AT&S ATS.VI
What does AT&S do?
AT&S is an Austrian manufacturer of advanced printed circuit boards and IC substrates. The company develops and manufactures interconnect solutions on which semiconductors and other electronic components are mounted and connected to one another. These include high-density interconnect (HDI) circuit boards, flexible and rigid-flex circuit boards, and substrates for high-performance processors. Production takes place at sites in Europe and Asia, mainly in China, India, Malaysia, and Austria.
AT&S generates revenue from customers in the electronics, computer, and communications industries as well as from automotive, industrial, and medical technology. Reporting is divided into the areas Electronics Solutions and Microelectronics. In terms of competition, the company is positioned in the technologically demanding segment, which requires high investment, close customer relationships, and extensive process know-how. Competitors are mainly Asian providers, some of which operate significantly larger manufacturing capacities.
Score profile
Rank vs. Electronic Components (22 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, AT&S ranks above average in the group Electronic Components (6.3/10). On growth, the company ranks in the middle in the group Electronic Components (4.3/10). On valuation (higher = cheaper), the stock ranks among the best in the group Electronic Components (8.3/10). On financial strength, AT&S ranks in the bottom fifth in the group Electronic Components (1.0/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 8.1x | 16.8x | better than 93 % |
| Trailing P/E | 82.3x | 28.9x | better than 7 % |
| EV/EBITDA | 8.8x | 14.9x | better than 93 % |
| Price/sales | 2.0x | 2.2x | better than 61 % |
| Price/book | 4.7x | 4.0x | better than 34 % |
| Revenue growth | 52.4% | 21.5% | better than 80 % |
| Earnings growth | 0.0% | 46.5% | better than 7 % |
| Gross margin | 20.3% | 33.7% | better than 30 % |
| Operating margin | 22.4% | 14.2% | better than 84 % |
| Net margin | 9.4% | 7.7% | better than 66 % |
| Return on equity | 18.5% | 13.9% | better than 70 % |
| Debt/equity | 174.5% | 41.8% | better than 7 % |
| Current ratio | 1.6x | 1.9x | better than 21 % |
| Free cash flow yield | -4.3% | 2.2% | better than 2 % |
| Dividend yield | 0.0% | 1.0% | – |
| Payout ratio | 0.0% | 26.9% | – |
| Beta | 1.42 | 1.36 | – |
Valuation: what is AT&S worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give AT&S a model range of 212.97 EUR to 232.88 EUR per share.
5 analysts, average rating “—”, average price target 276.20 EUR (+144.9%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Demand for high-performance computers, data centers, and mobile devices determines the need for IC substrates and HDI circuit boards.
- Technological leadership in the finest structures enables participation in demanding customer projects and supports pricing.
- Plant utilization shapes profitability, as the business has a high share of fixed costs.
Risks
- Capital requirements for new plants and technologies are high and, when demand is weak, weigh on cash flow and debt.
- A few large customers account for a substantial part of revenue; project delays have an immediate impact.
- The cyclicality of the semiconductor and electronics industries, exchange rate fluctuations, and geopolitical tensions can affect demand and supply chains.
What to look for with AT&S
The operating margin (EBITDA margin) shows how well utilization and prices cover the high fixed costs of capital-intensive manufacturing.