Assessing Mycronic (OM:MYCR) Valuation As New Asian Mask Writer Orders Support Business Momentum

Mycronic (OM:MYCR) has announced two new mask writer orders from customers in Asia, including a first SLX order from a new client and an FPS 6100 Evo order from an existing one.

See our latest analysis for Mycronic.

These new mask writer orders come as Mycronic’s share price sits at SEK 222.3, with a modest 1-day share price return of 2.63% and a 1-year total shareholder return of 7.23%. The 3-year total shareholder return of 136.56% points to stronger longer term momentum.

If this kind of demand story has your attention, it could be a good moment to look at high growth tech and AI stocks as potential next candidates on your watchlist.

With Mycronic trading at SEK 222.3, slightly above the latest analyst price target and intrinsic value estimate, investors may want to consider whether the recent momentum is already reflected in the price or whether the market is mispricing the company’s prospects.

Most Popular Narrative Narrative: 1.7% Overvalued

With Mycronic last closing at SEK 222.3 against a narrative fair value of about SEK 219, the story focuses on how future growth supports that gap.

The analysts have a consensus price target of SEK 229.5 for Mycronic based on their expectations of its future earnings growth, profit margins and other risk factors. In order for you to agree with the analysts' consensus, you would need to believe that by 2028, revenues will be SEK 8.4 billion, earnings will be SEK 1.8 billion, and it would be trading on a PE ratio of 30.2x, assuming you use a discount rate of 6.1%.

Read the complete narrative.

Curious what justifies paying up for this equipment maker? The narrative emphasizes moderate revenue growth, firm margins and a higher future earnings multiple. Want the full playbook?

Result: Fair Value of $219 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, there are also pressure points in this story, including weaker High Flex demand and tariff related delivery delays that could cap orders and earnings visibility.

Find out about the key risks to this Mycronic narrative.

Build Your Own Mycronic Narrative

If you see the story differently or prefer to weigh the numbers yourself, it only takes a few minutes to shape your own view: Do it your way.

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Mycronic.

Looking for more investment ideas?

If Mycronic has sparked your interest, do not stop here, use the screener to find other ideas that fit your style and broaden your watchlist.

• Target income potential by scanning these 11 dividend stocks with yields > 3% that might suit investors who prioritise regular cash returns alongside capital appreciation.
• Hunt for growth stories by checking out these 25 AI penny stocks where companies are tied to artificial intelligence themes across different parts of the market.
• Go bargain hunting with these 877 undervalued stocks based on cash flows if you want to focus on businesses where prices differ from cash flow based estimates.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com