Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on AMS AG. We currently have 8 research reports from 1 professional analysts.
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A strong H2 17 guidance which dominates the actual release
07 Feb 17
ams reported Q3 revenues of €133.6m, corresponding to an 8.9% decrease sequentially and 9.2% yoy. The Products business line accounted for €115.7m (-12.1% sequentially, -15.1% yoy), leaving €17.9m to the Foundry business (+62.7% yoy). The adjusted gross margin reached 51.9% (49.3% in IFRS), down 490bp yoy (530bp in IFRS) following an expected customer-specific development; the adjusted EBIT, came in at €16.4m (€7.1m in IFRS), for a margin of 12.3% (vs. 5.3% in IFRS), leading to a net result of €13.7m. For Q1, the company expects revenues of between €141m and €148m, including consolidation of the Heptagon business. The adjusted EBIT margin is expected to be around breakeven due to consolidation effects from Heptagon. For 2017, Heptagon’s contribution is expected at about $300m, almost entirely in H2. The company announced a dividend of €0.3 per share, as well as the continuation of its share buy-backs up to CHF60m, mostly to cover Heptagon’s earn-out.
Weak guidance, and an acquisition which supposes flawless execution
25 Oct 16
ams reported Q3 revenues of €146.7m, corresponding to a 10.8% increase sequentially but a 4.1% decrease yoy. The Products business line accounted for €131.7m (+9.3% sequentially, -7.5% yoy), leaving €15m to the Foundry business (+41.5% yoy). The adj. gross margin reached 55.4% (53% in IFRS), down 160bp yoy (130bp in IFRS); the adj. EBIT, came in at €28m (€49.7m in IFRS), for a margin of 19.1% (vs. 33.9% in IFRS), leading to a net result of €55.9m. For Q3, the company expects a muted quarter due to a negative development concerning a particular customer in the consumer end market and a production yield issue in an industrial product line, the latter unlikely to be solved before early 2017. This will lead to expected revenues of between €127m and €134m, while the customer-specific development may result in negative profitability effects due to depreciation of work-in-progress inventory, leading to an expected adj. EBIT margin of 11-13%. Moreover, the company announced the acquisition of Heptagon, a specialist in micro-optics and optical sensing solutions with particular expertise in high performance optical packaging. The transaction includes an upfront consideration in cash ($64m) and shares (shares currently held in treasury combined with a 15% capital increase), for a total of $570m, as well as an earn-out consideration subject to future results but potentially as high as $285m. This takes the company’s potential value to $855m, i.e. 9.5x the current TTM revenues of $90m. These revenues are associated with negative profitability, which is expected to disappear following a capacity increase funded by $250m of existing cash and triggered by a specific customer commitment starting next year. The combination of the two activities is expected to result in a 30% CAGR for the coming three years with a profitability target of 30% EBIT margin from 2019; the deal is expected to close by early 2017.
Signs of stabilisation
26 Jul 16
ams reported Q2 revenues of €132m, corresponding to a 3.4% decrease sequentially and 21.9% yoy. The Products business line accounted for €120.5m (-5.5% sequentially, -23.6% yoy), leaving €11.9m to the Foundry business (flat yoy). The gross margin reached 53.4%, down by 100bp yoy; EBIT, excluding acquisition-related costs, came in at €24.4m, for a margin of 18.4% (vs. €16.7m and 12.6% including these costs), leading to a net result of €19.6m. The company also announced the acquisition of the colour and spectral sensing systems specialist MAZeT, based in Germany and employing 80 people, for an undisclosed amount in cash. The company had also acquired during the quarter Cambridge CMOS Sensors (CCMOSS), a specialist in gas and infrared sensors, based in Cambridge and employing 33 people, once again for an undisclosed amount in cash. For Q3, the company expects positive momentum in the consumer business, which will lead to expected revenues of between €146m and €153m (vs. €153m in Q3 15). The adjusted gross margin should remain at a comparable or slightly lower level to Q2, while EBIT excluding acquisition-related costs should be in the 18-20% range. 2016 capex is expected above €80m to support the expected customer uptake of the latest generation of sensors.
2016 likely to be a blank year
26 Apr 16
ams reported Q1 revenues of €137m, corresponding to a 6.9% decrease sequentially and 10.6% yoy. The Products business line accounted for €127.5m (-6.4% sequentially, -10.7% yoy), leaving €9.5m to the Foundry business (-9.1% yoy). The gross margin reached 53.9%, down by 50bp yoy; EBIT, excluding acquisition-related costs, came in at €28.2m, for a margin of 20.6% (vs. 14.4% including these costs), leading to a net result of €13.6m. For Q2, the company expects significant volatility in the consumer market supply chain, as well as unfavorable currency effects, which will lead to expected revenues of between €127m and €134m. The gross margin should remain at a comparable level with Q1, while EBIT excluding acquisition-related costs should be in the 17-19% range.
Soft market conditions to hamper H1 performance
02 Feb 16
ams reported Q4 revenues of €147m, corresponding to a 5.9% growth yoy but to a 3.8% decrease sequentially. The Products business line accounted for €136m (-4.4% sequentially, +5% yoy), leaving €11m to the Foundry business (+18% yoy). The gross margin reached 54.6%, slightly increasing from the previous quarters; EBIT, excluding acquisition-related costs, came in at €33.7m, for a margin of 22.8% (vs. 19.9 % including these costs), leading to a net result of €31m. For the full year, revenues increased by 34.2% at €623m, for a stable gross margin of 54.4% (including acquisition-related costs) and an operating profit of 23.5% also including these costs. For Q1, the company expects weaker demand due to traditional seasonality and softer market conditions in the consumer space, leading to revenues expected between €131-138m, while the gross margin should remain stable; the operating margin is expected between 18% and 20%. For the full year, the company is expecting its top-line to show some growth.
A positive further move in the CMOS sensor space
20 Nov 15
ams has announced the acquisition of CMOSIS, a fabless provider of sensor and analog solutions for machine vision, medical, photographic and scientific imaging. The company is present in Belgium, Germany, Portugal and the US, and has more than 110 employees. The price paid is €217m, with 2015 revenues expected at around €60m and to be growing next year. The operating profitability is higher than ams’. The transaction will be funded through existing cash and credit lines, no additional financing being required, and is expected to close within the next six weeks.
N+1 Singer - NCC Group - Further issues in Assurance
22 Feb 17
NCC released a trading update yesterday afternoon highlighting further issues in its Assurance division. Sales growth has been lower than expected in all regions, resulting in a significant reduction in full year expectations. We have reduced our EPS forecasts by 25% in FY’17 and 22%/25% in FY’18/’19 respectively. Escrow continues to perform in line with expectations. In response to these issues the Board has announced a strategic review into all of the Assurance businesses. The results of the strategic review are expected to be announced at the FY results in July. With an extended period of uncertainty on the horizon we believe it will be hard for investors to gain confidence in NCC in the short term. That said we see fundamental value in the stock. Escrow is unaffected by this warning and remains an extremely high quality business, which we value at £353m in our SOTP. At the current share price this leaves Assurance valued at c.5x cal’17 EBITDA. While this appears to be an attractive multiple for a rare cybersecurity asset, we would like further clarity on the underlying nature of the current issues, hence our Hold recommendation. Our 138p target price assumes a 12x EBITDA multiple for Assurance but we apply a 20% discount to the group to account for the current uncertainty.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - PROACTIS Holdings - H1 in line
20 Feb 17
A positive interim trading update confirms that H1 results are in line with expectations, with revenues up 36% to c£11.8m on the back of strong organic growth (13%) and an in-line contribution from acquisitions. We make no changes to our forecasts, recommendation and target price pending the release of interim results on 26 April.