The average target price of SENS.SW is 86 and suggests 22% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to increase one's position in this instrument in the next 12 months. The most optimistic analyst has a target price of 95.0. This translates into 34% upside potential in the best case. On the other hand, the most pessimistic analyst has a target price of 83.0. This suggests 17% upside potential. Even the most pessimistic analyst believes there will be stock growth. 

Sensirion Holding AG, together with its subsidiaries, engages in the development, production, sale, and servicing of sensor systems, modules, and components in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers gas and liquid flow, differential pressure, and environmental sensors for the measurement of humidity and temperature, volatile organic compounds, carbon dioxide, and particulate matter. It serves automotive, medical, industrial, and consumer markets. Sensirion Holding AG was incorporated in 1998 and is headquartered in Stäfa, Switzerland.

Switzerland

Sensirion Holding AG

Industrials

The company does not pay dividends at all, or it pays them sporadically. There have only been a few years with dividend payments in the past ten years. 

SENS.SW reported revenue of CHF 277mn in the last 12 months, up 19% from FY23. At the same time, the dynamics of cash flow, as measured by free cash flow (FCF), were drastically different. EPS grew 343% from FY23 to CHF -1.86. Market expects EPS to reach CHF -0.54 in FY25.

Over the past six months, the stock has consistently climbed, resulting in 30% total increase. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 31ppts and its growth accelerated by 15ppts in the past month. There is a distinction between the stock's performance and that of its peers from the same country and industry. Over six months it exceeded the performance of this peer group by 26ppts and accelerated its growth by 11ppts in the recent month. Given the stock's valuation versus its peers, its total price movement is mildly favourable.

The company has reported weak EBITDA margins compared to its global peers in recent years. EBITDA margin amounted to -7.8% in the last 12 months, a decline from 0.7% in FY23. 

Historically, SENS.SW has reported very poor net margins compared to its global peers. Specifically, in the last 12 months, this metric equalled -10.4%, down from -2.8% in FY22. 

Sensirion Holding AG reported a return on equity (RoE) of -9.8% in the last 12 months, down from -9.6% in FY23. The market consensus projects an RoE of -324.3% in FY24, again behind its peers. 

Another important profitability metric, return on assets (RoA), amounted to -8.5% in the last 12 months, a decrease from -8.4% in FY23. The market analysts predict that RoA will be -288.4% in FY24, again weaker than its peers. 

In the last 12 months, the return on capital employed (RoCE) declined to -9.3%, below the peers. The consensus estimate for FY24 for RoCE is -182.0%, again behind the peers. 

The ratio of return on invested capital (RoIC) to the weighted average cost of capital (WACC) has been -0.3 in the past several years. This ratio implies a fragile shareholder value creation. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

SENS.SW has above average trading liquidity. The average private investor can sell his common position in the stock in a single trading day. Liquidity is usually quite stable and is unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. 

No other major risks have been identified.

The risk of default is high. Among the negative credit factors, we point to weak positions in its industry, slow historical revenue growth, bleak profitability, and negligible return on capital. We note low margin volatility, adequate interest coverage, and an favourable capital structure, among the positive credit factors. 

In highly turbulent market conditions, SENS.SW is moderately volatile. In other words, the stock will fall more than the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be moderate. 

In normal market circumstances, SENS.SW is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from limited to average. 

Considering past and projected metrics, the stock is distinctly 'expensive' compared to its peers. In particular, the stock is overpriced on P/E, 'expensive' on EV/EBITDA, overvalued on P/FCF. 

Sensirion Holding AG

CHF 70.6

4

Sensirion Holding AG

CHF 70.6

4

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

CHF 70.6

About

About

About

About