u-blox Holding AG (UBXN) AI Stock Analysis

• Market Cap: $515.66M
• Dividend Yield: 1.31%
• Average Volume (3M): 31.12K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -54.43%
• EPS Growth: -1090.31%
• Country: CH
• Employees: 1,150
• Sector: Technology
• Sector Strength: 46
• Industry: Communication Equipment
• EPS (TTM): -12.03
• Shares Outstanding: 7,471,652
• 10 Day Avg. Volume: 19,678
• 30 Day Avg. Volume: 31,123
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $89.42
• Price Target Upside: 14.50% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

u-blox Holding AG faces significant financial challenges with declining revenues and negative margins, heavily impacting the overall score. Technical analysis shows some short-term positive momentum, and strategic shifts highlighted in the earnings call provide a potential path to recovery. However, the negative valuation metrics due to losses weigh down the overall score.

Positive Factors

Business Growth

Positioning business is expected to grow more than 10% in 2025.

Strategic Focus

A future strategic focus purely on Positioning would change the investment case for the better and improve sentiment on the stock.

Negative Factors

Auto and Industrial Demand

Persisting demand weakness in industrial applications and deteriorating auto demand will remain a burden going into 2025.

Financial Performance

Sales forecast is reduced significantly, leading to heavy losses also in 2025.

Guidance and Forecast

The disappointment today is the guidance for Q4 sales in a range of CHF 60m to CHF 70m with a negative EBIT margin of -25% to -15%.

u-blox Holding AG Business Overview & Revenue Model

Company Description

u-blox Holding AG develops, manufactures, and markets products and services supporting GPS/GNSS satellite positioning systems for the automotive, industrial, and consumer markets worldwide. The company operates in two segments, Positioning and Wireless Products, and Wireless Services. The Positioning and Wireless Products segment develops and sells chips and modules designed for positioning and wireless connectivity. The Wireless Services segment offers wireless communication technology services in terms of reference designs and software. The company offers a range of GPS/GNSS positioning products, including satellite receiver chips and chipsets, receiver modules, receiver boards, antennas, and smart antennas, which are in used for navigation, automatic vehicle location, security, traffic control, location-based services, timing, and agriculture. u-blox Holding AG was founded in 1997 and is based in Thalwil, Switzerland.

How the Company Makes Money

u-blox makes money primarily through the sale of its semiconductor products and modules, which are used in a wide range of applications from automotive systems to industrial machinery and consumer electronics. The company's revenue model includes direct sales of its GPS and wireless communication modules, as well as licensing of its technology to other manufacturers. Additionally, u-blox benefits from strategic partnerships with key players in the tech industry, which help to expand its market reach and drive sales. Its earnings are significantly influenced by the growing demand for IoT solutions and the increasing need for reliable connectivity and positioning technologies in various industries.

u-blox Holding AG Financial Statement Overview

Summary

u-blox Holding AG shows financial instability with declining revenues and negative profit margins. Although it has a strong equity position, debt levels and profitability issues are concerning, alongside inconsistent cash flow management.

Income Statement

The income statement of u-blox Holding AG shows significant revenue volatility with a notable decline in recent years. The gross profit margin has decreased from historical highs, and net profit margins have turned negative, indicating profitability challenges. EBIT and EBITDA margins have also been negative for the most recent year, reflecting operational inefficiencies.

Balance Sheet

The balance sheet demonstrates a strong equity position with a favorable equity ratio, suggesting financial stability. However, the debt-to-equity ratio indicates a manageable level of debt, which, combined with declining equity, suggests potential leverage risks. Return on equity has been negative recently, pointing to profitability issues.

Cash Flow

u-blox Holding AG's cash flow statement reveals fluctuating free cash flow with recent improvements, yet operating cash flow remains modest compared to net income, indicating potential cash generation issues. The free cash flow to net income ratio demonstrates better cash management, but consistency is lacking.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
262.88M	576.91M	623.85M	414.06M	333.51M
	Gross Profit
120.09M	253.89M	270.65M	158.03M	127.81M
	EBIT
-112.16M	-3.39M	119.80M	20.81M	7.64M
	EBITDA
-72.33M	35.20M	161.79M	65.58M	-45.13M
	Net Income Common Stockholders
-88.91M	-8.63M	101.77M	15.33M	-64.63M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
90.95M	126.88M	137.75M	83.75M	94.37M
	Total Assets
437.92M	593.11M	673.17M	508.70M	521.89M
	Total Debt
29.66M	31.88M	95.05M	92.63M	153.67M
	Net Debt
-61.28M	-95.00M	-42.70M	9.39M	59.79M
	Total Liabilities
116.96M	191.25M	261.18M	206.69M	239.21M
	Stockholders Equity
320.96M	401.86M	412.00M	302.01M	282.55M
Cash Flow		Free Cash Flow
6.48M	10.01M	65.04M	52.05M	-5.72M
	Operating Cash Flow
36.75M	59.17M	116.05M	95.16M	37.07M
	Investing Cash Flow
-26.61M	-48.31M	-51.30M	-42.00M	-55.98M
	Financing Cash Flow
-46.69M	-20.18M	-9.25M	-65.00M	-8.84M

u-blox Holding AG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:UBXN, the sentiment is Positive. The current price of 78.1 is above the 20-day moving average (MA) of 72.67, above the 50-day MA of 73.79, and above the 200-day MA of 73.66, indicating a bullish trend. The MACD of -1.29 indicates Negative momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 88.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:UBXN.

u-blox Holding AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	59 Neutral	$9.97B	10.09	-6.54%	3.08%	7.41%	-11.60%
UBXN	56 Neutral	$515.66M	―	-24.38%	1.31%	-54.43%	-1090.31%

u-blox Holding AG Corporate Events

u-blox Reports Strong Q1 2025 Growth and Strategic Focus Shift

u-blox reported strong revenue growth in Q1 2025, with a 26% year-over-year increase, driven by demand in automotive and industrial sectors. The company is divesting its Cellular business to focus on its Locate segment, anticipating continued growth in GNSS products, particularly in China, where automated driving is gaining momentum. The strategic shift aims to improve profitability and market positioning, with expectations of double-digit revenue growth in Locate and Short-range segments throughout 2025.

u-blox Shareholders Approve Board Proposals at 2025 AGM

At the Ordinary General Meeting 2025, u-blox shareholders approved all motions proposed by the Board of Directors, including the re-election of André Müller as Chairman and other board members. The compensation report for 2024 was also approved, ensuring stability in the company’s governance and compensation structures. This approval reflects strong shareholder confidence in u-blox’s leadership and strategic direction, potentially reinforcing its position in the competitive technology market.

u-blox Launches ANNA-B5 Bluetooth LE Module for IoT

u-blox has launched the ANNA-B5, a compact and secure Bluetooth LE module optimized for IoT applications. Built on Nordic Semiconductor’s advanced SoC, the module offers robust performance, high security, and seamless connectivity, setting a new standard for wireless MCU solutions in various IoT segments. Its ultra-small design and low power consumption make it ideal for battery-powered applications, enhancing the company’s position in the IoT market.

u-blox Divests Dual Mode Cellular-Satellite Business to Trident IoT

u-blox has divested its dual mode cellular-satellite communications business to Trident IoT, Inc., as part of its strategic focus on its Locate business. This move allows u-blox to concentrate on its core competencies while ensuring continuity for its customers and innovation in satellite communication technologies. The acquisition positions Trident IoT to leverage growing opportunities in the IoT industry, enhancing its market presence with proven technology and expertise.

u-blox Appoints Helen Xu as Chief Growth Officer

u-blox AG has appointed Helen Xu as Chief Growth Officer, succeeding Markus Schaefer. Helen Xu brings 30 years of experience in the automotive and semiconductor industry, having held senior roles at Gentherm Inc., Infineon, and other major companies. Her appointment is expected to leverage her extensive global experience to drive further growth and strategic development at u-blox.

u-blox Enhances NEO-F10T Module with Advanced Security Features

u-blox has announced an update for its NEO-F10T dual-band GNSS timing module, which now includes Galileo OSNMA support, enhancing security and timing accuracy for critical infrastructure. This update positions the NEO-F10T as a robust solution against spoofing attacks, making it ideal for private networks and telecommunications infrastructure, and will be available for evaluation in Q2 2025.

u-blox Divests Cellular Business to Focus on Core Technologies

u-blox has announced the divestment of its Cellular business to Trasna, a move aimed at concentrating on its core positioning technologies. This strategic decision is expected to enhance u-blox’s focus on its primary operations while providing Trasna with a platform for growth in cellular technology. The transaction, set to close in Q2 2025, will reduce restructuring and transaction costs for u-blox and is anticipated to positively impact its financial recovery and market positioning.

u-blox Launches Revolutionary Dual-Band GNSS Antenna Module

u-blox has launched the DAN-F10N, the smallest and most reliable L1, L5 dual-band GNSS antenna module, which simplifies integration and reduces manufacturing costs. This innovative module is designed for asset tracking, telematics, industrial automation, and consumer applications, offering precise positioning and robust performance, thereby accelerating development cycles and enabling advanced GNSS solutions across various industries.