Unraveling AIXTRON SE's Valuation: A 34% Discount?

AIXTRON SE, a leading supplier of deposition equipment for the semiconductor industry, has been on a successful growth path in recent quarters. With its strong performance and technological advancements, investors are asking: is AIXTRON SE (ETR:AIXA) trading at a 34% discount?

In the first quarter of 2024, AIXTRON reported a 53% year-over-year increase in revenues, driven by demand for SiC and GaN power electronics. The company's operating result (EBIT) surged 183% to €9.9 million, and the profit for the period grew by 209% to €10.8 million. These impressive results have raised questions about the company's valuation.

To determine if AIXTRON is trading at a 34% discount, we need to compare its current valuation with its intrinsic value. One metric to consider is the price-to-earnings (P/E) ratio. As of 2024, AIXTRON's P/E ratio is 15.5x, which is lower than the industry average of 25x. This suggests that AIXTRON may be undervalued relative to its peers.

Another key metric is the enterprise value-to-EBITDA (EV/EBITDA) ratio. AIXTRON's EV/EBITDA ratio as of 2024 is 12.2, which is significantly lower than its historical average of 19.7 (2018-2023). This indicates that AIXTRON is currently trading at a discount compared to its historical averages.

To further support the claim that AIXTRON is undervalued, we can examine its dividend yield. While the specific dividend yield is not provided in the given data, historical data shows that the company has paid regular dividends, suggesting that its current yield may be indicative of its long-term payout policy. If AIXTRON's dividend yield is significantly higher than its historical average and industry peers, it could suggest that the stock is trading at a discount.

In conclusion, AIXTRON SE's strong performance in recent quarters, along with its lower P/E and EV/EBITDA ratios compared to its historical averages and industry peers, suggests that the company may be trading at a 34% discount. However, it is essential to consider other factors, such as the company's growth prospects, risk, and future cash flows, to make an informed investment decision. Careful analysis and due diligence are required to determine if AIXTRON is indeed trading at a discount and whether it presents an attractive investment opportunity.