Update shared on13 Aug 2025
Fair value Increased 3.91%Half-year 2025 report was very insightful. They are clearly executing on their strategy. While on the surface you see a revenue decline, order intake increased a whooping 43% YoY and even though revenue declined gross margin did improve 2% to 33%.
As management puts it:
"The decline in the operating result is due to targeted investments in personnel expansion and the further development of structures and infrastructure. In addition to postponed project acceptances, the lower business volume due to the low order intake in the second half of 2024 also had an impact. We consider this development to be temporary."
It is also very encouraging to see that their order intake increased in both segments (Metrology and Material Solutions) signaling the turnaround in revenues and profits is starting. They also maintained guidance for the year (EUR 260–280 m sales; EUR 34–39 m EBITDA).
The book-to-bill ratio reached 0.87 (H1 2024: 0.54).
Hitting their guidance means they are fairly valued at this point. If margin continues to expand and the revenues hit or beat the high-end of their guidance then this stock can really run. Consider the current valuation has no PE expansion, which should increase as management delivers on what they said they would do and the market starts valuing them as a semiconductor stock.
Disclaimer
The user Minesweeper has a position in XTRA:TPE. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.