Datron AG (DE:DARG) is a technologically advanced and innovative engineering company addressing the market for high-speed milling equipment and supplies. It is currently underrepresented in international markets, which creates the prospect for incremental growth. Sales of replacement tools for its own and third-party machines are another source of potential revenue growth. This should drive restoration in profit margins to pre-crisis levels of near 10% at EBIT level attained in 2011 and beyond.
Core CNC HSM machine business drives growth
The core business in computer numerically controlled (CNC) high-speed milling (HSM) machines continues to enjoy robust growth. Datron is especially strong in systems to machine aluminium with small tools. In 2011-16 it recorded revenue CAGR of 7.4%, well above the level of the broader machine tool industry (VDW 3%) and growth is being maintained as seen in the solid H117 results. International markets, which account for less than half of total sales, offer particularly good growth opportunities, which the company is actively targeting. The newly launched “next” control system represents a step change in operator interface technology.
To read the entire report Please click on the pdf File Below:
Which stock should you buy in your very next trade?
AI computing powers are changing the stock market. Investing.com's ProPicks AI includes 6 winning stock portfolios chosen by our advanced AI. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. Which stock will be the next to soar?
Unlock ProPicks AI