OSRAM

Analysis of Osram share price

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Elements that can influence the price of this asset:

Analysis N°1

First of all, we will closely follow the CSR activities of the Osram Group. Indeed, these activities could quickly enable the company to expand its global activities in emerging markets, which is one of the major challenges of the coming years.

Analysis N°2

All data relating to the regulation of this business sector or the export operations of Osram products will of course be closely monitored and taken into account.

Analysis N°3

The group's investments in research and development will also be monitored and an attempt will be made to assess the profitability/cost ratio. Indeed, if these investments are essential, the level of expenditure they entail can have an impact on the overall profitability of the company depending on the results obtained.

Analysis N°4

Finally, the direct competition of this group will have to be closely monitored with regard to the evolution of the market shares of each major player but also all other important publications and communications.

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General presentation of Osram

The German industrial group Osram is currently one of the leading manufacturers of lighting products. In addition to conventional lamps and lighting components, it manufactures specialty lamps, optoelectronic semiconductors, luminaires and LED lighting systems.

With no less than 33 production sites worldwide, Osram generates the majority of its turnover in Germany, but also in Europe, the USA and Asia-Pacific.

The Osram share price is quoted on the German market of Deutsche Boerse AG. It is also included in the calculation of the Dax 30 stock market index.

Analysis of Osram share price
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The major competitors of Osram

Siemens

Thanks to the development strategy put in place by Siemens when it created the now independent Osram subsidiary, this company has become one of the world's leading manufacturers in the lighting sector. Apart from a few small companies that do not really represent a danger, Osram has only one serious competitor in its preferred field, namely Philips.

Philips

It is indeed Philips that currently remains the leader in sales and production of light bulbs in the world and Osram has been following it closely for a few years. If you want to invest in the Osram share price, we therefore advise you to keep a close eye on the Philips group by evaluating the results of its lighting subsidiaries and comparing them with those of Osram. It is also strongly recommended that you monitor the market share of each of these two companies before making your fundamental analysis of this stock. This way, you will be better able to predict the bullish or bearish trend of this stock on the market.


The major partners of Osram

Siemens

First of all, let's recall here that Osram was originally a subsidiary of the Siemens group dedicated to lighting. Since its IPO in 2011, Osram has managed to set up some strategic partnerships in order to develop its market in the world. Here are some recent examples.

Valeo

In 2013, Osram had signed an agreement with Valeo to create a joint venture in North America. Since then, Valeo has purchased the shares held by Osram.

Innoluce

More recently, in 2017, Osram and Innoluce joined forces to create a state-of-the-art lidar sensor in the form of a micro-electromechanical system (mems). The innovative component will be offered to manufacturers of self-driving vehicles.

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The factors in favour of a rise in the Osram share price:

First of all, of course, the Osram Group is a company that has successfully expanded internationally. Today, Osram is active worldwide and has a very large customer base in more than 100 countries. This of course protects the group from the geo-economic risks of a single target area.

In view of the current ecological and environmental challenges, Osram can boast a very advantageous strategic positioning in relation to the competition. The company produces a lot of environmentally friendly lighting systems, which promise interesting long-term revenues in a growing market.

Osram is above all a very innovative technology company that invests a lot in research and development and is able to constantly bring new products to the market to meet new needs.

The Osram Group also has a strong and reliable supply chain that enables it to obtain all the resources it needs for production in a timely manner. Thanks to this quality supply, Osram can respond quickly to customer demand and have more room to manoeuvre.

The factors in favour of a drop in the Osram share price:

As we have just seen, Osram has a lot of assets that could support a bullish evolution of its stock in the future. Unfortunately, however, the company does not have only advantages and also has some shortcomings that should be known and taken into account before making any decisions. Here are Osram's two main weaknesses:

  • First of all, and if the Osram group distinguishes itself from its competitors by its recurrent innovations, we regret that this brand is not better known by consumers. Indeed, brand recall is much less important here than for some large international companies that invest more in marketing and communication.
  • Finally, the second shortcoming of the Osram group concerns its development in certain markets. Although the company operates in many countries around the world, it has difficulty positioning itself in certain markets, such as emerging markets.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

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