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Description
Chroma ATE Inc. designs, assembles, manufactures, sells, repairs, and maintains software/hardware for computers and peripherals, computerized automatic test systems, electronic test instruments, signal generators, power supplies, and telecom power su…
Analysis
Hope premium
Chroma ATE Inc. is priced well ahead of what the underlying numbers justify, a pattern we describe as a hope premium. Worth noting: the cash the business generates has lagged behind what the income statement shows.
On valuation, the picture is expensive. The owner-earnings multiple stands at 80.3×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 25% a year, against analyst forecasts of 45%. The price, in other words, assumes less than the experts do.
Growth is solid and accelerating; the safety picture is sturdy. The company scores 20/20 on our value-creation score: strong value creator.
Flags to be aware of: Reported profits have run ahead of actual cash for several periods. As always: this describes the company's numbers; it is not a recommendation.
360° rank · history
1007550250
Jan 202377
65
2023202420252026
All-time high
77
Jan 2023
All-time low
45
Jan 2024
Average rank
63
across all years
Detailed & Historical Ranks
Deep dive into 15 detailed ranks and 3 years of history.
Current202520242023
Price/Sales
6
10
17
16
Price/Earnings
10
17
42
16
Price/Book
3
3
15
15
Dividend Yield
39
65
89
69
Value (overall)
4
9
23
15
Cells are coloured by rank band (red weak → green strong). Sentiment & 360° history begins 2023.