Risk factor
Very poor trading liquidity
Profitability factor
Greatly overvalued vs peers
About
Rakon Limited, a company founded in 1967 and headquartered in Auckland, New Zealand, is a global leader in designing, manufacturing, and supplying advanced frequency control products and timing solutions. The company's diverse product portfolio, distributed internationally across Asia, North America, and Europe, includes a comprehensive array of crystal resonators, such as specialized space crystals, tuning fork crystals, and standard SMD crystals. Rakon also develops various crystal oscillators, encompassing voltage-controlled (VCXO), surface acoustic wave (SAW), temperature-compensated (TCXO), and oven-controlled (OCXO/OCSAW) types. Furthermore, they produce a range of crystal filters, including bandpass, notch/stop band, linear phase, and monolithic designs, alongside frequency multipliers. These precision components are vital for numerous high-technology applications. Key sectors utilizing Rakon's products include telecommunications, global positioning systems (GPS), aerospace and defense, aircraft and marine navigation, automotive positioning, autonomous operations in agriculture and mining, and emergency locator beacons, among other diverse markets. Beyond its core product offerings, Rakon is actively engaged in research and development and provides essential financing and marketing support services.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EB