Assessing Mycronic (OM:MYCR) Valuation After Securing Major USD 48-52 Million Equipment Order

Major Equipment Order Signals Ongoing Demand for Mycronic (OM:MYCR)

Just this week, Mycronic (OM:MYCR) announced that it has landed a significant order from an existing customer in Asia. The deal covers three mask writers and is valued at USD 48-52 million. For investors, this news stands out as it not only reaffirms trust from a returning client but also highlights solid demand for Mycronic’s display photomask solutions. The staged deliveries, stretching from mid-2026 into early 2027, give shareholders more confidence in the company’s visibility on future revenues.

Zooming out, Mycronic’s share price has notched up an 11% return over the past year, outpacing broader market trends. While annual net income growth has turned slightly negative, annual sales continue to edge upward. The recent momentum seems supported by this fresh order, keeping Mycronic in the conversation for those seeking stocks with exposure to display technology infrastructure, even as investors digest a year of steady gains.

With these developments locked in, is the current valuation of Mycronic factoring in continued growth, or does this new deal give investors a rare chance to capture upside before the market catches on?

Most Popular Narrative: 7.1% Undervalued

According to the most widely followed narrative, Mycronic shares are currently undervalued by just over 7%, based on long-term growth and profit expectations. This view is supported by a track record of strong pricing power and an industry tailwind for advanced electronic manufacturing.

Catalysts

• The electronics-complexity super-cycle, along with the rise of AI datacentres, EVs, and advanced display and semiconductor nodes, requires ever-finer photomasks, ultra-precise die bonding, and higher-reliability SMT lines. This directly fuels sales of Pattern Generators, dispensing/coating, and photonics tools.
• Proven pricing power is demonstrated by an average gross margin of 54% over the past decade (with a low point of approximately 40%), indicating that customers pay a premium for Mycronic’s precision and uptime.
• Valuation upside exists, as the current P/E sits below the long-term 22 to 28 times band. This leaves room for mean reversion if double-digit growth persists.

Think Mycronic’s valuation edge is just a numbers game? The real secret is that it depends on aggressive growth forecasts and a profit multiple usually reserved for sector leaders. Wondering what underpins that eye-catching fair value? The narrative's projections are bold, and its success relies on some key assumptions about growth rates and margins. Find out what’s fueling these numbers and what it means for investors.

Result: Fair Value of $232.58 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, slower AI or EV capital investment and rising competition could erode Mycronic’s growth rates and pricing power, which would challenge the narrative’s optimistic outlook.

Find out about the key risks to this Mycronic narrative.

Another View: Discounted Cash Flow Analysis

While some investors focus on market comparisons, our DCF model offers a different perspective on Mycronic’s outlook. This method weighs future cash flows instead of just multiples, offering a check on current optimism. Does it reveal hidden risks or untapped opportunity?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mycronic for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Mycronic Narrative

If you see things differently, or want to dig into the numbers on your own terms, crafting your personal view takes just a few minutes. Do it your way

A great starting point for your Mycronic research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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