| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | 6.25 | -88 |
Stemmer Imaging AG (S9I.DE) is a leading provider of machine vision technology, serving industrial and non-industrial applications worldwide. Headquartered in Puchheim, Germany, the company specializes in advanced vision systems, including 2D/3D smart vision, hyperspectral imaging, and surface inspection solutions. Stemmer Imaging offers a comprehensive portfolio of hardware (cameras, lenses, illumination) and software products, along with value-added services like feasibility testing and training. The company operates across diverse end markets, including automotive, electronics, pharmaceuticals, and factory automation. As a subsidiary of Primepulse SE, Stemmer Imaging leverages its 35+ years of expertise to deliver cutting-edge vision solutions that enhance quality control and automation processes. With a strong presence in Europe and global reach, the company is well-positioned in the growing industrial machine vision sector, which is being driven by increasing automation and Industry 4.0 adoption.
Stemmer Imaging presents an interesting play on industrial automation growth, with its specialized machine vision technology portfolio. The company's €146.3M revenue (2023) and €15.7M net income demonstrate profitability in this niche sector. Positive operating cash flow (€20.3M) and a healthy cash position (€37.6M) provide financial flexibility. However, investors should note the high beta (1.695), indicating above-average volatility versus the market. The generous dividend (€2.7/share, ~4.4% yield at current market cap) may appeal to income investors, but the payout ratio (~112% of EPS) warrants monitoring. Growth prospects are tied to industrial automation trends, but competition from larger players and cyclical exposure to manufacturing sectors pose risks.
Stemmer Imaging competes in the fragmented machine vision market by offering a full-stack solution combining proprietary software with hardware components from leading manufacturers. The company's key advantage lies in its system integration capabilities and application expertise across diverse industries. Unlike pure component suppliers, Stemmer provides complete vision solutions tailored to specific use cases (e.g., quality inspection in pharma or automotive). However, as a mid-sized player (€345M market cap), it lacks the R&D scale of semiconductor-based camera manufacturers. Its German engineering reputation supports premium positioning in Europe, but may limit cost competitiveness against Asian suppliers. The subsidiary structure under Primepulse provides stability but could constrain strategic flexibility compared to independent peers. Stemmer's focus on higher-margin software and services (vs. hardware resale) helps differentiate from distribution-focused competitors. The company's challenge is maintaining technological edge against both vertically-integrated industrial automation giants and agile AI-vision startups.