Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Elma Electronic AG is a global producer and distributor of electronic packaging solutions, primarily catering to the embedded systems market. Their extensive product line features backplanes, chassis platforms, and a diverse array of cabinet solutions, ranging from standard cabinets and racks to mobile carts, protective cases, specialized enclosures, and related accessories. Furthermore, Elma supplies a variety of embedded boards, including single board computers, storage modules, Ethernet switches, carriers, adapters, FPGAs, and I/O and communication boards. The company also provides full embedded computing systems, alongside enclosures and associated components like subracks, front panels, handles, and various hardware accessories. Their portfolio extends to power solutions, encompassing standard power supplies, modular options, power distribution boards, complete power systems, and custom development services. Additionally, Elma specializes in rotary switches, offering multi-rotary and selector/coded switches, encoders, knobs, caps, LEDs, audio solutions, and mentor components. These sophisticated products and solutions cater to a broad spectrum of industries globally. Key sectors include aerospace and defense, industrial applications, communications, transportation, energy, medical, science and research, test and measurement, broadcast, and audio/video markets. Established in 1960, Elma Electronic AG maintains its corporate headquarters in Wetzikon, Switzerland.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is 'expensive' on EV/EBITDA.