Is Mycronic (OM:MYCR) Undervalued After Its New SLX Mask Writer Order?
Why this new SLX order matters for Mycronic stock
Mycronic (OM:MYCR) just reported a new SLX mask writer order from an existing customer in Asia, valued at about US$5 million to US$7 million, with delivery scheduled for the second quarter of 2027.
The SLX laser system is used to produce photomasks for semiconductor manufacturing, an area that depends heavily on dependable mask writer technology. This contract also ties directly to Mycronic’s Pattern Generators division, which supplies equipment for both display and semiconductor production.
See our latest analysis for Mycronic.
The latest SLX order lands at a time when Mycronic’s share price has shown strong momentum, with a 51.34% year to date share price return and a 58.11% total shareholder return over the past year, supported by even higher 3 year and 5 year total shareholder returns.
If this SLX contract has you thinking about where else semiconductor and manufacturing technology demand could flow next, it is worth scanning 36 robotics and automation stocks for other automation focused opportunities.
With Mycronic up 51.3% year to date and trading modestly above the average analyst price target, you need to decide how much of this move comes from the underlying business versus a change in sentiment. This is where valuation comes in next.
Most Popular Narrative: 5.2% Overvalued
Mycronic last closed at SEK327.8, compared with a most followed narrative fair value estimate of SEK311.5. This estimate is built on detailed growth and margin forecasts.
Mycronic's recent acquisitions, such as Hprobe and RoBAT, are expected to expand its offerings in the Global Technologies division with unique technologies for testing MRAM and PCBs, potentially leading to increased revenue and strengthened market position.
Want to understand why this valuation leans above the current fair value line? The narrative leans heavily on faster top line expansion and richer profit margins, combined with a future earnings multiple that assumes Mycronic keeps executing on those targets.
Result: Fair Value of SEK311.5 (OVERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, tariffs affecting High Flex deliveries and weaker European demand could still upset the assumptions behind the current Mycronic narrative and its fair value work.
Find out about the key risks to this Mycronic narrative.
Another view on Mycronic's valuation
The analyst narrative suggests Mycronic is 5.2% above its SEK311.5 fair value, based on growth and margin forecasts. Yet the SWS DCF model points to a fair value of SEK361.13, which is higher than the current SEK327.8 price and implies the stock is undervalued. Which lens do you consider more relevant for the next leg of your thesis?
To understand how this gap arises and what would need to change in Mycronic's cash flow path to close it, take a closer look at the Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Mycronic for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 250 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
If this combination of upside potential and highlighted concerns around Mycronic has you considering your next steps, act now and review the 2 key rewards and 1 important warning sign
Looking for more Mycronic style investment ideas?
If Mycronic has sharpened your focus on where to put fresh capital next, do not sit on the sidelines while other opportunities line up in front of you.
- Target potential mispricing by scanning companies flagged as 250 high quality undervalued stocks that combine quality fundamentals with prices that may not fully reflect their characteristics.
- Anchor your portfolio with stability and income by reviewing 446 dividend fortresses that aim to pair higher yields with resilient business profiles.
- Guard against unpleasant surprises by filtering for 299 resilient stocks with low risk scores that our models flag with more resilient balance sheets and lower overall risk scores.
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