OHB in European markets.
• SES S.A. (SESG.PA): SES operates one of the largest satellite fleets, focusing on geostationary communication satellites. Unlike OHB, SES is primarily a satellite operator rather than a manufacturer. However, SES’s strong market position in satellite services could pressure OHB’s growth in commercial satellite solutions. SES’s established customer base and revenue streams provide stability that OHB lacks.
• Matterport, Inc. (MTTR): Matterport specializes in 3D spatial data and digital twin technology, overlapping with OHB’s Digital segment in satellite data applications. While not a direct competitor in aerospace, Matterport’s advancements in digital modeling could disrupt segments where OHB operates. OHB’s space-based data capabilities may offer unique advantages over Matterport’s terrestrial focus.
• Thales Group (THR.PA): Thales is a diversified defense and technology firm with strong positions in aerospace, cybersecurity, and satellite systems. Its broader portfolio and larger scale make it a key competitor to OHB in European defense and space contracts. Thales’s integrated solutions could challenge OHB’s niche satellite manufacturing business, though OHB’s specialization may allow it to compete in specific projects.