SWX:ELMN

Stock Analysis Report

Executive Summary

Elma Electronic AG manufactures and sells electronic packaging products for the embedded systems market worldwide.

Rewards

PE ratio (20.3x) is below the Swiss market (20.4x)

Earnings grew by 24.9% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

High level of non-cash earnings



Snowflake Analysis

Adequate balance sheet with proven track record.


Similar Companies

Share Price & News

How has Elma Electronic's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ELMN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.5%

ELMN

0.8%

CH Electronic

2.3%

CH Market


1 Year Return

25.7%

ELMN

38.6%

CH Electronic

19.8%

CH Market

Return vs Industry: ELMN underperformed the Swiss Electronic industry which returned 39.8% over the past year.

Return vs Market: ELMN exceeded the Swiss Market which returned 18.9% over the past year.


Shareholder returns

ELMNIndustryMarket
7 Day0.5%0.8%2.3%
30 Day0.5%2.7%2.0%
90 Day5.8%15.1%8.2%
1 Year25.7%25.7%42.4%38.6%25.6%19.8%
3 Year27.5%27.5%46.0%36.6%41.0%24.0%
5 Year14.3%14.3%134.8%106.5%56.2%31.3%

Price Volatility Vs. Market

How volatile is Elma Electronic's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Elma Electronic undervalued compared to its fair value and its price relative to the market?

20.43x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ELMN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ELMN's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: ELMN is good value based on its PE Ratio (20.3x) compared to the Electronic industry average (22x).

PE vs Market: ELMN is good value based on its PE Ratio (20.3x) compared to the Swiss market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ELMN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ELMN is overvalued based on its PB Ratio (2.7x) compared to the CH Electronic industry average (2.6x).


Next Steps

Future Growth

How is Elma Electronic forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

24.6%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Elma Electronic has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Elma Electronic performed over the past 5 years?

22.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ELMN has a high level of non-cash earnings.

Growing Profit Margin: ELMN's current net profit margins (3.4%) are higher than last year (2.7%).


Past Earnings Growth Analysis

Earnings Trend: ELMN's earnings have grown significantly by 22.3% per year over the past 5 years.

Accelerating Growth: ELMN's earnings growth over the past year (24.9%) exceeds its 5-year average (22.3% per year).

Earnings vs Industry: ELMN earnings growth over the past year (24.9%) exceeded the Electronic industry -2.4%.


Return on Equity

High ROE: ELMN's Return on Equity (13.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Elma Electronic's financial position?


Financial Position Analysis

Short Term Liabilities: ELMN's short term assets (CHF64.8M) exceed its short term liabilities (CHF29.3M).

Long Term Liabilities: ELMN's short term assets (CHF64.8M) exceed its long term liabilities (CHF26.0M).


Debt to Equity History and Analysis

Debt Level: ELMN's debt to equity ratio (85.7%) is considered high.

Reducing Debt: ELMN's debt to equity ratio has reduced from 98.7% to 85.7% over the past 5 years.

Debt Coverage: ELMN's debt is not well covered by operating cash flow (16.2%).

Interest Coverage: ELMN's interest payments on its debt are well covered by EBIT (13.5x coverage).


Balance Sheet

Inventory Level: ELMN has a high level of physical assets or inventory.

Debt Coverage by Assets: ELMN's debt is covered by short term assets (assets are 2x debt).


Next Steps

Dividend

What is Elma Electronic's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

company0%marketbottom25%1.7%markettop25%3.4%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ELMN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ELMN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ELMN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ELMN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: ELMN is not paying a notable dividend for the Swiss market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ELMN's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

What is the CEO of Elma Electronic's salary, the management and board of directors tenure and is there insider trading?

15.8yrs

Average board tenure


CEO

Fred Ruegg (65yo)

6.3yrs

Tenure

CHF490,958

Compensation

Mr. Fred Ruegg has been the Chief Executive Officer of Elma Electronic AG since September 1, 2013 and also serves as its Member of the Executive Board. Mr. Ruegg served as Regional Manager of Americas at E ...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD0.00) is below average for companies of similar size in the Swiss market ($USD714.12K).

Compensation vs Earnings: Fred's compensation has been consistent with company performance over the past year.


Board Age and Tenure

15.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: ELMN's board of directors are seasoned and experienced ( 15.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Fred Ruegg (65yo)

    CEO & Member of the Executive Board

    • Tenure: 6.3yrs
    • Compensation: CHF490.96k
  • Edwin Wild (61yo)

    CFO & Member of the Executive Board

    • Tenure: 11.4yrs
    • Compensation: CHF499.84k

Board Members

  • Rudolf Weber (69yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CHF52.04k
  • Walter Häusermann (54yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: CHF53.25k
  • Martin Wipfli (56yo)

    Chairman of the Board

    • Tenure: 11.8yrs
  • Peter Hotz (65yo)

    Director

    • Compensation: CHF253.73k

Company Information

Elma Electronic AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Elma Electronic AG
  • Ticker: ELMN
  • Exchange: SWX
  • Founded: 1960
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: CHF100.536m
  • Shares outstanding: 228.49k
  • Website: https://www.elma.com

Number of Employees


Location

  • Elma Electronic AG
  • Hofstrasse 93
  • Wetzikon
  • Zurich
  • 8620
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ELMNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFDec 1996
0QKSLSE (London Stock Exchange)YesRegistered SharesGBCHFDec 1996

Biography

Elma Electronic AG manufactures and sells electronic packaging products for the embedded systems market worldwide. It offers system platforms, backplanes, storage, and related embedded products that employ design innovations based upon VME/VME64x, CompactPCI/2.16, OpenVPX/VPX, VXS, AdvancedTCA, MicroTCA, and other architectures. The company also provides enclosures and components product line that offer modular instrument cases, enclosures, and accessories for the electronics industry, as well as subracks and components that support the embedded market. In addition, it offers precision rotary and coded switches, mechanical and optical encoders and LED arrays, light-pipes, and light tubes, as well as cabinets. The company serves defense, railway, science and research, industrial, medical, test and measurement, communication, broadcast and pro AV, and avionics industries. The company was founded in 1960 and is headquartered in Wetzikon, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/22 20:49
End of Day Share Price2020/01/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.