Stock Analysis & Valuation Schweizer Electronic AG (SCE.DE)

• Previous Close: €5.65
• Sector Valuation Confidence Level: Low

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	144.00	2449
Intrinsic value (DCF)	16.71	196
Graham-Dodd Method		n/a
Graham Formula		n/a

Strategic Investment Analysis

Company Overview

Schweizer Electronic AG (SCE.DE) is a leading German manufacturer of high-performance printed circuit boards (PCBs), serving industries such as automotive, aviation, industrial, medical, and communications. Founded in 1849 and headquartered in Schramberg, Germany, the company specializes in advanced PCB technologies, including power electronics (inlay, heavy copper, CU-IMS), logic circuits (multilayer, HDI), and high-frequency solutions (RF 6-24 GHz, embedded antenna PCBs). Schweizer Electronic AG plays a critical role in the technology hardware sector, providing essential components for next-generation automotive electrification, industrial automation, and IoT applications. With a strong focus on innovation and reliability, the company maintains a competitive edge in the European PCB market while expanding its global footprint. Its expertise in embedded and high-frequency PCBs positions it as a key supplier for automotive radar systems and 5G infrastructure.

Investment Summary

Schweizer Electronic AG presents a niche investment opportunity in the PCB industry, with strong profitability (net income of €32.9M in 2023) and a solid balance sheet (€7.7M cash). The company benefits from growing demand in automotive electrification and advanced industrial applications. However, its small market cap (~€13.4M) and high beta (1.144) indicate higher volatility and liquidity risks. The lack of dividends may deter income-focused investors, but its EPS growth (€8.72 diluted) suggests potential for capital appreciation. Investors should monitor its debt levels (€28.2M total debt) and exposure to cyclical industries like automotive.

Competitive Analysis

Schweizer Electronic AG competes in the high-end PCB market, differentiating itself through specialized technologies like p2 pack embedding and RF PCBs for automotive radar. Its competitive advantage lies in its deep expertise in embedded solutions, which are critical for advanced driver-assistance systems (ADAS) and power electronics. The company’s focus on automotive and industrial applications provides stability, though it faces pricing pressure from larger Asian PCB manufacturers. Its German engineering reputation supports premium pricing, but supply chain localization in Europe may limit cost competitiveness compared to global peers. Schweizer’s R&D investments in high-frequency and heavy-copper PCBs align with industry trends toward electrification and 5G, but scalability remains a challenge due to its smaller production capacity relative to multinational competitors.

Major Competitors

• AT&S Austria Technologie & Systemtechnik AG (AT&S.VI): AT&S is a larger European PCB manufacturer with a strong presence in high-density interconnect (HDI) and IC substrates. It outperforms Schweizer in scale and diversification (serving consumer electronics and mobile devices) but lacks Schweizer’s focus on automotive power electronics. AT&S faces higher exposure to cyclical smartphone demand.
• TTM Technologies (TTMI): TTM is a global PCB leader with advanced capabilities in aerospace and defense PCBs. It competes with Schweizer in high-frequency RF solutions but has a broader geographic footprint. Schweizer’s embedded PCB expertise gives it an edge in automotive, while TTM’s scale benefits cost efficiency.
• C-Mac Microcircuits Inc. (CMI.TO): C-Mac focuses on high-reliability PCBs for aerospace and medical sectors, overlapping with Schweizer’s industrial segment. Schweizer’s automotive specialization provides more stable demand, but C-Mac’s aerospace contracts offer higher margins.
• Würth Elektronik Group (WUS.DE): A key private competitor in Europe, Würth excels in standard PCBs and passive components. Schweizer’s advantage lies in high-performance custom solutions, but Würth’s distribution network and vertical integration pose a threat in cost-sensitive segments.