(ATS) AT & S Austria Technologie - Ratings and Ratios

AT&S Austria Technologie & Systemtechnik Aktiengesellschaft is a leading global manufacturer and distributor of high-end printed circuit boards (PCBs) and substrates, operating across multiple segments including Electronics Solutions and Microelectronics. The companys product portfolio encompasses a wide range of PCBs, from simple double-sided boards to complex multilayer, high-frequency, and high-speed boards, as well as integrated circuit substrates and advanced interconnect solutions. AT&S serves original equipment manufacturers (OEMs) and contract electronic manufacturers (CEMs) directly, catering to various industries that rely on sophisticated electronic components.

The companys technological capabilities include Z-Interconnect, ECP, 2.5D, and mSAP, positioning it at the forefront of innovation in the electronic components sector. Beyond manufacturing, AT&S provides a suite of services that include product and process simulation, hardware development, radio frequency (RF) simulation, and functional test development, enhancing its value proposition to customers. These services enable clients to optimize their product designs, improve reliability, and reduce time-to-market.

From a technical analysis perspective, ATSs stock has shown a recent price of 16.54 EUR, with its 20-day Simple Moving Average (SMA) at 13.38 EUR and 50-day SMA at 13.23 EUR, indicating a positive trend. The 200-day SMA stands at 15.22 EUR, suggesting that the stock is currently trading above its long-term average. The Average True Range (ATR) is 0.78, equivalent to 4.71% of the current price, indicating moderate volatility. Given these technical indicators, along with the stocks 52-week high and low of 23.02 EUR and 10.68 EUR, respectively, it appears that ATS is in an uptrend but has room for further consolidation or potential pullback.

Fundamentally, AT&S has a market capitalization of 582.75M EUR. However, the absence of a Price-to-Earnings (P/E) ratio, both current and forward, coupled with a negative Return on Equity (RoE) of -14.27%, raises concerns about the companys current profitability. The negative RoE indicates that the company is not generating profits from its shareholders equity, which could be a result of various factors including operational challenges, market conditions, or investment in growth initiatives.

Forecasting the future performance of ATS stock involves synthesizing both technical and fundamental data. Technically, the uptrend and the stocks position above its long-term SMA are positive indicators. However, the lack of profitability and negative RoE are significant concerns. If AT&S can navigate its current challenges and return to profitability, the stock could see a positive revaluation. Assuming a recovery in earnings and given the current P/E absence, a potential target could be re-establishing a reasonable P/E ratio in line with industry peers, potentially driving the stock price higher. Conversely, if the company fails to address its profitability issues, the stock could face downward pressure. A cautious forecast might suggest a potential range for the stock, with a possible target between 18-20 EUR in the case of a successful turnaround, and a risk of falling back to the 52-week low if profitability issues persist.