This EPFZ spin-off isn’t very wellknown, despite its market capitalisation that now exceeds 1.3 billion Swiss francs. Based in Thalwil in the canton of Zurich, U-Blox develops chips and modules designed for geolocalisation and other wireless technologies. The products are used both in mass consumer products and industrial tools.
“As smart objects gradually enter the market in the coming years, particularly self-driving cars, U-Blox is a unique long-term opportunity,” said Torsten Sauter, analyst at Kepler Cheuvreux. “It is the leading company in the geolocalisation market (ed. note: with a market share of around 45%, excluding smartphones and tablets) and a rival when it comes to other wireless solutions.”
The high added value of U-Blox’s products allows for a very significant gross margin of over 40%. But to maintain its rank at the top, U-Blox invests a substantial portion of its profits into research and development – currently 18%, according to CEO Thomas Seiler.
Despite promising outlooks, analysts are careful in the short term, particularly because the company is highly sensitive to exchange rates. A full 85% of its revenue is in dollars, but it produces products primarily in Switzerland. “This isn’t a risk-free investment,” said Sauter. “But we believe that the current share price reflects this.”